Pennsylvania Act 1917-291 — STATE MAY BORROW MONEY

Act text

STATE MAY BORROW MONEY
                 Act of Jul. 11, 1917, P.L. 775, No. 291              Cl. 72
                                  AN ACT

     Authorizing the borrowing of money by the State for the purpose
        of repelling invasions, suppressing insurrections, and
        defending the State in war; designating the persons
        authorized to expend the money so borrowed; prescribing the
        manner in which such money may be drawn from the State
        Treasury; and making certain appropriations.

        Section 1.  Be it enacted, &c., That the Governor and the
     Commissioners of the Sinking-Fund are hereby authorized to
     borrow, on the faith of the Commonwealth, at such time and in
     such amounts and with such notice as they may deem for the best
     interests of the Commonwealth, any sum of money not exceeding
     five million dollars.
        Section 2.  For the purpose of obtaining such loan the
     Governor may issue certificates of loan or bonds of the
     Commonwealth. Such certificates or bonds shall bear interest at
     not more than four per centum per annum, which shall be payable
     in lawful money of the United States, semiannually, at the
     office of the State Treasury at Harrisburg, on the first day of
     February and the first day of August.
        The certificates of loan or bonds, issued under the authority
     of this act, shall be  payable at any time after the expiration
     of ten years, and within twenty-five years from the date of
     issue. Such bonds or certificates shall not be subject to
     taxation for any purpose whatsoever.
        Section 3.  Bids for such loan shall be received by the
     Governor, and shall be opened in the presence of the Governor
     and the commissioners of the Sinking-Fund. The loan shall be
     awarded by the Governor and the Commissioners of the Sinking-
     Fund to the highest bidder: Provided, That no certificate of
     loan or bond, issued under the authority of this act, shall be
     negotiated for less than par.
        No bid shall be considered unless it be accompanied with a
     deposit of five per cent, on the amount bid for.
        Section 4.  The bonds or certificates of loan, issued under
     the provisions of this act, shall be signed by the Governor and
     the State Treasurer, and countersigned by the Auditor General.
     Such bonds or certificates shall be transferable on the books of
     the Commonwealth at the Auditor General's Department in
     Harrisburg.
        Section 5.  A correct registry of bonds and certificates of
     loan, issued under the authority of this act, shall be kept in a
     book to be provided for that purpose in the office of the
     Auditor General, who shall make a report thereof to the
     Legislature at its biennial session.
        Section 6.  The money received from the loan hereby
     authorized shall be exclusively used, and is hereby specifically
     appropriated, for the purpose of repelling invasions,
     suppressing insurrections, and defending the State in war.
        Section 7.  The Governor is hereby authorized to draw
     warrants on the State Treasurer for such sums of money as may be
     necessary to pay the proper expenses incident to the
     negotiations of such loan, the preparation of the bonds or
     certificates of loan authorized to be issued by this act. Such
     warrants shall be paid out of moneys in the State Treasury.
        Section 8.  The Governor, Lieutenant Governor, and State
     Treasurer are hereby empowered to expend the money, received
     from the loan hereby authorized, for the purpose of repelling
     invasions, suppressing insurrections, and defending the State in
     war, in such manner as they may jointly determine. Such money
     shall be paid by the State Treasurer on warrant signed by the
     Governor.
        Vouchers in detail for such expenditures shall be filed with
     the Auditor General.