2023-2024 Regular Session SB 1307 PN 1864 Bill Text (HTM)

PRINTER'S NO. 1864

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1307

Session of

2024

INTRODUCED BY ARGALL, STREET, PENNYCUICK, COSTA AND MILLER,

SEPTEMBER 10, 2024

REFERRED TO FINANCE, SEPTEMBER 10, 2024

AN ACT

Amending Title 64 (Public Authorities and Quasi-Public

Corporations) of the Pennsylvania Consolidated Statutes, in

economic development financing, providing for Keystone

National Finance Authority.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Part II of Title 64 of the Pennsylvania

Consolidated Statutes is amended by adding a chapter to read:

CHAPTER 17

KEYSTONE NATIONAL FINANCE AUTHORITY

Subchapter

A. General Provisions

B. Structure and Powers

C. Bonds

SUBCHAPTER A

GENERAL PROVISIONS

Sec.

1701. Scope of chapter.

1702. Findings and declaration of policy.

1703. Definitions.

§ 1701. Scope of chapter.

This chapter relates to the Keystone National Finance

Authority.

§ 1702. Findings and declaration of policy.

The General Assembly finds and declares as follows:

(1) Activities which lead to the creation and retention

of jobs in this Commonwealth and throughout the United

States, the establishment of economically viable communities,

the reuse of abandoned industrial, commercial and other

previously utilized sites and the investment of private

capital in enterprises improve the health, safety and general

welfare of the people of this Commonwealth and the United

States by increasing employment, revitalizing communities by

reducing, eliminating and preventing blight and providing a

source of additional revenue to the Commonwealth.

(2) Many existing industrial, commercial and other

economic activities throughout this Commonwealth and the

United States could become more competitive and could expand

more rapidly if additional means of financing were available.

Additional activities could be attracted to this Commonwealth

and other states if additional means of financing were

available to acquire, construct, rehabilitate and expand

facilities. Financing for cost-saving activities related to

buildings, plants, machinery and equipment and other

facilities would further the purposes specified under this

paragraph.

(3) A minimum level of unemployment and a maximum level

of business opportunity can best be provided by the

promotion, attraction, stimulation, rehabilitation and

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revitalization of industrial, commercial, technological,

tourist, agricultural and other economic activities in this

Commonwealth and throughout the United States.

(4) Industrial, commercial and residential facilities

should be promoted by the financing of the facilities which

will eliminate blight or otherwise improve an area for

industrial, commercial or other economic activity.

(5) Housing and affordable housing are scarce in many

areas of the nation and could be advanced by mixed-use and

transit-oriented development. Transit expansion, including

passenger rail expansion, throughout the nation will create

opportunities for the growth of adjacent commercial,

residential and mixed-use development in nearby communities.

(6) To further encourage economic development and

efficiency within this Commonwealth and the United States by

providing basic services and facilities, it is necessary to

provide additional or alternative means of financing

infrastructure facilities, transportation systems, industrial

parks, energy conversion facilities, facilities for the

furnishing of energy, water and telecommunications,

facilities for the collection or treatment of wastewater and

storm water, tourism, parking facilities, health care

facilities and other basic service and related facilities

which are conducive to economic activity within this

Commonwealth and the United States and which are consistent

with the purposes of this chapter.

(7) It is the policy of this Commonwealth to promote the

health, safety, employment, business opportunities, economic

activity and general welfare of the people by establishing an

authority to exist and operate as a public instrumentality of

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the Commonwealth, which is not intended to compete with any

Commonwealth agency or any other authority created under the

laws of this Commonwealth.

§ 1703. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Administrator." The person contracted by the authority

under section 1713(a)(10) (relating to powers) to operate the

authority, which person or the leadership of the person shall be

a registered municipal advisor that has significant experience

operating a governmental entity or authority that issues bonds

for projects throughout the United States.

"Authority." The Keystone National Finance Authority

established in section 1711 (relating to authority).

"Board." The board of the authority established in section

1712 (relating to board).

"Bonds." Bonds, notes, instruments, refunding notes and

bonds and other evidences of indebtedness or obligations which

the authority is authorized to issue under this chapter.

"Commonwealth agency." An agency, authority or other

instrumentality of the Commonwealth.

"Conduit borrower." The borrower of the proceeds of the

bonds issued by the authority.

"Conduit financing." The financing of the costs of a project

in which the authority is only obligated to repay bonds from

revenues received from a conduit borrower.

"Conduit revenue bonds." Bonds or other evidence of

indebtedness of the authority.

"Cost of the project" or "cost." Any of the following:

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(1) Costs and expenses of acquisition of interests in

land, infrastructure, buildings, structures, equipment,

furnishings, fixtures and other tangible or intangible

property, which comprise the project.

(2) Costs and expenses of construction, reconstruction,

erection, equipping, expansion, extension, improvement,

installation, rehabilitation, renovation or repair of the

buildings, structures and equipment, which comprise the

project.

(3) Costs and expenses of demolishing, removing or

relocating buildings or structures on lands acquired or to be

acquired and the expense of acquiring land to which the

buildings or structures may be moved or relocated.

(4) Costs and expenses of preparing land for

development.

(5) Costs and expenses of engineering services,

financial services, accounting services and legal services,

plans, specifications, studies and surveys necessary or

incidental to determining the feasibility or practicability

of the project.

(6) Working capital or other capital needs related to

the project.

(7) Other costs and expenses deemed necessary by the

authority.

"Finance." Providing funding to pay for costs of a project.

"Government agency." The following:

(1) A State agency.

(2) The Unified Judicial System and its courts, officers

and agencies.

(3) The General Assembly or its officers and agencies.

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(4) A political subdivision.

(5) A municipal authority or other local authority.

(6) A local, regional or metropolitan transportation

authority.

(7) A board, commission or other agency or

instrumentality of a political subdivision, a municipal

authority or other local authority.

"Independent agency." A board, commission or other agency or

officer of the Commonwealth which is not subject to the policy,

supervision and control of the Governor. The term does not

include a State-affiliated entity, a court or other officer or

agency of the Unified Judicial System, the General Assembly and

its officers and agencies, a State-related institution, a

political subdivision or a local, regional or metropolitan

transportation authority.

"Municipal authority." A public authority created under the

governing laws of any state.

"Obligee of the authority." Any of the following:

(1) A holder or owner of bonds of the authority.

(2) A trustee or other fiduciary for any holder or owner

of bonds of the authority.

(3) A provider of a letter of credit, policy of

municipal bond insurance or other credit enhancement or

liquidity facility for bonds of the authority.

(4) A lessor or installment seller demising property to

the authority in connection with a project.

(5) A provider of an interest rate exchange agreement or

other agreement or arrangement authorized under section

1713(a)(28).

"Project." A capital improvement, purchase of receivables,

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property, assets, commodities, bonds or other revenue streams or

related assets, working capital program or any activity that

promotes economic development or opportunities within any state

or territory of the United States.

"Project user." A person, political subdivision, municipal

authority, state or other entity that owns, leases, uses or

occupies all or any part of a project.

"Registered municipal advisor." A person that is registered

as a municipal advisor under rules promulgated by the Securities

and Exchange Commission.

"Tax-exempt bonds." Bonds or other evidence of indebtedness,

the interest on which is excludable from gross income for

Federal income taxation purposes.

"Taxable bonds." Bonds or other evidence of indebtedness,

the interest on which is includable in gross income for Federal

income taxation purposes.

SUBCHAPTER B

STRUCTURE AND POWERS

Sec.

1711. Authority.

1712. Board.

1713. Powers.

§ 1711. Authority.

(a) Establishment.--The Keystone National Finance Authority

is established as an independent authority. The authority is an

instrumentality of the Commonwealth and a body corporate and

politic, with corporate succession.

(b) Governance.--The authority shall be governed by the

board. The powers of the authority shall be exercised by the

board.

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assets or income of the authority. The Commonwealth shall not be

responsible for funding the expenses of the authority.

(d) Fiscal year.--The fiscal year of the authority shall end

on June 30.

(e) Audit.--

(1) The accounts and books of the authority shall be

examined and audited annually by an independent certified

public accounting firm.

(2) The authority shall, by December 31 of each year,

file a copy of the audit required under paragraph (1) with

the Secretary of the Senate and the Chief Clerk of the House

of Representatives.

(f) Publication.--The authority shall annually transmit a

financial statement to the Legislative Reference Bureau for

publication in the next available issue of the Pennsylvania

Bulletin.

(g) Cooperation.--Executive agencies shall cooperate with

and provide assistance to the authority without financial

reimbursement.

(h) Existence and dissolution.--The authority may be

dissolved by law if all outstanding liabilities of the

authority, including bonds and other contractual obligations,

have been fully paid, retired, satisfied or discharged or

provision has been made for payment of all outstanding

liabilities of the authority, including bonds and other

contractual obligations. Upon the dissolution of the authority,

all money, assets and other property of the authority shall vest

in the Commonwealth.

(i) Procurement.--The authority shall be exempt from the

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provisions of 62 Pa.C.S. (relating to procurement) relating to

operations of Commonwealth agencies. The authority shall adopt

policies and procedures for procurement in a manner that the

board determines best balances efficiency, effectiveness and

transparency, which may include delegation of certain tasks to

the Department of Community and Economic Development or the

Department of General Services and which may incorporate by

reference elements of 62 Pa.C.S. The board shall publish the

policies and procedures within 180 days of the effective date of

this subsection, subject to further adjustment by the board, on

the authority's publicly accessible Internet website.

(j) Limitation on action.--

(1) If any provision of this section or section 1712

(relating to board) is held invalid by a court of competent

jurisdiction, the authority shall not thereafter:

(i) borrow additional money;

(ii) issue additional bonds; or

(iii) disburse proceeds of any issue of bonds

previously authorized.

(2) All provisions of outstanding bonds of the authority

and all rights and remedies of obligees of the authority

under this chapter shall be and shall remain valid and

enforceable.

(k) Administrator.--The administrator shall operate the

authority. The cost of the administrator shall be payable from

fees generated by the authority. Neither the Commonwealth nor

the authority shall be responsible for the cost of the

administrator. The following apply:

(1) The administrator shall provide administrative

services and staff to the authority and the board.

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(2) The authority may enter into agreements with the

administrator specifying the rights and obligations the

parties have to each other in carrying out their respective

responsibilities under and to further the intent of this

chapter.

(l) Applicability.--The following acts shall apply to the

authority and the board relating to notice and open meetings:

(1) The act of July 19, 1957 (P.L.1017, No.451), known

as the State Adverse Interest Act.

(2) The act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law.

(3) The provisions of 65 Pa.C.S. Chs. 7 (relating to

open meetings) and 11 (relating to ethics standards and

financial disclosure).

§ 1712. Board.

(a) Composition.--The board shall be comprised as follows:

(1) An individual with large-scale construction

experience appointed by the Governor, who shall serve at the

pleasure of the Governor.

(2) An individual with public finance or project finance

experience appointed by the Governor, who shall serve at the

pleasure of the Governor.

(3) An individual appointed by the State Treasurer, who

shall serve at the pleasure of the State Treasurer.

(4) An individual appointed by the Auditor General, who

shall serve at the pleasure of the Auditor General.

(5) Four legislative appointees:

(i) Appointments under this paragraph shall be as

follows:

(A) One individual appointed by the President

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pro tempore of the Senate.

(B) One individual appointed by the Speaker of

the House of Representatives.

Leader of the Senate.

(D) One individual appointed by the Minority

Leader of the House of Representatives.

(ii) Legislative appointees shall serve at the

pleasure of the appointing authority.

(iii) An individual appointed to the board under

subparagraph (i) may not be a member of the General

Assembly or staff of a member of the General Assembly.

(6) Five appointees who shall be appointed to an initial

term within 180 days of the effective date of this paragraph,

as follows:

(i) One board member appointed by the other members

of the board by a vote of a majority, whose initial term

shall be two years and a term of 10 years thereafter.

(ii) One board member appointed by the other members

of the board by a vote of a majority, whose initial term

shall be four years and a term of 10 years thereafter.

(iii) One board member appointed by the other

members of the board by a vote of a majority, whose

initial term shall be six years and a term of 10 years

thereafter.

(iv) One board member appointed by the other members

of the board by a vote of a majority, whose initial term

shall be eight years and a term of 10 years thereafter.

(v) One board member appointed by the other members

of the board by a vote of a majority, whose initial term

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shall be 10 years and a term of 10 years thereafter.

(b) Organization.--The Governor shall select a member of the

board to serve as chairperson. The members shall select other

officers from among members of the board as the board

determines.

the chairperson. The board may hold virtual or telephonic

meetings. A board member may designate a proxy to act on the

board member's behalf by notifying the board in writing of the

proxy.

(d) Quorum.--A majority of the board shall constitute a

quorum. A majority of the quorum of the board shall be necessary

to take any action on behalf of the authority.

(e) Compensation.--The members of the board shall not be

compensated for their service as members of the board but shall

be entitled to reimbursement for all necessary and reasonable

expenses incurred in connection with the performance of their

duties as members of the board.

(f) Fiduciary relationship.--The members of the board and

the professional personnel of the board shall stand in a

fiduciary relationship with the authority as to the money in the

accounts of the authority and investments of the authority.

(g) Standard of care.--The members of the board in

performance of their duties under this chapter shall exercise

the standard of care required by 20 Pa.C.S. Ch. 73 (relating to

municipalities investments).

(h) Liability.--Members of the board shall not be personally

liable on any obligations of the authority, including bonds of

the authority.

(i) Initial appointment and vacancy.--Appointing authorities

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shall appoint initial members to the board within 30 days of the

effective date of this subsection. If a vacancy occurs on the

board, the appointing authority shall appoint a successor member

within 30 days of the vacancy. If the appointing authority does

not make an appointment during the 30-day period, the remainder

of the board may select a replacement member to serve in the

role, subject to replacement by the authorized appointing

authority.

§ 1713. Powers.

(a) Powers.--The authority may do all of the following:

(1) Adopt bylaws and guidelines.

(2) Sue and be sued, implead and be impleaded,

interplead, complain and defend in any court.

(3) Adopt, use and alter a corporate seal.

(4) Establish accounts necessary or desirable for its

corporate purposes.

(5) Employ an executive director, if necessary.

(6) Retain attorneys, accountants, auditors and

financial experts to render services and engage the services

of other advisors, consultants and agents as necessary. For

the purposes of this paragraph, the authority shall be

considered an independent agency for purposes of the act of

October 15, 1980 (P.L.950, No.164), known as the Commonwealth

Attorneys Act.

(7) Pay or satisfy obligations of the authority.

(8) Contract and execute instruments, including

financing agreements, loan agreements, letter of credit

agreements, liquidity agreements, guarantees, sureties,

mortgages, standby loan commitments and contracts of

insurance, which are necessary or appropriate for carrying on

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the business of the authority. Power under this paragraph

includes the ability to make and execute contracts for the

servicing of loans and mortgages acquired by the authority.

(9) Borrow money, issue bonds, obtain lines and letters

of credit and incur debt.

(10) Contract with an administrator to operate the

authority.

(11) Use or pledge an account for a special purpose,

including debt service reserves and other reserves, as may be

necessary or desirable to carry out the authority's powers

and duties.

(12) Negotiate modifications or alterations to financing

agreements, mortgages or security interests.

(13) Foreclose on a mortgage or security interest in

default.

(14) Commence any action necessary to protect or enforce

any right conferred upon the authority by law, mortgage,

security agreement, contract or other agreement.

(15) Bid for or purchase property which was the subject

of a mortgage or security interest at a foreclosure or other

sale and acquire and take possession of that property.

(16) Impose and collect fees and charges in connection

with loan commitments and servicing, including reimbursement

of costs of financing.

(17) Acquire, accept, purchase, receive, collect, hold,

convey and invest money, fees and property, whether tangible

or intangible, from all sources, directly or by assignment,

pledge or otherwise.

(18) Acquire, buy, sell, lease, encumber, mortgage,

hypothecate, pledge, assign, transfer, convey or dispose of

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any property, whether tangible or intangible, including the

authority's property or interest in projects, mortgages,

deeds of trust, indentures of mortgage or trust, leases,

purchase or sale or other financing agreements, or similar

instruments, bonds, notes and security interests in property

or contracts entered into or acquired in connection with

bonds.

(19) Acquire and sell loans, mortgages and security

interests at public or private sale and make loans to, lease

property from or to or enter into any other kind of an

agreement with a participant or other entity, in connection

with financing or refinancing a project.

(20) Employ or appoint agents, employees, finance

professionals and special advisors.

(21) Apply for an allocation of volume cap, tax credit,

subsidy, grant, loan, credit enhancement or any other

Federal, State or local program in connection with the

financing of a project.

(22) Establish and collect fees and administrative

expenses from participants that benefit from the authority's

services or services provided by an outside entity.

(23) Develop, adopt and implement binding policies or

guidelines assuring that all persons are accorded equal

opportunity in employment and contracting associated with the

authority. This paragraph includes the authority's

contractors, subcontractors, assignees, lessees, agents,

vendors and suppliers.

(24) Exercise rights provided by law for the benefit or

protection of the authority or obligees of the authority.

(25) Invest money of the authority not required for

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immediate use, including proceeds from the sale of bonds, as

the board determines, subject to any agreement with

bondholders stated in the authorizing resolution providing

for the issuance of bonds.

(26) Procure insurance against any loss in connection

with the authority's programs, property and other assets.

(27) Promulgate regulations and adopt guidelines and

statements of policy containing restrictions as the authority

may deem necessary and appropriate to effectuate the public

purposes of this chapter.

(28) Negotiate and enter into interest rate exchange

agreements, interest rate cap agreements, collar agreements,

corridor agreements, ceiling agreements, floor agreements,

forward agreements, float agreements and other similar

arrangements which, in the judgment of the authority, will

assist the authority in managing the interest costs of the

authority.

(29) Enter into agreements with applicants and project

users providing for any of the following:

(i) Loan, rental or purchase price payments or other

payments, sufficient to amortize the principal, interest

and premium, if any, of bonds and contractual obligations

of the authority incurred to provide money to pay the

costs of the projects being financed.

(ii) The applicants or project users to pay or cause

to be paid all other costs of acquiring, constructing,

maintaining and operating the projects being financed.

(iii) Conveyance with or without consideration of

any part or all of a project being financed to the

project user or applicant on or before payment of all

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bonds and contractual obligations of the authority

incurred with respect to the project.

(iv) Other matters as determined by the authority.

(30) Implement a program to communicate business

opportunities to a range of entities, including businesses

owned or operated by veterans, members of underrepresented

demographic groups and small businesses located in this

Commonwealth.

(31) Carry out appropriate acts necessary or convenient

to:

(i) effectuate the purposes of this chapter; or

(ii) exercise the powers specified in this

subsection, including any act reasonably implied from

those powers.

(b) Duties.--The authority shall finance projects in one or

more states or territories of the United States by issuing

conduit revenue bonds.

SUBCHAPTER C

BONDS

Sec.

1721. Bonds issuance.

1722. Commonwealth taxation.

1723. Federal taxation.

1724. Validity of bonds and limitation on actions.

1725. Provisions of bonds and trust agreements.

1726. Validity of pledge.

1727. Commonwealth pledges.

1728. Bonds to be legal investments.

1729. Rights and remedies of obligees.

1730. Benefits to Commonwealth.

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§ 1721. Bonds issuance.

(a) Authorization.--The authority may engage in conduit

financing to issue limited obligation revenue bonds and other

types of limited obligation revenue financing. Bonds issued

under this subchapter shall be in the name of the authority.

(b) Taxability.--The authority may issue tax-exempt bonds

and taxable bonds to fund projects.

(1) Bonds of the authority shall be authorized by a

resolution of the board.

(2) The resolution of the board authorizing an issuance

of bonds or the documents approved by the resolution shall

provide that the bonds:

(i) be of a series;

(ii) bear a date or dates;

(iii) bear or accrue interest at any rate or rates,

whether fixed or variable;

(iv) be in denominations;

(v) be in any form, either coupon or fully

registered without coupons or in certificated or book-

entry-only form;

(vi) carry registration, exchangeability and

interchangeability privileges;

(vii) be payable in any medium of payment and at any

place or places;

(viii) mature on a date or dates not to exceed 50

years from the bonds' original issue date; and

(ix) be subject to terms of redemption or tender, if

any.

(3) Bonds shall be signed by or shall bear the facsimile

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signature of the officer designated by the board.

(4) Interest coupons shall be attached to coupon bonds

and shall bear the facsimile signature of the officer

designated by the board.

(5) Bonds may be authenticated by an authenticating

agent, fiscal agent or trustee.

(6) Bonds may be issued and delivered notwithstanding

that the officer signing the bonds or whose facsimile

signature is on a coupon has ceased to be the officer at the

time when bonds are actually delivered.

(7) The proceeds of a bond issued under this section may

be used for one or more projects located in this Commonwealth

or one or more states or territories of the United States.

(8) The authority may not issue bonds to finance a

capital improvement project unless the political subdivision

within which the project is to be located approves the

financing of the project.

(d) No debt or liability of the Commonwealth.--

(1) Bonds issued under this chapter shall not be a debt

or liability of the Commonwealth and shall not create or

constitute any indebtedness, liability or obligation of the

Commonwealth.

(2) Bonds shall be payable solely from money received by

the authority from revenues derived from the operation of the

project or accounts pledged or available for repayment of the

bonds as authorized in this chapter, which may include any of

the following:

(i) The proceeds of bonds.

(ii) Money appropriated to the authority for

repayment as authorized in this chapter.

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(3) All bonds shall contain on their faces statements to

the effect that:

(i) the authority is obligated to pay the principal

of or the interest on the bonds only from the authority's

revenues, receipts or money pledged or available for

their payment as authorized under this chapter;

(ii) neither the Commonwealth nor any political

subdivision is obligated to pay the principal of or

interest on the bonds; and

(iii) neither the faith and credit nor the taxing

power of the Commonwealth or any political subdivision is

pledged to the payment of the principal of or the

interest on the bonds.

(e) Sale.--Bonds may be sold at public sale, invited sale or

private sale for the price or prices the authority determines.

(f) Interim receipts.--Pending the preparation of the

definitive bonds, interim receipts may be issued to the

purchaser or purchasers of the bonds and shall contain the terms

and conditions established by the authority.

(g) Negotiable instruments.--Bonds of the authority shall

have the qualities of negotiable instruments under 13 Pa.C.S.

(relating to Commercial Code).

(h) Use.--The authority may use the proceeds of bonds for

any of the following:

(1) Making loans, grants or guarantees.

(2) Purchasing loans, mortgages, security interests or

loan participations.

(3) Paying expenses in connection with activity under

paragraphs (1) and (2), including administrative costs of the

authority and the administrator.

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(4) Paying expenses of authorizing and issuing the

bonds.

(5) Paying principal, redemption or purchase price and

interest on bonds.

(6) Funding reserves.

(7) Any other purpose deemed necessary or appropriate by

the authority.

(i) Refunding.--Subject to provisions of this chapter and

the terms of bonds or other contractual obligations issued in

accordance with this chapter, the authority may refund any

outstanding debt of the authority whether the debt represents

principal or interest, in whole or in part, at any time. For the

purposes of this subsection, the term "refund" and its

variations means the issuance and sale of obligations the

proceeds of which are used or are to be used for the payment or

redemption of outstanding obligations upon or prior to maturity.

§ 1722. Commonwealth taxation.

(a) General rule.--The effectuation of the purposes of the

authority is for the benefit of the public in this Commonwealth

and nationally, for the increase of commerce and prosperity and

for the improvement of health, safety, welfare and living

conditions.

(b) No tax liability.--The authority, as a public

instrumentality of the Commonwealth performing essential

governmental functions, is not required to pay any taxes or

assessments upon any property located in this Commonwealth

acquired or used or permitted to be used by the authority for

the authority's purposes.

the authority for projects, including profit made on their sale,

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are not subject to State and local taxation within this

Commonwealth. The exclusion to tax under this subsection shall

not extend to gift, estate, succession or inheritance taxes or

any other taxes not levied directly on the bonds, the bonds'

transfers, the income from the bonds or the realization of

profits on the bonds' sales.

§ 1723. Federal taxation.

(a) Allocation.--If the bonds issued by the authority for a

project are tax-exempt bonds for which Federal law requires an

allocation, the authority may apply for the allocation upon

receipt of a written request by the board. An allocation must be

issued by the appropriate allocating entity prior to the date of

issuance of the bonds.

(b) Approval.--If gubernatorial approval is required by

Federal or State law, the Governor may approve the issuance of

bonds by the authority upon receipt of written request for

approval from the board. The written request must state all of

the following:

(1) The authority and the local jurisdiction, if

applicable, has conducted a public hearing, with appropriate

public notice, concerning the purposes for which the bonds

are to be issued.

(2) A description of the project or projects to be

financed.

(3) A description of the method of financing the project

or projects.

(4) A summary of the comments made and questions posed

at the public hearing.

§ 1724. Validity of bonds and limitation on actions.

(a) Presumption.--Bonds issued by the authority to

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accomplish the public purposes of this chapter shall be

conclusively deemed in any suit, action or proceeding involving

the validity or enforceability of the bonds or their security to

have been issued for the public purposes of this chapter.

(b) Estoppel.--After issuance, bonds shall be conclusively

presumed to be fully authorized and issued under the laws of

this Commonwealth, and any person shall be estopped from

questioning their validity, sale, execution or delivery by the

authority.

§ 1725. Provisions of bonds and trust agreements.

A resolution authorizing the issuance of bonds or any trust

agreement approved in or by a resolution authorizing the

issuance of bonds may contain provisions which do any of the

following:

(1) Secure the bonds.

(2) Covenant against any of the following:

(i) Pledging or granting a security interest in any

part of the authority's revenues or any part of the

authority's property to which its right or title exists

or which may later come into existence.

(ii) Permitting or suffering any lien on all or any

part of its revenues or property.

(iii) Extending the time for the payment of bonds or

interest.

(3) Covenant with respect to limiting the authority's

right to sell, pledge or otherwise dispose of bonds or notes

of governmental units, loan agreements or other property.

(4) Covenant relating to any of the following:

(i) Additional bonds to be issued.

(ii) Limitations on additional bonds.

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(iii) Terms and conditions of additional bonds.

(iv) Custody, application, investment and

disposition of proceeds of bonds.

(v) Incurring of other debts or obligations by the

authority.

(vi) Payment of principal of or interest on bonds.

(vii) Sources and methods of payment.

(viii) Rank or priority of bonds with respect to

liens or security interests.

(ix) Redemption, purchase and tender of bonds by the

authority or the bondholders and the privilege of

exchange of the bonds for other bonds.

(x) Use, investment and disposition of the money

held in special funds, accounts or reserves.

(xi) Use of any or all of the authority's real or

personal property.

(xii) Warrant of title to the authority's real or

personal property.

(5) Provide for any of the following:

(i) Replacement of lost, stolen, destroyed or

mutilated bonds.

(ii) Maintenance of the authority's real and

personal property.

(iii) Replacement of the authority's real and

personal property.

(iv) Insurance to be carried on the authority's real

and personal property and the use and disposition of the

insurance proceeds.

(v) Rights, liabilities, powers and duties arising

upon the breach of a covenant, condition or obligation.

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(6) Create or authorize the creation of special funds or

accounts to be held in trust or otherwise for the benefit of

bondholders or of reserves for debt service or other

purposes.

(7) Provide for obtaining letters of credit, bond

insurance and other facilities for credit enhancement and

liquidity.

(8) Prescribe any of the following:

(i) Procedure by which the terms of a contract with

bondholders may be amended or abrogated.

(ii) Percentage of the principal amount of bonds the

holders of which must consent to the amendment or

abrogation of any contract.

(iii) Manner in which the consent under subparagraph

(ii) may be given.

(9) Prescribe any of the following:

(i) Events of default.

(ii) Terms and conditions upon which the bonds

become or may be declared due and payable before stated

maturity following an event of default.

(iii) Terms and conditions upon which the

declaration of default and its consequence may be waived.

(10) Pay the costs or expenses incident to any of the

following:

(i) The enforcement of the bonds.

(ii) The provisions of the resolution authorizing

the issuance of the bonds.

(iii) The trust agreement securing the bonds.

(iv) A covenant or agreement of the authority with

the holders of the bonds or other obligees of the

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authority.

(11) Vest in a trustee, within or outside this

Commonwealth, any property, rights, powers and duties in

trust, including rights with respect to the sale or other

disposition of notes and bonds, of governmental units and

other instruments and security pledged under a resolution or

trust agreement for the benefit of bondholders and rights, by

suit or action, to foreclose a mortgage pledged under a

resolution or trust indenture for the benefit of bondholders.

(12) Limit the rights, powers and duties of a trustee

and the right of bondholders to appoint a trustee.

(13) Establish the terms and conditions upon which a

trustee or the bondholders may enforce a covenant or rights

securing or relating to the bonds.

(14) Exercise all or any part or combination of the

powers granted in this chapter.

(15) Make covenants other than and in addition to the

covenants expressly authorized by this chapter.

(16) Do or refrain from doing any other act to better

secure the bonds of the authority or make bonds of the

authority more marketable.

§ 1726. Validity of pledge.

A pledge or grant of a security interest in revenues or

instruments made by the authority shall be valid and binding

from the time the pledge is made. The revenues, receipts, money

or other property or instruments pledged and later received by

the authority shall immediately be subject to the lien of the

pledge or security interest without any physical delivery of the

property pledged or further act. The lien of the pledge or

security interest shall be valid and binding as against all

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parties having claims of any kind in tort, contract or otherwise

against the authority irrespective of whether the parties have

notice of the lien, pledge or security interest. No instrument

by which a pledge or security interest is created, evidenced or

noticed need be recorded or filed to perfect the pledge or

security interest except in the records of the authority.

§ 1727. Commonwealth pledges.

(a) Bondholders.--The Commonwealth pledges to and agrees

with each obligee of the authority that the Commonwealth will

not limit or alter the rights and powers vested in the authority

or otherwise created by this chapter in any manner inconsistent

with the obligations of the authority to the obligees of the

authority until all bonds at any time issued, together with the

interest on the bonds, are fully paid and discharged.

(b) Lessees.--The Commonwealth pledges and agrees with any

person that, as owner of property which is leased or subleased

to or from the authority, the Commonwealth will not limit or

alter the rights and powers vested in the authority or otherwise

created by this chapter in any manner which impairs the

obligations of the authority until all the obligations of the

authority under the lease or sublease are fully met and

discharged.

§ 1728. Bonds to be legal investments.

(a) Investments.--Bonds issued under this chapter are made

securities in which all of the following may properly and

legally invest money, including capital, deposits or other money

in their control or belonging to them:

(1) Government agencies.

(2) Insurance companies.

(3) Trust companies.

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(4) Banking associations, banking corporations and

savings banks.

(5) Investment companies.

(6) Executors, trustees and other fiduciaries.

(7) Trustees of any retirement, pension or annuity fund

or system of the Commonwealth.

(b) Deposits.--Bonds issued by the authority are made

securities which may properly and legally be deposited with and

received by a government agency for any purpose for which the

deposit of bonds or other obligations of the Commonwealth are

authorized by law.

§ 1729. Rights and remedies of obligees.

The rights and remedies conferred upon or granted to obligees

of the authority under this chapter shall be in addition to and

not in limitation of rights and remedies lawfully granted to the

obligees of the authority by resolution providing for the

issuance of bonds or by any trust agreement or other agreement

under which the bonds may be issued or secured.

§ 1730. Benefits to Commonwealth.

The authority shall pay, on an annual basis, to the

Commonwealth, the money generated by the authority after the

payment of all costs and expenses to operate the authority,

including payments to the administrator and the retention of

money to maintain reasonable reserves as determined by the

board.

Section 2. This act shall take effect in 60 days.

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