2010 Pennsylvania Code
Title 75 - VEHICLES
Chapter 95 - Taxes for Highway Maintenance and Construction
9511.4 - Special revenue bonds and preliminary or interim financing.

     § 9511.4.  Special revenue bonds and preliminary or interim
                financing.
        (a)  Authorization.--The commission is authorized to provide,
     by resolution, for the issuance of special revenue bonds of the
     commission up to an aggregate principal amount not exceeding
     $5,000,000,000, exclusive of original issue discount, for the
     purpose of paying the cost of the department and bond-related
     expenses. The resolution must recite an estimate of the cost of
     the department. No more than $600,000,000 in aggregate principal
     amount of special revenue bonds, exclusive of original issue
     discount, may be issued in any calendar year. No bond may be
     issued and outstanding under this section unless the lease
     agreement authorized under section 8915.3 (relating to lease of
     Interstate 80; related agreements) is in effect as of the date
     of issuance. No bond may be outstanding beyond the term of the
     lease. Special revenue refunding bonds as set forth in section
     9511.9 (relating to special revenue refunding bonds) shall not
     be deemed to count against the total or annual maximum issuance
     volume. The principal and interest of the bond shall be payable
     solely from pledged revenues.
        (b)  Form.--
            (1)  A bond may be issued in registered form.
            (2)  A bond:
                (i)  must be dated;
                (ii)  must bear interest at a rate not exceeding the
            rate permitted under applicable law;
                (iii)  must be payable semiannually or at other times
            as set forth in the resolution of the commission
            authorizing the issuance of the bonds;
                (iv)  must mature, as determined by the commission,
            no later than 40 years from the date of the bond; and
                (v)  may be made redeemable before maturity, at the
            option of the commission, at a price and under terms and
            conditions fixed by the commission prior to the issuance
            of the bonds.
        (c)  Issuance.--
            (1)  The commission may sell bonds at public or private
        sale and for a price it determines to be in the best interest
        of the Commonwealth.
            (2)  Bonds may be issued in series with varying
        provisions as to all of the following:
                (i)  Rates of interest, which may be fixed or
            variable.
                (ii)  Other provisions not inconsistent with this
            chapter.
        (d)  (Reserved).
        (e)  Payment.--
            (1)  The principal and interest of the bonds may be made
        payable in any lawful medium.
            (2)  The commission shall:
                (i)  determine the form of bonds; and
                (ii)  fix:
                    (A)  the denomination of the bond; and
                    (B)  the place of payment of principal and
                interest of the bond, which may be at any bank or
                trust company within or without this Commonwealth.
        (f)  Signature.--The bond must bear the manual or facsimile
     signature of the Governor and of the chairman of the commission.
     The official seal of the commission or a facsimile of the
     official seal shall be affixed to or printed on the bond and
     attested by the secretary and treasurer of the commission. If an
     officer whose signature or facsimile of a signature appears on a
     bond ceases to be an officer before the delivery of the bond,
     the signature or facsimile shall nevertheless be valid and
     sufficient for all purposes as if the officer remained in office
     until delivery.
        (g)  Negotiability.--A special revenue bond issued under this
     chapter shall have all the qualities and incidents of a
     negotiable instrument under 13 Pa.C.S. Div. 3 (relating to
     negotiable instruments).
        (h)  Proceeds.--The proceeds of a bond shall be used solely
     for the following:
            (1)  Payment of the cost of the department.
            (2)  Bond-related expenses.
        (i)  Temporary bonds.--Prior to the preparation of definitive
     bonds, the commission may, under similar provisions as those
     applicable to the definitive bonds, issue temporary bonds,
     exchangeable for definitive bonds upon the issuance of
     definitive bonds.
        (j)  (Reserved).
        (k)  Status as securities.--
            (1)  A bond is made a security in which any of the
        following may properly and legally invest funds, including
        capital, belonging to them or within their control:
                (i)  Commonwealth and municipal officers.
                (ii)  Commonwealth agencies.
                (iii)  Banks, bankers, savings banks, trust
            companies, saving and loan associations, investment
            companies and other persons carrying on a banking
            business.
                (iv)  Insurance companies, insurance associations and
            other persons carrying on an insurance business.
                (v)  Fiduciaries.
                (vi)  Other persons that are authorized to invest in
            bonds or other obligations of the Commonwealth.
            (2)  A bond is made a security which may properly and
        legally be deposited with and received by a Commonwealth or
        municipal officer or a Commonwealth agency for any purpose
        for which the deposit of bonds or other obligations of the
        Commonwealth is authorized by law.
        (l)  Borrowing.--The following shall apply:
            (1)  The commission is authorized to do all of the
        following:
                (i)  Borrow money at an interest rate not exceeding
            the rate permitted by law.
                (ii)  Provide for preliminary or interim financing up
            to, but not exceeding, the estimated total cost of the
            department and bond-related expenses and to evidence the
            borrowing by the issuance of special revenue notes and,
            in its discretion, to pledge as collateral for the note
            or other obligation a special revenue bond issued under
            the provisions of this chapter. The commission may renew
            the note or obligation, and the payment or retirement of
            the note or obligation shall be considered to be payment
            of the cost of the project.
            (2)  A note or obligation issued under this subsection
        must contain a statement on its face that:
                (i)  the Commonwealth is not obligated to pay the
            note or obligation or interest on it, except from pledged
            revenues; and
                (ii)  neither the faith and credit nor the taxing
            power of the Commonwealth is pledged to the payment of
            its principal or interest.
     (July 18, 2007, P.L.169, No.44, eff. imd.)

        2007 Amendment.  Act 44 added section 9511.4. Section 11.1 of
     Act 44 provided that Act 44 shall apply retroactively to July 1,
     2007.