2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 75 - VEHICLES › Chapter 95 - Taxes for Highway Maintenance and Construction › Section 9511.4 - Special revenue bonds and preliminary or interim financing

§ 9511.4. Special revenue bonds and preliminary or interim financing.
(a) Authorization.--
The commission is authorized to provide, by resolution, for the issuance of special revenue bonds of the commission up to an aggregate principal amount not exceeding $5,000,000,000, exclusive of original issue discount, for the purpose of paying the cost of the department and bond-related expenses. The resolution must recite an estimate of the cost of the department. No more than $600,000,000 in aggregate principal amount of special revenue bonds, exclusive of original issue discount, may be issued in any calendar year. No bond may be issued and outstanding under this section unless the lease agreement authorized under section 8915.3 (relating to lease of Interstate 80; related agreements) is in effect as of the date of issuance. No bond may be outstanding beyond the term of the lease. Special revenue refunding bonds as set forth in section 9511.9 (relating to special revenue refunding bonds) shall not be deemed to count against the total or annual maximum issuance volume. The principal and interest of the bond shall be payable solely from pledged revenues.
(b) Form.--
(1) A bond may be issued in registered form.
(2) A bond:
(i) must be dated;
(ii) must bear interest at a rate not exceeding the rate permitted under applicable law;
(iii) must be payable semiannually or at other times as set forth in the resolution of the commission authorizing the issuance of the bonds;
(iv) must mature, as determined by the commission, no later than 40 years from the date of the bond; and
(v) may be made redeemable before maturity, at the option of the commission, at a price and under terms and conditions fixed by the commission prior to the issuance of the bonds.
(c) Issuance.--
(1) The commission may sell bonds at public or private sale and for a price it determines to be in the best interest of the Commonwealth.
(2) Bonds may be issued in series with varying provisions as to all of the following:
(i) Rates of interest, which may be fixed or variable.
(ii) Other provisions not inconsistent with this chapter.
(d) (Reserved).
(e) Payment.--
(1) The principal and interest of the bonds may be made payable in any lawful medium.
(2) The commission shall:
(i) determine the form of bonds; and
(ii) fix:
(A) the denomination of the bond; and
(B) the place of payment of principal and interest of the bond, which may be at any bank or trust company within or without this Commonwealth.
(f) Signature.--
The bond must bear the manual or facsimile signature of the Governor and of the chairman of the commission. The official seal of the commission or a facsimile of the official seal shall be affixed to or printed on the bond and attested by the secretary and treasurer of the commission. If an officer whose signature or facsimile of a signature appears on a bond ceases to be an officer before the delivery of the bond, the signature or facsimile shall nevertheless be valid and sufficient for all purposes as if the officer remained in office until delivery.
(g) Negotiability.--
A special revenue bond issued under this chapter shall have all the qualities and incidents of a negotiable instrument under 13 Pa.C.S. Div. 3 (relating to negotiable instruments).
(h) Proceeds.--
The proceeds of a bond shall be used solely for the following:
(1) Payment of the cost of the department.
(2) Bond-related expenses.
(i) Temporary bonds.--
Prior to the preparation of definitive bonds, the commission may, under similar provisions as those applicable to the definitive bonds, issue temporary bonds, exchangeable for definitive bonds upon the issuance of definitive bonds.
(j) (Reserved).
(k) Status as securities.--
(1) A bond is made a security in which any of the following may properly and legally invest funds, including capital, belonging to them or within their control:
(i) Commonwealth and municipal officers.
(ii) Commonwealth agencies.
(iii) Banks, bankers, savings banks, trust companies, saving and loan associations, investment companies and other persons carrying on a banking business.
(iv) Insurance companies, insurance associations and other persons carrying on an insurance business.
(v) Fiduciaries.
(vi) Other persons that are authorized to invest in bonds or other obligations of the Commonwealth.
(2) A bond is made a security which may properly and legally be deposited with and received by a Commonwealth or municipal officer or a Commonwealth agency for any purpose for which the deposit of bonds or other obligations of the Commonwealth is authorized by law.
(l) Borrowing.--
The following shall apply:
(1) The commission is authorized to do all of the following:
(i) Borrow money at an interest rate not exceeding the rate permitted by law.
(ii) Provide for preliminary or interim financing up to, but not exceeding, the estimated total cost of the department and bond-related expenses and to evidence the borrowing by the issuance of special revenue notes and, in its discretion, to pledge as collateral for the note or other obligation a special revenue bond issued under the provisions of this chapter. The commission may renew the note or obligation, and the payment or retirement of the note or obligation shall be considered to be payment of the cost of the project.
(2) A note or obligation issued under this subsection must contain a statement on its face that:
(i) the Commonwealth is not obligated to pay the note or obligation or interest on it, except from pledged revenues; and
(ii) neither the faith and credit nor the taxing power of the Commonwealth is pledged to the payment of its principal or interest.
(July 18, 2007, P.L.169, No.44, eff. imd.)
2007 Amendment.
Act 44 added section 9511.4.