Pennsylvania Statutes Title 24 P.S. Education § 6901.505. Sale of college savings bonds

(a) General rule.--College savings bonds may be sold at competitive or negotiated sale, as directed by the issuing officials, for prices as the issuing officials shall determine. However, a negotiated sale shall be authorized only upon a determination by the issuing officials that a negotiated sale will result in either a more efficient sale of college savings bonds or greater access to the bonds by investors who are residents of this Commonwealth. Prior to the initial sale of the college savings bonds, the issuing officials shall develop a plan that will insure purchasing access to the individual investor as well as equitable geographic availability to all citizens of this Commonwealth.

(b) Subscriptions.--Whether college savings bonds are sold by competitive or negotiated sale, the issuing officials may direct the State Treasurer, the agency, a department or agency under the jurisdiction of the Governor, or may enter into any agreement or agreements with banks, trust companies or other firms capable of performing such duties, to accept subscriptions and payments for the purchase of college savings bonds. At the option of the issuing officials, the subscriptions shall be filled by the college savings bond underwriters, or the issuing officials shall sell bonds to subscribers residing in this Commonwealth at market prices and rates of accretion as the issuing officials shall establish.

(c) Accretion rates.--College savings bonds may bear a fixed or variable accretion rate. To the extent variable rate debt is issued, the issuing officials are empowered to enter into contractual arrangements with third parties, whereby such parties agree to absorb accretion rate risk in exchange for assuming a fixed-rate payment schedule or other consideration pursuant to accretion rate swaps, hedges and other financial devices, in order to reduce accretion rate risk to the Commonwealth. No agreement or arrangement with third parties to absorb accretion rate risk as described in this subsection shall be entered into unless, in the judgment of the State Treasurer, adequate provision has been made to collateralize or otherwise protect the ability of the Commonwealth to realize its interests under the agreement or arrangement consistent with the provisions of the act of April 9, 1929 (P.L. 343, No. 176), known as The Fiscal Code.  1