PRINTER'S NO. 1416
No. 1277 Session of 1981
INTRODUCED BY FREIND, GALLAGHER AND COLAFELLA, APRIL 22, 1981
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 22, 1981
AN ACT
1 Amending the act of December 6, 1967 (P.L.678, No.318), entitled
2 "An act to promote the education and welfare of the people of
3 the Commonwealth of Pennsylvania; to provide educational
4 facilities at nonprofit institutions of higher education in
5 the Commonwealth of Pennsylvania; and creating the
6 Pennsylvania Higher Educational Facilities Authority as a
7 body corporate and politic with power to acquire, construct,
8 improve, equip, furnish, operate, lease, and dispose of
9 projects; authorizing and regulating the issuance of notes
10 and bonds and the payment thereof by said authority; and
11 providing that no debt, obligation, or credit of the
12 Commonwealth shall be incurred in the exercise of any powers
13 granted by this act," removing provisions relating to term
14 bonds and providing rights regarding the collection of
15 subsidy payments in the event of rental payment failures.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Section 6.1, act of December 6, 1967 (P.L.678,
19 No.318), known as "The Pennsylvania Higher Educational
20 Facilities Authority Act of 1967," added October 16, 1969
21 (P.L.257, No.104), is amended to read:
22 Section 6.1. [Term Bonds.--Whenever the board of said
23 authority shall authorize the issuance of bonds under the
24 provisions of this act, the board shall also concurrently
1 provide for the authorization of term bonds in the denomination
2 of one hundred dollars ($100) payable in not more than twenty-
3 five years from the date of issue, and the principal amount of
4 said term bonds shall be equal to a reasonable amount of the
5 principal amount of the bonds with which the said term bonds are
6 being concurrently authorized. The amount and term of the issue
7 of the term bonds shall be fixed by the board in the exercise of
8 its discretion. Said term bonds shall bear interest at a rate to
9 be fixed by said board not exceeding the legal rate. The term
10 bonds authorized under the authority of this section shall be
11 subject to, except as provided in this section, all the terms
12 and conditions of the bonds authorized concurrently therewith.]
13 Section 6.1. Actions for Nonpayment of Rentals.--In all
14 cases where a college fails to pay or provide for the payment of
15 any rental or rentals or other sums due to the authority in
16 accordance with any lease or other contract entered into between
17 the authority and such college, upon written notice thereof from
18 the authority, the State Treasurer shall (i) notify the college
19 of its obligation and of the withholding provisions of this
20 section; (ii) withhold, out of any State appropriations payable
21 to the college an amount equal to the unpaid rentals or other
22 sums owing by such college, and (iii) notify the Auditor General
23 of his actions and request the Auditor General to issue a
24 warrant for payment to the authority of the amount so withheld.
25 Upon receipt of such notice from the State Treasurer, the
26 Auditor General shall issue to the State Treasurer a warrant for
27 payment to the authority and the State Treasurer shall forthwith
28 pay over the amount so withheld to the authority, which shall
29 apply said amount to the rental or other sums due from such
30 college. The authority shall also give written notice of any
19810H1277B1416 - 2 -
1 such nonpayment to the Secretary of Education.
2 Section 2. This act shall take effect immediately.
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