reglab/statecodes huggingface dataset:
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8147 - Pledge of revenues

§ 8147. Pledge of revenues.
The governing body of any local government unit which has determined to issue any revenue bonds or notes or any guaranteed revenue bonds or notes may provide by ordinance for such pledges of or priorities in such rentals, revenues, receipts, rates and charges to be received from projects of the issuing local government unit as may be desirable. The pledge or priority shall be perfected as a security interest against all creditors of the local government unit and all third parties, in accordance with the terms of the ordinance, from and after the filing of a financing statement or statements in accordance with Title 13 (relating to commercial code). For the purpose of filing, the sinking fund depository may act as representative of the bond or note holders and, in that capacity, execute and file the financing statement and any continuation or termination statements as secured party.
Cross References.
Section 8147 is referred to in sections 8103, 8105, 8282 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8149 - Negotiable qualities of bonds and notes

§ 8149. Negotiable qualities of bonds and notes.
(a) Securities.--
Bonds or notes issued pursuant to this subpart, including tax anticipation notes, which have all the qualities and incidents of securities under Title 13 (relating to commercial code), shall be negotiable instruments.
(b) Commercial paper.--
Such bonds and notes issued pursuant to this subpart which are not securities shall have all the qualities and incidents of commercial paper under Title 13 and shall be negotiable instruments notwithstanding any references in them to the terms of the authorizing bond ordinance or any trust indenture, deed of trust or other agreement, or any variations in the rate of interest provided in the note, or any limitation upon the funds from which or limitations as to the bonds with which the notes may be paid or any restriction upon the remedies of the holders.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8150 - Temporary bonds or notes or interim receipts

§ 8150. Temporary bonds or notes or interim receipts.
Pending the preparation of definitive bonds or notes, including tax anticipation notes, temporary bonds or notes or interim receipts may be issued in such form and containing such terms and such provisions for exchange for definitive bonds or notes as the local government unit may determine.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8161 - Manner of sale of bonds or notes

§ 8161. Manner of sale of bonds or notes.
(a) General rule.--
Except as otherwise specifically provided in this subpart and subject to subsection (b), bonds or notes may be sold at public or private sale by negotiation or upon invitation and at the price the governing body of the issuing local government unit shall determine. Before making any private sale by negotiation of bonds or notes, the governing body shall adopt a resolution finding that a private sale by negotiation is in the best financial interest of the local government unit. Bonds or notes may be conditionally sold before the final details of the series are fixed.
(b) Public sale.--
Bonds or notes, if sold at public sale, shall be sold to the highest responsible bidder or bidders after one public notice by advertisement of either the official notice of sale, or of the availability of the official notice of sale, in at least one and not more than two newspapers of general circulation in the county in which the local government unit is located. The advertisement may also be published in a financial journal circulating among the underwriters of securities. Advertisements shall be published not less than ten nor more than 30 days prior to the date fixed for opening proposals and need not appear on the same date nor successively in each newspaper or journal.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8163 - Proposals for purchase

§ 8163. Proposals for purchase.
Every bid or proposal for bonds or notes shall be in writing, shall be properly executed and, in the case of public sale, shall be placed in a sealed envelope sufficiently labeled to indicate that it is a bid or proposal for the bonds or notes being sold, before being delivered to the officer designated to receive it or to an authorized delegate.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8164 - Opening of bids

§ 8164. Opening of bids.
In the case of public sale, at the time and place fixed in the notice, the bids or proposal received shall be publicly opened by the designated officer or his authorized delegate and publicly read aloud unless the governing body determines to return all bids unopened.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8165 - Determination of highest and best bid

§ 8165. Determination of highest and best bid.
(a) General rule.--
The highest responsible bidder shall be the one who, having complied with the terms of the official notice of sale, offers to take all of the bonds or notes or any separate lot thereof on which separate bids may be made at the lowest net interest cost to the local government unit, or, if required by the terms of any agreement with the Federal Government or the Commonwealth or any agency of either of them, the highest responsible bidder shall be the one bidding in conformity with the requirements for the successful bidder stipulated in the agreement. The net interest cost shall be computed in accordance with section 8169 (relating to determination of net interest cost and net interest rate).
(b) Tie bids.--
If two or more proposals are found to be the highest and best bids on identical terms conforming to the offering, the bonds or notes shall with the consent of the bidders be awarded to them jointly or absent such consent may be awarded to any one of the bidders selected by lot in any manner deemed fair by the local government unit.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8166 - Required bid security

§ 8166. Required bid security.
In the case of public sale, bid security shall be given by each bidder, shall be in cash or by certified or official bank check payable to the local government unit and shall be not less than 2% of the principal amount of the bonds or notes to be purchased. The bid security of the unsuccessful bidder or bidders shall be returned to each unsuccessful bidder, without interest, in accordance with written instructions of the bidder conforming to the official notice of sale, promptly upon an award of the bonds or notes or upon the rejection of all bids. The bid security of the successful bidder shall be retained by the treasurer of the local government unit and, with or without allowance for interest as the official notice of sale may specify, shall be applied on the purchase price when the bonds or notes are actually delivered and paid for, retained as liquidated damages if the bidder defaults or returned to the bidder with interest at the judgment rate if, after an acceptance of the proposal, the bonds or notes are not issued for any reason not constituting a default by the bidder. Unless required by the local governing body, no bid security shall be required in the case of tax anticipation notes, bond anticipation notes or notes to be issued under section 8109 (relating to small borrowing for capital purposes).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8167 - Reserved right to reject bids

§ 8167. Reserved right to reject bids.
Every official notice of sale of bonds or notes shall provide that the right is reserved to the governing body of the local government unit to reject all bids or proposals, but, in a case where conforming bids have been received, opened and rejected, any subsequent sale within a period of two calendar months of bonds or notes in substantially the same amount and for the same purpose must be a public sale to be held at such later time as the governing body may determine to be advantageous.
Cross References.
Section 8167 is referred to in section 8162 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8168 - Failure to receive conforming bid

§ 8168. Failure to receive conforming bid.
If bonds or notes are advertised for public sale and no conforming bid is received or if all bids are returned unopened, then the local government unit may cancel the sale and devise a new series for sale or, in the alternative, it may sell the series parts from time to time during the ensuing six months at private sale in accordance with the terms originally advertised with any changes in call price or dates of call for prior redemption or both as may be deemed desirable. After the six-month period, the local government unit may sell any unsold portion of the series in any manner permitted by this subpart, with such appropriate changes in the call prices or dates or call for prior redemption or both or in other terms as may be deemed advisable, provided that, as so changed, the two portions of the series when combined and any issue of which the series is a part are in conformity with the requirements of this subpart as to term, interest rate and stated maturities.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 81 - Incurring Debt and Issuing Bonds and Notes › Section 8169 - Determination of net interest cost and net interest rate

§ 8169. Determination of net interest cost and net interest rate.
(a) Net interest cost.--
Net interest cost may be determined by using either the street method or the present worth method, whichever method shall be specified in the official notice of sale.
(b) Street method.--
Under the street method, a dollar amount shall be determined by computing the total amount of interest payable over the life of the series to stated maturity dates or earlier mandatory call dates and subtracting therefrom the amount of any premium paid above the aggregate principal amount of the bonds or notes or adding thereto the amount of any discount lawfully allowed in the sale.
(c) Present worth method.--
Under the present worth method, there shall be ascertained the semiannual rate, compounded semiannually, necessary to discount to present worth as of the date of the bonds or notes, the amounts payable on each interest payment date and on each stated maturity or earlier mandatory redemption date so that the aggregate of such amounts will equal the purchase price offered therefor, exclusive of interest accrued to the date of delivery. The net interest cost shall be stated in terms of an annual percentage rate and shall be that rate of interest which is twice the semiannual rate so ascertained.
(d) Net interest rate.--
The net interest rate for a series sold under the present worth method shall be the rate of the net interest cost. For a series sold under the street method, the net interest rate shall be determined by dividing the net interest cost by the product of $1,000 multiplied by the number of bond years from the date of the bonds or notes to the stated maturity or earlier mandatory call dates. A bond year shall be one full year that $1,000 of principal amount shall be outstanding and less than full years shall be fractionalized on a 360-day-year basis.
Cross References.
Section 8169 is referred to in section 8165 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Extra - Chapter Notes

Enactment.
Chapter 82 was added December 19, 1996, P.L.1158, No.177, effective in 60 days.
Cross References.
Subchapter B is referred to in sections 8103, 8271 of this title.
Cross References.
Subchapter C is referred to in section 8109 of this title.
Cross References.
Subchapter D is referred to in section 8106 of this title.
Cross References.
Subchapter E is referred to in section 8226 of this title.
Enactment.
Subchapter F was added September 24, 2003, P.L.110, No.23, effective immediately.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8201 - Certification to department of bond or note transcript or lease, guaranty, subsidy contract or other agreement

§ 8201. Certification to department of bond or note transcript or lease, guaranty, subsidy contract or other agreement.
(a) General rule.--
The governing body of each local government unit shall, before any bonds or notes except tax anticipation notes issued pursuant to section 8121 (relating to power to issue tax anticipation notes) and notes representing small borrowings issued pursuant to section 8109 (relating to small borrowing for capital purposes) are actually delivered to the initial purchasers or before becoming bound on any lease, guaranty, subsidy contract or other agreement evidencing lease rental debt, cause to be certified to the department, under the signature of the clerk or secretary of the governing body and its corporate seal, a complete and accurate copy of the proceedings for the incurring of debt, as provided in section 8111 (relating to submission to department).
(b) Other requirements unaffected.--
The provisions of this section do not eliminate the filing requirements of sections 8024 (relating to exclusion of subsidized debt from net nonelectoral debt or net lease rental debt), 8025 (relating to exclusion of self-liquidating debt evidenced by revenue bonds or notes to determine net nonelectoral debt), 8026 (relating to exclusion of other self-liquidating debt to determine net nonelectoral debt or net lease rental debt), 8126 (relating to certification as to taxes and revenues to be collected) and 8128 (relating to condition precedent to validity of tax anticipation notes).
Cross References.
Section 8201 is referred to in section 8130 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8202 - Filing of statements of noncompletion of sale with department

§ 8202. Filing of statements of noncompletion of sale with department.
If settlement for an issue of bonds or notes or bonds or notes representing lease rental debt, which have received a required approval by the department, fails of completion in whole or in part, the local government unit shall file with the department a notification of noncompletion of sale stating what part of the issue has been delivered.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8203 - Fees for filing

§ 8203. Fees for filing.
Every filing with the department shall be accompanied by a filing fee as determined in section 605-A of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929. No submission shall constitute a filing until the proper fee is paid. All fees received under this section shall be paid by the department into the State Treasury through the Department of Revenue.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8204 - Certificate of approval of transcript

§ 8204. Certificate of approval of transcript.
The department shall, upon receipt of any bond or note transcripts or other filings, carefully examine them to determine whether the debt outstanding and to be outstanding is within the applicable limitations imposed by this subpart and whether the proceedings for incurring the debt, for issuing and selling the bonds or notes and for excluding self-liquidating and subsidized debt have been taken in conformity with the Constitution of Pennsylvania and this subpart. If, upon completion of its examination, a transcript or other filing is found by the department to be in conformity with the Constitution of Pennsylvania and this subpart, the department shall certify its approval to the local government unit if required under other provisions of this subpart.
Cross References.
Section 8204 is referred to in sections 8111, 8208 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8205 - Certificate of disapproval and correction of proceedings

§ 8205. Certificate of disapproval and correction of proceedings.
If the department, upon completion of its examination, finds it cannot issue a certificate of approval, it shall notify the local government unit of the reasons why it cannot do so. If the proceedings or any prior filings are subject to correction for demonstrated typographical or computational error, or otherwise, or for failure to include a necessary document or certification and the correction is approved by the department, the error shall be corrected in all places or the additional document or certification shall be furnished to the department within ten days and upon any other terms the department specifies. Thereupon, the department shall certify its approval. If the deficiency is not subject to correction, the department shall certify its disapproval to the local government unit.
Cross References.
Section 8205 is referred to in section 8211 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8206 - Effect of failure of timely action by department

§ 8206. Effect of failure of timely action by department.
If the local government unit has submitted a filing to the department by certified mail, return receipt requested, or otherwise has an official receipt from the department, and the local government unit has not, within 20 days of the date of receipt of the filing by the department, received the certificate of approval or disapproval or notification of correctable error, the filing shall be deemed to have been approved for all purposes unless the local government unit has extended the time within which the department may act by written communication to the department or by failure to object to a written communication from the department requesting the extension. Extensions shall not exceed one additional period of 20 days.
Cross References.
Section 8206 is referred to in sections 8111, 8208, 8209 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8207 - Records of department

§ 8207. Records of department.
(a) Retention period.--
The department shall keep all proceedings on file for a period of not less than four months after issuance of its certificate of approval or disapproval and thereafter as long as any appeal respecting the proceedings is pending and not finally determined.
(b) Content.--
The department shall keep a public record with respect to each local government unit showing:
(1) The name of the local government unit.
(2) The purpose of each series issued or lease executed.
(3) Whether the series represents nonelectoral, lease rental or electoral debt and the extent to which the debt is subsidized or self-liquidating and, if subsidized or self-liquidating in part, the principal amount thereby eliminated from nonelectoral debt.
(4) The schedule of stated maturity dates, interest rates and mandatory sinking fund payments for each outstanding issue of bonds or notes or the schedule of lease rentals.
(5) The dates and designations of each issue of bonds or notes, lease or other document to be executed with the approval number assigned to the issue, lease or other document approved.
(6) The local government unit's most recently certified borrowing base and regular debt limits computed therefrom.
(7) The date and manner of authorization of any use of any additional debt limit.
(c) Records open for inspection.--
The records of the department shall be public records available for examination by any citizen of this Commonwealth or any bondholders or noteholders.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8209 - Finality of proceedings as to validity of instruments

§ 8209. Finality of proceedings as to validity of instruments.
(a) General rule.--
Where a certificate of approval has been issued by the department or has been deemed issued under section 8206 (relating to effect of failure of timely action by department) or, in the case of tax anticipation notes, where the filing with the department required by section 8128 (relating to condition precedent to validity of tax anticipation notes) has occurred and no petition for a declaratory order or complaint has been filed within the applicable time limits specified in section 8211 (relating to petitions for declaratory orders and complaints to the department) or when, after a petition for a declaratory order or complaint has been filed, the proceedings have been approved finally by the department and no appeal to court has been taken, or if an appeal to court has been taken and the proceedings have been approved finally by the court or the appeal has been dismissed, the validity of the proceedings, the right of the local government unit lawfully to issue its bonds or notes or to enter into a lease, guaranty, subsidy contract or other agreement evidencing lease rental debt pursuant to those proceedings, and the validity and due enforceability of the bonds, notes or other instruments in accordance with their terms shall not thereafter be inquired into judicially, in equity, at law or by civil or criminal proceedings, or otherwise, either directly or collaterally. The effect of the approval by the department or by the court on appeal or, in the case of tax anticipation notes, the effect of filing in compliance with section 8128 shall be to ratify, validate and confirm the proceedings absolutely, including the lawful nature of the project and, in the case of tax anticipation notes, the accuracy of the estimates contained in the certificate as to taxes and revenues to be collected, notwithstanding any defect or error in the proceedings, except as specifically provided otherwise in this section, and any debt limit imposed by this subpart shall be deemed increased to the extent necessary to validate the debt or obligation. This section does not relieve an initial purchaser of bonds or notes from liability to a local government unit for the payment of the consideration agreed in the contract of sale or make the bonds or notes valid and enforceable in the hands of an initial purchaser unless the issuer has received a substantial consideration for the series as a whole.
(b) Liability for willful violations or fraud.--
This section does not relieve any person participating in the proceedings from liability for knowingly participating in an ultra vires act of a local government unit or from any civil or criminal liability for false statements in any certificates filed or delivered in the proceedings.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8210 - Power of department to define terms, issue rules and regulations and prescribe forms

§ 8210. Power of department to define terms, issue rules and regulations and prescribe forms.
Subject to the definitions in section 8002 (relating to definitions), the department may define terms and prescribe other rules and regulations regarding, and prescribe forms for, reports and filings to be submitted to the department pursuant to this subpart.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8222 - Assessment fund

§ 8222. Assessment fund.
If a local government unit issues bonds or notes as general obligation bonds or guaranteed revenue bonds to provide funds for and towards the cost of making permanent street, sidewalk, water or sewer improvements or other assessable improvements and the cost is assessed against the properties benefited, the assessments as collected shall be paid into a separate assessment fund. Moneys to the credit of the assessment fund may be used for any one or more of the following purposes in any proportions and subject to any priorities set forth in the ordinance incurring the debt:
(1) Payments to the sinking fund.
(2) Payment of the cost of such improvements.
(3) Creation and maintenance of a revolving fund if permitted by the laws governing the local government unit.
(4) Payment to the general fund or any other fund of the local government unit.
The fund may be continued as a revolving fund if permitted by law or discontinued at any time. Unless otherwise provided in the ordinance incurring the debt, upon discontinuance of the fund, the proceeds of the assessments shall be used to pay any bonds or notes remaining outstanding and to reimburse the general fund of the local government unit for the moneys paid on account of the bonds or notes.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8223 - Duty of treasurer

§ 8223. Duty of treasurer.
The treasurer of each local government unit shall deposit into the applicable sinking fund or other fund the moneys to be deposited therein pursuant to the pledge or covenant made or adopted by the local government unit at the times and in the amounts provided in the pledge or covenant or, if no pledge or covenant has been made or adopted, as provided in the appropriations made by the governing body. If no appropriation of moneys has been made or if it appears that, as a result of other expenditures, the appropriated revenues will not be received in sufficient amounts in time to make either the deposits required to be made for the payment of the taxes assumed and the interest on and principal of general obligation bonds and notes or the amount due on a guaranty of guaranteed revenue bonds or notes or on a guaranty of any authority or other local government unit obligation, the treasurer shall pay into the applicable sinking fund or other fund that portion of each receipt of tax moneys and other available revenues, subject, in the case of a limited guaranty, to the terms thereof, as will result in the deposit of sufficient moneys in the sinking fund or other fund to pay the taxes assumed and the principal of the interest on the bonds or notes or to meet the guaranty obligation of the local government unit as and when they become due and payable. The governing body of a local government unit may issue its tax anticipation notes under Subchapter B of Chapter 81 (relating to tax anticipation notes and funding debt) to provide all or any part of any moneys needed for deposit in the sinking funds or other funds.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8225 - Management of sinking and other funds

§ 8225. Management of sinking and other funds.
The management and control of sinking and other funds and investments thereof subject to the provisions of this subpart shall be vested in the governing body of the local government unit except:
(1) Where by any other law there has been created any board or commission for the management and control of sinking funds of a particular class of local government units, in which case the board or commission shall have the management and control of the sinking funds of the local government units.
(1.1) To the extent otherwise provided by this subpart.
(2) To the extent otherwise lawfully provided in any contract with the holders of bonds or notes.
(May 5, 1998, P.L.301, No.50, eff. 60 days)
1998 Amendment.
Act 50 added par. (1.1).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8226 - Inspection of sinking funds and orders to comply

§ 8226. Inspection of sinking funds and orders to comply.
(a) General rule.--
The department may from time to time audit the sinking funds and all records pertaining thereto of local government units which have any outstanding debt, except those annually submitting to the department reports of their sinking funds audited by an independent public accountant and except for school districts of the first class or cities of the second class and second class A.
(b) Order to comply.--
If such audit or reports disclose that any local government unit has refused or neglected to establish sinking funds as required by this subpart or has failed to provide sufficient moneys for any sinking fund to meet the payments of assumed taxes, principal and interest to be made therefrom, is not investing a sufficient amount of the sinking fund moneys or is otherwise in violation of this subchapter, the department shall make an order requiring the local government unit or any officer thereof or the governing body to take any steps as, in the opinion of the department, will cause the sinking funds to comply with this subchapter or to be sufficient.
(c) Mandamus to compel compliance with order.--
In addition to the criminal prosecutions provided for in Subchapter E (relating to penalties) or in lieu thereof, the department may apply to the court for an order in mandamus to issue to the officer or governing body of the local government unit to compel compliance with the order of the department or with the order with any modifications thereof as to the court may seem just and proper.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8227 - Sinking fund not required for small borrowings

§ 8227. Sinking fund not required for small borrowings.
A local government unit may, but shall not be required to, comply with the provisions of this subchapter in respect of notes issued in compliance with section 8109 (relating to small borrowing for capital purposes).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8241 - Power to refund

§ 8241. Power to refund.
(a) General rule.--
Subject to the provisions of the outstanding bonds, notes or obligations evidencing lease rental debt and subject to the provisions of this subchapter, a local government unit may refund any outstanding debt, in whole or in part, at any time and may refund any outstanding notes with bonds or bonds with notes.
(b) Authorized purposes.--
The refunding may be for any one or more of the following purposes:
(1) Reducing total debt service over the life of the series.
(2) Reducing the annual debt service in any particular year or years by extending the life of the issue subject to the limitations imposed by section 8247 (relating to special limitation on refunding of funding debt).
(3) Eliminating any covenant or restriction in or applicable to any outstanding series or issue of bonds or notes determined by the local government unit to be unduly burdensome or restrictive.
(4) Refunding any maturity or maturities or any portions thereof to a later date subject to the limitations imposed by section 8247.
(5) Substituting bonds for notes or bond anticipation notes or substituting notes for bonds.
(6) Adjusting lease rentals upon refunding of lease rental debt for any one or more of the foregoing purposes.
It is immaterial whether or not any such refunding under paragraph (2), (3), (4) or (5) increases the total debt service payable over the life of the series.
(c) Definition.--
As used in this section, the term "refund" and its variations shall mean the issuance and sale of obligations, the proceeds of which are used or are to be used for the payment or redemption of outstanding obligations upon or prior to maturity.
Cross References.
Section 8241 is referred to in sections 8243, 8247, 8249 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8242 - Treatment of costs upon refunding

§ 8242. Treatment of costs upon refunding.
(a) General rule.--
In any refunding, a principal amount of refunding bonds or notes or obligations evidencing lease rental debt equal to the sum of the following:
(1) the call premium payable on the bonds, notes or obligations being refunded;
(2) the discount allowed on the sale of the refunding bonds, notes or obligations;
(2.1) any funds borrowed in order to pay any termination payment required to be paid under a qualified interest rate management agreement in which the notional amount is identified as corresponding to all or any portion of the bond or note being refunded;
(3) any funds borrowed to pay interest on bonds, notes or obligations being refunded; and
(4) the costs of issue and sale of the refunding bonds, notes or obligations;
may be considered as interest on the refunding bonds, notes or obligations and may be separately stated in all reporting of debt and in all computation of debt limits and, if so considered and reported by the local government unit, shall not be considered as electoral, nonelectoral or lease rental debt. In subsequent debt statements, any such separately stated principal amount of bonds, notes or obligations shall be reported as being amortized in the same proportion as the series of which they are a part.
(b) Comparison of debt service.--
For the purpose of computing whether savings are being effected, the comparison of debt service which would be payable on the refunded bonds, notes or obligations shall be with debt service on the refunding bonds, notes or obligations without reference to the designation of the costs in subsection (a)(1) through (4), adjusted in each case by projected receipt of interest on invested funds of excess revenues or application of reserves to make the comparison reasonable and proper.
(Sept. 24, 2003, P.L.110, No.23, eff. imd.)
2003 Amendment.
Act 23 added subsec. (a)(2.1).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8243 - Limitation on extending term of debt by refunding

§ 8243. Limitation on extending term of debt by refunding.
(a) General rule.--
Subject to the terms of section 8247 (relating to special limitation on refunding of funding debt) and to the terms of subsection (b), a local government unit shall not extend the term of outstanding debt through refunding to a maturity date that could not have been included in the original issue, except in the case of an emergency refunding of stated maturity date to avoid a default occasioned by an unforeseen shortage in total revenues proven to the satisfaction of the department upon petition, filed by the governing body of the local government unit, alleging the emergency and the unforeseen loss of revenues. Public notice of the intention to file a petition shall be given by advertisement not less than five nor more than 20 days before the filing thereof. The emergency refunding shall be made only in the amount and with the stated maturity date or dates approved by the department. The first maturity of a refunding issue need not occur until the year after the last stated maturity date of the bonds not called in the series being refunded.
(b) Increasing amount of principal payable.--
Except in the case of refundings for the purposes specified in section 8241(b)(1) and (5) (relating to power to refund) and except for emergency refundings approved by the department, no refunding bonds shall be issued which will increase the amount of principal payable, after provision for earlier mandatory calls, in any year or years after the latest stated maturity date of the bonds being refunded, over the amount of the principal which would have been payable on the bonds or notes originally issued for the project in each such year if the original bonds or notes had been structured on a 6% level annual debt service plan to the last stated maturity date of the proposed refunding bonds, computed to the nearest whole multiple of $5,000, as the amounts shall be computed by a financial advisor, other qualified person or public accountant.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8244 - Effect of debt limits on refunding nonelectoral bonds or notes or lease rental debt

§ 8244. Effect of debt limits on refunding nonelectoral bonds or notes or lease rental debt.
If any debt originally incurred was lawfully incurred and issued and, at the time the debt was incurred, the portion constituting nonelectoral debt or lease rental debt was within the limitations imposed thereon by law, the issue of refunding bonds or notes or the adjustment of lease rentals in respect of the debt shall be lawful and valid, notwithstanding that the aggregate of outstanding debt shall thereby exceed the then applicable limitations set by section 8022 (relating to limitations on incurring of other debt), which limitations shall be deemed increased but only to the extent necessary to effectuate and amortize the refunding lawfully. Any portion of the refunding bonds, notes or obligations may be excluded from nonelectoral debt or lease rental debt, either as subsidized debt or self-liquidating debt, in accordance with the procedure provided in Subchapter B of Chapter 80 (relating to limitations on debt of local government units).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8245 - Refunding of electoral debt

§ 8245. Refunding of electoral debt.
A local government unit may, by action of its governing body and in accordance with the limitations of this subchapter, refund any debt originally incurred as electoral debt. The refunding bonds, notes or obligations so issued shall not thereby be considered nonelectoral debt or lease rental debt for any purpose.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8246 - Procedure for authorization, sale, issue and approval of refunding bonds or notes

§ 8246. Procedure for authorization, sale, issue and approval of refunding bonds or notes.
Bonds or notes issued for refunding purposes shall be authorized, issued, sold, approved and settled and refunding of lease rental debt shall be authorized and approved in the manner provided in this subpart for the authorization, issue, sale and approval of the original debt, subject to any additional limitations provided in this subchapter. No refunding bonds or notes shall be delivered to the purchasers thereof unless, simultaneously therewith, the notes or bonds being refunded become no longer outstanding in accordance with section 8250 (relating to use of proceeds of refunding bonds and when refunded bonds are no longer deemed outstanding). No adjustment in lease rentals shall be made unless appropriate provision for the retirement of the outstanding lease rental debt has been made.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8247 - Special limitation on refunding of funding debt

§ 8247. Special limitation on refunding of funding debt.
A debt incurred for funding purposes pursuant to section 8130 (relating to approval by court to fund unfunded debt) or under law in existence prior to July 12, 1972, shall not be refunded except under section 8241(b)(1) (relating to power to refund) until the refunding has been approved as necessary by the court of common pleas. The approval shall be obtained by petition to reopen the proceedings in which the funding debt was originally incurred, and the court shall grant the petition if, after hearing, the court is satisfied that the refunding is necessary and is in the public interest. Public notice of the filing of the petition shall be given by advertisement not less than five nor more than 20 days before the filing thereof. All subsequent proceedings in respect of the refunding of the funding debt shall be taken in accordance with the provisions of this subpart applicable to the incurring of the original debt. Bonds or notes issued to refund funding debt shall be stated to mature at the dates and in the amounts on each date as may be approved by the court, notwithstanding any limitation on the term of funding debt imposed elsewhere in this subpart.
Cross References.
Section 8247 is referred to in sections 8241, 8243 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8248 - Approval of refunding by the electors

§ 8248. Approval of refunding by the electors.
The governing body of any local government unit may also obtain the approval of the electors to any refunding of nonelectoral or lease rental debt in the manner prescribed for an original issue by Subchapter C of Chapter 80 (relating to procedure for securing approval of electors) and may issue general obligation bonds or guaranteed revenue bonds or incur other obligations in the refunding if approved by the electors regardless of the class of bonds, notes or obligations originally issued.
Cross References.
Section 8248 is referred to in section 8249 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8249 - Refunding with bonds of another type

§ 8249. Refunding with bonds of another type.
Subject to the limitations of section 8022 (relating to limitations on incurring of other debt) or after a referendum held pursuant to section 8248 (relating to approval of refunding by the electors), the governing body of any local government unit may for any purpose specified in section 8241 (relating to power to refund) refund with its general obligation bonds or notes or its guaranteed revenue bonds or notes all or any part of any outstanding revenue bonds or notes or bonds, notes or obligations of any authority or other local governmental unit constituting lease rental debt of the local government unit or may refund any outstanding revenue bonds or guaranteed revenue bonds or notes with like bonds or notes. The local government unit may also refund any general obligation or guaranteed revenue bonds with its revenue bonds, by the incurring of lease rental debt or by guaranteeing the obligations of an authority.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8250 - Use of proceeds of refunding bonds and when refunded bonds are no longer deemed outstanding

§ 8250. Use of proceeds of refunding bonds and when refunded bonds are no longer deemed outstanding.
(a) General rule.--
The proceeds of refunding bonds, together with any other moneys made available for the purpose, shall be used solely for the purpose of retiring the bonds being refunded and for the purpose of paying the costs of the refunding.
(b) When obligations no longer deemed outstanding.--
Any bonds or notes to be redeemed or paid shall no longer be deemed to be outstanding for the purpose of determining the net debt of the local government unit or for the purposes of any indenture limitations on repledging revenues when the local government unit has irrevocably deposited with a bank or bank and trust company in a sufficient amount:
(1) Moneys.
(2) Noncallable securities of the Federal Government or of the Commonwealth maturing or payable at par at the option of the holders at or prior to the dates needed for disbursement.
(3) Time deposits or certificates of deposit, with a firm rate of interest or stated minimum rate of interest, issued by a bank or bank and trust company and insured or adequately secured as required by section 8224 (relating to deposit and investment of moneys in sinking funds and other funds).
(4) Any combination of the foregoing.
(c) Deposits equal to principal and interest.--
Subject to any relevant contrary law or regulation, the amount deposited may be equal to the principal and interest to become due on the bonds or notes being refunded to the date on which the bonds or notes are stated to mature or any lesser amount computed in accordance with the provisions of subsection (d).
(d) Test of sufficiency.--
The deposited amount shall be sufficient when it, together with the interest to be earned thereon, will equal the principal, premium and interest to become due on the bonds or notes being refunded to the earlier of the date at which any bonds or notes are stated to mature or have been called for prior redemption, except that the local government unit shall simultaneously have given the bank or bank and trust company instructions and authority, stated to be irrevocable, to publish any notices of redemption remaining to be published.
(e) Irrevocable call for redemption.--
When stated to be irrevocable, the instructions and authority to call bonds or notes for redemption shall become irrevocable upon the delivery thereof or upon the deposit of the moneys or securities in a sufficient amount to effect the redemption, whichever occurs later. Until the irrevocability has occurred, a call for redemption may be revoked by notice given in the same manner as the notice of redemption.
Cross References.
Section 8250 is referred to in sections 8110, 8246 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 82 - Miscellaneous Provisions › Section 8251 - Cessation of interest on called bonds or notes

§ 8251. Cessation of interest on called bonds or notes.
Upon the date fixed for redemption, if the irrevocable deposit has been made and the required notice of the redemption has been given, no further interest on the bonds or notes so called for redemption shall accrue. This subchapter does not relieve the issuing local government unit of its obligation to see that the holders of the bonds or notes called for redemption are paid in full on the date fixed for redemption. From and after that date, if the irrevocable deposit was made at the proper amount on that date, the holders of bonds or notes called for redemption shall have no rights against the local government unit except to receive payment from the deposited funds or from the local government unit to the extent of the moneys returned to it pursuant to section 8224(f) (relating to deposit and investment of moneys in sinking funds and other funds).