Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 82 - Miscellaneous Provisions
Section 8261 - Failure to budget debt service


If a local government unit having outstanding any general obligation bonds or notes or guaranteed revenue bonds or notes, lease rental debt or guaranty of authority obligations fails or refuses to make adequate provision in its budget for any fiscal year for the sums payable in respect of the bonds or notes, lease rental or guaranty in the year or fails to appropriate or pay the moneys necessary in that year for the payment of the amount of the lease rental or guaranty, as the case may be, of the maturing principal of and the interest on the bonds or notes or any of them, or any tax anticipation notes, or any sinking fund obligation for the bonds or notes or tax anticipation notes, or guaranty or the lease rental payment coming due in the fiscal year of the budget or for which the appropriations or payments should have been made, then at the suit of the holder of any bond, note or tax anticipation note or coupon or guaranty, or the holder of any authority obligation secured by a lease evidencing the acquisition of a capital asset or of any taxpayer of the local government unit, the court of common pleas shall, after a hearing held upon such notice to the local government unit as the court may direct and upon a finding of such failure or neglect, by order of mandamus require the treasurer of the local government unit to pay into the sinking fund for each series of bonds or notes then outstanding, or for each guaranty or lease rental payment, the first tax moneys or other available revenues or moneys thereafter received in the fiscal year by the treasurer, equally and ratably for each series for which provision has not been made in proportion to debt service for the year on each series then outstanding, or the amounts due upon guaranties or as payments with respect to lease rental debt, as the case may be. Any priority on incoming tax moneys accorded to a separate sinking fund for tax anticipation notes under the authority of section 8125 (relating to security for tax anticipation notes and sinking fund) shall not be affected by this provision until the sum on deposit in each sinking fund equals the moneys that should have been budgeted or appropriated for each series.

Cross References. Section 8261 is referred to in section 8262 of this title.

Structure Pennsylvania Consolidated & Unconsolidated Statutes

Pennsylvania Consolidated & Unconsolidated Statutes

Title 53 - MUNICIPALITIES GENERALLY

Chapter 82 - Miscellaneous Provisions

Extra - Chapter Notes

Section 8201 - Certification to department of bond or note transcript or lease, guaranty, subsidy contract or other agreement

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 8208 - Invalidity of instruments which are delivered without compliance with requirements or conditions precedent to issuance or delivery

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 8250 - Use of proceeds of refunding bonds and when refunded bonds are no longer deemed outstanding

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

Section 8283 - Remedies

Section 8284 - Notice and retention of records

Section 8285 - Financial reporting