2010 Pennsylvania Code
Title 74 - TRANSPORTATION
Chapter 81 - Turnpike
8112 - Issuance of turnpike revenue bonds or other obligations.

     § 8112.  Issuance of turnpike revenue bonds or other
                obligations.
        (a)  Authorization.--
            (1)  A bond must be authorized by resolution of the
        commission. The resolution may specify all of the following:
                (i)  Series.
                (ii)  Date of maturity not exceeding 40 years from
            date of issue.
                (iii)  Interest.
                (iv)  Denomination.
                (v)  Form, either coupon or fully registered without
            coupons.
                (vi)  Registration, exchangeability and
            interchangeability privileges.
                (vii)  Medium of payment and place of payment.
                (viii)  Terms of redemption not exceeding 105% of the
            principal amount of the bond.
                (ix)  Priorities in the revenues or receipts of the
            commission.
            (2)  A bond must be signed by or shall bear the facsimile
        signature of such officers as the commission determines. A
        bond may be issued and delivered notwithstanding that one or
        more of the signing officers or the treasurer has ceased to
        be an officer when the bond is actually delivered. A bond
        must be authenticated by an authenticating agent, a fiscal
        agent or a trustee, if required by the authorizing
        resolution.
            (3)  A bond may be sold at public or private sale for a
        price determined by the commission.
            (4)  Pending the preparation of a definitive bond,
        interim receipts or temporary bonds without coupons may be
        issued to the purchaser and may contain terms and conditions
        as the commission determines.
        (b)  Provisions.--A resolution authorizing a bond may contain
     provisions which shall be part of the contract with the
     bondholder as to the following:
            (1)  Pledging the full faith and credit of the
        commission, but not of the Commonwealth or any political
        subdivision for the bond or restricting the obligation of the
        commission to all or any of the revenue of the commission
        from all or any projects or properties.
            (2)  The payment of the costs of the department, the
        costs of the turnpikes and the toll road conversions,
        including the reconstruction of the converted roads as
        provided for in this chapter and the repayment to the Federal
        Treasury of any funds so required to be repaid pursuant to
        any special legislation passed by the Congress of the United
        States authorizing the conversion of toll-free roads to toll
        roads, the financing for insurance reserves and the duties of
        the commission with reference to these matters.
            (3)  Terms and provisions of the bond.
            (4)  Limitations on the purposes to which the proceeds of
        the bond or other financing may be applied.
            (5)  Rate of tolls and other charges for use of the
        facilities of or for the services rendered by the commission.
            (6)  The setting aside, regulation and disposition of
        reserves and sinking funds.
            (7)  Limitations on the issuance of additional bonds.
            (8)  Terms and provisions of any deed of trust or
        indenture securing the bond or under which any deed of trust
        or indenture may be issued.
            (9)  Other additional agreements with the holder of the
        bond.
        (c)  Deeds of trust.--The commission may enter into any deed
     of trust, indenture or other agreement with any bank or trust
     company or other person in the United States having power to
     enter into such an arrangement, including any Federal agency, as
     security for a bond and may assign and pledge all or any of the
     revenues or receipts of the commission under such deed,
     indenture or agreement. The deed of trust, indenture or other
     agreement may contain provisions as may be customary in such
     instruments or as the commission may authorize, including
     provisions as to the following:
            (1)  For the payment of the costs of the department, the
        costs of the turnpikes and the toll road conversions,
        including the reconstruction of the converted roads as
        provided for in this chapter and the repayment to the Federal
        Treasury of any funds so required to be repaid pursuant to
        any special legislation passed by the Congress of the United
        States authorizing the conversion of toll-free roads to toll
        roads, financing for insurance reserves and the duties of the
        commission with reference to these matters.
            (2)  Application of funds and the safeguarding of funds
        on hand or on deposit.
            (3)  Rights and remedies of trustees and bondholders,
        including restrictions upon the individual right of action of
        a bondholder.
            (4)  Terms and provisions of the bond or the resolution
        authorizing the issuance of the bond.
        (d)  Negotiability.--A bond shall have all the qualities of
     negotiable instruments under 13 Pa.C.S. Div. 3 (relating to
     negotiable instruments).