Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 1805-A. Issuance of bonds, pledge, service agreement and security

(1) The authority, the Commonwealth Financing Authority and the department may enter into an agreement or service agreement to effectuate this article, under which the department and the Commonwealth Financing Authority shall agree to pay the bond obligations and bond administrative expenses to the authority in each fiscal year that the bonds or refunding bonds are outstanding in amounts sufficient to timely pay in full the bond obligations, bond administrative expenses and any other financing costs due on the bonds issued for the purposes specified in this article.

(2) The department's and the Commonwealth Financing Authority's payment of bond obligations, bond administrative expenses and other financing costs due on the bonds as service charges under an agreement or service agreement shall be subject to and dependent upon the appropriation of funds by the General Assembly to the department and the Commonwealth Financing Authority for payment of the service charges.  The service agreements may be amended or supplemented by the authority, the Commonwealth Financing Authority, and the department in connection with the issuance of a series of bonds or refunding bonds authorized under this section.

(1) Money relating to the bonds held on deposit in any other fund or account under an instrument or agreement pertaining to the bonds, including bond reserves and interest income on the money.

(2) The security provided under this subsection shall not apply to money in any fund relating to arbitrage rebate obligations.