PRINTER'S NO. 3573
No. 2594 Session of 1990
INTRODUCED BY LEVDANSKY, DeWEESE, O'DONNELL, KUKOVICH, CIVERA,
BELARDI, McHALE, FREEMAN, MORRIS, LINTON, MICHLOVIC, McNALLY,
CORRIGAN, RICHARDSON, TRELLO AND MRKONIC, MAY 29, 1990
REFERRED TO COMMITTEE ON APPROPRIATIONS, MAY 29, 1990
AN ACT
1 Amending the act of August 23, 1967 (P.L.251, No.102), entitled,
2 as amended, "An act providing for the incorporation as public
3 instrumentalities of the Commonwealth and as bodies corporate
4 and politic of industrial and commercial development
5 authorities for municipalities, counties and townships;
6 prescribing the rights, powers and duties of such authorities
7 hereafter incorporated; authorizing such authorities to
8 acquire, by gift or purchase, to construct, improve and
9 maintain industrial, specialized, or commercial development
10 projects including projects for the elimination or prevention
11 of blight and the control of air and water pollution, and to
12 borrow money and issue bonds therefor; providing for the
13 payment of such bonds and giving security therefor, and
14 prescribing the rights of the holders of such bonds;
15 authorizing the lease or sale of industrial, specialized, or
16 commercial development projects to industrial, specialized,
17 or commercial enterprises; authorizing any county,
18 municipality or township to transfer or convey to such
19 authorities, any facilities or property available for
20 industrial, specialized, or commercial development projects;
21 exempting the property and securities of such authorities
22 from taxation; authorizing such authorities to enter into
23 contracts with and to accept grants from the Federal
24 Government or any agency thereof; and providing for approval
25 by the Secretary of Commerce of the proceedings relating to
26 industrial, specialized, or commercial development projects
27 of such authorities," to further provide for projects
28 eligible for financial assistance; to expand the activities
29 for which bond proceeds may be used; to provide for
30 alternative forms of financing using sources of funds other
31 than bond proceeds; to further provide for financing by
32 authorities and the Pennsylvania Economic Development
33 Financing Authority; and to eliminate certain approvals by
1 the Secretary of Commerce.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Section 1 of the act of August 23, 1967 (P.L.251,
5 No.102), known as the Industrial and Commercial Development
6 Authority Law, amended December 29, 1971 (P.L.647, No.171), is
7 amended to read:
8 Section 1. This act shall be known and may be cited as the
9 ["Industrial and Commercial Development Authority] "Pennsylvania
10 Economic Development Financing Law."
11 Section 2. Section 2 of the act, amended December 29, 1972
12 (P.L.1675, No.359), December 19, 1975 (P.L.576, No.165) and
13 December 16, 1982 (P.L.1363, No.312), is amended to read:
14 Section 2. Findings and Declaration of Policy and
15 Purposes.--(a) It is hereby determined and declared as a matter
16 of legislative finding:
17 (1) That economic insecurity due to unemployment is at any
18 time a serious menace to the health, safety, morals and general
19 welfare of the people of the Commonwealth and that a high level
20 of unemployment and lack of business opportunity particularly in
21 areas of urban and rural blight are threats to the strength and
22 permanence of American political and economic institutions and
23 the philosophy of freedom on which those institutions are based;
24 (2) That a minimum level of unemployment and a maximum level
25 of business opportunity, and the elimination or prevention of
26 blight can best be provided by the promotion, attraction,
27 stimulation, rehabilitation and revitalization of industry,
28 commerce [, manufacturing and research and development] and
29 other economic activities in the Commonwealth;
30 (3) That the present and prospective health, safety, morals
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1 and general welfare of the people of the Commonwealth require as
2 a public purpose the promotion and development of new, expanded
3 and rehabilitated industrial, commercial[, manufacturing and
4 research and development] and other economic activities;
5 (4) That the creation and operation of The Pennsylvania
6 Industrial Development Authority has proved highly successful in
7 attracting industry and the resultant employment and business
8 opportunities to critical areas of unemployment within the
9 Commonwealth;
10 (5) That to continue and further the successful program of
11 The Pennsylvania Industrial Development Authority, it is
12 necessary to provide additional means of financing the promotion
13 and development of new, expanded and rehabilitated industrial,
14 [specialized, and] commercial [enterprises,] and other economic
15 activities, including in conjunction therewith the financing of
16 machinery and equipment;
17 (6) That many existing industrial, [specialized and]
18 commercial [enterprises], and other economic activities
19 throughout the Commonwealth could become more competitive and
20 could expand more rapidly if such additional means of financing
21 were available for modern buildings, plant facilities [and],
22 modern machinery and equipment and other capital needs;
23 (7) That additional industrial, [specialized, and]
24 commercial [enterprises], and other economic activities could be
25 attracted to the Commonwealth if such additional means of
26 financing were available to acquire, construct, rehabilitate and
27 expand [industrial, specialized] facilities, [or commercial]
28 buildings, [or] plants and [in conjunction therewith equip the
29 same with modern] machinery and equipment and to meet other
30 capital needs;
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1 (8) That by reason of the unavailability of private credit
2 sources redevelopment areas in cities of the Commonwealth have
3 remained unimproved and the residents of core areas of cities of
4 the Commonwealth and in particular minority groups are denied
5 the benefits of a balanced industrial, commercial and
6 residential environment and a balance of employment, cultural,
7 and business opportunities;
8 (9) That the provisions of the Constitution of Pennsylvania
9 guaranteeing the residents of the Commonwealth clean air and
10 water and the preservation of the environment and their
11 implementation through the establishment of quality standards
12 relating to abatement or elimination of [air and water]
13 pollution have resulted in the need for additional means of
14 financing to assist and encourage [industrial, specialized, and
15 commercial enterprises to comply] compliance with such air
16 [and], water, solid waste disposal, sewage disposal and
17 pollution control standards;
18 (10) That there is now, and is expected to be, a critical
19 need for the production of water suitable for public use and
20 consumption, natural gas, coal, oil, and other resources, and
21 that in order to insure continuing supplies of such resources at
22 reasonable rates, it is necessary to provide additional means of
23 financing [enterprises] projects directed to such production;
24 (11) That to protect the health, safety and general welfare
25 of the people of the Commonwealth and to further encourage
26 economic development within the Commonwealth by providing basic
27 services and facilities, it is necessary to provide additional
28 or alternative means of financing [certain] infrastructure
29 facilities, transportation [and other] facilities, industrial
30 parks, [nursing homes,] energy conversion facilities [and],
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1 facilities for the furnishing of gas or through the use of coal-
2 fired generating facilities, gas[,] or water [available on
3 reasonable demand to members of the general public],
4 communication facilities, tourism, recreational and sports
5 facilities, convention facilities and other basic service and
6 related facilities and facilities conductive to economic
7 activity within the Commonwealth.
8 (12) That the public ports of the Commonwealth are assets of
9 value to the entire Commonwealth, the residents of all parts of
10 the Commonwealth benefit directly from the waterborne commerce
11 that the ports attract and service, and any improvement to the
12 ports that increases export and import commerce will benefit the
13 people of the entire Commonwealth.
14 (b) Therefore, it is hereby declared to be the policy of the
15 Commonwealth of Pennsylvania to promote the health, safety,
16 morals, employment, business opportunities, economic activity
17 and general welfare of the people thereof by providing for the
18 creation of industrial or commercial development authorities
19 which shall exist and operate as public instrumentalities of the
20 Commonwealth, and by providing for the creation of the
21 Pennsylvania Economic Development Financing Authority which
22 shall exist and operate as a public instrumentality of the
23 Commonwealth, for the public [purpose of alleviating
24 unemployment, maintaining employment at a high level,
25 eliminating and preventing blight and eliminating or reducing
26 air and water pollution, and creating and developing business
27 opportunities by the construction, improvement, rehabilitation,
28 revitalization and financing of industrial, commercial,
29 manufacturing and research and development enterprises. Such
30 purpose is hereby declared to be a public purpose.] purposes
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1 enumerated and declared in paragraph (c) hereof.
2 (c) The General Assembly hereby declares the legislative and
3 public purpose hereof to:
4 (1) Promote industrial, commercial and other economic
5 development.
6 (2) Improve the public and private infrastructure needed to
7 support modern industrial, commercial and other facilities
8 conducive to economic activity.
9 (3) Promote the use of the most efficient means of
10 production and distribution of goods and services within the
11 Commonwealth.
12 (4) Protect the natural resources of the Commonwealth and
13 encourage the reduction and recycling of wastes and the orderly
14 recovery of natural resources.
15 (5) Promote improvement in the quality of goods and services
16 produced in the Commonwealth to insure their continued demand in
17 the competitive global economy.
18 (6) Promote the building and use of efficient means for
19 transporting and storing goods, by, among other things,
20 developing sufficient port, rail, highway, air, intermodal
21 shipping, warehouse and other related facilities within the
22 Commonwealth.
23 (7) Promote the installation and use of the most efficient
24 means of communications for industrial, commercial and other
25 economic activities.
26 (8) Promote a healthy environment through the abatement,
27 safe storage, transport, elimination and disposal within the
28 Commonwealth of pollutants and wastes of every kind and type,
29 whether liquid, solid, gaseous, noise, thermal or otherwise, and
30 sewage.
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1 (9) Promote and encourage retail and wholesale
2 establishments, whether by the promotion of such establishments
3 themselves or through auxiliary activities such as the promotion
4 of new or improved residential facilities or other activities
5 deemed necessary to eliminate blight or otherwise improve an
6 area for industrial, commercial and other economic activity.
7 (10) Promote the use of urban and commercial centers by,
8 among other things, providing parking, convention, tourism,
9 recreational and sports facilities.
10 (11) Promote the establishment and development of health
11 care and educational facilities, and facilities for the care of
12 persons requiring special care.
13 (12) Promote centers for research and development and for
14 the use and transfer of new or existing technologies.
15 (13) Otherwise promote the health, welfare and safety of the
16 residents of the Commonwealth by promoting economic activity and
17 by alleviating or eliminating unemployment, blight and other
18 unhealthy conditions, and to do or perform any of the above
19 regardless of whether the project, the project applicant or the
20 project user is public or private or done with a purpose of
21 profit or not-for-profit.
22 (d) This act shall be liberally construed in order to effect
23 these legislative and public purposes.
24 Section 3. Section 3 of the act, amended December 19, 1975
25 (P.L.576, No.165), December 16, 1982 (P.L.1363, No.312) and July
26 10, 1987 (P.L.273, No.48), is amended to read:
27 Section 3. Definitions.--As used in this act:
28 ["Agricultural activity" means any person, partnership, or
29 corporation which is engaged primarily in raising, preparing, or
30 marketing crops, livestock, or related products.]
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1 "Acquisition" means the acquisition, construction,
2 reconstruction, equipping, expansion, extension, improvement,
3 rehabilitation or remodeling of a project.
4 "Authority" or "industrial and commercial development
5 authority" means a public instrumentality of the Commonwealth
6 and a body politic and corporate, created pursuant to section 4
7 of this act.
8 "Board" means the governing body of an authority created
9 pursuant to section 4 of this act.
10 "Bonds" means and includes the notes, bonds, refunding notes
11 and bonds and other evidence of indebtedness or obligations
12 which each authority is authorized to issue pursuant to section
13 6(b)(10) of this act or which the financing authority is
14 authorized to issue pursuant to section 6.3 of this act.
15 ["Certain transportation and other facilities" means
16 airports, docks, wharves, mass commuting facilities, public
17 parking facilities, inter modal transportation facilities, or
18 storage or training facilities directly related to any such
19 facility and facilities for the confinement or correction of
20 prisoners.]
21 ["Commercial enterprise" means an enterprise other than a
22 specialized enterprise or industrial enterprise which by its
23 nature or size requires substantial capital and which by its
24 nature or size has created, or offers reasonable likelihood of
25 creating, substantial employment opportunities. The term
26 "commercial enterprise" may include wholesale, retail and other
27 mercantile activities, office buildings, hotel or motel
28 structures, shopping centers, department stores and
29 international, national and regional headquarters facilities:
30 Provided, however, That with respect to redevelopment pursuant
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1 to a redevelopment proposal, there shall be no requirement
2 concerning substantiality of capital nor substantiality of
3 creation of employment opportunities.]
4 "Commercial facilities" means and includes, but is not
5 limited to, wholesale, retail and other mercantile facilities,
6 warehouse and distribution facilities, service facilities,
7 office facilities, hotel or motel facilities, shopping centers,
8 department stores and international, national and regional
9 headquarters facilities, research and development facilities,
10 and tourism, recreational and sports facilities.
11 "Construction" and "to construct" mean and include the
12 [acquisition,] erection, extension, renovation, enlargement or
13 substantial repair of structures employed in, or related to,
14 [activities] projects comporting with the intent of this act,
15 and also include activities substantially related to such
16 [acquisition,] erection, extension, renovation, enlargement or
17 substantial repair of structures employed in, or related to,
18 such [activities] projects.
19 ["Cost of the industrial development project, specialized
20 development project or commercial development project" or "cost
21 of the project" or "cost" means and includes the expense of
22 construction, the expense of acquisition of all structures,
23 lands and other property rights and interests in land necessary
24 to the project. The terms also include the expense of
25 demolishing, removing or relocating any buildings or structures
26 on lands acquired or to be acquired, including the expense of
27 acquiring any lands to which such buildings or structures may be
28 moved or relocated, the expense of sewage treatment, waste
29 treatment and pollution control facilities, railroad sidings,
30 spurs, or branch lines and of all labor, materials, machinery
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1 and equipment, financing charges, interest on all bonds prior to
2 and during construction, and for a period of six months
3 thereafter, cost of engineering, financial and legal services,
4 plans, specifications, studies, surveys necessary or incidental
5 to determining the feasibility or practicability of constructing
6 an industrial, specialized, or commercial development project,
7 administrative expenses, reserves for interest and for
8 extensions, enlargements, additions and improvements, and such
9 other expenses as may be necessary or incidental to the
10 construction of industrial, specialized, or commercial
11 development projects and the placing of the same in operation.]
12 "Cost of the project" or "cost" means and includes any and
13 all costs and expenses of acquisition of all land, interests in
14 land, property, rights, buildings, structures, equipment,
15 furnishings and other tangible or intangible property comprising
16 the project, including, without limitation, the expense of
17 demolishing, removing or relocating any buildings or structures
18 on lands acquired or to be acquired and the expense of acquiring
19 any lands to which such buildings or structures may be moved or
20 relocated, financing charges and other costs of financing and
21 refinancing and issuing bonds, interest expense prior to and
22 during construction and for a period of six months thereafter,
23 costs of engineering, financial, accounting and legal services,
24 plans, specifications, studies, surveys necessary or incidental
25 to determining the feasibility or practicability of constructing
26 the project, administrative expenses, reserves for interest, and
27 such other expenses as may be necessary or incidental to the
28 acquisition of the project and the placing of the same in
29 operation. When a project includes working capital or other
30 capital needs related to industrial, commercial or other
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1 economic activities, the term "cost of the project" shall also
2 include such working capital or other capital needs.
3 "Department" means the Department of Commerce of the
4 Commonwealth of Pennsylvania.
5 "Disaster relief project" means any undertaking to
6 rehabilitate, repair, reconstruct, clean up, replace or
7 otherwise return to economic use any land, site, structure, or
8 facility, including machinery, equipment and tools damaged or
9 lost due to disaster of flood or fire or other casualty
10 [comprising or being a part of an industrial, specialized or
11 commercial enterprise]. In order to qualify as a disaster relief
12 project, a project must be located within a county designated as
13 a disaster area by the President of the United States.
14 "Energy conversion [facility] facilities" means an
15 improvement to [an] industrial, commercial, or [specialized
16 development project which changes its] other facilities which
17 changes their fuel consumption capability to a fuel determined
18 by [the] an authority or the financing authority, [with the
19 approval of the secretary] to be more desirable than the fuel
20 used by the occupant of the project at the time application is
21 made to the authority.
22 "Energy producing [activity" means an activity] facilities"
23 means and includes facilities to create, extract, transmit, or
24 store energy or energy producing substances, including, but not
25 limited to coal mine operations, oil and gas operations, solar,
26 nuclear, or geothermal energy operations, except the production
27 of electrical energy by a utility [activity] entity.
28 "Federal government" or "Federal agency" means and includes
29 the United States of America, the President of the United States
30 of America, and any department of or corporation, agency or
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1 instrumentality heretofore or hereafter created, designated or
2 established by the United States of America.
3 "Financing authority" means the Pennsylvania Economic
4 Development Financing Authority created by section 6.1 of this
5 act.
6 "Financing board" means the governing body of the financing
7 authority.
8 "Governmental body" or "governmental bodies" means the body
9 or board authorized by law to enact ordinances or adopt
10 resolutions for the particular municipality.
11 ["Improvement" and "to improve" mean and include construction
12 and other changes determined by an authority with the approval
13 of the secretary to comport with the purposes of this act.
14 "Industrial development project," "specialized development
15 project," "commercial development project," "development
16 project" or "project" means any pollution control facilities or
17 any combination or part of buildings or facilities occupied or
18 utilized by an industrial, specialized, or commercial enterprise
19 located within or without, or partially within or without, the
20 municipality creating the authority, or existing or hereafter
21 acquired or constructed by the authority pursuant to the terms
22 of this act, including any or all buildings, improvements,
23 additions, extensions, replacements, appurtenances, lands,
24 rights in land, water rights, franchises, machinery, equipment,
25 furnishings, landscaping, utilities, railroad spurs and sidings,
26 wharves, approaches and roadways necessary or desirable in
27 connection therewith or incidental thereto. The term
28 "development project" includes, as well, pollution control
29 facilities occupied or utilized by any utility activity,
30 agricultural activity or any person, partnership, or corporation
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1 engaged in the extraction of any mineral coal, natural gas, oil
2 or other natural resources.
3 "Industrial enterprise" means an enterprise other than a
4 specialized enterprise or commercial enterprise which by its
5 nature or size requires substantial capital and which by its
6 nature or size has created or offers a reasonable likelihood of
7 creating substantial employment opportunities. The term
8 "industrial enterprise" may include manufacturing activities and
9 research and development activities, as well as warehouse
10 facilities, distribution facilities, and international, national
11 and regional headquarters facilities. The term "industrial
12 enterprise" also includes activities directly related to tourism
13 and recreational facilities, provided that such activities
14 comprise or are part of a planned or established tourist or
15 recreational complex.
16 "Industrial parks" means land areas acquired (including
17 existing buildings and improvements), and improvements to be
18 placed thereon by a nonprofit development organization in
19 accordance with plans and specifications approved by the
20 secretary as sites for the establishment thereon of two or more
21 industrial, specialized, or commercial development projects.
22 "Investor-developer" means any person, partnership or
23 corporation engaged in the development for use by occupants of
24 one or more development projects and determined by the authority
25 to be financially responsible to assume all obligations
26 prescribed by the authority and this act in the acquisition,
27 development, construction, leasing, sale, operation and
28 financing in whole or in part of a development project.
29 "Manufacturing activity" means the giving of new shapes, new
30 qualities or new combinations to matter by the application of
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1 skill and labor thereto through the use of equipment or
2 otherwise.]
3 "Industrial facilities" means and includes, but is not
4 limited to, manufacturing facilities and warehouse, office and
5 other facilities ancillary to manufacturing facilities.
6 "Municipality" means any county, city, town, borough or
7 township of the Commonwealth of Pennsylvania, each of which
8 political subdivisions are separate incorporated municipalities
9 of the Commonwealth of Pennsylvania for the purposes of this
10 act.
11 "Municipal authority" means an authority organized and
12 existing under the act of May 2, 1945 (P.L.382, No.164), known
13 as the "Municipality Authorities Act of 1945."
14 ["Nursing home" means any facility licensed or approved as a
15 nursing home by the Department of Public Welfare or by the
16 Department of Health.
17 "Occupant" means any person, partnership, or corporation
18 engaged in an industrial, commercial or specialized enterprise
19 and determined by the authority to be financially responsible to
20 assume all obligations prescribed by the authority and this act
21 in the lease, sale, and operation of a development project. The
22 term "occupant" shall also mean (i) a financially responsible
23 nonprofit development agency engaged in establishing development
24 projects, whether for single or multiple occupancy for use by
25 any person, partnership, or corporation engaged in any
26 enterprise or (ii) a person, partnership, or corporation engaged
27 in furnishing facilities for confinement or correction of
28 prisoners for use by any municipality.]
29 "Pollution control facilities" means and includes any
30 property, real or personal, which is to be used to abate or
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1 reduce or aid in the prevention, control, collection, treatment,
2 disposal or monitoring of noise, air, water or thermal
3 pollution, solid, sewage, waste or other pollutants without
4 limitation thereto and may include property or equipment which
5 is to be installed primarily to supplement or to replace
6 existing property or equipment not meeting acceptable pollution
7 control standards or which is to be supplemented or replaced to
8 comply with an order or citation to eliminate pollution issued
9 by any Federal, [State] Commonwealth or local agency having
10 jurisdiction.
11 ["Redevelopment proposal" means a proposal, including a copy
12 of the redevelopment area plan and supporting data submitted for
13 approval to the governing body by an authority, for the
14 development of all or any part of a redevelopment area.
15 "Research and development activity" means an activity for the
16 discovery of new and the refinement of known substances,
17 processes, products, theories and ideas, but shall not include
18 activities directed primarily to the accumulation or analysis of
19 commercial, financial or mercantile data.]
20 "Project" means any land, interests in land, easements,
21 appurtenances, improvements, buildings, structures, equipment,
22 furnishings, or other real or personal property, whether
23 tangible or intangible, or interest in them, or any combination
24 of them, including public and private infrastructure facilities,
25 as well as working capital, pension fund recapitalization, and
26 other capital needs related to industrial, commercial and other
27 economic activities, the acquisition and/or financing or
28 refinancing of which an authority or the financing authority
29 finds and determines by resolution will accomplish one or more
30 of the legislative purposes set forth in section 2 of this act.
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1 Such financing or refinancing may be with tax-exempt bonds or
2 taxable bonds issued pursuant to this act and may be directed
3 through application of bond proceeds or other funds to pay
4 project costs or indirect through stock purchases or such other
5 means as an authority or the financing authority may approve.
6 Projects satisfying the legislative purposes set forth in
7 section 2 of this act may include, but shall not be limited to,
8 industrial facilities, commercial facilities, disaster relief
9 projects, energy conversion facilities, energy producing
10 facilities and pollution control facilities.
11 "Project applicant" means any individual, public or private
12 corporation, partnership, association, firm or other entity,
13 whether or not created for the purpose of making a profit, or
14 any Commonwealth instrumentality or agency or any municipality
15 or any municipal authority, which requests an authority or the
16 financing authority to participate in the financing of one or
17 more projects in the manner provided by this act for use by one
18 or more project users.
19 "Project user" means any individual, public or private
20 corporation, partnership, association, firm, or other entity,
21 whether or nor created for the purpose of making a profit, which
22 owns, leases or uses all or any part of a project, and may
23 include a project applicant.
24 "Secretary" means the Secretary of Commerce of the
25 Commonwealth.
26 ["Specialized enterprise" means an enterprise, other than an
27 industrial enterprise or a commercial enterprise, which by its
28 nature or size requires substantial capital. The term
29 "specialized enterprise" includes, and is expressly limited to,
30 certain transportation and other facilities, nursing homes,
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1 industrial parks, facilities for the furnishing by a utility
2 activity of gas or water available on reasonable demand to
3 members of the general public, energy conversion facilities,
4 energy-producing activities, and the construction of rail
5 sidings, spurs, and branch lines.]
6 "Taxable bonds" means bonds or other evidences of
7 indebtedness the interest on which is includable in gross income
8 for Federal income taxation purposes.
9 "Tax-exempt bonds" means bonds or other evidences of
10 indebtedness the interest on which is excludable from gross
11 income for Federal income taxation purposes.
12 "Utility [activity] entity" means any public or private
13 company or corporation engaged primarily in an activity
14 regulated by the Pennsylvania Public Utility Commission.
15 Section 4. Section 6(b) and (d) of the act, amended
16 September 1, 1972 (Sp.Sess. No.1 P.L.2015, No.2), December 19,
17 1975 (P.L.576, No.165) and July 10, 1987 (P.L.273, No.48), are
18 amended to read:
19 Section 6. Purposes and Powers; General.--* * *
20 (b) Every authority is hereby granted, and shall have and
21 may exercise all powers necessary or convenient for the carrying
22 out of the aforesaid purposes, including but without limiting
23 the generality of the foregoing, the following rights and
24 powers:
25 (1) To have existence for a term of fifty years and for such
26 further period or periods as may be provided in articles of
27 amendment approved under subsection (e) of section 5.
28 (2) To sue and be sued, implead and be impleaded, complain
29 and defend in all courts.
30 (3) To adopt, use and alter at will, a corporate seal.
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1 (4) To acquire, purchase, own, hold, lease as lessee and use
2 any franchise, property, real, personal or mixed, tangible or
3 intangible, or any interest therein necessary or convenient for
4 carrying out the purposes of the authority, and to sell, option,
5 lease as lessor, transfer and dispose of any property or
6 interest therein at any time acquired by it.
7 (5) To acquire by gift, purchase, lease or otherwise, and to
8 construct, improve, maintain and repair projects.
9 (6) To make bylaws for the management and regulation of its
10 affairs.
11 (7) To appoint officers, agents and employes, to prescribe
12 their duties and to fix their compensation.
13 (8) To enter into [acquisition] agreements providing for (i)
14 the [construction] acquisition of [industrial, specialized, or
15 commercial development] projects by either the authority, the
16 project applicant or the [occupant] project user; (ii) the
17 financing of [industrial, specialized and commercial
18 development] projects [to be constructed initially by an
19 occupant] where acquisition is by a project applicant or a
20 project user [if prior to the commencement of construction an
21 agreement as to financing is entered into between the authority
22 and the occupant]; (iii) the financing of improvements to
23 existing [industrial, specialized or commercial development]
24 projects [if the existing project is owned by the authority or
25 will be conveyed in fee to the authority, free and clear of all
26 encumbrances and without consideration]; and (iv) the leasing or
27 sale of the [industrial, specialized or commercial development]
28 projects to, or the loan financing of projects for, the
29 [occupants or to an investor-developer] project users or project
30 applicants as hereinafter provided[; and (v) the financing of
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1 the activities of investor-developers in any activity set forth
2 in (i), (ii), (iii) or (iv) above].
3 (9) To enter into agreements of lease [or], sale or loan
4 financing with [occupants or investor-developers] project users
5 or project applicants providing, inter alia, (i) for the leasing
6 or sale of [industrial, specialized and commercial development]
7 projects to, or the loan financing of projects for, the
8 [occupants or investor-developers] project users or project
9 applicants for a term of years not to extend beyond the term of
10 existence of the authority; (ii) for a rental, purchase price,
11 loan or other payments sufficient to amortize the principal,
12 interest and premium, if any, of all bonds and other obligations
13 of the authority incurred to provide funds to pay the costs of
14 the [industrial, specialized or commercial development] project
15 to be leased [or], sold or otherwise financed; (iii) for the
16 [occupant or investor-developer] project user or project
17 applicant to pay to the authority or to otherwise assume and pay
18 all other costs of acquiring, constructing, maintaining and
19 operating the project; (iv) provisions, if deemed desirable,
20 that the [occupant or investor-developer] project user or
21 project applicant of a project pursuant to a lease shall have
22 the options to renew such lease or to purchase any or all of
23 such project; (v) for conveyance with or without consideration
24 of any part, or all, of a project to [occupants or investor-
25 developers] the project user or project applicant on or before
26 payment of all bonds and other obligations of the authority
27 incurred with respect to such project; and (vi) such other
28 provisions as are customary in such leases [or], agreements of
29 sale or loan agreements or as may be deemed necessary or
30 convenient by the authority.
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1 (10) To borrow money, make and issue bonds of the authority,
2 said bonds to have a maturity date not longer than forty years
3 from the date of issue: Provided, That no bonds shall have a
4 maturity date later than the life of the authority, and to
5 secure the payment of such bonds or any part thereof by pledge,
6 mortgage or deed of trust of all or any part of its property and
7 of its revenues and receipts, and to make such agreements with
8 the purchasers or holders of such bonds, or with others in
9 connection with any such bonds, whether issued or to be issued,
10 as the authority shall deem advisable, and in general to provide
11 for the security for said bonds by mortgage, pledge or otherwise
12 and for the rights of the holders thereof.
13 (11) To make contracts of every name and nature and to
14 execute all instruments necessary or convenient for the carrying
15 on of its business.
16 (12) Without limitation of the foregoing, to borrow money
17 and accept grants and other funds from and to enter into
18 contracts, leases or other transactions with any Federal agency,
19 the Commonwealth of Pennsylvania or its agencies or
20 instrumentalities, or with any municipality, school district,
21 bank or other financial institution, corporation or other
22 authority.
23 (13) To pledge, mortgage, hypothecate or otherwise encumber
24 all or any part of the property, real or personal, including but
25 not limited to the revenues or receipts of the authority as
26 security for all or any of the obligations of the authority.
27 (14) To make loans to project applicants or project users,
28 and to provide or issue alternative types of financing,
29 including, but not limited to, standby loan commitments,
30 guarantees, letters of credit and grants.
19900H2594B3573 - 20 -
1 [(14)] (15) To do all acts and things necessary or
2 convenient for the promotion of its business and the general
3 welfare of the authority, to carry out and exercise the purpose
4 of and the powers granted [to it] by this act or any other acts.
5 [(15) An authority created hereunder may sponsor disaster
6 relief projects pursuant to the provisions of this act.
7 (16) Recognizing the necessity for enterprises to
8 immediately commence rehabilitation work and pollution control
9 facilities, no disaster relief project or project consisting of
10 pollution control facilities shall be rejected by the Secretary
11 of Commerce or be otherwise disqualified under this act on the
12 grounds that the project has commenced or has been completed,
13 provided that in respect to a disaster relief project an
14 application for approval by the secretary is submitted to the
15 Department of Commerce within six months after the county in
16 which the project is or will be located has been designated as a
17 disaster area by the President of the United States.]
18 * * *
19 (d) An authority created under section 4 of this act shall
20 have no power to:
21 (1) [Construct or finance or aid in the construction or
22 financing of an industrial, specialized, or commercial
23 development project] Acquire or finance the acquisition of a
24 project which shall cause the removal of a [manufacturing,
25 industrial, specialized, commercial enterprise, plant, facility
26 or establishment] business from one area of the Commonwealth of
27 Pennsylvania to another area of the Commonwealth, unless the
28 secretary has found that relocation of the plant, facility or
29 other business is necessary in order for the plant, facility or
30 other business to remain competitive or to prevent the plant,
19900H2594B3573 - 21 -
1 facility or other business from leaving the Commonwealth.
2 [(2) Acquire existing industrial, specialized, or commercial
3 development projects under circumstances which would be
4 primarily for the purpose of directly or indirectly refinancing
5 the obligations of or providing working capital or other funds
6 for any industrial, specialized, or commercial enterprise or any
7 parent, subsidiary, affiliate or shareholder thereof, which
8 enterprise, or any parent, subsidiary, affiliate or shareholder
9 thereof, would thereafter continue to occupy or utilize said
10 project; however, this limitation shall not apply to refinancing
11 in order to improve an existing project now financed by the
12 authority or by any authority or nonprofit corporation
13 heretofore recognized as agency or an instrumentality of the
14 Commonwealth or any municipality thereof.]
15 [(3)] (2) Enter into any agreement to finance the
16 acquisition [or construction] of [an industrial development] a
17 project in excess of the cost of the project.
18 [(4) Finance machinery or equipment except in conjunction
19 with the construction of a new, or the improvement of an
20 existing industrial, specialized, or commercial development
21 project, but such prohibition shall not relate to the financing
22 of pollution control facilities; or]
23 [(5)] (3) Engage in business, trade or commerce for a profit
24 as an owner or lessee of a project, or otherwise.
25 (4) Finance any project which will be used in whole or in
26 part for illegal activities.
27 (5) Finance any project which is not located within the
28 Commonwealth of Pennsylvania.
29 (6) Finance any project which is not located within the
30 boundaries of the municipality which created the authority,
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1 unless the authority created by the municipality in which the
2 project is located consents to such financing.
3 Section 5. Sections 6.2, 6.3 and 6.4 of the act, added July
4 10, 1987 (P.L.273, No.48), are amended to read:
5 Section 6.2. Powers of the Financing Authority; General.--
6 The financing authority, as a public corporation and
7 governmental instrumentality exercising public powers of the
8 Commonwealth, is hereby granted and shall have and may exercise
9 all powers necessary or appropriate to carry out and effectuate
10 the purposes of this act, including, but not limited to, the
11 following powers:
12 (1) To have existence until its existence shall be
13 terminated by law.
14 (2) To sue and be sued, implead and be impleaded, complain
15 and defend in all courts.
16 (3) To adopt, use and alter at will a corporate seal.
17 (4) To make bylaws for the management and regulations of its
18 internal affairs, and, subject to agreements with holders of its
19 bonds, to make rules and regulations with respect to its
20 operations, properties and facilities.
21 (5) To appoint an executive director and any other officers,
22 agents, and employes as it may require for the performance of
23 its duties, and to prescribe their duties, fix their
24 compensation, promote and discharge them within the limitations
25 provided by law.
26 (6) To enter into financing agreements with project
27 applicants and project users providing, among other things; (i)
28 for loan financing or other financing of projects for project
29 applicants or project users; (ii) for loan payments or other
30 payments sufficient to amortize the principal, interest and
19900H2594B3573 - 23 -
1 premium, if any, of all bonds and other obligations of the
2 financing authority incurred to provide funds to pay the costs
3 of the projects to be financed; (iii) for the project applicants
4 or project users to pay or cause to be paid all other costs of
5 acquiring, constructing, maintaining and operating the projects;
6 and (iv) such other matters as are customary in such agreements
7 or as may be deemed necessary or appropriate by the financing
8 authority; and to make contracts of every name and nature, and
9 to execute all instruments necessary or convenient for the
10 carrying on of its business.
11 (7) To borrow money and issue bonds and other evidences of
12 indebtedness created thereby, to secure the payment of such
13 bonds or other evidences of the indebtedness or any part thereof
14 67 by pledge or assignment of all or any of the mortgages and
15 security interests of the financing authority, its revenues and
16 receipts therefrom or its 70 revenues generally, and to provide
17 for the rights of the lenders and holders thereof in accordance
18 with the provisions of this act.
19 (8) To sell loans, mortgages and security interests at
20 public or private sale, to negotiate modifications or
21 alterations in [mortgage] mortgages and security interests, to
22 foreclose on any mortgage or security interest in default or
23 commence any action to protect or enforce any right conferred
24 upon it by any law, mortgage, security agreement, contract or
25 other agreement, to bid for and purchase property which was the
26 subject of such mortgage or security interest at any foreclosure
27 or at any other sale, to acquire or take possession of any such
28 property, and to exercise any and all rights as provided by law
29 for the benefit or protection of the financing authority or
30 mortgage or security interest holders.
19900H2594B3573 - 24 -
1 (9) To collect fees and charges in connection with its loan
2 commitments and servicing, including, but not limited to,
3 reimbursement of costs of financing as the financing authority
4 shall determine to be reasonable and as shall be approved by the
5 financing authority.
6 (10) To make and execute contracts for the servicing of
7 loans and mortgages acquired by the financing authority pursuant
8 to this act, and to pay the reasonable value of services
9 rendered to the financing authority pursuant to those contracts.
10 (11) To accept gifts, grants, loans and other aid from the
11 Federal Government, the Commonwealth or any political
12 subdivision of the Commonwealth, or any person or corporation,
13 foundation or legal entity, and to agree to and comply with any
14 conditions attached to Federal and [State] Commonwealth
15 financial assistance not inconsistent with the provisions of
16 this act.
17 (12) To invest moneys of the financing authority not
18 required for immediate use, including proceeds from the sale of
19 any bonds, in such manner as the financing board shall
20 determine, subject to any agreement with bondholders stated in
21 the authorizing resolution providing for the issuance of bonds.
22 (13) To procure insurance against any loss in connection
23 with its programs, property and other assets.
24 (14) To engage the services of attorneys, accountants and
25 financial experts and any other advisors, consultants and agents
26 as may be necessary in its judgment, and to fix their
27 compensation.
28 (15) Subject to any agreement with holders of its bonds, to
29 obtain as security for payment of all or any part of the
30 principal of and interest and premium on the bonds, lines of
19900H2594B3573 - 25 -
1 credit and letters of credit in any amounts and upon any terms
2 as the bank may determine, and to pay any fees and expenses
3 required in connection therewith.
4 (16) To make loans to project applicants and project users
5 and to provide or issue alternative types of financing,
6 including, but not limited to, standby loan commitments,
7 guarantees and letters of credit.
8 [(16)] (17) To adopt rules and regulations containing such
9 restrictions as it may deem necessary or appropriate to
10 effectuate the public purposes of this act.
11 [(17)] (18) To do any act necessary or convenient to the
12 exercise of the foregoing powers or reasonably implied
13 therefrom.
14 Section 6.3. Financing Authority Indebtedness.--(a) The
15 financing authority shall have the power and is hereby
16 authorized to issue its limited obligation revenue bonds and
17 other types of financing as in the judgment of the financing
18 authority shall be necessary to provide sufficient funds for any
19 series of related or unrelated projects, provided that the
20 issuance by the financing authority of taxable or tax-exempt
21 bonds on behalf of projects which are for the purpose of making
22 a profit or for the purpose of the establishment and development
23 of health care and educational facilities, research and
24 development facilities, or tourism, recreational, convention and
25 sports facilities, shall have been authorized by an industrial
26 and commercial development authority or a group of industrial
27 and commercial development authorities [for qualified industrial
28 development projects]. The financing authority is authorized and
29 empowered to use the proceeds of any bonds issued for the making
30 of loans, purchasing loans, mortgages, security interests, or
19900H2594B3573 - 26 -
1 loan participations and paying all incidental expenses in
2 connection therewith, paying expenses of authorizing and issuing
3 the bonds, paying interest on the bonds until revenues thereof
4 are available in sufficient amounts, and funding such reserves
5 as the financing authority deems necessary and desirable. [It is
6 the intention of this section to provide an alternative source
7 of financing for industrial and commercial development
8 authorities.]
9 (b) The financing authority, whenever it deems it expedient,
10 shall have the power to refund or renew any bonds by the
11 issuance of new bonds whether the bonds to be refunded or
12 renewed have or have not matured. Refunding bonds shall be sold
13 and the proceeds applied to the purchase, redemption or payment
14 of the bonds to be refunded, the establishment or increase in
15 reserves to secure or to pay the bonds or interest thereon and
16 all other costs or expenses of the financing authority incident
17 to and necessary to carry out the refunding or renewing of
18 bonds.
19 (c) Bonds issued under this section shall not be a debt or
20 liability of the Commonwealth of Pennsylvania or of any of its
21 political subdivisions other than the financing authority and
22 shall not create or constitute any indebtedness, liability or
23 obligation of the Commonwealth or of any political subdivision,
24 but all bonds shall be payable solely from revenues or funds
25 pledged or available for their payment as authorized in this
26 section, including the proceeds of any issue of bonds. Each bond
27 shall contain on its face a statement to the effect that the
28 financing authority is obligated to pay the principal thereof or
29 the interest thereon only from its revenues, receipts or funds
30 pledged or available for their payment as authorized in this
19900H2594B3573 - 27 -
1 act, and that neither the Commonwealth nor any political
2 subdivisions are obligated to pay the principal or interest, and
3 that neither the faith and credit nor the taxing power of the
4 Commonwealth nor any political subdivision is pledged to the
5 payment of the principal of or the interest on the bonds.
6 (d) If the bonds issued by the financing authority are
7 [exempt from Federal income taxes under Federal law] tax-exempt
8 bonds, the Department of Commerce shall issue an allocation
9 charging such small issue project's pro rata share of the issue
10 to the county in which said project is to be located.
11 (e) When gubernatorial approval is required by the
12 provisions of Federal or [State] Commonwealth law, the Governor
13 of the Commonwealth is hereby authorized to approve the issuance
14 of bonds by the financing authority upon receipt of written
15 request for approval from the financing board. Such written
16 request shall state that the financing authority has conducted a
17 public hearing, pursuant to appropriate public notice,
18 concerning the purposes for which the bonds are to be issued,
19 shall contain a description of the project or projects and shall
20 describe the method of financing the project or projects. The
21 written request shall also summarize the comments made and
22 questions posed at the public hearing.
23 (f) Neither the members of the board of the financing
24 authority nor any person executing the bonds shall be liable
25 personally on the bonds or be subject to any personal liability
26 or accountability by reason of the issuance thereof.
27 (g) (1) Bonds issued in accordance herewith shall be
28 authorized by resolution of the financing authority. The bonds
29 shall be of such series, bear any date or dates, mature at such
30 time or times, [not exceeding thirty years from their respective
19900H2594B3573 - 28 -
1 dates,] bear interest at any rate or rates or at variable rates,
2 be of any denomination or denominations, be in any form, either
3 coupon or registered, carry any conversion or registration
4 privileges, have any rank or priority, be executed in any
5 manner, be payable from such sources in any medium of payment at
6 any place or places and at any time or times within or without
7 this Commonwealth and be subject to any terms of redemption,
8 purchase or tender by the financing authority or the holders
9 thereof, with or without premium, as the resolution or
10 resolutions may provide.
11 (2) The bonds shall be signed by or shall bear the facsimile
12 signature of such officers as the financing authority shall
13 determine, and coupon bonds shall have attached thereto [in]
14 interest coupons bearing the facsimile signature of the chairman
15 of the financing authority, all as may be prescribed in such
16 resolution or resolutions.
17 (3) Bonds may be issued and delivered, notwithstanding that
18 one or more of the officers signing such bonds shall have ceased
19 to be such officer or officers at the time when such bonds shall
20 actually be delivered.
21 (4) Bonds may be sold at public or private sales for such
22 price or prices as the financing authority shall determine.
23 Pending the preparation of the definitive bonds, interim
24 receipts may be issued to the purchaser or purchasers thereof
25 and may contain such terms and conditions as the financing
26 authority may determine.
27 (5) Any bond reciting in substance that it has been issued
28 by the financing authority to aid in the financing of one or
29 more projects to accomplish the public purposes of this act
30 shall be conclusively deemed in proceedings involving the
19900H2594B3573 - 29 -
1 validity or enforceability of such bond or security therefor, to
2 have been issued for such purpose.
3 (h) Any resolution or resolutions authorizing any bonds may
4 contain provisions, which shall be part of the contract with
5 holders thereof, [as] to:
6 (1) Secure the bonds.
7 (2) Make covenants against pledging all or part of its
8 revenues or receipts to other parties.
9 (3) Make covenants limiting its right to sell, pledge or
10 otherwise dispose of notes and bonds of governmental units, loan
11 agreements of public or private persons or entities or other
12 property of any kind.
13 (4) Make covenants as to additional bonds to be issued, the
14 limitations thereon, the terms and conditions thereof, and the
15 custody, application, investment and disposition of the proceeds
16 thereof.
17 (5) Make covenants as to the incurring of other debts by it.
18 (6) Make covenants as to the payment of principal of or
19 interest on bonds, the sources and methods of the payment, the
20 rank or priority of bonds with respect to liens or security
21 interests or the acceleration of maturity of bonds.
22 (7) Provide for replacement of lost, stolen, destroyed or
23 mutilated bonds.
24 (8) Make covenants as to the redemption, purchase or tender
25 of bonds by the financing authority or the holders thereof and
26 the privileges of exchanging them for other bonds.
27 (9) Make covenants to create or authorize the creation of
28 special funds or accounts to be held in trust or otherwise for
29 the benefit of holders of bonds, or of reserves for other
30 purposes and as to the use, investment and disposition of moneys
19900H2594B3573 - 30 -
1 held in those funds, accounts or reserves.
2 (10) Provide for the rights, liabilities, powers and duties
3 arising upon the breach of a covenant, condition or obligation,
4 and prescribe the events of default and the terms and conditions
5 upon which any or all of the bonds shall become or may be
6 declared due and payable before maturity and the terms and
7 conditions upon which the declaration and its consequences may
8 be waived.
9 (11) Vest in a trustee or trustees within or without this
10 Commonwealth in trust any property, rights, powers and duties as
11 the financing authority may determine. These may include any or
12 all of the rights, powers and duties of any trustee appointed by
13 the holders of bonds or notes, including rights with respect to
14 the sale or other disposition of notes and bonds of governmental
15 units and other instruments and security pledged pursuant to a
16 resolution or trust indenture for the benefit of the holders of
17 bonds and the right by suit or action to foreclose any mortgage
18 pledged pursuant to the resolution [of] or trust indenture for
19 the benefit of the holders of the bonds, notes or other
20 obligations, and to limit the right of the holders of any bonds
21 to appoint a trustee under this act, and to limit the rights,
22 powers and duties of the trustee.
23 (12) Pay the costs or expenses incident to the enforcement
24 of the bonds or of the provisions of the resolution authorizing
25 the issuance of those bonds, or the trust indenture securing the
26 bonds or of any covenant or agreement of the financing authority
27 with the holders of the bonds, notes or other obligations.
28 (13) Limit the rights of the holders of any bonds to enforce
29 any pledge or covenant securing bonds.
30 (14) Make covenants other than or in addition to the
19900H2594B3573 - 31 -
1 covenants authorized by this act of like or different character,
2 and make covenants to do or refrain from doing any acts and
3 things as may be necessary, or convenient and desirable, in
4 order to better secure bonds or which, in the absolute
5 discretion of the financing authority, will tend to make bonds
6 more marketable, notwithstanding that the covenants, acts or
7 things may not be enumerated herein.
8 (i) A pledge of revenues, receipts, moneys, funds or other
9 property or instruments made by the financing authority shall be
10 valid and binding from the time when the pledge is made. The
11 revenues, receipts, moneys, funds or other property pledged and
12 thereafter received by the financing authority shall be
13 immediately subject to the lien of the pledge without its
14 physical delivery or further act, and the lien of any pledge
15 shall be valid and binding as against all parties having claims
16 of any kind in tort, contract or otherwise against the financing
17 authority irrespective of whether the parties have notice of the
18 lien. Neither the resolution nor any other instrument by which a
19 pledge under this section is created or evidence need be filed
20 or recorded except in the records of the financing authority.
21 (j) Whether or not the bonds are of a form and character as
22 to be negotiable instruments under the terms of Title 13 of the
23 Pennsylvania Consolidated Statutes (relating to commercial
24 code), the bonds are made negotiable instruments within the
25 meaning of and for the purposes of Title 13, subject only to the
26 provisions of the bonds for registration.
27 (k) The rights and remedies herein conferred upon or granted
28 to the bondholders shall be in addition to and not in limitation
29 of any rights and remedies lawfully granted to such bondholders
30 by the resolution or resolutions providing for the issuance of
19900H2594B3573 - 32 -
1 bonds or by any indenture or other agreement under which the
2 same may be issued.
3 Section 6.4. Financing Authority Loans.--(a) [No loan shall
4 be made by the financing authority unless] In making loans, the
5 financing authority shall ascertain to its satisfaction that:
6 (1) The industrial and commercial development authority has
7 obtained firm commitments satisfactory to the financing
8 authority from responsible financial sources, which may include
9 a Federal agency, [beneficial owner] project applicant or the
10 project [occupant] user, for the portion of project costs in
11 excess of any loan requested from the financing authority;
12 (2) The industrial and commercial development authority has
13 obtained a firm commitment satisfactory to the financing
14 authority from the project [occupant or beneficial owner]
15 applicant or project user to lease or use the project after
16 [construction,] acquisition[, rehabilitation or improvement] is
17 completed;
18 (3) The [financing authority approves the terms of such
19 lease or use and is satisfied that the] project [occupant or a
20 business enterprise] user may reasonably be expected to comply
21 with the terms [thereof] of such lease or use; and
22 (4) The project [has received all approvals required under
23 this act and] complies with [any] all rules and regulations of
24 the financing authority, if any.
25 (b) In addition to other provisions of this section limiting
26 the power of the financing authority to make loans [to
27 industrial and commercial development authorities,] in respect
28 to a particular project, [the following restrictions shall also
29 apply:
30 (1) No] no funds of the financing authority shall be used in
19900H2594B3573 - 33 -
1 respect of any project if the financing authority would be
2 required to operate, service or maintain the project pursuant to
3 any lease or other agreement except upon foreclosure or except
4 upon the occurrence of a default in the payment or terms of any
5 loan made. Nothing shall prevent the financing authority from
6 transferring such property to the project [occupant] applicant
7 or its designee at the end of the term of such financing.
8 [(2) No provisions of this act shall prevent the inclusion
9 in a mortgage, lease or other agreement relating to an assisted
10 project of a provision granting the project occupant the right
11 to purchase such project upon such terms and conditions as the
12 financing authority may approve.]
13 Section 6. Section 7 of the act, amended December 29, 1971
14 (P.L.647, No.171), December 29, 1972 (P.L.1675, No.359) and
15 December 19, 1975 (P.L.576, No.165), is amended to read:
16 Section 7. Purposes and Powers; Bonds.--(a) An authority
17 shall have the power to issue bonds for any of its corporate
18 purposes, provided, however, the principal, interest and other
19 charges thereon are payable solely and exclusively (i) from
20 revenues received from the project applicant or project user, or
21 from the income, revenues and property of the project financed,
22 in whole or in part, with the proceeds of such bonds; (ii) from
23 the income and revenues of certain designated projects whether
24 or not they were financed, in whole or in part, with the
25 proceeds of such bonds; or (iii) from its revenues generally.
26 (b) The bonds of any authority shall be authorized by
27 resolution of the board thereof, shall be of such series, bear
28 such date or dates, mature at such time or times, not exceeding
29 forty years from their respective date, bear interest at such
30 rate or rates, [payable at least semi-annually,] be in such
19900H2594B3573 - 34 -
1 denominations, be in such form, either coupon or fully
2 registered without coupons, carry such registration,
3 exchangeability and interchangeability privileges, be payable in
4 any medium of payment and at such place or places and at such
5 time or times, be subject to such terms of redemption, with or
6 without premium, and be entitled to such priorities in the
7 revenues or receipts of such authority as such resolution or
8 resolutions may provide. The bonds shall be signed by or shall
9 bear the facsimile signature of such officers as the authority
10 shall determine, and coupon bonds shall have attached thereto
11 interest coupons bearing the facsimile signature of the
12 treasurer of the authority, all as may be prescribed in such
13 resolution or resolutions. Any such bonds may be issued and
14 delivered, notwithstanding that one or more of the officers
15 signing such bonds or the treasurer whose facsimile signature
16 shall be upon the coupon, shall have ceased to be such officer
17 or officers at the time when such bonds shall actually be
18 delivered. Said bonds may be sold at public or private sale for
19 such price or prices as the authority shall determine. Pending
20 the preparation of the definitive bonds, interim receipts may be
21 issued to the purchaser or purchasers of such bonds, and may
22 contain such terms and conditions as the authority may
23 determine. Any bond reciting in substance that it has been
24 issued by an authority to aid in the financing of a project to
25 accomplish the public purposes of this act shall be conclusively
26 deemed in proceedings involving the validity or enforceability
27 of such bond or security therefor, to have been issued for such
28 purpose.
29 (c) Any resolution or resolutions authorizing any bonds may
30 contain provisions which shall be part of the contract with the
19900H2594B3573 - 35 -
1 holders thereof, as to (i) pledging the full faith and credit of
2 the authority (but not of the Commonwealth of Pennsylvania or
3 any political subdivision thereof) for such obligations, or
4 restricting the same to all or any of the assets or to all or
5 any of the revenues or receipts of the authority from all or any
6 projects or properties; (ii) the [construction, improvement,
7 operation, extension, enlargement, maintenance and repair]
8 acquisition of the project and the duties of the authority and
9 the [occupant] project applicant or project user with reference
10 thereto; (iii) the terms and provisions of the bonds; (iv)
11 limitations on the purposes to which the proceeds of the bonds
12 then or thereafter to be issued, or of any loan or grant by a
13 Federal agency may be applied; (v) the rentals and other charges
14 for use or sale of, or loan payments for the financing of, the
15 project; (vi) the setting aside of reserves or sinking funds and
16 the regulation and disposition thereof; (vii) limitations on the
17 issuance of additional bonds; (viii) the terms and provisions of
18 any deed of trust, mortgage or indenture securing the bonds, or
19 under which the same may be issued, and (ix) any other or
20 additional agreements with the holders of the bonds.
21 (d) Any authority may enter into any deeds of trust,
22 indentures, mortgages, or other agreements, with any bank or
23 trust company, including any Federal agency, as security for
24 such bonds, and may assign and pledge the assets or all or any
25 of the revenues or receipts of the authority thereunder. Such
26 deed of trust, indenture, mortgage or other agreement, may
27 contain such provisions as may be customary in such instruments,
28 or as the authority may authorize, including (but without
29 limitation) provisions as to (i) the [construction, improvement,
30 operation, maintenance and repair] acquisition of any project,
19900H2594B3573 - 36 -
1 and the duties of the authority and the [industrial or
2 commercial occupant] project applicant or project user with
3 reference thereto; (ii) the application of funds and the
4 safeguarding of funds on hand or on deposit; and (iii) the
5 rights and remedies of the trustee and the holders of the bonds,
6 (which may include restrictions upon the individual right of
7 action or such bondholders); and (iv) the terms and provisions
8 of the bonds or the resolutions authorizing the issuance of the
9 same.
10 [(e) Said bonds shall have all the qualities of negotiable
11 instruments under the law merchant and the Uniform Commercial
12 Code of the Commonwealth of Pennsylvania.
13 (f) No bonds shall be issued and sold and the construction
14 of a project shall not be commenced until the proceedings to be
15 undertaken in respect of the issuance and sale of the bonds and
16 the construction of the project have been first approved by the
17 secretary: Provided, That construction of disaster relief
18 projects and projects consisting of pollution control facilities
19 may be commenced prior to the approval of the secretary: And
20 provided further, That in respect to disaster relief projects,
21 an application for approval in respect thereof is submitted to
22 the secretary within six months after the county in which the
23 project is or will be located has been designated as a disaster
24 area by the President of the United States. The chairman of the
25 authority shall cause to be certified under seal of the
26 authority and delivered to the secretary such documents relating
27 to the proceedings as may be necessary and as may be required by
28 the secretary to enable him to determine that:
29 (1) The project does not violate section 6(d) hereof;
30 (2) The lease or agreement of sale is in accordance with
19900H2594B3573 - 37 -
1 section 6(b)(9) hereof;
2 (3) The proceedings are in conformity with this act, and
3 (4) The industrial, specialized, and commercial development
4 project will accomplish the public purposes of this act.
5 If such proceedings are found to be in conformity with this
6 act, the secretary shall within twenty days after receipt
7 thereof approve the same and certify his approval to the
8 authority.
9 If, upon examination, the secretary shall find that such
10 proceedings are not in accordance with this act, he shall
11 disapprove the same and shall within twenty days after receipt
12 thereof certify his disapproval to the authority; thereafter, it
13 shall be unlawful for such authority to issue any bonds upon
14 such proceedings or to commence construction of the project
15 unless the proceedings are corrected and as corrected have been
16 approved by the secretary. If the secretary shall not have
17 approved or disapproved the proceedings within such twenty days
18 the same shall be deemed to have been approved. The decision of
19 the secretary shall be final.
20 (g) The secretary may promulgate such regulations as he may
21 deem necessary to carry out the purposes of this section 7.]
22 (e) A pledge of revenues, receipts, moneys, funds or other
23 property or instruments made by an authority shall be valid and
24 binding form the time when the pledge is made. The revenues,
25 receipts, moneys, funds or other property pledged and thereafter
26 received by an authority shall be immediately subject to the
27 lien of the pledge without its physical delivery or further act,
28 and the lien of any pledge shall be valid and binding as against
29 all parties having claims of any kind in tort, contract or
30 otherwise against the authority irrespective of whether the
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1 parties have notice of the lien. Neither the resolution nor any
2 other instrument by which a pledge under this section is created
3 or evidenced need be filed or recorded except in the records of
4 the authority.
5 (f) Whether or not the bonds are of a form and character as
6 to be negotiable instruments under the terms of Title 13 of the
7 Pennsylvania Consolidated Statutes (relating to commercial
8 code), the bonds are made negotiable instruments within the
9 meaning of and for the purposes of Title 13, subject only to the
10 provisions of the bonds for registration.
11 (g) The secretary is authorized to issue rulings pertaining
12 to the interpretation of the provisions of this act, which
13 rulings may be relied upon by an authority or the financing
14 authority. All rulings issued by the secretary shall be
15 published in the Pennsylvania Bulletin. The secretary may
16 promulgate such regulations as he may deem necessary to carry
17 out the purposes of this section.
18 Section 7. This act shall not apply to bonds or other
19 evidences of indebtedness issued by an authority or the
20 financing authority prior to the effective date of this act.
21 Section 8. This act shall take effect immediately.
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