(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).
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 53 - MUNICIPALITIES GENERALLY
Chapter 82 - Miscellaneous Provisions
Section 8202 - Filing of statements of noncompletion of sale with department
Section 8203 - Fees for filing
Section 8204 - Certificate of approval of transcript
Section 8205 - Certificate of disapproval and correction of proceedings
Section 8206 - Effect of failure of timely action by department
Section 8207 - Records of department
Section 8209 - Finality of proceedings as to validity of instruments
Section 8210 - Power of department to define terms, issue rules and regulations and prescribe forms
Section 8211 - Petitions for declaratory orders and complaints to department
Section 8221 - Creation of sinking funds and deposits, reserves and surplus funds
Section 8222 - Assessment fund
Section 8223 - Duty of treasurer
Section 8224 - Deposit and investment of moneys in sinking funds and other funds
Section 8225 - Management of sinking and other funds
Section 8226 - Inspection of sinking funds and orders to comply
Section 8227 - Sinking fund not required for small borrowings
Section 8241 - Power to refund
Section 8242 - Treatment of costs upon refunding
Section 8243 - Limitation on extending term of debt by refunding
Section 8244 - Effect of debt limits on refunding nonelectoral bonds or notes or lease rental debt
Section 8245 - Refunding of electoral debt
Section 8246 - Procedure for authorization, sale, issue and approval of refunding bonds or notes
Section 8247 - Special limitation on refunding of funding debt
Section 8248 - Approval of refunding by the electors
Section 8249 - Refunding with bonds of another type
Section 8251 - Cessation of interest on called bonds or notes
Section 8261 - Failure to budget debt service
Section 8262 - Failure to pay principal or interest
Section 8263 - Trustee for bondholders
Section 8264 - Receiver for revenue projects
Section 8265 - Costs of suits or proceedings
Section 8266 - Distribution of moneys realized for bondholders
Section 8271 - Failure to obey sinking fund directive of department
Section 8281 - Qualified interest rate management agreements
Section 8282 - Covenant to pay amounts due under qualified interest rate management agreements