PRINTER'S NO. 3203
No. 2465 Session of 1992
INTRODUCED BY LaGROTTA, FAJT, LEVDANSKY, McNALLY, CORRIGAN,
DeWEESE, EVANS, PESCI, ANGSTADT, CAPPABIANCA, KOSINSKI,
KRUSZEWSKI, BELFANTI, MELIO, TRELLO, JOHNSON, DALEY,
VAN HORNE, HALUSKA, LAUGHLIN AND RICHARDSON, MARCH 11, 1992
REFERRED TO COMMITTEE ON APPROPRIATIONS, MARCH 11, 1992
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," further providing for definitions,
28 applicable elected representatives, purposes and powers,
29 powers of the financing authority, financing authority
30 indebtedness, financing authority loans, industrial and
31 commercial development authorities, bonds and competition in
32 award of contracts.
1 The General Assembly of the Commonwealth of Pennsylvania
2 hereby enacts as follows:
3 Section 1. Section 1 of the act of August 23, 1967 (P.L.251,
4 No.102), known as the Industrial and Commercial Development
5 Authority Law, amended December 29, 1971 (P.L.647, No.171), is
6 amended to read:
7 Section 1. This act shall be known and may be cited as the
8 ["Industrial and Commercial Development Authority Law."]
9 "Economic Development Financing Law."
10 Section 2. Section 2 of the act, amended December 29, 1972
11 (P.L.1675, No.359), December 19, 1975 (P.L.576, No.165) and
12 December 16, 1982 (P.L.1363, No.312), is amended to read:
13 Section 2. Findings and Declaration of Policy.--It is hereby
14 determined and declared as a matter of legislative finding:
15 (1) That economic insecurity due to unemployment is at any
16 time a serious menace to the health, safety, morals and general
17 welfare of the people of the Commonwealth and that a high level
18 of unemployment and lack of business opportunity particularly in
19 areas of urban and rural blight are threats to the strength and
20 permanence of American political and economic institutions and
21 the philosophy of freedom on which those institutions are based;
22 (2) That a minimum level of unemployment and a maximum level
23 of business opportunity, and the elimination or prevention of
24 blight can best be provided by the promotion, attraction,
25 stimulation, rehabilitation and revitalization of industry,
26 commerce[, manufacturing and research and development] and other
27 economic activities in the Commonwealth;
28 (3) That the present and prospective health, safety, morals
29 and general welfare of the people of [the] this Commonwealth
30 require as a public purpose the promotion and development of
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1 new, expanded and rehabilitated industrial, commercial[,
2 manufacturing and research and development] and other economic
3 activities;
4 (4) That the creation and operation of The Pennsylvania
5 Industrial Development Authority has proved highly successful in
6 attracting industry and the resultant employment and business
7 opportunities to critical areas of unemployment within the
8 Commonwealth;
9 (5) That to continue and further the successful program of
10 The Pennsylvania Industrial Development Authority, it is
11 necessary to provide additional means of financing the promotion
12 and development of new, expanded and rehabilitated industrial,
13 [specialized, and commercial enterprises, including in
14 conjunction therewith the financing of machinery and equipment;]
15 commercial and other economic activities, including in
16 conjunction therewith the financing of machinery and equipment
17 and other capital needs;
18 (6) That many existing industrial, [specialized and
19 commercial enterprises] commercial and other economic activities
20 throughout [the] this Commonwealth could become more competitive
21 and could expand more rapidly if [such] additional means of
22 financing were available for modern buildings, plant facilities
23 [and], modern machinery and equipment and other capital needs;
24 (7) That additional industrial, [specialized, and commercial
25 enterprises could be attracted to the Commonwealth if such
26 additional means of financing were available to construct,
27 rehabilitate and expand industrial, specialized facilities, or
28 commercial buildings, or plants and in conjunction therewith
29 equip the same with modern machinery and equipment;] commercial
30 and other economic activities could be attracted to the
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1 Commonwealth if such additional means of financing were
2 available to acquire, construct, rehabilitate and expand
3 facilities, including, but not limited to, buildings, plants,
4 machinery and equipment and other industrial and commercial
5 facilities;
6 (8) That by reason of the unavailability of private credit
7 sources redevelopment areas in cities of [the] this Commonwealth
8 have remained unimproved and the residents of core areas of
9 cities of [the] this Commonwealth and in particular minority
10 groups are denied the benefits of balanced industrial,
11 commercial and residential environment and a balance of
12 employment, cultural[,] and business opportunities;
13 (9) That the provisions of the Constitution [of
14 Pennsylvania] guaranteeing the residents of [the] this
15 Commonwealth clean air and water and the preservation of the
16 environment and their implementation through the establishment
17 of quality standards relating to abatement or elimination of
18 [air and water] pollution have resulted in the need for
19 additional means of financing to assist and encourage
20 [industrial, specialized, and commercial enterprises to comply
21 with such air and water pollution control standards;] compliance
22 with such air, water, solid or liquid waste disposal, sewage
23 disposal and pollution control standards;
24 (10) That there is now, and is expected to be, a critical
25 need for the production of water suitable for public use and
26 consumption, natural gas, coal, oil, and other resources, and
27 that in order to insure continuing supplies of such resources at
28 reasonable rates, it is necessary to provide additional means of
29 financing [enterprises] projects directed to such production;
30 (11) That to protect the health, safety and general welfare
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1 of the people of [the] this Commonwealth and to further
2 encourage economic development within [the] this Commonwealth by
3 providing basic services and facilities, it is necessary to
4 provide additional or alternative means of financing [certain
5 transportation and other facilities, industrial parks, nursing
6 homes, energy conversion facilities and facilities for the
7 furnishing of gas or through the use of coal-fired generating
8 facilities, gas, or water available on reasonable demand to
9 members of the general public.] infrastructure facilities,
10 transportation facilities, industrial parks, energy conversion
11 facilities, facilities for the furnishing of gas or water,
12 communication facilities, tourism, recreational and sports
13 facilities, convention facilities, health care facilities,
14 education facilities, facilities for persons requiring special
15 care and other basic service and related facilities and
16 facilities conducive to economic activity within this
17 Commonwealth.
18 (12) That there now is and will continue to exist a need to
19 build and improve facilities owned by municipalities, municipal
20 authorities, and Commonwealth agencies including, but not
21 limited to, publicly owned park facilities, roads, correctional
22 facilities, jails, court facilities, waste treatment and
23 disposal facilities, firefighting facilities, library facilities
24 and police facilities and that the cost of obtaining the
25 financing for building and improving these public facilities may
26 be reduced through the issuance of pooled bonds through the
27 Pennsylvania Economic Development Financing Authority.
28 (13) That the public ports of this Commonwealth are assets
29 of value to the entire Commonwealth, and the residents of all
30 parts of this Commonwealth benefit directly from the waterborne
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1 commerce that the ports attract and service, and any improvement
2 to the ports that increases export and import commerce will
3 benefit the people of the entire Commonwealth.
4 Therefore, it is hereby declared to be the policy of [the
5 Commonwealth of Pennsylvania] this Commonwealth to promote the
6 health, safety, morals, employment, business opportunities,
7 economic activity and general welfare of the people thereof by
8 providing for the creation of industrial or commercial
9 development authorities which shall exist and operate as public
10 instrumentalities of the Commonwealth [for the public purpose of
11 alleviating unemployment, maintaining employment at a high
12 level, eliminating and preventing blight and eliminating or
13 reducing air and water pollution, and creating and developing
14 business opportunities by the construction, improvement,
15 rehabilitation, revitalization and financing of industrial,
16 commercial, manufacturing and research and development
17 enterprises. Such purpose is hereby declared to be a public
18 purpose.] , and by providing for the creation of the
19 Pennsylvania Economic Development Financing Authority which
20 shall exist and operate as a public instrumentality of the
21 Commonwealth.
22 Section 3. The act is amended by adding sections to read:
23 Section 2.1. Further Findings and Declaration of Policy.--It
24 is hereby further determined and declared as a matter of
25 legislative finding that the purposes of this act are to:
26 (1) Promote industrial, commercial and other economic
27 development.
28 (2) Promote public and private infrastructure.
29 (3) Promote the use of the most efficient means of
30 production and distribution of goods and services within this
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1 Commonwealth.
2 (4) Protect the natural resources of this Commonwealth and
3 encourage the reduction and recycling of wastes and the orderly
4 recovery of natural resources.
5 (5) Promote improvement in the quality of goods and services
6 produced in this Commonwealth to insure their continued demand
7 in the competitive global economy.
8 (6) Promote the building and use of efficient means for
9 transporting and storing goods by, among other things,
10 developing sufficient port, rail, highway, air, intermodal
11 shipping, warehouse and other related facilities within this
12 Commonwealth.
13 (7) Promote the installation and use of the most efficient
14 means of communications for industrial, commercial and other
15 economic activities.
16 (8) Promote a healthy environment through the abatement,
17 safe storage, transport, elimination and disposal within this
18 Commonwealth of pollutants and wastes of every kind and type,
19 whether liquid, solid, gaseous, noise, thermal or otherwise, and
20 sewage.
21 (9) Promote and encourage retail and wholesale
22 establishments, whether by the promotion of such establishments
23 themselves or through auxiliary activities such as the promotion
24 of new or improved residential facilities or other activities
25 deemed necessary to eliminate blight or otherwise improve an
26 area for industrial, commercial and other economic activity.
27 (10) Promote the use of urban and commercial centers by,
28 among other things, providing parking, convention, tourism,
29 recreational and sports facilities.
30 (11) Promote the establishment and development of health
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1 care and educational facilities, and facilities for the care of
2 persons requiring special care.
3 (12) Promote centers for research and development and for
4 the use and transfer of new or existing technologies.
5 (13) Promote the acquisition, construction and improvement
6 of public facilities.
7 (14) Otherwise promote the health, welfare and safety of the
8 residents of this Commonwealth by promoting economic activity,
9 by alleviating or eliminating unemployment, blight and other
10 unhealthy conditions and by otherwise providing public benefit
11 and prosperity and to do or perform any of the above regardless
12 of whether the project, the project applicant or the project
13 user is public or private or done with a profit or not-for-
14 profit purposes.
15 Section 2.2. Construction.--This act shall be liberally
16 construed in order to effect the legislative and public purposes
17 of sections 2 and 2.1 of this act.
18 Section 4. Section 3 of the act, amended December 19, 1975
19 (P.L.576, No.165), December 16, 1982 (P.L.1363, No.312) and July
20 10, 1987 (P.L.273, No.48), is amended to read:
21 Section 3. Definitions.--As used in this act:
22 ["Agricultural activity" means any person, partnership, or
23 corporation which is engaged primarily in raising, preparing, or
24 marketing crops, livestock, or related products.]
25 "Acquisition" means the acquisition, construction,
26 reconstruction, equipping, expansion, extension, improvement,
27 rehabilitation or remodeling of a project.
28 "Authority" or "industrial and commercial development
29 authority" means a public instrumentality of the Commonwealth
30 and a body politic and corporate, created pursuant to section 4
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1 of this act.
2 "Board" means the governing body of an authority created
3 pursuant to section 4 of this act.
4 "Bonds" means and includes the notes, bonds, refunding notes
5 and bonds and other evidence of indebtedness or obligations
6 which each authority is authorized to issue pursuant to section
7 6(b)(10) of this act or which the financing authority is
8 authorized to issue pursuant to section 6.3 of this act.
9 ["Certain transportation and other facilities" means
10 airports, docks, wharves, mass commuting facilities, public
11 parking facilities, inter modal transportation facilities, or
12 storage or training facilities directly related to any such
13 facility and facilities for the confinement or correction of
14 prisoners.
15 "Commercial enterprise" means an enterprise other than a
16 specialized enterprise or industrial enterprise which by its
17 nature or size requires substantial capital and which by its
18 nature or size has created, or offers reasonable likelihood of
19 creating, substantial employment opportunities. The term
20 "commercial enterprise" may include wholesale, retail and other
21 mercantile activities, office buildings, hotel or motel
22 structures, shopping centers, department stores and
23 international, national and regional headquarters facilities:
24 Provided, however, That with respect to redevelopment pursuant
25 to a redevelopment proposal, there shall be no requirement
26 concerning substantiality of capital nor substantiality of
27 creation of employment opportunities.]
28 "Commercial facilities" means and includes, but is not
29 limited to, wholesale, retail and other mercantile facilities,
30 warehouse and distribution facilities, service facilities,
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1 office facilities, hotel or motel facilities, shopping centers,
2 department stores and international, national and regional
3 headquarters facilities, health care facilities, education
4 facilities, facilities for persons requiring special care,
5 research and development facilities, and tourism, recreational
6 and sports facilities.
7 "Commonwealth agency" means any agency or department of the
8 executive branch of government of the Commonwealth.
9 "Construction" [and] or "to construct" [mean and include]
10 means and includes the [acquisition,] erection, extension,
11 renovation, enlargement or substantial repair of structures
12 employed in, or related to, [activities] projects comporting
13 with the intent of this act, and also [include] includes
14 activities substantially related to such [acquisition,]
15 erection, extension, renovation, enlargement or substantial
16 repair of structures employed in, or related to, such
17 [activities] projects.
18 ["Cost of the industrial development project, specialized
19 development project or commercial development project" or "cost
20 of the project" or "cost" means and includes the expense of
21 construction, the expense of acquisition of all structures,
22 lands and other property rights and interests in land necessary
23 to the project. The terms also include the expense of
24 demolishing, removing or relocating any buildings or structures
25 on lands acquired or to be acquired, including the expense of
26 acquiring any lands to which such buildings or structures may be
27 moved or relocated, the expense of sewage treatment, waste
28 treatment and pollution control facilities, railroad sidings,
29 spurs, or branch lines and of all labor, materials, machinery
30 and equipment, financing charges, interest on all bonds prior to
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1 and during construction, and for a period of six months
2 thereafter, cost of engineering, financial and legal services,
3 plans, specifications, studies, surveys necessary or incidental
4 to determining the feasibility or practicability of constructing
5 an industrial, specialized, or commercial development project,
6 administrative expenses, reserves for interest and for
7 extensions, enlargements, additions and improvements, and such
8 other expenses as may be necessary or incidental to the
9 construction of industrial, specialized, or commercial
10 development projects and the placing of the same in operation.]
11 "Cost of the project" or "cost" means and includes any and
12 all costs and expenses of acquisition of all land, interests in
13 land, property, rights, buildings, structures, equipment,
14 furnishings and other tangible or intangible property comprising
15 the project, including, without limitation, the expense of
16 demolishing, removing or relocating any buildings or structures
17 on lands acquired or to be acquired and the expense of acquiring
18 any lands to which such buildings or structures may be moved or
19 relocated, financing charges and other costs of financing and
20 refinancing and issuing bonds, interest expenses prior to and
21 during construction and for a period of six months thereafter,
22 costs of engineering, financial, accounting and legal services,
23 plans, specifications, studies, surveys necessary or incidental
24 to determining the feasibility or practicability of constructing
25 the project, administrative expenses, reserves for interest and
26 such other expenses as may be necessary or incidental to the
27 acquisition of the project and the placing of the same in
28 operation. When a project includes working capital or other
29 capital needs related to industrial, commercial or other
30 economic activities, the term "cost of the project" shall also
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1 include such working capital or other capital needs; provided
2 that working capital and other capital needs shall be limited as
3 a percentage of the cost of the project financed with the
4 proceeds of bonds issued under this act by regulations,
5 statements of policy, guidelines or rulings issued by the
6 secretary.
7 "Department" means the Department of Commerce of the
8 Commonwealth.
9 "Disaster relief project" means any undertaking to
10 rehabilitate, repair, reconstruct, clean up, replace or
11 otherwise return to economic use any land, site, structure, or
12 facility, including machinery, equipment and tools damaged or
13 lost due to disaster of flood or fire or other casualty
14 [comprising or being a part of an industrial, specialized or
15 commercial enterprise]. In order to qualify as a disaster relief
16 project, a project must be located within a county designated as
17 a disaster area by the President of the United States.
18 ["Energy conversion facility" means an improvement to an
19 industrial, commercial, or specialized development project which
20 changes its fuel consumption capability to a fuel determined by
21 the authority, with the approval of the secretary to be more
22 desirable than the fuel used by the occupant of the project at
23 the time application is made to the authority.]
24 "Energy conversion facilities" means an improvement to
25 industrial, commercial or other facilities which change their
26 fuel consumption capability to a fuel determined by an authority
27 or the financing authority to be more desirable than the fuel
28 used by the occupant of the project at the time application is
29 made to the authority.
30 "Energy producing [activity" means an activity] facilities"
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1 means and includes facilities to create, extract, transmit, or
2 store energy or energy producing substances, including, but not
3 limited to coal mine operations, oil and gas operations, solar,
4 nuclear, or geothermal energy operations, except the production
5 of electrical energy by a utility [activity] entity.
6 "Federal agency" or "Federal Government" means and includes
7 the United States of America, the President of the United States
8 of America, and any department of or corporation, agency or
9 instrumentality heretofore or hereafter created, designated or
10 established by the United States of America.
11 "Financing authority" means the Pennsylvania Economic
12 Development Financing Authority created by section 6.1 of this
13 act.
14 "Financing board" means the governing body of the financing
15 authority.
16 "Governmental body" or "governmental bodies" means the body
17 or board authorized by law to enact ordinances or adopt
18 resolutions for the particular municipality.
19 ["Improvement" and "to improve" mean and include construction
20 and other changes determined by an authority with the approval
21 of the secretary to comport with the purposes of this act.
22 "Industrial development project," "specialized development
23 project," "commercial development project," "development
24 project" or "project" means any pollution control facilities or
25 any combination or part of buildings or facilities occupied or
26 utilized by an industrial, specialized, or commercial enterprise
27 located within or without, or partially within or without, the
28 municipality creating the authority, or existing or hereafter
29 acquired or constructed by the authority pursuant to the terms
30 of this act, including any or all buildings, improvements,
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1 additions, extensions, replacements, appurtenances, lands,
2 rights in land, water rights, franchises, machinery, equipment,
3 furnishings, landscaping, utilities, railroad spurs and sidings,
4 wharves, approaches and roadways necessary or desirable in
5 connection therewith or incidental thereto. The term
6 "development project" includes, as well, pollution control
7 facilities occupied or utilized by any utility activity,
8 agricultural activity or any person, partnership, or corporation
9 engaged in the extraction of any mineral coal, natural gas, oil
10 or other natural resources.
11 "Industrial enterprise" means an enterprise other than a
12 specialized enterprise or commercial enterprise which by its
13 nature or size requires substantial capital and which by its
14 nature or size has created or offers a reasonable likelihood of
15 creating substantial employment opportunities. The term
16 "industrial enterprise" may include manufacturing activities and
17 research and development activities, as well as warehouse
18 facilities, distribution facilities, and international, national
19 and regional headquarters facilities. The term "industrial
20 enterprise" also includes activities directly related to tourism
21 and recreational facilities, provided that such activities
22 comprise or are part of a planned or established tourist or
23 recreational complex.
24 "Industrial parks" means land areas acquired (including
25 existing buildings and improvements), and improvements to be
26 placed thereon by a nonprofit development organization in
27 accordance with plans and specifications approved by the
28 secretary as sites for the establishment thereon of two or more
29 industrial, specialized, or commercial development projects.
30 "Investor-developer" means any person, partnership or
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1 corporation engaged in the development for use by occupants of
2 one or more development projects and determined by the authority
3 to be financially responsible to assume all obligations
4 prescribed by the authority and this act in the acquisition,
5 development, construction, leasing, sale, operation and
6 financing in whole or in part of a development project.
7 "Manufacturing activity" means the giving of new shapes, new
8 qualities or new combinations to matter by the application of
9 skill and labor thereto through the use of equipment or
10 otherwise.]
11 "Industrial development agency" means those nonprofit
12 corporations or foundations or associations which have been
13 certified as Industrial Development Agencies by the Pennsylvania
14 Industrial Development Authority Board pursuant to the act of
15 May 17, 1956 (1955 P.L.1609, No.537), known as the "Pennsylvania
16 Industrial Development Authority Act."
17 "Industrial facilities" means and includes any property, real
18 or personal, which is used for manufacturing, warehousing,
19 transportation of goods for manufacturing or sale, offices,
20 research and development and other facilities of trades or
21 services which perform activities ancillary to industrial
22 activity.
23 "Municipal authority" means an authority organized and
24 existing under the act of May 2, 1945 (P.L.382, No.164), known
25 as the "Municipality Authorities Act of 1945."
26 "Municipality" means any county, city, town, borough or
27 township of the Commonwealth of Pennsylvania, each of which
28 political subdivisions are separate incorporated municipalities
29 of the Commonwealth of Pennsylvania for the purposes of this
30 act.
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1 ["Nursing home" means any facility licensed or approved as a
2 nursing home by the Department of Public Welfare or by the
3 Department of Health.
4 "Occupant" means any person, partnership, or corporation
5 engaged in an industrial, commercial or specialized enterprise
6 and determined by the authority to be financially responsible to
7 assume all obligations prescribed by the authority and this act
8 in the lease, sale, and operation of a development project. The
9 term "occupant" shall also mean (i) a financially responsible
10 nonprofit development agency engaged in establishing development
11 projects, whether for single or multiple occupancy for use by
12 any person, partnership, or corporation engaged in any
13 enterprise or (ii) a person, partnership, or corporation engaged
14 in furnishing facilities for confinement or correction of
15 prisoners for use by any municipality.]
16 "Pennvest project" means any activity which meets the
17 definition of "project" under the provisions of the act of March
18 1, 1988 (P.L.82, No.16), known as the "Pennsylvania
19 Infrastructure Investment Authority Act," which as been referred
20 to the financing authority in accordance with section 6.3(a) of
21 this act.
22 "Pollution control facilities" means and includes any
23 property, real or personal, which is to be used to abate or
24 reduce or aid in the prevention, control, collection, treatment,
25 disposal or monitoring of noise, air, water or thermal
26 pollution, solid or liquid waste or other pollutants without
27 limitation thereto and may include property or equipment which
28 is to be installed primarily to supplement or to replace
29 existing property or equipment not meeting acceptable pollution
30 control standards or which is to be supplemented or replaced to
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1 comply with an order or citation to eliminate pollution issued
2 by any Federal, [State] Commonwealth or local agency having
3 jurisdiction.
4 ["Redevelopment proposal" means a proposal, including a copy
5 of the redevelopment area plan and supporting data submitted for
6 approval to the governing body by an authority, for the
7 development of all or any part of a redevelopment area.
8 "Research and development activity" means an activity for the
9 discovery of new and the refinement of known substances,
10 processes, products, theories and ideas, but shall not include
11 activities directed primarily to the accumulation or analysis of
12 commercial, financial or mercantile data.]
13 "Project" means industrial facilities, commercial facilities,
14 pollution control facilities, energy conversion facilities,
15 energy producing facilities, disaster relief project facilities,
16 public facilities and other facilities which promote any of the
17 public purposes set forth in section 2 of this act, including
18 any land, interests in land, easements, appurtenances,
19 improvements, buildings, structures, equipment, furnishings, or
20 other real or personal property, whether tangible or intangible,
21 or interest therein, or any combination thereof, and including
22 working capital and other capital needs for industrial,
23 commercial and other economic activities. Such financing or
24 refinancing may be with tax-exempt bonds or taxable bonds issued
25 pursuant to this act, and may be direct through application of
26 bond proceeds or other funds to pay project costs or indirect
27 through stock purchases or such other means as an authority or
28 the financing authority may approve.
29 "Project applicant" means any individual, public or private
30 corporation, partnership, association, firm, or other entity,
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1 whether or not created for the purpose of making a profit, or
2 any Commonwealth instrumentality or agency or any municipality
3 or any municipal authority, which requests an authority or the
4 financing authority to participate in the financing of one or
5 more projects in the manner provided by this act for use by one
6 or more project users.
7 "Project user" means any individual, public or private
8 corporation, partnership, association, firm, municipality,
9 municipal authority, Commonwealth agency or other entity,
10 whether or not created for the purpose of making a profit, which
11 owns, leases or uses all or any part of a project, and may
12 include a project applicant.
13 "Public facility" means any facility owned or leased by a
14 municipality, municipal authority or Commonwealth agency which
15 serves a public purpose including, but not limited to, park
16 facilities, water and sewer facilities, waste treatment
17 facilities, waste disposal facilities, roads and public parking
18 facilities, correctional facilities, jails and court facilities,
19 police and firefighting facilities, library facilities, child
20 care facilities, educational facilities and health care
21 facilities.
22 "Secretary" means the Secretary of Commerce of the
23 Commonwealth.
24 ["Specialized enterprise" means an enterprise, other than an
25 industrial enterprise or a commercial enterprise, which by its
26 nature or size requires substantial capital. The term
27 "specialized enterprise" includes, and is expressly limited to,
28 certain transportation and other facilities, nursing homes,
29 industrial parks, facilities for the furnishing by a utility
30 activity of gas or water available on reasonable demand to
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1 members of the general public, energy conversion facilities,
2 energy-producing activities, and the construction of rail
3 sidings, spurs, and branch lines.]
4 "Taxable bonds" means bonds or other evidences of
5 indebtedness the interest on which is includable in gross income
6 for Federal income taxation purposes.
7 "Tax-exempt bonds" means bonds or other evidences of
8 indebtedness the interest on which is excludable from gross
9 income for Federal income taxation purposes.
10 "Utility [activity] entity" means any public or private
11 company or corporation engaged primarily in an activity
12 regulated by the Pennsylvania Public Utility Commission.
13 Section 5. Section 4(d) of the act, amended December 16,
14 1982 (P.L.1363, No.312), is amended to read:
15 Section 4. Method of Incorporation; Applicable Elected
16 Representative.--* * *
17 (d) Each of the following elected officials of each of the
18 following respective political subdivisions within [the
19 Commonwealth of Pennsylvania] the Commonwealth is hereby
20 designated and empowered to approve the issuance of bonds to
21 finance the cost of [industrial, specialized and commercial
22 development] projects within or without each such political
23 subdivision and to approve the [construction of industrial,
24 specialized and commercial development] acquisition of projects
25 within each such political subdivision:
26 (1) With respect to any county [or] of any class, the
27 applicable elected representative shall be any county
28 commissioner designated for such purpose by the county
29 commissioners of such county;
30 (2) With respect to any city of any class, the applicable
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1 elected representative shall be the mayor of such city or any
2 council member designated by the mayor for such purpose;
3 (3) With respect to any township of the first class, the
4 applicable elected representative shall be any township
5 commissioner designated for such purpose by the township
6 commissioners of such township;
7 (4) With respect to any township of the second class, the
8 applicable elected representative shall be any township
9 supervisor designated for such purpose by the township
10 supervisors of such township;
11 (5) With respect to any borough, the applicable elected
12 representative shall be the president of borough council or any
13 council member designated by the president for such purpose;
14 (6) With respect to any political subdivision which has
15 adopted a charter under the act of April 13, 1972 (P.L.184,
16 No.62), known as the "Home Rule Charter and Optional Plans Law,"
17 the applicable representative designated and empowered to grant
18 the approvals contemplated hereunder shall be the chief elected
19 executive officer designated by the charter of such political
20 subdivision, or, if there is no provision for such executive
21 officer thereunder, the applicable representative shall be any
22 member of the legislative body of such political subdivision
23 designated by such body.
24 Section 6. Section 6 of the act, amended September 1, 1972
25 (Sp.Sess. No.1, P.L.2015, No.2), December 19, 1975 (P.L.576,
26 No.165) and July 10, 1987 (P.L.273, No.48), is amended to read:
27 Section 6. Purposes and Powers; General.--(a) Every
28 industrial and commercial development authority incorporated
29 under this act shall be a public instrumentality of the
30 Commonwealth and a public body corporate and politic, and shall
19920H2465B3203 - 20 -
1 be for the purpose of acquiring, holding, constructing,
2 improving, maintaining, owning, financing and leasing, either in
3 the capacity of lessor or lessee[, industrial, specialized or
4 commercial development projects. In the event of default by an
5 occupant] projects. In the event of a default by a project
6 applicant or a project user, an authority may, in its
7 discretion, do any and all acts necessary or convenient to
8 protect the holders of any bonds issued to establish such
9 project or to maintain and preserve the project pending the
10 remedying of such default or defaults or the obtaining of a new
11 [occupant.] project applicant or project user.
12 (b) Every authority is hereby granted, and shall have and
13 may exercise all powers necessary or convenient for the carrying
14 out of the aforesaid purposes, including but without limiting
15 the generality of the foregoing, the following rights and
16 powers:
17 (1) To have existence for a term of fifty years and for such
18 further period or periods as may be provided in articles of
19 amendment approved under subsection (e) of section 5.
20 (2) To sue and be sued, implead and be impleaded, complain
21 and defend in all courts.
22 (3) To adopt, use and alter at will, a corporate seal.
23 (4) To acquire, purchase, own, hold, lease as lessee and use
24 any franchise, property, real, personal or mixed, tangible or
25 intangible, or any interest therein necessary or convenient for
26 carrying out the purposes of the authority, and to sell, option,
27 lease as lessor, transfer and dispose of any property or
28 interest therein at any time acquired by it.
29 (5) To acquire by gift, purchase, lease or otherwise, and to
30 construct, improve, maintain and repair projects.
19920H2465B3203 - 21 -
1 (6) To make bylaws for the management and regulation of its
2 affairs.
3 (7) To appoint officers, agents and employes, to prescribe
4 their duties and to fix their compensation.
5 (8) [To enter into acquisition agreements providing for (i)
6 the construction of industrial, specialized, or commercial
7 development projects by either the authority or the occupant;
8 (ii) the financing of industrial, specialized and commercial
9 development projects to be constructed initially by an occupant
10 if prior to the commencement of construction an agreement as to
11 financing is entered into between the authority and the
12 occupant; (iii) the financing of improvements to existing
13 industrial, specialized or commercial development projects if
14 the existing project is owned by the authority or will be
15 conveyed in fee to the authority, free and clear of all
16 encumbrances and without consideration; (iv) the leasing or sale
17 of the industrial, specialized or commercial development
18 projects to the occupants or to an investor-developer as
19 hereinafter provided; and (v) the financing of the activities of
20 investor-developers in any activity set forth in (i), (ii),
21 (iii) or (iv) above.
22 (9) To enter into agreements of lease or sale with occupants
23 or investor-developers providing, inter alia, (i) for the
24 leasing or sale of industrial, specialized and commercial
25 development projects to the occupants or investor-developers for
26 a term of years not to extend beyond the term of existence of
27 the authority; (ii) for a rental or other payments sufficient to
28 amortize the principal, interest and premium, if any, of all
29 bonds and other obligations of the authority incurred to pay the
30 costs of the industrial, specialized or commercial development
19920H2465B3203 - 22 -
1 project to be leased or sold; (iii) for the occupant or
2 investor-developer to pay to the authority or to otherwise
3 assume and pay all other costs of maintaining and operating the
4 project; (iv) provisions, if deemed desirable, that the occupant
5 or investor-developer of a project pursuant to a lease shall
6 have the options to renew such lease or to purchase any or all
7 of such project; (v) for conveyance with or without
8 consideration of any part, or all, of a project to occupants or
9 investor-developers on or before payment of all bonds and other
10 obligations of the authority incurred with respect to such
11 project; and (vi) such other provisions as are customary in such
12 leases or agreements of sale or as may be deemed necessary or
13 convenient by the authority.] To enter into agreements providing
14 for (i) the acquisition of projects by either the authority, the
15 project applicant or the project user; (ii) the financing of
16 projects where acquisition is by a project applicant or a
17 project user; (iii) the financing of improvements to existing
18 projects; and (iv) the leasing or sale of projects to, or the
19 loan financing of projects for, the project users or project
20 applicants as provided in this act.
21 (9) To enter into agreements of lease, sale or loan
22 financing with project users or project applicants providing,
23 inter alia, (i) for the leasing or sale of projects to, or the
24 loan financing of projects for, the project users or project
25 applicants for a term of years not to extend beyond the term of
26 existence of authority; (ii) for a rental, purchase price, loan
27 or other payments sufficient to amortize the principal, interest
28 and premium, if any, of all bonds and other obligations of the
29 authority incurred to provide funds to pay the costs of the
30 project to be leased, sold or otherwise financed; (iii) for the
19920H2465B3203 - 23 -
1 project user or project applicant to pay to the authority or to
2 otherwise assume and pay all other costs of acquiring,
3 constructing, maintaining and operating the project; (iv)
4 provisions, if deemed desirable, that the project user or
5 project applicant of a project pursuant to a lease shall have
6 the options to renew such lease or to purchase any or all of
7 such project; (v) for conveyance with or without consideration
8 of any part, or all, of a project to the project user or project
9 applicant on or before payment of all bonds and other
10 obligations of the authority incurred with respect to such
11 project; and (vi) such other provisions as are customary in such
12 leases, agreements of sale or loan agreements or as may be
13 deemed necessary or convenient by the authority.
14 (10) To borrow money, make and issue bonds of the authority,
15 [said bonds to have a maturity date not longer than forty years
16 from the date of issue:] Provided, That no bonds shall have a
17 maturity date later than the life of the authority, and to
18 secure the payment of such bonds or any part thereof by pledge,
19 mortgage or deed of trust of all or any part of its property and
20 of its revenues and receipts, and to make such agreements with
21 the purchasers or holders of such bonds, or with others in
22 connection with any such bonds, whether issued or to be issued,
23 as the authority shall deem advisable, and in general to provide
24 for the security for said bonds by mortgage, pledge or otherwise
25 and for the rights of the holders thereof.
26 (11) To make contracts of every name and nature and to
27 execute all instruments necessary or convenient for the carrying
28 on of its business.
29 (12) Without limitation of the foregoing, to borrow money
30 and accept grants and other funds from and to enter into
19920H2465B3203 - 24 -
1 contracts, leases or other transactions with any Federal agency,
2 the Commonwealth of Pennsylvania or its agencies or
3 instrumentalities, or with any municipality, school district,
4 bank or other financial institution, corporation or other
5 authority.
6 (13) To pledge, mortgage, hypothecate or otherwise encumber
7 all or any part of the property, real or personal, including but
8 not limited to the revenues or receipts of the authority as
9 security for all or any of the obligations of the authority.
10 (14) To make loans to project applicants or project users,
11 and to provide or issue alternative types of financing,
12 including, but not limited to, standby loan commitments,
13 guarantees, letters of credit and grants.
14 [(14)] (15) To do all acts and things necessary or
15 convenient for the promotion of its business and the general
16 welfare of the authority, to carry out and exercise the purpose
17 of and the powers granted [to it] by this act or any other acts.
18 [(15) An authority created hereunder may sponsor disaster
19 relief projects pursuant to the provisions of this act.
20 (16) Recognizing the necessity for enterprises to
21 immediately commence rehabilitation work and pollution control
22 facilities, no disaster relief project or project consisting of
23 pollution control facilities shall be rejected by the Secretary
24 of Commerce or be otherwise disqualified under this act on the
25 grounds that the project has commenced or has been completed,
26 provided that in respect to a disaster relief project an
27 application for approval by the secretary is submitted to the
28 Department of Commerce within six months after the county in
29 which the project is or will be located has been designated as a
30 disaster area by the President of the United States.]
19920H2465B3203 - 25 -
1 (c) An authority created hereunder shall have no power at
2 any time or in any manner to pledge the general credit or taxing
3 power of the Commonwealth of Pennsylvania or any political
4 subdivision, and the obligations of the authority shall be
5 limited as provided in section 7 (a) hereof. The bonds of the
6 authority shall on the face thereof clearly set forth the
7 foregoing limitation.
8 (d) An authority created under section 4 of this act shall
9 have no power to:
10 [(1) Construct or finance or aid in the construction or
11 financing of an industrial, specialized, or commercial
12 development project which shall cause the removal of a
13 manufacturing, industrial, specialized, commercial enterprise,
14 plant, facility or establishment from one area of the
15 Commonwealth of Pennsylvania to another area of the
16 Commonwealth.
17 (2) Acquire existing industrial, specialized, or commercial
18 development projects under circumstances which would be
19 primarily for the purpose of directly or indirectly refinancing
20 the obligations of or providing working capital or other funds
21 for any industrial, specialized, or commercial enterprise or any
22 parent, subsidiary, affiliate or shareholder thereof, which
23 enterprise, or any parent, subsidiary, affiliate or shareholder
24 thereof, would thereafter continue to occupy or utilize said
25 project; however, this limitation shall not apply to refinancing
26 in order to improve an existing project now financed by the
27 authority or by any authority or nonprofit corporation
28 heretofore recognized as agency or an instrumentality of the
29 Commonwealth or any municipality thereof.
30 (3) Enter into any agreement to finance the acquisition or
19920H2465B3203 - 26 -
1 construction of an industrial development project in excess of
2 the cost of the project.
3 (4) Finance machinery or equipment except in conjunction
4 with the construction of a new, or the improvement of an
5 existing industrial, specialized, or commercial development
6 project, but such prohibition shall not relate to the financing
7 of pollution control facilities; or
8 (5) Engage in business, trade or commerce for a profit as
9 lessee of a project, or otherwise.]
10 (1) Acquire or finance the acquisition of a project which
11 shall cause the removal of a plant, facility or other business
12 from one area of this Commonwealth to another area of this
13 Commonwealth, unless the secretary has found that relocation of
14 the plant, facility or other business is necessary in order for
15 the plant, facility or other business to remain competitive or
16 to prevent the plant, facility or other business from leaving
17 this Commonwealth.
18 (2) Enter into any agreement to finance the acquisition of a
19 project in excess of the cost of the project.
20 (3) Engage in business, trade or commerce for a profit as an
21 owner or lessee of a project, or otherwise.
22 (4) Finance any project which will be used in whole or in
23 part for illegal activities.
24 (5) Finance any project which is not located within this
25 Commonwealth.
26 (6) Finance any project which is not located within the
27 boundaries of the county of the municipality which created the
28 authority, unless the authority created by the county or other
29 municipality in which the project is located consents to the
30 financing.
19920H2465B3203 - 27 -
1 Section 7. Sections 6.2, 6.3, 6.4 and 6.5 of the act, added
2 July 10, 1987 (P.L.273, No.48), are amended to read:
3 Section 6.2. Powers of the Financing Authority; General.--
4 The financing authority, as a public corporation and
5 governmental instrumentality exercising public powers of the
6 Commonwealth, is hereby granted and shall have and may exercise
7 all powers necessary or appropriate to carry out and effectuate
8 the purposes of this act, including, but not limited to, the
9 following powers:
10 (1) To have existence until its existence shall be
11 terminated by law.
12 (2) To sue and be sued, implead and be impleaded, complain
13 and defend in all courts.
14 (3) To adopt, use and alter at will a corporate seal.
15 (4) To make bylaws for the management and regulations of its
16 internal affairs, and, subject to agreements with holders of its
17 bonds, to make rules and regulations with respect to its
18 operations, properties and facilities.
19 (5) To appoint an executive director and any other officers,
20 agents, and employes as it may require for the performance of
21 its duties, and to prescribe their duties, fix their
22 compensation, promote and discharge them within the limitations
23 provided by law.
24 (6) To enter into financing agreements with project
25 applicants and project users providing, among other things; (i)
26 for loan, lease or sale financing or other financing of projects
27 for project applicants or project users; (ii) for loan, rental
28 or purchase price payments or other payments sufficient to
29 amortize the principal, interest and premium, if any, of all
30 bonds and other obligations of the financing authority incurred
19920H2465B3203 - 28 -
1 to provide funds to pay the costs of the projects to be
2 financed; (iii) for the project applicants or project users to
3 pay or cause to be paid all other costs of acquiring,
4 constructing, maintaining and operating the projects; (iv) for
5 conveyance with or without consideration of any part, or all, of
6 a project to the project user or project applicant on or before
7 payment of all bonds and other obligations of the financing
8 authority incurred with respect to such project; and (v) for
9 such other matters as are customary in such agreements or as may
10 be deemed necessary or appropriate by the financing authority;
11 and to make contracts of every name and nature, and to execute
12 all instruments necessary or convenient for the carrying on of
13 its business.
14 (7) To borrow money and issue bonds and other evidences of
15 indebtedness created thereby, to secure the payment of such
16 bonds or other evidences of the indebtedness or any part thereof
17 by pledge, mortgage or assignment of all or any part of the
18 [mortgages] property of the financing authority, its revenues
19 and receipts therefrom or its revenues generally, and to provide
20 for the rights of the lenders and holders thereof in accordance
21 with the provisions of this act.
22 (8) [To sell] To acquire and sell loans, mortgages and
23 security interests at public or private sale, to negotiate
24 modifications or alterations in [mortgage] mortgages and
25 security interests, to foreclose on any mortgage or security
26 interest in default or commence any action to protect or enforce
27 any right conferred upon it by any law, mortgage, security
28 agreement, contract or other agreement, to bid for and purchase
29 property which was the subject of such mortgage or security
30 interest at any foreclosure or at any other sale, to acquire or
19920H2465B3203 - 29 -
1 take possession of any such property, and to exercise any and
2 all rights as provided by law for the benefit or protection of
3 the financing authority or mortgage or security interest
4 holders.
5 (9) To collect fees and charges in connection with its loan
6 commitments and servicing, including, but not limited to,
7 reimbursement of costs of financing as the financing authority
8 shall determine to be reasonable and as shall be approved by the
9 financing authority.
10 (10) To make and execute contracts for the servicing of
11 loans and mortgages acquired by the financing authority pursuant
12 to this act, and to pay the reasonable value of services
13 rendered to the financing authority pursuant to those contracts.
14 (11) To accept gifts, grants, loans and other aid from the
15 Federal Government, the Commonwealth or any political
16 subdivision of the Commonwealth, or any person or corporation,
17 foundation or legal entity, and to agree to and comply with any
18 conditions attached to Federal and [State] Commonwealth
19 financial assistance not inconsistent with the provisions of
20 this act.
21 (12) To invest moneys of the financing authority not
22 required for immediate use, including proceeds from the sale of
23 any bonds, in such manner as the financing board shall
24 determine, subject to any agreement with bondholders stated in
25 the authorizing resolution providing for the issuance of bonds.
26 (13) To procure insurance against any loss in connection
27 with its programs, property and other assets.
28 (14) To engage the services of attorneys, accountants and
29 financial experts and any other advisors, consultants and agents
30 as may be necessary in its judgment, and to fix their
19920H2465B3203 - 30 -
1 compensation.
2 (15) Subject to any agreement with holders of its bonds, to
3 obtain as security for payment of all or any part of the
4 principal of and interest and premium on the bonds, lines of
5 credit and letters of credit in any amounts and upon any terms
6 as the bank may determine, and to pay any fees and expenses
7 required in connection therewith.
8 (16) To make loans to project applicants and project users
9 and to provide or issue alternative types of financing
10 including, but not limited to, standby loan commitments,
11 guarantees, and letters of credit.
12 (17) To enter into agreements providing for the acquisition
13 of projects comprising or including public facilities for
14 financing purposes only.
15 [(16)] (18) To adopt rules and regulations containing such
16 restrictions as it may deem necessary or appropriate to
17 effectuate the public purposes of this act.
18 (19) To finance all or part of a Pennvest project which
19 meets the requirements of section 6.3(a) of this act.
20 [(17)] (20) To do any act necessary or convenient to the
21 exercise of the foregoing powers or reasonably implied
22 therefrom.
23 Section 6.3. Financing Authority Indebtedness.--(a) The
24 financing authority shall have the power and is hereby
25 authorized to issue its limited obligation revenue bonds [as in
26 the judgment of the financing authority shall be necessary to
27 provide sufficient funds for any series of related or unrelated
28 projects authorized by an industrial and commercial development
29 authority or a group of industrial and commercial development
30 authorities for qualified industrial development projects. The
19920H2465B3203 - 31 -
1 financing authority is authorized and empowered to use the
2 proceeds of any bonds issued for the making of loans, purchasing
3 mortgages, security interests, or loan participations and paying
4 all incidental expenses in connection therewith, paying expenses
5 of authorizing and issuing the bonds, paying interest on the
6 bonds until revenues thereof are available in sufficient
7 amounts, and funding such reserves as the financing authority
8 deems necessary and desirable. It is the intention of this
9 section to provide an alternative source of financing for
10 industrial and commercial development authorities.] and other
11 types of financing as in the judgment of the financing authority
12 shall be necessary to provide sufficient funds for any series of
13 related or unrelated projects; (i) provided that the issuance by
14 the financing authority of taxable or tax exempt bonds on behalf
15 of projects comprising industrial facilities, commercial
16 facilities, pollution control facilities, energy conversion
17 facilities, energy producing facilities, and disaster relief
18 project facilities, shall have been authorized by an industrial
19 and commercial development authority or a group of industrial
20 and commercial development authorities or by an industrial
21 development agency or a group of industrial and development
22 agencies; (ii) further provided that the financing authority may
23 issue taxable or tax-exempt bonds on behalf of Pennvest projects
24 only if the applicant has first applied to the Pennsylvania
25 Infrastructure Investment Authority for financing under the
26 provisions of the act of March 1, 1988 (P.L.82, No.16), known as
27 the "Pennsylvania Infrastructure Investment Authority Act," and
28 the Pennsylvania Infrastructure Investment Authority in writing
29 refers the applicant to the financing authority to finance all
30 or part of the Pennvest project in accordance with this act; and
19920H2465B3203 - 32 -
1 (iii) further provided that the issuance by the financing
2 authority of taxable or tax-exempt bonds for a public facility
3 other than a Pennvest project shall have been authorized by a
4 municipality, municipal authority or Commonwealth agency. The
5 financing authority is authorized and empowered to use the
6 proceeds of any bonds issued for the making of loans, purchasing
7 loans, mortgages, security interests, or loans participations
8 and paying all incidental expenses in connection therewith,
9 paying expenses of authorizing and issuing the bonds, paying
10 interest on the bonds until revenues thereof are available in
11 sufficient amounts, and funding such reserves as the financing
12 authority deems necessary and desirable.
13 (b) The financing authority, whenever it deems it expedient,
14 shall have the power to refund or renew any bonds by the
15 issuance of new bonds whether the bonds to be refunded or
16 renewed have or have not matured. Refunding bonds shall be sold
17 and the proceeds applied to the purchase, redemption or payment
18 of the bonds to be refunded, the establishment or increase in
19 reserves to secure or to pay the bonds or interest thereon and
20 all other costs or expenses of the financing authority incident
21 to and necessary to carry out the refunding or renewing of
22 bonds.
23 (c) Bonds issued under this section shall not be a debt or
24 liability of the Commonwealth of Pennsylvania or of any of its
25 political subdivisions other than the financing authority and
26 shall not create or constitute any indebtedness, liability or
27 obligation of the Commonwealth or of any political subdivision,
28 but all bonds shall be payable solely from revenues or funds
29 pledged or available for their payment as authorized in this
30 section, including the proceeds of any issue of bonds. Each bond
19920H2465B3203 - 33 -
1 shall contain on its face a statement to the effect that the
2 financing authority is obligated to pay the principal thereof or
3 the interest thereon only from its revenues, receipts or funds
4 pledged or available for their payment as authorized in this
5 act, and that neither the Commonwealth nor any political
6 subdivisions are obligated to pay the principal or interest, and
7 that neither the faith and credit nor the taxing power of the
8 Commonwealth nor any political subdivision is pledged to the
9 payment of the principal of or the interest on the bonds.
10 (d) If the bonds issued by the financing authority are
11 [exempt from Federal income taxes under Federal law,] tax-exempt
12 bonds for which Federal law requires an allocation the
13 Department of Commerce shall issue an allocation charging such
14 small issue project's pro rata share of the issue to the county
15 in which said project is to be located provided that the project
16 requires a type of allocation distributed by the department to
17 the counties.
18 (e) When gubernatorial approval is required by the
19 provisions of Federal or [State] Commonwealth law, the Governor
20 [of the Commonwealth] is hereby authorized to approve the
21 issuance of bonds by the financing authority upon receipt of
22 written request for approval from the financing board. Such
23 written request shall state that the financing authority has
24 conducted a public hearing, pursuant to appropriate public
25 notice, concerning the purposes for which the bonds are to be
26 issued, shall contain a description of the project or projects
27 and shall describe the method of financing the project or
28 projects. The written request shall also summarize the comments
29 made and questions posed at the public hearing.
30 (f) Neither the members of the board of the financing
19920H2465B3203 - 34 -
1 authority nor any person executing the bonds shall be liable
2 personally on the bonds or be subject to any personal liability
3 or accountability by reason of the issuance thereof.
4 (g) (1) Bonds issued in accordance herewith shall be
5 authorized by resolution of the financing authority. The bonds
6 shall be of such series, bear any date or dates, mature at such
7 time or times, [not exceeding thirty years from their respective
8 dates,] bear interest at any rate or rates or at variable rates,
9 be of any denomination or denominations, be in any form, either
10 coupon or registered, carry any conversion or registration
11 privileges, have any rank or priority, be executed in any
12 manner, be payable from such sources in any medium of payment at
13 any place or places and at any time or times within or without
14 this Commonwealth and be subject to any terms of redemption,
15 purchase or tender by the financing authority or the holders
16 thereof, with or without premium, as the resolution or
17 resolutions may provide.
18 (2) The bonds shall be signed by or shall bear the facsimile
19 signature of such officers as the financing authority shall
20 determine, and coupon bonds shall have attached thereto [in]
21 interest coupons bearing the facsimile signature of the chairman
22 of the financing authority, all as may be prescribed in such
23 resolution or resolutions.
24 (3) Bonds may be issued and delivered, notwithstanding that
25 one or more of the officers signing such bonds shall have ceased
26 to be such officer or officers at the time when such bonds shall
27 actually be delivered.
28 (4) Bonds may be sold at public or private sales for such
29 price or prices as the financing authority shall determine.
30 Pending the preparation of the definitive bonds, interim
19920H2465B3203 - 35 -
1 receipts may be issued to the purchaser or purchasers thereof
2 and may contain such terms and conditions as the financing
3 authority may determine.
4 (5) Any bond reciting in substance that it has been issued
5 by the financing authority to aid in the financing of one or
6 more projects to accomplish the public purposes of this act
7 shall be conclusively deemed in proceedings involving the
8 validity or enforceability of such bond or security therefor, to
9 have been issued for such purpose.
10 (h) Any resolution or resolutions authorizing any bonds may
11 contain provisions which shall be part of the contract with
12 holders thereof, [as] to:
13 (1) Secure the bonds.
14 (2) Make covenants against pledging all or part of its
15 revenues or receipts to other parties.
16 (3) Make covenants limiting its right to sell, pledge or
17 otherwise dispose of notes and bonds of governmental units, loan
18 agreements of public or private persons or entities or other
19 property of any kind.
20 (4) Make covenants as to additional bonds to be issued, the
21 limitations thereon, the terms and conditions thereof, and the
22 custody, application, investment and disposition of the proceeds
23 thereof.
24 (5) Make covenants as to the incurring of other debts by it.
25 (6) Make covenants as to the payment of principal of or
26 interest on bonds, the sources and methods of the payment, the
27 rank or priority of bonds with respect to liens or security
28 interests or the acceleration of maturity of bonds.
29 (7) Provide for replacement of lost, stolen, destroyed or
30 mutilated bonds.
19920H2465B3203 - 36 -
1 (8) Make covenants as to the redemption, purchase or tender
2 of bonds by the financing authority or the holders thereof and
3 the privileges of exchanging them for other bonds.
4 (9) Make covenants to create or authorize the creation of
5 special funds or accounts to be held in trust or otherwise for
6 the benefit of holders of bonds, or of reserves for other
7 purposes and as to the use, investment and disposition of moneys
8 held in those funds, accounts or reserves.
9 (10) Provide for the rights, liabilities, powers and duties
10 arising upon the breach of a covenant, condition or obligation,
11 and prescribe the events of default and the terms and conditions
12 upon which any or all of the bonds shall become or may be
13 declared due and payable before maturity and the terms and
14 conditions upon which the declaration and its consequences may
15 be waived.
16 (11) Vest in a trustee or trustees within or without this
17 Commonwealth in trust any property, rights, powers and duties as
18 the financing authority may determine. These may include any or
19 all of the rights, powers and duties of any trustee appointed by
20 the holders of bonds or notes, including rights with respect to
21 the sale or other disposition of notes and bonds of governmental
22 units and other instruments and security pledged pursuant to a
23 resolution or trust indenture for the benefit of the holders of
24 bonds and the right by suit or action to foreclose any mortgage
25 pledged pursuant to the resolution [of] or trust indenture for
26 the benefit of the holders of the bonds, notes or other
27 obligations, and to limit the right of the holders of any bonds
28 to appoint a trustee under this act, and to limit the rights,
29 powers and duties of the trustee.
30 (12) Pay the costs or expenses incident to the enforcement
19920H2465B3203 - 37 -
1 of the bonds or of the provisions of the resolution authorizing
2 the issuance of those bonds, or the trust indenture securing the
3 bonds or of any covenant or agreement of the financing authority
4 with the holders of the bonds, notes or other obligations.
5 (13) Limit the rights of the holders of any bonds to enforce
6 any pledge or covenant securing bonds.
7 (14) Make covenants other than or in addition to the
8 covenants authorized by this act of like or different character,
9 and make covenants to do or refrain from doing any acts and
10 things as may be necessary, or convenient and desirable, in
11 order to better secure bonds or which, in the absolute
12 discretion of the financing authority, will tend to make bonds
13 more marketable, notwithstanding that the covenants, acts or
14 things may not be enumerated herein.
15 (i) A pledge of revenues, receipts, moneys, funds or other
16 property or instruments made by the financing authority shall be
17 valid and binding from the time when the pledge is made. The
18 revenues, receipts, moneys, funds or other property pledged and
19 thereafter received by the financing authority shall be
20 immediately subject to the lien of the pledge without its
21 physical delivery or further act, and the lien of any pledge
22 shall be valid and binding as against all parties having claims
23 of any kind in tort, contract or otherwise against the financing
24 authority irrespective of whether the parties have notice of the
25 lien. Neither the resolution nor any other instrument by which a
26 pledge under this section is created or evidence need be filed
27 or recorded except in the records of the financing authority.
28 (j) Whether or not the bonds are of a form and character as
29 to be negotiable instruments under the terms of Title 13 of the
30 Pennsylvania Consolidated Statutes (relating to commercial
19920H2465B3203 - 38 -
1 code), the bonds are made negotiable instruments within the
2 meaning of and for the purposes of Title 13, subject only to the
3 provisions of the bonds for registration.
4 (k) The rights and remedies herein conferred upon or granted
5 to the bondholders shall be in addition to and not in limitation
6 of any rights and remedies lawfully granted to such bondholders
7 by the resolution or resolutions providing for the issuance of
8 bonds or by any indenture or other agreement under which the
9 same may be issued.
10 Section 6.4. Financing Authority Loans.--(a) [No loan shall
11 be made by the financing authority unless:
12 (1) The industrial and commercial development authority has
13 obtained firm commitments satisfactory to the financing
14 authority from responsible financial sources, which may include
15 a Federal agency, beneficial owner or the project occupant, for
16 the portion of project costs in excess of any loan requested
17 from the financing authority;
18 (2) The industrial and commercial development authority has
19 obtained a firm commitment satisfactory to the financing
20 authority from the project occupant or beneficial owner to lease
21 or use the project after construction, acquisition,
22 rehabilitation or improvement is completed;
23 (3) The financing authority approves the terms of such lease
24 or use and is satisfied that the project occupant or a business
25 enterprise may reasonably be expected to comply with the terms
26 thereof; and
27 (4) The project has received all approvals required under
28 this act and complies with any rules and regulations of the
29 financing authority.
30 (b) In addition to other provisions of this section limiting
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1 the power of the financing authority to make loans to industrial
2 and commercial development authorities, in respect to a
3 particular project, the following restrictions shall also apply:
4 (1) No funds of the financing authority shall be used in
5 respect of any project if the financing authority would be
6 required to operate, service or maintain the project pursuant to
7 any lease or other agreement except upon foreclosure or except
8 upon the occurrence of a default in the payment or terms of any
9 loan made. Nothing shall prevent the financing authority from
10 transferring such property to the project occupant or its
11 designee at the end of the term of such financing.
12 (2) No provisions of this act shall prevent the inclusion in
13 a mortgage, lease or other agreement relating to an assisted
14 project of a provision granting the project occupant the right
15 to purchase such project upon such terms and conditions as the
16 financing authority may approve.] The financing authority shall
17 ascertain to its satisfaction that:
18 (1) Firm commitments satisfactory to the financing authority
19 have been obtained from responsible financial sources, which may
20 include a Federal agency, project applicant or the project user,
21 for the portion of project costs in excess of any loan requested
22 from the financing authority.
23 (2) A firm commitment satisfactory to the financing
24 authority from the project applicant or project user has been
25 obtained to lease or use the project after acquisition is
26 completed.
27 (3) The project user may reasonably be expected to comply
28 with the terms of such lease or use.
29 (4) The project complies with all rules and regulations of
30 the financing authority, if any.
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1 (b) In addition to other provisions of this section limiting
2 the power of the financing authority to make loans in respect to
3 a particular project no funds of the financing authority shall
4 be used in respect of any project if the financing authority
5 would be required to operate, service or maintain the project
6 pursuant to any lease or other agreement except upon foreclosure
7 or except upon the occurrence of a default in the payment or
8 terms of any loan made. Nothing shall prevent the financing
9 authority from transferring such property to the project
10 applicant, project user or either of their designees at the end
11 of the term of such financing.
12 Section 6.5. Industrial and Commercial Development
13 Authorities.--To be eligible for loans from the financing
14 authority, an industrial and commercial development authority or
15 industrial development agency shall meet the following
16 requirements in addition to any others imposed by the provisions
17 of this act:
18 (1) The industrial and commercial development authority or
19 industrial development agency shall be incorporated.
20 (2) The industrial and commercial development authority or
21 industrial development agency shall agree to be bound by the
22 rules and regulations of the financing authority relating to
23 assisted projects and the operations of industrial and
24 commercial development authorities or as may be applicable,
25 industrial development agencies and shall submit to examination
26 of its books of accounts and corporate records by the financing
27 authority at such times as the financing authority may require
28 during the term of any loan made to it by the financing
29 authority.
30 (3) The provisions of the act of December 20, 1985 (P.L.483,
19920H2465B3203 - 41 -
1 No.113), known as the "Tax-Exempt Bond Allocation Act," shall
2 not apply to restrict the powers of the financing authority
3 under section 6.2 of this act or the powers of any local
4 industrial and commercial development authority [or the
5 Secretary of Commerce] under this act with respect to any
6 [economic development] project being financed out of the
7 proceeds of obligations which are not exempt from Federal income
8 taxation.
9 Section 8. Section 7 of the act, amended December 29, 1971
10 (P.L.647, No.171), December 29, 1972 (P.L.1675, No.359) and
11 December 19, 1975 (P.L.576, No.165), is amended to read:
12 Section 7. Purposes and Powers; Bonds.--(a) An authority
13 shall have the power to issue bonds for any of its corporate
14 purposes, provided, however, the principal, interest and other
15 charges thereon are payable solely and exclusively (i) from
16 revenues received from the project applicant or project user or
17 from the income, revenues and property of the project financed,
18 in whole or in part, with the proceeds of such bonds; (ii) from
19 the income and revenues of certain designated projects whether
20 or not they were financed, in whole or in part, with the
21 proceeds of such bonds; or (iii) from its revenues generally.
22 (b) The bonds of any authority shall be authorized by
23 resolution of the board thereof, shall be of such series, bear
24 such date or dates, mature at such time or times, [not exceeding
25 forty years from their respective date,] bear interest at such
26 rate or rates, [payable at least semi-annually,] be in such
27 denominations, be in such form, either coupon or fully
28 registered without coupons, carry such registration,
29 exchangeability and interchangeability privileges, be payable in
30 any medium of payment and at such place or places and at such
19920H2465B3203 - 42 -
1 time or times, be subject to such terms of redemption, with or
2 without premium, and be entitled to such priorities in the
3 revenues or receipts of such authority as such resolution or
4 resolutions may provide. The bonds shall be signed by or shall
5 bear the facsimile signature of such officers as the authority
6 shall determine, and coupon bonds shall have attached thereto
7 interest coupons bearing the facsimile signature of the
8 treasurer of the authority, all as may be prescribed in such
9 resolution or resolutions. Any such bonds may be issued and
10 delivered, notwithstanding that one or more of the officers
11 signing such bonds or the treasurer whose facsimile signature
12 shall be upon the coupon, shall have ceased to be such officer
13 or officers at the time when such bonds shall actually be
14 delivered. Said bonds may be sold at public or private sale for
15 such price or prices as the authority shall determine. Pending
16 the preparation of the definitive bonds, interim receipts may be
17 issued to the purchaser or purchasers of such bonds, and may
18 contain such terms and conditions as the authority may
19 determine. Any bond reciting in substance that it has been
20 issued by an authority to aid in the financing of a project to
21 accomplish the public purposes of this act shall be conclusively
22 deemed in proceedings involving the validity or enforceability
23 of such bond or security therefor, to have been issued for such
24 purpose.
25 (c) Any resolution or resolutions authorizing any bonds may
26 contain provisions which shall be part of the contract with the
27 holders thereof, as to (i) pledging the full faith and credit of
28 the authority (but not of the Commonwealth of Pennsylvania or
29 any political subdivision thereof) for such obligations, or
30 restricting the same to all or any of the assets or to all or
19920H2465B3203 - 43 -
1 any of the revenues or receipts of the authority from all or any
2 projects or properties; (ii) the [construction, improvement,
3 operation, extension, enlargement, maintenance and repair]
4 acquisition of the project and the duties of the authority and
5 the [occupant] project applicant or project user with reference
6 thereto; (iii) the terms and provisions of the bonds; (iv)
7 limitations on the purposes to which the proceeds of the bonds
8 then or thereafter to be issued, or of any loan or grant by a
9 Federal agency may be applied; (v) the rentals and other charges
10 for use [of] or sale of, or loan payments for the financing of,
11 the project; (vi) the setting aside of reserves or sinking funds
12 and the regulation and disposition thereof; (vii) limitations on
13 the issuance of additional bonds; (viii) the terms and
14 provisions of any deed of trust, mortgage or indenture securing
15 the bonds, or under which the same may be issued, and (ix) any
16 other or additional agreements with the holders of the bonds.
17 (d) Any authority may enter into any deeds of trust,
18 indentures, mortgages, or other agreements, with any bank or
19 trust company, including any Federal agency, as security for
20 such bonds, and may assign and pledge the assets or all or any
21 of the revenues or receipts of the authority thereunder. Such
22 deed of trust, indenture, mortgage or other agreement, may
23 contain such provisions as may be customary in such instruments,
24 or as the authority may authorize, including (but without
25 limitation) provisions as to (i) the [construction, improvement,
26 operation, maintenance and repair of any project, and the duties
27 of the authority and the industrial or commercial occupant]
28 acquisition of any project and the duties of the authority and
29 the project applicant or project user with reference thereto;
30 (ii) the application of funds and the safeguarding of funds on
19920H2465B3203 - 44 -
1 hand or on deposit; and (iii) the rights and remedies of the
2 trustee and the holders of the bonds, (which may include
3 restrictions upon the individual right of action or such
4 bondholders); and (iv) the terms and provisions of the bonds or
5 the resolutions authorizing the issuance of the same.
6 [(e) Said bonds shall have all the qualities of negotiable
7 instruments under the law merchant and the Uniform Commercial
8 Code of the Commonwealth of Pennsylvania.
9 (f) No bonds shall be issued and sold and the construction
10 of a project shall not be commenced until the proceedings to be
11 undertaken in respect of the issuance and sale of the bonds and
12 the construction of the project have been first approved by the
13 secretary: Provided, That construction of disaster relief
14 projects and projects consisting of pollution control facilities
15 may be commenced prior to the approval of the secretary: And
16 provided further, That in respect to disaster relief projects,
17 an application for approval in respect thereof is submitted to
18 the secretary within six months after the county in which the
19 project is or will be located has been designated as a disaster
20 area by the President of the United States. The chairman of the
21 authority shall cause to be certified under seal of the
22 authority and delivered to the secretary such documents relating
23 to the proceedings as may be necessary and as may be required by
24 the secretary to enable him to determine that:
25 (1) The project does not violate section 6(d) hereof;
26 (2) The lease or agreement of sale is in accordance with
27 section 6(b)(9) hereof;
28 (3) The proceedings are in conformity with this act, and
29 (4) The industrial, specialized, and commercial development
30 project will accomplish the public purposes of this act.
19920H2465B3203 - 45 -
1 If such proceedings are found to be in conformity with this
2 act, the secretary shall within twenty days after receipt
3 thereof approve the same and certify his approval to the
4 authority.
5 If, upon examination, the secretary shall find that such
6 proceedings are not in accordance with this act, he shall
7 disapprove the same and shall within twenty days after receipt
8 thereof certify his disapproval to the authority; thereafter, it
9 shall be unlawful for such authority to issue any bonds upon
10 such proceedings or to commence construction of the project
11 unless the proceedings are corrected and as corrected have been
12 approved by the secretary. If the secretary shall not have
13 approved or disapproved the proceedings within such twenty days
14 the same shall be deemed to have been approved. The decision of
15 the secretary shall be final.
16 (g) The secretary may promulgate such regulations as he may
17 deem necessary to carry out the purposes of this section 7.] No
18 bonds shall be issued and sold until the secretary shall have
19 first determined, based on the application material submitted,
20 that the project and the financing thereof are in apparent
21 conformity with this act and any regulations, statements of
22 policy, guidelines or rulings promulgated pursuant to this act.
23 If the project and financing thereof are found to be in
24 conformity with this act, and any regulations, statements of
25 policy, guidelines and rulings promulgated thereunder, then the
26 secretary shall within twenty days after receipt thereof approve
27 the same and certify his approval to the authority. The decision
28 of the secretary shall be final.
29 (e) A pledge of revenues, receipts, moneys, funds or other
30 property or instruments made by an authority shall be valid and
19920H2465B3203 - 46 -
1 binding from the time when the pledge is made. The revenues,
2 receipts, moneys, funds or other property pledged and thereafter
3 received by an authority shall be immediately subject to the
4 lien of the pledge without the physical delivery of the
5 revenues, receipts, moneys, funds or other property or further
6 act, and the lien of any pledge shall be valid and binding as
7 against all parties having claims of any kind in tort, contract
8 or otherwise against the authority irrespective of whether the
9 parties have notice of the lien. Neither the resolution nor any
10 other instrument by which a pledge under this section is created
11 or evidenced need be filed or recorded except in the records of
12 the authority.
13 (f) Whether or not the bonds are of a form and character as
14 to be negotiable instruments under the terms of 13 Pa.C.S.
15 (relating to commercial code), the bonds are made negotiable
16 instruments within the meaning of and for the purposes of 13
17 Pa.C.S., subject only to the provisions of the bonds for
18 registration.
19 (g) The secretary is authorized to issue rulings pertaining
20 to the interpretation of the provisions of this act, which
21 rulings may be relied upon by an authority or the financing
22 authority. All rulings issued by the secretary shall be
23 published in the Pennsylvania Bulletin. The secretary may
24 promulgate such regulations as he may deem necessary to carry
25 out the purposes of this act.
26 Section 9. Sections 11 and 12 of the act, amended December
27 19, 1975 (P.L.576, No.165), are amended to read:
28 Section 11. Transfer of Existing Facilities to Authority.--
29 Any municipality may, and it is hereby authorized to sell,
30 lease, grant, convey and transfer to any authority, any
19920H2465B3203 - 47 -
1 facilities, or any interest in real or personal property
2 available for [industrial, specialized, or commercial
3 development] projects. This section without reference to any
4 other law, shall be deemed complete, the provisions of other
5 laws to the contrary notwithstanding.
6 Section 12. Competition in Award of Contracts.--(a) All
7 construction, reconstruction, repairs or work of any nature made
8 directly by any authority where the entire cost, value or amount
9 of such construction, reconstruction, repairs or work, including
10 labor and materials, shall exceed five thousand dollars
11 ($5,000), except construction, reconstruction, repairs or work
12 done by employes of said authority, or by labor supplied under
13 agreement with any Federal or State agency, with supplies and
14 materials purchased as hereinafter provided, shall be done only
15 under contract or contracts to be entered into by the authority
16 with the lowest responsible bidder upon proper terms, after due
17 public notice has been given asking for competitive bids as
18 hereinafter provided: Provided, however, That where the
19 authority is the legal title holder to the [industrial,
20 specialized, or commercial development project, and there exists
21 an agreement whereby an occupant or an investor-developer]
22 project, and there exists an agreement whereby a project user or
23 project applicant will or can acquire legal title to the said
24 project under the then certain terms and conditions, contracts
25 for construction, reconstruction, repair, or work of any nature,
26 or purchase of machinery and equipment, may be awarded by the
27 [occupant or the investor-developer] project user or project
28 applicant without regard to the limitations of this section 12:
29 And provided further, however, That for the purposes of this
30 section 12, "construction" or "acquisition" shall not include
19920H2465B3203 - 48 -
1 acquisition of property for [industrial, specialized, or
2 commercial development] project purposes. No contract shall be
3 entered into between an authority and a contractor for
4 construction [or improvement or repair] of any project or
5 portion thereof, unless the contractor shall give an undertaking
6 with a sufficient surety or sureties approved by the authority,
7 and in an amount fixed by the authority, for the faithful
8 performance of the contract. All contracts of surety shall
9 provide among other things that the contractor entering into a
10 contract with the authority will pay for all materials furnished
11 and services rendered for the performance of the contract, and
12 that any person or corporation furnishing such materials or
13 rendering such services may maintain an action to recover for
14 the same against the obligor in the undertaking, as though such
15 person or corporation was named therein, provided the action is
16 brought within one year after the time the cause of action
17 accrued.
18 (b) All supplies and materials costing two thousand five
19 hundred dollars ($2500) or more to be purchased directly by an
20 authority shall be purchased only after due advertisement as
21 hereinafter provided. The authority shall accept the lowest bid
22 or bids, kind, quality and material being equal, but the
23 authority shall have the right to reject any or all bids or
24 select a single item from any bid. The provisions as to bidding
25 shall not apply to the purchase of patented and manufactured
26 products offered for sale in a noncompetitive market or solely
27 by a manufacturer's authorized dealer.
28 (c) The terms "advertisement" or "due public notice"
29 wherever used in this section, shall mean a notice published at
30 least ten days before the award of any contract, in a newspaper
19920H2465B3203 - 49 -
1 of general circulation published in the municipality where the
2 authority has its principal office, and if no newspaper is
3 published therein then by publication in a newspaper in the
4 county where the authority has its principal office: Provided,
5 That such notice may be waived where the authority determines an
6 emergency exists, and such supplies and materials must be
7 immediately purchased by the said authority.
8 (d) No member of the authority or officer or employe thereof
9 shall, either directly or indirectly, be a party to or be in any
10 manner interested in any contract or agreement with the
11 authority for any matter, cause or thing whatsoever by reason
12 whereof any liability or indebtedness shall in any way be
13 created against such authority. If any contract or agreement
14 shall be made in violation of the provisions of this section the
15 same shall be null and void and no action shall be maintained
16 thereon against such authority.
17 (e) Subject to the aforesaid, any authority may (but without
18 intending by this provision to limit any powers of such
19 authority) enter into and carry out such contracts, or establish
20 or comply with such rules and regulations concerning labor and
21 materials and other related matters in connection with any
22 project or portion thereof, as the authority may deem desirable,
23 or as may be requested by any Federal agency that may assist in
24 the financing of such project or any part thereof.
25 (f) The provisions of this section 12 shall not apply in
26 respect of the construction of any project or the purchase of
27 any equipment, materials or supplies which the authority may
28 have had transferred to it upon completion, by purchase or
29 otherwise, by [an occupant] a project applicant or project user
30 or any other person or corporation.
19920H2465B3203 - 50 -
1 (g) Notwithstanding any of the foregoing, all construction,
2 reconstruction, repairs or work of any nature with regard to
3 publicly owned infrastructure facilities, where the entire cost,
4 value or amount of such construction, reconstruction, repairs or
5 work, including labor and materials, shall exceed five thousand
6 dollars ($5,000), shall be done only under contract or contracts
7 to be entered into by the authority or the owner of the
8 infrastructure facility, with the lowest responsible bidder upon
9 proper terms, after due public notice has been given asking for
10 competitive bids as set forth in this section or other
11 applicable law.
12 Section 10. Sections 13 and 15 of the act, amended July 10,
13 1987 (P.L.273, No.48), are amended to read:
14 Section 13. Limitation of Powers.--The Commonwealth does
15 hereby pledge to and agree with any person, firm or corporation,
16 or Federal agency subscribing to or acquiring the bonds to be
17 issued by the authority or the financing authority for the
18 [construction, extension, improvement or enlargement]
19 acquisition or financing of any project or part thereof, that
20 the Commonwealth will not limit or alter the rights hereby
21 vested in the authority or the financing authority until all
22 bonds at any time issued, together with the interest thereon are
23 fully met and discharged. The Commonwealth of Pennsylvania does
24 further pledge to and agree with the United States and any other
25 Federal agency that, in the event that any Federal agency shall
26 construct or contribute any funds for the [construction,
27 extension, improvement or enlargement] acquisition or financing
28 of any project or any portion thereof, the Commonwealth will not
29 alter or limit the rights and powers of the authority or the
30 financing authority in any manner which would be inconsistent
19920H2465B3203 - 51 -
1 with the continued maintenance and operation of the project, or
2 the improvement thereof, or which would be inconsistent with the
3 due performance of any agreements between the authority or the
4 financing authority and any such Federal agency, and the
5 authority or the financing authority shall continue to have and
6 may exercise all powers herein granted, so long as the same
7 shall be necessary or desirable for the carrying out of the
8 purposes of this act and the purposes of the United States in
9 the [construction or improvement or enlargement] acquisition or
10 financing of the project or such portion thereof.
11 Section 15. Exemption From Taxation.--The effectuation of
12 the authorized purpose of authorities created under section 4 of
13 this act and the financing authority created under section 6.1
14 of this act shall and will be in all respects for the benefit of
15 the people of the Commonwealth of Pennsylvania, for the increase
16 of their commerce and prosperity, and for the improvement of
17 their health and living conditions; and, since they will as
18 public instrumentalities of the Commonwealth be performing
19 essential governmental functions in effectuating such purposes,
20 authorities and the financing authority shall not be required to
21 pay any taxes or assessments upon any property acquired or used
22 by them for such purposes, and the bonds issued by any authority
23 or by the financing authority, their transfer and the income
24 therefrom[,] (including any profits made on the sale thereof),
25 shall at all times be free from taxation within the Commonwealth
26 of Pennsylvania.
27 Section 11. This act shall not apply to bonds or other
28 evidences of indebtedness issued by an authority or the
29 financing authority prior to the effective date of this act.
30 Section 12. This act shall take effect immediately.
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