Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 4040. Approval or disapproval of mortgage

Upon the receipt of said report the Auditor General shall either approve or disapprove the giving of such mortgage;  provided he shall not approve the giving of any mortgage, for the purpose of making improvements, unless the Board of Public Charities   1 has found the improvements to be necessary and proper;  nor shall he approve the giving of any mortgage, the amount whereof is in excess of fifty per centum of the fair market value of the property to be covered thereby;  and provided further, in approving the giving of any mortgage, for the purpose of making improvements, he may require a bond for the erection and completion of said improvements.  If the giving of such mortgage be approved, the Auditor General shall issue to the applicant his certificate of approval;  and thereafter such mortgage, with all the rights and privileges hereof, may be executed and delivered.  Every mortgage so delivered shall contain a recital of the approval, as aforesaid, and the purchaser of any bond or other obligation secured thereby shall not be responsible for the faithful application of the proceeds.