Pennsylvania Statutes Title 24 P.S. Education § 6-683-A. Limitations

(a) Use.--A loan to a school district under this subdivision shall be used solely to implement the components of the financial recovery plan, including the payment of current expenses of the school district as identified in the financial recovery plan.

(b) Local Government Unit Debt Act.--A loan to a school district under this subdivision shall not be subject to, and shall be subordinate to indebtedness incurred under, the provisions of 53 Pa.C.S. Pt. VII Subpt. B  1 (relating to indebtedness and borrowing).

(c) Amount.--The aggregate amount of loans awarded to school districts under this subdivision shall not at any time exceed the amount in the Financial Recovery School District Transitional Loan Account.

(d) Number of loans.--A school district eligible for a loan under this subdivision shall receive a maximum of one loan per fiscal year.

(e) Withholding not applicable.--A school district's failure to make timely payment of principal on a loan issued under this subdivision shall not subject the school district to withholding of unpaid amounts from State appropriations under section 633.  2