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§ 1603-D. Assistance to municipalities

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: July 18, 2013

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 1. The Fiscal Code (Refs & Annos)
Article XVI-D. Local Government Capital Project Loan Fund
Effective: July 18, 2013
72 P.S. § 1603-D
§ 1603-D. Assistance to municipalities
Currentness
(a) The department is hereby authorized, upon application of a municipality, to make loans to the municipality for the following purposes and in the following amounts:
1. Purchasing equipment. The amount of a loan made for purchasing equipment shall not exceed fifty thousand dollars ($50,000) for any single piece of equipment or fifty per centum of the total cost of the piece of equipment, whichever is less.
2. Purchasing, constructing, renovating or rehabilitating facilities. The amount of a loan made for purchasing, constructing, renovating or rehabilitating facilities shall not exceed one hundred thousand dollars ($100,000) for any single facility or fifty per centum of the total cost for purchasing, constructing, renovating or rehabilitating the facility, whichever is less.
(b) Loans made by the department for the purchase of equipment shall be for a period not to exceed the useful life of the equipment, and loans made for the purchase, construction, renovation or rehabilitation of facilities shall be for a period of not more than fifteen years. Loans shall be subject to the payment of interest at two per centum per annum and shall be subject to such security as shall be determined by the department. The total amount of interest earned by the investment or reinvestment of all or any part of the principal of any loan shall be returned to the department and transferred to the fund and shall not be credited as payment of principal or interest on the loan. The minimum amount of any loan shall be one thousand dollars ($1,000). The municipality shall comply with the approval requirements of 53 Pa.C.S. Ch. 80 Subch. C (relating to procedure for securing approval of electors).1
(c) Every application for a loan under this article shall be accompanied by a financial statement of the municipality and a financial plan to show how the loan will be repaid. Every application shall be accompanied by evidence sufficient to show that all costs, except the amount of the loan, will be met by assets or revenues of the municipality, grants or loans from other sources or in-kind contributions or services.
(d) Loans under this article shall be used for purchasing equipment and for purchasing, constructing, renovating or rehabilitating facilities and shall not be used for operating expenses or for the refinancing or reduction of any debt or obligation incurred prior to the effective date of this article.
(e) Loans made by the department shall be paid from the fund to municipalities in accordance with rules and regulations promulgated by the department.
(f) All payments of interest on loans and the principal thereof shall be deposited by the department in the fund.

Credits

1929, April 9, P.L. 343, No. 176, Art. XVI-D, § 1603-D, added 1997, Oct. 6, P.L. 387, No. 46, § 3, retroactive effective June 30, 1997. Amended 2006, July 5, P.L. 296, No. 66, § 1, imd. effective; 2013, July 18, P.L. 574, No. 71, § 10.1, imd. effective.

Footnotes

1
53 Pa.C.S.A. § 8041 et seq.
72 P.S. § 1603-D, PA ST 72 P.S. § 1603-D
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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