Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 55 - Parking Authorities
Section 5506 - Bonds

(a) Authorization.--
(1) A bond must be authorized by resolution of the board. The resolution must specify all of the following:
(i) Series.
(ii) Date of maturity not exceeding 40 years from date of issue.
(iii) Interest.
(iv) Denomination.
(v) Form, either coupon or fully registered without coupons.
(vi) Registration, exchangeability and interchangeability privileges.
(vii) Medium of payment and place of payment.
(viii) Terms of redemption not exceeding 105% of the principal amount of the bond.
(ix) Priorities in the revenues or receipts of the authority.
(2) A bond must be signed by such officers as the authority determines. Coupon bonds must have attached interest coupons bearing the facsimile signature of the treasurer of the authority as prescribed in the authorizing resolution. A bond may be issued and delivered notwithstanding that one or more of the signing officers or the treasurer has ceased to be an officer when the bond is actually delivered.
(3) A bond may be sold at public or private sale for a price determined by the authority. No bonds may be sold at less than 98% of the principal amount plus interest charges.
(4) Pending the preparation of a definitive bond, interim receipts or temporary bonds with or without coupons may be issued to the purchaser and may contain terms and conditions as the authority determines.
(b) Provisions.--A resolution authorizing bonds may contain provisions, which shall be part of the contract with the bondholder, as to the following:
(1) Pledging the full faith and credit of the authority for the obligation or restricting the full faith and credit of the authority to all or any of the revenue of the authority from all or any projects or properties.
(2) The construction, improvement, operation, extension, enlargement, maintenance and repair of the project and the duties of the authority with reference to these matters.
(3) Terms and provisions of the bond.
(4) Limitations on the purposes to which the proceeds of a bond then or thereafter issued or of a loan or grant by the United States may be applied.
(5) Rate of tolls and other charges for use of the facilities of or for the services rendered by the authority.
(6) Setting aside of reserves and sinking funds and the regulation and disposition of reserves and sinking funds.
(7) Limitations on the issuance of additional bonds.
(8) Terms and provisions of any deed of trust or indenture securing the bond or under which any deed of trust or indenture may be issued.
(9) Other additional agreements with the holder of the bond.
(c) Deeds of trust.--An authority may enter into any deed of trust, indenture or other agreement with any bank or trust company or other person in the United States having power to enter into such an arrangement, including any Federal agency, as security for a bond and may assign and pledge all or any of the revenues or receipts of the authority under such deed, indenture or agreement. The deed of trust, indenture or other agreement may contain provisions as may be customary in such instruments or as the authority may authorize, including provisions as to:
(1) construction, improvement, operation, maintenance and repair of a project and the duties of the authority with reference to these matters;
(2) application of funds and the safeguarding of funds on hand or on deposit;
(3) rights and remedies of trustee and bondholder, including restrictions upon the individual right of action of a bondholder; and
(4) terms and provisions of the bond or the resolution authorizing the issuance of the bond.
(d) Negotiability.--A bond shall have all the qualities of negotiable instruments under 13 Pa.C.S. Div. 3 (relating to negotiable instruments).
(e) Revenue and receipts.--Money collected or received by the authority on behalf of a municipality under section 5505(d)(21) (relating to purposes and powers) shall not be deemed to constitute revenues and receipts of the authority under this chapter or be subject to any debt or obligation of the authority.
(Dec. 17, 2001, P.L.926, No.110, eff. imd.)

2001 Amendment. Act 110 amended subsec. (a)(1)(iii) and (3), retroactive to June 19, 2001.