PRIOR PRINTER'S NOS. 1416, 1886 PRINTER'S NO. 3334
No. 1277 Session of 1981
INTRODUCED BY FREIND, GALLAGHER AND COLAFELLA, APRIL 22, 1981
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
MAY 24, 1982
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 and a section is added to read:
22 [Section 6.1. Term Bonds.--Whenever the board of said
23 authority shall authorize the issuance of bonds under the
1 provisions of this act, the board shall also concurrently
2 provide for the authorization of term bonds in the denomination
3 of one hundred dollars ($100) payable in not more than twenty-
4 five years from the date of issue, and the principal amount of
5 said term bonds shall be equal to a reasonable amount of the
6 principal amount of the bonds with which the said term bonds are
7 being concurrently authorized. The amount and term of the issue
8 of the term bonds shall be fixed by the board in the exercise of
9 its discretion. Said term bonds shall bear interest at a rate to
10 be fixed by said board not exceeding the legal rate. The term
11 bonds authorized under the authority of this section shall be
12 subject to, except as provided in this section, all the terms
13 and conditions of the bonds authorized concurrently therewith.]
14 Section 6.2. Actions for Nonpayment of Rentals.--In all
15 cases where a college fails to pay or provide for the payment of
16 any rental or rentals or other sums due to the authority in
17 accordance with any lease or other contract entered into between
18 the authority and such college, upon written notice thereof from
19 the authority, the State Treasurer shall MAY (i) notify the <--
20 college of its obligation and of the withholding provisions of
21 this section; (ii) withhold, out of any State appropriations
22 payable to the college an amount equal to the unpaid rentals or
23 other sums owing by such college, and (iii) notify the Auditor
24 General of his actions and request the Auditor General to issue
25 a warrant for payment to the authority of the amount so
26 withheld. Upon receipt of such notice from the State Treasurer,
27 the Auditor General shall issue to the State Treasurer a warrant
28 for payment to the authority and the State Treasurer shall
29 forthwith pay over the amount so withheld to the authority,
30 which shall apply said amount to the rental or other sums due
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1 from such college. The authority shall also give written notice
2 of any such nonpayment to the Secretary of Education.
3 Section 2. This act shall take effect immediately.
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