Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 12720.208. Authority's financial assistance to cities

(a) Loans.--Provided the authority has entered into an intergovernmental cooperation agreement with a city and there is an approved financial plan in effect, the authority may render financial assistance to the city in the form of loans and grants from authority funds, including proceeds from bonds, and the city may borrow or receive such funds for any lawful purpose.  However, if the authority has not entered into an intergovernmental cooperation agreement with a city or if there is not an approved financial plan in effect, the authority shall not render financial assistance to the city except for any amounts necessary to enable such city to pay principal of or interest on its outstanding bonds, or lease payments securing bonds of other government agencies, as provided for in section 209(a). 1  Loans and grants authorized by this section shall be made on such terms and conditions as a qualified majority of the board shall approve.

(b) City pledge.--A city may pledge any available source of revenue to secure payments due to the authority under any agreement with the authority, including an intergovernmental cooperation agreement.  Any pledge of revenues made by a city for these purposes, including, without limitation, a pledge of tax revenues, shall be binding and enforceable upon such city and its governing body for as long as any agreement secured by such pledge remains outstanding.  A city shall take no action during the term of such agreement, or so long as bonds secured by payments under such agreement are outstanding, that would transfer for another purpose or reduce pledged revenues, or take any other action which would impair the rights of the authority or obligees of the authority.

(c) Additional city appropriations.--A city that receives a loan or grant from the authority after such city has adopted its operating budget may, at any time during the course of a fiscal year, make additional appropriations to the extent of the proceeds of such loan or grant received or to be received by such city in such fiscal year.