Pennsylvania Statutes Title 24 P.S. Education § 7-785. Failure to pay rent or make payments; withholding appropriation

(a) In all cases where the board of directors of any school district fails to pay or to provide for the payment of any rental, payment or rentals or payments due the State Public School Building Authority for any period in accordance with the terms of any lease, loan agreement or other lending instrument or contract, entered into under the terms of subdivision (f) of this article, upon written notice thereof from the Authority, the Secretary of Education shall notify such board of school directors of its obligation and shall withhold out of any State appropriation due such school district an amount equal to the amount of the rental, payment or rentals or payments owing by such school district to the State Public School Building Authority and shall pay over the amount so withheld to the Authority in payment of the rental or payment.

(b) In order to provide additional security for the prompt payment in full of any rentals or loan contract payments by school districts to the State Public School Building Authority, the school district for whom the State Public School Building Authority has issued its bonds, notes or other obligations is authorized to enter into an agreement with the State Treasurer which provides for the withholding of any State appropriation due such school district and the payment directly to the State Public School Building Authority in full satisfaction of such rentals or loan contract payments due from the school district during the fiscal year.