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§ 377. Purposes and powers; bonds

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 73 P.S. Trade and Commerce

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 73 P.S. Trade and Commerce (Refs & Annos)
Chapter 12. Economic Development Financing Law (Refs & Annos)
73 P.S. § 377
§ 377. Purposes and powers; bonds
(a) An authority shall have the power to issue bonds for any of its corporate purposes, provided, however, the principal, interest and other charges thereon are payable solely and exclusively (i) from revenues received from the project applicant or project user or from the income, revenues and property of the project financed, in whole or in part, with the proceeds of such bonds; (ii) from the income and revenues of certain designated projects whether or not they were financed, in whole or in part, with the proceeds of such bonds; or (iii) from its revenues generally.
(b) The bonds of any authority shall be authorized by resolution of the board thereof, shall be of such series, bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or fully registered without coupons, carry such registration, exchangeability and interchangeability privileges, be payable in any medium of payment and at such place or places and at such time or times, be subject to such terms of redemption, with or without premium, and be entitled to such priorities in the revenues or receipts of such authority as such resolution or resolutions may provide. The bonds shall be signed by or shall bear the facsimile signature of such officers as the authority shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the authority, all as may be prescribed in such resolution or resolutions. Any such bonds may be issued and delivered, notwithstanding that one or more of the officers signing such bonds or the treasurer whose facsimile signature shall be upon the coupon, shall have ceased to be such officer or officers at the time when such bonds shall actually be delivered. Said bonds may be sold at public or private sale for such price or prices as the authority shall determine. Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of such bonds, and may contain such terms and conditions as the authority may determine. Any bond reciting in substance that it has been issued by an authority to aid in the financing of a project to accomplish the public purposes of this act shall be conclusively deemed in proceedings involving the validity or enforceability of such bond or security therefor, to have been issued for such purpose.
(c) Any resolution or resolutions authorizing any bonds may contain provisions which shall be part of the contract with the holders thereof, as to (i) pledging the full faith and credit of the authority (but not of the Commonwealth of Pennsylvania or any political subdivision thereof) for such obligations, or restricting the same to all or any of the assets or to all or any of the revenues or receipts of the authority from all or any projects or properties; (ii) the acquisition of the project and the duties of the authority and the project applicant or project user with reference thereto; (iii) the terms and provisions of the bonds; (iv) limitations on the purposes to which the proceeds of the bonds then or thereafter to be issued, or of any loan or grant by a Federal agency may be applied; (v) the rentals and other charges for use or sale of, or loan payments for the financing of, the project; (vi) the setting aside of reserves or sinking funds and the regulation and disposition thereof; (vii) limitations on the issuance of additional bonds; (viii) the terms and provisions of any deed of trust, mortgage or indenture securing the bonds, or under which the same may be issued, and (ix) any other or additional agreements with the holders of the bonds.
(d) Any authority may enter into any deeds of trust, indentures, mortgages, or other agreements, with any bank or trust company, including any Federal agency, as security for such bonds, and may assign and pledge the assets or all or any of the revenues or receipts of the authority thereunder. Such deed of trust, indenture, mortgage or other agreement, may contain such provisions as may be customary in such instruments, or as the authority may authorize, including (but without limitation) provisions as to (i) the acquisition of any project and the duties of the authority and the project applicant or project user with reference thereto; (ii) the application of funds and the safeguarding of funds on hand or on deposit; and (iii) the rights and remedies of the trustee and the holders of the bonds, (which may include restrictions upon the individual right of action or such bondholders); and (iv) the terms and provisions of the bonds or the resolutions authorizing the issuance of the same.
No bonds shall be issued and sold until the secretary shall have first determined, based on the application material submitted, that the project and the financing thereof are in apparent conformity with this act and any regulations, statements of policy, guidelines or rulings promulgated pursuant to this act. If the project and financing thereof are found to be in conformity with this act and any regulations, statements of policy, guidelines and rulings promulgated thereunder, then the secretary shall, within twenty days after receipt thereof, approve the same and certify his approval to the authority. The decision of the secretary shall be final.
(e) A pledge of revenues, receipts, moneys, funds or other property or instruments made by an authority shall be valid and binding from the time when the pledge is made. The revenues, receipts, moneys, funds or other property pledged and thereafter received by an authority shall be immediately subject to the lien of the pledge without the physical delivery of the revenues, receipts, moneys, funds or other property or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority irrespective of whether the parties have notice of the lien. No instrument by which a pledge under this section is created, evidenced or noticed need be filed or recorded except in the records of the authority.
(f) Whether or not the bonds are of a form and character as to be negotiable instruments under the terms of 13 Pa.C.S. (relating to commercial code), the bonds are made negotiable instruments within the meaning of and for the purposes of 13 Pa.C.S., subject only to the provisions of the bonds for registration.
(g) The secretary is authorized to issue rulings pertaining to the interpretation of the provisions of this act, which rulings may be relied upon by an authority or the financing authority. All rulings issued by the secretary shall be published in the Pennsylvania Bulletin. The secretary may promulgate such regulations as he may deem necessary to carry out the purposes of this act.

Credits

1967, Aug. 23, P.L. 251, § 7. Amended 1971, Dec. 29, P.L. 647, No. 171, § 3; 1972, Dec. 29, P.L. 1675, No. 359, § 3; 1975, Dec. 19, P.L. 576, No. 165, § 6, imd. effective; 1993, Dec. 17, P.L. 490, No. 74, § 8, imd. effective.
73 P.S. § 377, PA ST 73 P.S. § 377
Current through the end of the 2023 Regular Session. Some statute sections may be more current, see credits for details.
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