(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.
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