2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 73 - Municipalities Investments
7305 - Obligations of Pennsylvania governmental organizations.

     § 7305.  Obligations of Pennsylvania governmental organizations.
        Obligations of the following Pennsylvania governmental
     organizations shall be authorized investments:
            (1)  General State Authority and other State
     authorities.--Obligations issued by The General State Authority
     and other authorities created by the General Assembly of the
     Commonwealth of Pennsylvania, for the payment of which faith and
     credit of the authority is pledged.
            (2)  Housing authorities.--Obligations of any housing
        authority issued pursuant to the laws of the Commonwealth
        relating to the creation or operation of housing authorities.
            (3)  Pennsylvania Housing Agency.--Bonds and notes of the
        Pennsylvania Housing Agency created by the "Housing Agency
        Law."
            (4)  Municipality authorities.--Obligations of any
        municipality authority issued pursuant to the laws of the
        Commonwealth relating to the creation or operation of
        municipality authorities, if the obligations are not in
        default and if the project for which the obligations were
        issued is under lease to a school district or school
        districts, or if the obligations are not in default and if
        the project for which the obligations were issued is under
        lease to a municipality or municipalities or subject to a
        service contract with a municipality or municipalities,
        pursuant to which the authority will receive lease rentals or
        service charges available for fixed charges on the
        obligations, which will average not less than one and one-
        fifth times the average annual fixed charges of such
        obligations over the life thereof, or if the obligations are
        not in default and if for the period of five fiscal years
        next preceding the date of acquisition, the income of such
        authority available for fixed charges has averaged not less
        than one and one-fifth times its average annual fixed charges
        of such obligations over the life of such obligations. As
        used in this clause, the term "income available for fixed
        charges" shall mean income after deducting operating and
        maintenance expenses, and, unless the obligations are payable
        in serial, annual maturities, or are supported by annual
        sinking fund payments, depreciation, but excluding
        extraordinary nonrecurring items of income or expenses; and
        the term "fixed charges" shall include principal, both
        maturity and sinking fund, and interest on bonded debt. In
        computing such income available for fixed charges for the
        purposes of this paragraph, the income so available of any
        corporation acquired by any municipality authority may be
        included, such income to be calculated as though such
        corporation has been operated by a municipality authority and
        an equivalent amount of bonded debt were outstanding. The
        eligibility for investment purposes of obligations of each
        project of a municipality authority shall be separately
        considered hereunder.
            (5)  Parking authorities, public auditorium authorities,
        and port authorities.--Obligations of any parking authority,
        public auditorium authority, or port authority issued
        pursuant to the Parking Authority Law, the Public Auditorium
        Authorities Law or the Second Class County Port Authority
        Act, as the same have been heretofore or may be hereafter
        amended, if the obligations are not in default and if the
        project or facility for which the obligations were issued is
        under lease to a municipality or municipalities or is subject
        to a service contract or grant contract with a municipality
        or municipalities, and if the term of such lease or contract
        is not less than the term of the final maturity of the
        obligations, and if the authority will receive or is entitled
        to receive under such lease or contract annual rentals,
        service charges, or grants available for fixed charges on
        such obligations of not less than the average annual fixed
        charges on such obligations over the life thereof, or if the
        obligations are not in default, and if for the period of five
        fiscal years next preceding the date of acquisition the
        income of such authority available for fixed charges has
        averaged not less than one and one-fifth times its average
        annual fixed charges of such obligation over the life of such
        obligations. As used in this paragraph, the term "income
        available for fixed charges" shall mean income after
        deducting operating and maintenance expenses and, unless the
        obligations are payable in serial, annual maturities, or are
        supported by annual sinking fund payments, depreciation, but
        excluding extraordinary nonrecurring items of income or
        expenses, and the term "fixed charges" shall include
        principal, both maturity and sinking fund, and interest on
        bonded debt.
            (6)  Delaware River Joint Commission.--Obligations of the
        Delaware River Joint Commission issued pursuant to the act of
        June 12, 1931 (P.L.575, No.200), and its amendments and
        supplements heretofore or hereafter enacted.
            (7)  Delaware River Joint Toll Bridge Commission.--
        Obligations of the Delaware River Joint Toll Bridge
        Commission issued pursuant to the act of June 25, 1931
        (P.L.1352, No.332), and its amendments and supplements
        heretofore or hereafter enacted.
            (8)  Delaware Tunnel Board.--Obligations issued by or
        with the approval of the Delaware Tunnel Board pursuant to
        the act of July 8, 1947 (P.L.1452, No.561), and its
        amendments and supplements heretofore or hereafter enacted.
            (9)  Pennsylvania Turnpike Commission.--Obligations of
        the Pennsylvania Turnpike Commission issued pursuant to:
                (i)  the act of May 21, 1937 (P.L.774, No.211);
                (ii)  the Pennsylvania Turnpike Philadelphia
            Extension Act of May 16, 1940 (Spec.Sess. P.L.949,
            No.11); and
                (iii)  the Western Pennsylvania Turnpike Extension
            Act of June 11, 1941 (P.L.101, No.53); and the amendments
            and supplements of each heretofore or hereafter enacted.
            (10)  Pennsylvania Parkway Commission.--Obligations of
        the Pennsylvania Parkway Commission, issued pursuant to the
        act of July 16, 1941 (P.L.386, No.149), and its amendments
        and supplements heretofore or hereafter enacted.
            (11)  Redevelopment authorities.--Obligations of any
        redevelopment authority issued pursuant to the laws of the
        Commonwealth relating to the creation or operation of
        redevelopment authorities.
            (12)  The Pennsylvania State University.--Obligations of
        The Pennsylvania State University.
            (13)  Municipalities issuing nondebt revenue bonds.--
        Obligations issued pursuant to subdivision (b) of Article VI
        of the act of June 25, 1941 (P.L.159, No.87), known as the
        "Municipal Borrowing Law," and its amendments, if the
        obligations are not in default and if, for the period of five
        fiscal years next preceding the date of acquisition the
        income of the municipality issuing such obligations from the
        facility from which revenues are pledged for the payment for
        such obligations, available for fixed charges has averaged
        not less than one and one-fifth times the average annual
        fixed charges of such obligations over the life of such
        obligations. As used in this paragraph, the term "income
        available for fixed charges" shall mean income after
        deducting operating and maintenance expenses, and, unless the
        obligations are payable in serial, annual maturities, or are
        supported by annual sinking fund payments, depreciation, but
        excluding extraordinary nonrecurring items of income or
        expenses; and the term "fixed charges" shall include
        principal, both maturity and sinking fund, and interest on
        bonded debt.

        References in Text.  The General State Authority, referred to
     in par. (1), was abolished and its functions transferred to the
     Department of General Services by the act of July 22, 1975
     (P.L.75, No.45).
        The act of July 8, 1947 (P.L.1452, No.561), referred to in
     par. (8), was repealed by the act of February 18, 1970 (P.L.50,
     No.20).
        The act of June 25, 1941 (P.L.159, No.87), known as the
     Municipal Borrowing Law, referred to in par. (13), was repealed
     by the act of July 12, 1972 (P.L.781, No.185), known as the
     Local Government Unit Debt Act. The Local Government Unit Debt
     Act was repealed by the act of December 19, 1996, P.L.1158,
     No.177. The subject matter is now contained in Subpart B of Part
     VII (relating to indebtedness and borrowing) of Title 53.
        The Pennsylvania Parkway Commission, referred to in par.
     (10), terminated December 31, 1987, under the act of December
     22, 1981 (P.L.508, No.142), known as the Sunset Act.
        The short title of the act of December 3, 1959 (P.L.1688,
     No.621), known as the Housing Agency Law, referred to in par.
     (3), was amended by the act of December 5, 1972 (P.L.1259,
     No.282). The amended short title is now the Housing Finance
     Agency Law.
        The act of June 5, 1947 (P.L.458, No.208), known as the
     Parking Authority Law, referred to in par. (5), was repealed by
     the act of June 19, 2001 (P.L.287, No.22). The subject matter is
     now contained in Chapter 55 of Title 53.