Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 11701.301. Program

(a) Establishment.--There is hereby established within the department a program to provide emergency grants and loans to municipalities declared to be distressed in accordance with this act and to provide for contracts for plan coordinators.

(b) Nature of loans.--All loans granted by the department shall be free from interest and repayable according to a covenant setting forth a schedule for repayment in amounts and on dates specified in the covenant, which schedule shall conform with a plan adopted and implemented under this act.

(c) Revolving fund.--There is hereby created in the State Treasury the Municipalities Financial Recovery Revolving Aid Fund.  Repayment of principal on all loans made under this act shall be deposited in the fund.  Any interest earned on moneys in this fund shall be deposited in the fund.  All moneys in the fund may be used to make loans and grants for the purposes of this act.