§ 24A05. Additional contracting authority
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 8 Pa.C.S.A. Boroughs and Incorporated TownsEffective: June 17, 2014
Effective: June 17, 2014
8 Pa.C.S.A. § 24A05
Formerly cited as PA ST 53 P.S. § 47471.3; PA ST 53 P.S. § 47405-A
§ 24A05. Additional contracting authority
(a) Additional contracting authority.--In addition to the authority provided under section 24A02 (relating to general powers), a borough that, on October 27, 2010, owned or operated electric generation or distribution facilities and a borough that is a member of a nonprofit membership corporation may contract with the nonprofit membership corporation for the following:
(h) Future power supply contract terms.--In order to carry out subsection (g), a nonprofit membership corporation which provides or offers electric power and associated energy to a member borough in this Commonwealth under subsection (a)(2) shall offer, to all of its member boroughs in this Commonwealth, future power supply contract terms, contract renewals or contract extensions under subsection (c)(3) on a comparable and nondiscriminatory basis and with similar terms and conditions to future power supply contract terms, contract renewals or contract extensions that would be appropriate under subsection (c)(3) which the nonprofit membership corporation contemporaneously offers to its members in other states.
(j) Obligations of other entities.--If explicitly set forth in a contract under subsection (a)(2), a borough may agree to assume, prorate or otherwise become liable for the obligations of another borough of this Commonwealth or of a political subdivision of another state that is a member of the nonprofit membership corporation if the borough or other political subdivision defaults in the payment of its obligations for the purchase of the electric power and associated energy. The contract may include provisions to permit a borough to succeed to the rights and interests of the defaulting borough or political subdivision to purchase electric power and associated energy. A borough's liability for the obligations of a defaulting borough of this Commonwealth or a political subdivision of another state shall not exceed 25% of a borough's initial nominal entitlement to electric power and associated energy under the contract.
(k) Pledge of borough property prohibited.--None of the obligations under the contract may constitute a legal or equitable pledge, charge, lien or encumbrance on any property of the borough or on any of its income, receipts or revenues, except revenues of its electric system. The full faith and credit and the taxing power of the borough shall not be pledged for the payment of an obligation under the contract.
Credits
2014, April 18, P.L. 432, No. 37, § 1, effective in 60 days [June 17, 2014].
8 Pa.C.S.A. § 24A05, PA ST 8 Pa.C.S.A. § 24A05
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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