Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 12720.301. Bonds

(a) Authorization.--The bonds of the authority shall be authorized by resolution of the board by vote of a qualified majority and shall be of such series, bear such date or dates, bear or accrue interest at such rate or rates as shall be determined by the board as necessary to issue and sell the authorized bonds, be in such denominations, be in such form, either coupon or fully registered without coupons or in certificated or book-entry-only form, carry such registration, exchangeability and interchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption and be entitled to such priorities of payment in the revenues or receipts of the authority as such resolution or resolutions of the board may provide.  The bonds shall be signed by or shall bear the facsimile signatures of such officers as the board shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the authority, and all bonds shall be authenticated by an authenticating agent, fiscal agent or trustee, all as may be prescribed in such resolution or resolutions.  Any such bonds may be issued and delivered notwithstanding that one or more of the officers signing such bonds or the treasurer whose facsimile signature shall be upon the coupon, or any thereof, shall have ceased to be such officer or officers at the time when such bonds shall actually be delivered.

(b) Maturity date.--

(c) Sale.--Bonds may be sold at public sale or invited sale for such price or prices and at such rate or rates of interest as the authority shall determine.  Bonds may be sold at private sale by negotiation at such price or prices and at such rate or rates of interest as the authority shall determine, but only if the authority makes a written public explanation of the circumstances and justification for the private sale by negotiation.  Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of such bonds and may contain such terms and conditions as the authority may determine.

(d) Negotiable instruments.--Bonds of an authority shall have the qualities of negotiable instruments under 13 Pa.C.S. (relating to commercial code).

(e) Use of proceeds.--The proceeds of an issue of bonds may be used to pay the costs of issuance of such bonds, to pay costs of administration of authority assistance to a city, to fund reserves for such bonds, to capitalize interest on such bonds for a period not to exceed 12 months, to fund an existing or projected deficit of a city or to provide for other financial assistance to a city, to finance any cash flow deficit of a city or of the authority or to purchase any obligations of a city issued to finance cash flow deficits or to pay the costs of capital projects;  provided that the authority shall not issue bonds to finance the costs of a capital project in and for an assisted city unless it receives the request described in subsection (g).

(f) Refunding.--Subject to the provisions of the outstanding bonds, notes or other obligations issued under this or other acts and subject to the provisions of this act, the authority shall have the right and power to refund any outstanding debt of the authority or a city, whether such debt represents principal or interest, in whole or in part, at any time.  The term “refund” and its variations shall mean the issuance and sale of obligations the proceeds of which are used, or are to be used, for the payment or redemption of outstanding obligations upon or prior to maturity.  The term of any bonds issued for refunding purposes shall not extend to a maturity date which could not have been included in the original issue of bonds being refunded.

(g) City request prerequisite.--The authority shall not issue any bonds except bonds to refund its bonds, unless it has received a request from a city for such issuance executed by the mayor or chief executive officer of such city and approved by the governing body of such city by resolution.