Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 1603-A. Payment of proceeds

(a) The proceeds derived from the issuance of notes issued for a purpose other than the repayment of a prior issue or issues of notes or negotiation of loans under the provisions of this article shall be paid respectively and proportionally into the General Fund of the State Treasury or into the Motor License Fund, or into both funds, and shall be used for the payment of appropriations made from such funds to defray the current and other expenses of the State government for the current fiscal period and, if the proceeds or part of the proceeds so derived are paid into the Motor License Fund, such fund shall pay its proportionate share of the cost and interest charges involved in said loans.

(b) The proceeds of replacement notes may, at the direction of the State Treasurer, be deposited in trust in a special fund held by a duly authorized issuing and paying agent and, in such case, shall be applied thereby to the repayment of principal and interest, if any, due on the issue or issues of notes being refunded and thereafter to the payment of costs and expenses of issuance of said notes.

(c) Any issue of notes or replacement notes may include as a part of the principal amount thereof an amount equal to the interest to become due thereon and an amount necessary to pay the costs and expenses of issuance thereof (including the costs associated with any agreements related thereto).  Any issue of replacement notes may be in a principal amount sufficient to repay the principal and interest, if any, due on the issue or issues of notes being refunded.