PRINTER'S NO. 1074
No. 940 Session of 1975
INTRODUCED BY KERNICK, CAPUTO, GEISLER, IRVIS, COWELL, MRKONIC,
MANDERINO, FISHER, GLEASON, POLITE, DOMBROWSKI, ABRAHAM,
MISCEVICH, McGRAW, TRELLO, FLAHERTY AND NOVAK, APRIL 8, 1975
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 9, 1975
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of 'Authorities' for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," providing that bonds issued may be executed by
15 facsimile signatures and conforming the text to the allowable
16 interest to be borne.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Subsection A of section 5, act of May 2, 1945
20 (P.L.382, No.164), known as the "Municipality Authorities Act of
21 1945," amended October 10, 1969 (P.L.247, No.101), is amended to
22 read:
23 Section 5. Purposes and Powers; Bonds.--A. The bonds of any
24 Authority hereinabove referred to and authorized to be issued,
1 shall be authorized by resolution of the board thereof and shall
2 be of such series, bear such date or dates, mature at such time
3 or times, not exceeding forty years from their respective dates,
4 bear interest at such rate or rates, not exceeding six per cent
5 per annum, except that for a period [of one year after the
6 effective date of this amendatory act, the rate or rates of
7 interest may exceed six per centum but shall not exceed seven
8 per centum] commencing July 1, 1970 and ending June 30, 1976
9 there shall be no limitation on the rate of interest to be borne
10 by such bonds, as shall be determined by the board as necessary
11 to issue and sell the authorized bonds, payable semi-annually,
12 be in such denominations, be in such form, either coupon or
13 fully registered without coupons, carry such registration,
14 exchangeability and interchangeability privileges, be payable in
15 such medium of payment and at such place or places, be subject
16 to such terms of redemption not exceeding one hundred five per
17 cent of the principal amount thereof, and be entitled to such
18 priorities in the revenues or receipts of such Authority as such
19 resolution or resolutions may provide. The bonds shall be signed
20 by or shall bear the facsimile signature of such officers as the
21 Authority shall determine, [and] coupon bonds shall have
22 attached thereto interest coupons bearing the facsimile
23 signature of the treasurer of the Authority, and all bonds shall
24 be authenticated by an authenticating agent, fiscal agent or
25 trustee, all as may be prescribed in such resolution or
26 resolutions. Any such bonds may be issued and delivered,
27 notwithstanding that one or more of the officers signing such
28 bonds [or the treasurer whose facsimile signature shall be upon]
29 or the facsimile or whose signature shall be upon such bonds,
30 the [coupon] coupons, or any thereof, shall have ceased to be
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1 such officer or officers at the time when such bonds shall
2 actually be delivered.
3 Said bonds may be sold at public or private sale for such
4 price or prices and at such rate of interest as the Authority
5 shall determine, provided that the interest cost to maturity of
6 the money received for any issue of said bonds shall not exceed
7 six per centum per annum [or seven per centum per annum for
8 bonds issued within a one-year period from the effective date of
9 this amendatory act], provided, that this limitation shall not
10 apply to bonds issued during the period commencing July 1, 1970
11 and ending June 30, 1976. Pending the preparation of the
12 definitive bonds, interim receipts may be issued to the
13 purchaser or purchasers of such bonds, and may contain such
14 terms and conditions as the Authority may determine.
15 The interest on bonds issued with an interest rate exceeding
16 six per centum per annum shall be paid during the term for which
17 the bonds were issued, and shall not be limited to the [one-
18 year] period during which the bonds could be issued at a rate
19 exceeding six per centum per annum.
20 * * *
21 Section 2. This act shall take effect immediately.
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