Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 81 - Turnpike
Section 8112 - Issuance of turnpike revenue bonds or other obligations

(a) Authorization.--
(1) A bond must be authorized by resolution of the commission. The resolution may 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 commission.
(2) A bond must be signed by or shall bear the facsimile signature of such officers as the commission determines. 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. A bond must be authenticated by an authenticating agent, a fiscal agent or a trustee, if required by the authorizing resolution.
(3) A bond may be sold at public or private sale for a price determined by the commission.
(4) Pending the preparation of a definitive bond, interim receipts or temporary bonds without coupons may be issued to the purchaser and may contain terms and conditions as the commission determines.
(b) Provisions.--A resolution authorizing a bond 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 commission, but not of the Commonwealth or any political subdivision for the bond or restricting the obligation of the commission to all or any of the revenue of the commission from all or any projects or properties.
(2) The payment of the costs of the department, the costs of the turnpikes and the toll road conversions, including the reconstruction of the converted roads as provided for in this chapter and the repayment to the Federal Treasury of any funds so required to be repaid pursuant to any special legislation passed by the Congress of the United States authorizing the conversion of toll-free roads to toll roads, the financing for insurance reserves and the duties of the commission with reference to these matters.
(3) Terms and provisions of the bond.
(4) Limitations on the purposes to which the proceeds of the bond or other financing may be applied.
(5) Rate of tolls and other charges for use of the facilities of or for the services rendered by the commission.
(6) The setting aside, 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.--The commission 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 commission 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 commission may authorize, including provisions as to the following:
(1) For the payment of the costs of the department, the costs of the turnpikes and the toll road conversions, including the reconstruction of the converted roads as provided for in this chapter and the repayment to the Federal Treasury of any funds so required to be repaid pursuant to any special legislation passed by the Congress of the United States authorizing the conversion of toll-free roads to toll roads, financing for insurance reserves and the duties of the commission with reference to these matters.
(2) Application of funds and the safeguarding of funds on hand or on deposit.
(3) Rights and remedies of trustees and bondholders, including restrictions upon the individual right of action of a bondholder.
(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).