PRINTER'S NO. 734
No. 662 Session of 1977
INTRODUCED BY MEBUS, MARCH 21, 1977
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 21, 1977
AN ACT
1 Amending the act of July 12, 1972 (P.L.781, No.185), entitled,
2 as amended, "An act providing debt limits for local
3 government units, including municipalities and school
4 districts; providing the methods of incurring, evidencing,
5 securing and collecting debt; defining the powers and duties
6 of the Department of Community Affairs and certain other
7 public officers and agencies with respect thereto; exercising
8 the inherent legislative authority of the General Assembly by
9 providing additional over-all limitations on the incurring of
10 lease rental and other obligations for the acquisition of
11 capital assets to be repaid from the general tax revenues of
12 such local government units; imposing penalties for filing
13 false or untrue statements or refusing to give information
14 with respect to proceedings for the incurring of debt; and
15 conferring jurisdiction on the Commonwealth Court with
16 respect to certain proceedings relating to the incurring of
17 debt," eliminating certain limitations on bond issue
18 denominations.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 610, act of July 12, 1972 (P.L.781,
22 No.185), is amended to read:
23 [Section 610. Term-bonds of the Denomination of One Hundred
24 Dollars Each.--(a) Whenever the interest rate to the local
25 government unit shall exceed six per cent, on any stated
26 maturity not subject to call for optional prior redemption, the
1 governing body shall, and in other cases may, also concurrently
2 provide for the due public advertisement and issue and sale over
3 the counter by the issuer, local banks, savings and loan
4 associations, or savings banks, of term-bonds in the
5 denomination of one hundred dollars ($100) each, payable in not
6 more than ten years from the date of issue. The principal amount
7 of the term-bonds shall be a reasonable amount, not less than
8 one-half of one per cent and not more than one and one-half per
9 cent of the principal amount of the bonds with which such term-
10 bonds are being concurrently authorized. The rate of interest on
11 such term-bonds shall be not less than that on the bonds of the
12 same stated maturity being concurrently authorized. A separate
13 sinking fund for the redemption of such term-bonds, upon tender
14 by the holders on a first come, first served basis, shall be
15 provided in an equal amount each year, sufficient to provide for
16 the separate amortization of the term-bonds by their stated
17 maturity date. Except as stated in this section the term-bonds
18 shall be subject to all the terms and conditions of the bonds
19 authorized concurrently therewith.
20 (b) No term-notes or term-bonds in the denomination of one
21 hundred dollars ($100) each need be authorized, issued or sold
22 in connection with any series of notes or bonds having a latest
23 stated maturity date of ten years or less at the time of issue.]
24 Section 2. This act shall take effect immediately.
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