Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 11701.303. Limitations

(a) Use.--A loan or grant given to a financially distressed municipality under this act shall be used solely for the payment of current expenses of the municipality.  Current expenses so paid shall not constitute “debt” or “unfunded debt” as defined in the act of July 12, 1972 (P.L. 781, No. 185),  1 known as the Local Government Unit Debt Act, and shall not be subject to the provisions of that act.  A consultant contract shall be issued from the fund only to employ plan coordinators or consultants to supply plan coordinators.

(b) Eligibility.--Cities of the first and second class and counties may not apply for a grant or loan under this act.

(c) Amount.--The secretary shall not approve an application to any one municipality for an amount which will substantially impair the department's ability to distribute the remaining sum fairly and equitably to other applicants or potential applicants.