Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 73 - Municipalities Investments
Section 7312 - Ground rent


A ground rent secured upon unencumbered improved real estate located within the Commonwealth shall be an authorized investment if the reserved annual rent, capitalized at the rate of 5% per annum, shall not exceed four-fifth of the fair value of the real estate out of which it issues, determined by appraisal, as in the case of mortgages.