Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 3919.311. Capital Debt Fund; investments; redemption of bonds

(a) Capital Debt Fund.--Bonds issued under this chapter shall be paid at maturity. Interest due after July 1, 1968, on bonds and on notes issued under this chapter shall be paid by the State Treasurer from the Capital Debt Fund. The General Assembly shall appropriate annually the money necessary to pay the interest on the bonds and notes and the principal of the bonds and notes at maturity if no other provision is made. Money appropriated shall be paid into the Capital Debt Fund by the State Treasurer.

(b) Investment.--Money received under subsection (a) prior to the date for disbursement shall be invested by the State Treasurer pending disbursement in securities as are provided by law for the investment of surplus money of the Commonwealth. The investment and the accumulations in the Capital Debt Fund shall be devoted to and be used exclusively for the payment of the interest accruing on the bonds and notes and for the redemption of the bonds and notes at maturity or upon the redemption date if called for prior redemption. The State Treasurer is authorized to use such funds for the purchase and retirement of all or any part of the bonds issued under this chapter; but no purchase may be made which will reduce the money in the Capital Debt Fund below the amount necessary to pay all principal and interest still to become due in the fiscal year of the purchase. If all or any part of any bonds issued under this chapter are purchased by the Commonwealth, they shall be canceled and returned to the State Treasurer as canceled and paid bonds. Thereafter, all payment of interest on the bonds shall cease; and the canceled bonds and coupons shall be destroyed in accordance with the act of April 27, 1925 (P.L. 319, No. 180),  1 entitled, “An act relating to the destruction of cancelled or unused bonds or other evidences of indebtedness of this Commonwealth.”