Learn About the Law
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Current as of January 01, 2022 | Updated by FindLaw Staff
In connection with the issuance of bonds and in order to secure the payment of such bonds, the authority, in addition to its other powers, shall have the power to:
(1) pledge or grant a security interest in all or any part of its gross or net revenues, including the proceeds of any tax levied for the purposes of or made available for use by the authority, to which its right then exists or which may thereafter come into existence;
(2) grant a security interest in all or any part of its personal property then owned or thereafter acquired;
(3) covenant against pledging or granting a security interest in all or any part of its revenues or all or any part of its personal property to which its right or title exists or may thereafter come into existence, or against permitting or suffering any lien on such revenues or property; covenant with respect to limitations on its right to sell, lease or otherwise dispose of any of its real property; and covenant as to which other or additional debts or obligations may be incurred by it;
(4) covenant as to the bonds to be issued and as to the issuance of such bonds, in escrow or otherwise, and as to the use and disposition of the proceeds thereof; provide for the replacement of lost, destroyed or mutilated bonds; covenant against extending the time for the payment of bonds or interest thereon; redeem the bonds, and covenant for their redemption and provide the terms and conditions thereof;
(5) covenant as to the amount of revenues to be received in each fiscal year or other period of time by the authority, as well as to the use and disposition to be made thereof, create or authorize the creation of special funds or reserves for debt service or other purposes and covenant as to the use and disposition of the moneys held in such funds;
(6) prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, and the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given;
(7) covenant as to the use of any or all of its real or personal property, to warrant its title, and covenant as to the maintenance of its real and personal property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance proceeds;
(8) covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation, provided that the authority shall not be permitted to covenant that upon such breach any or all of its bonds shall become or may be declared due before stated maturity;
(9) vest in a trustee or the holders of bonds, or any proportion of them, the right to enforce the payment of the bonds or any covenants securing or relating to the bonds; vest in a trustee the right, in the event of default in payments of interest or on principal of bonds by the authority, to take possession and use, operate and manage any real or personal property and to collect the revenues and receipts of an authority and to dispose of such moneys in accordance with the agreement of the authority with the trustee; provide for the powers and duties of a trustee and to limit liabilities thereof; and provide the terms and conditions upon which a trustee or the holders of bonds, or any proportion of them, may enforce any covenant or rights securing or relating to the bonds;
(10) enter into interest rate exchange agreements, interest rate cap and floor agreements and other similar agreements which in the judgment of the authority will assist the authority in managing the interest costs of the authority;
(11) obtain letters of credit, bonds insurance and other facilities for credit enhancement and liquidity; and
(12) exercise all or any part or combination of the powers granted in this act, make covenants other than and in addition to the covenants expressly authorized by this act, make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds or, in the absolute discretion of the authority, as will tend to accomplish the purposes of this act, by making the bonds more marketable notwithstanding that such covenants, acts or things may not be specifically enumerated by this act.
Notwithstanding any provision of this act to the contrary, the real property of the authority shall not be mortgaged and shall not be subject to attachment nor levied upon by execution or otherwise. The revenues of the authority and the personal property of the authority shall be pledged or otherwise encumbered only as expressly provided in this section and, except to the extent necessary to effectuate such pledge or encumbrance, shall not be subject to attachment nor levied upon by execution or otherwise.
Cite this article: FindLaw.com - Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 12720.304. Provisions of bonds; trust indentures - last updated January 01, 2022 | https://codes.findlaw.com/pa/title-53-ps-municipal-and-quasimunicipal-corporations/pa-st-sect-53-12720-304/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Search our directory by legal issue
Enter information in one or both fields (Required)