Pennsylvania Act 1937-334 — MUNICIPAL IMPROVEMENT BONDS, REFUNDING

Act text

MUNICIPAL IMPROVEMENT BONDS, REFUNDING
                 Act of Jun. 4, 1937, P.L. 1623, No. 334              Cl. 11
             (Act repealed except as relates to cities of the
                first class June 25, 1941, P.L.159, No.87)

                                  AN ACT

     Empowering municipalities to refund improvement bonds based
        solely on assessments for grading, street and sewer
        improvement; and imposing no municipal liability by a new
        issue of bonds.

        Section 1.  Be it enacted, &c., That in all cases where any
     municipality has issued improvement bonds, based solely upon
     assessments for any grading, street or sewer improvements and
     imposing no municipal liability, and such bonds have matured or
     are about to mature and become due and payable, and such
     assessments and the liens filed thereon remain unpaid, in whole
     or in part, for any reason whatever, it shall be lawful for such
     municipality for the purpose of redeeming, exchanging or paying
     off any or all of such bonds to issue and exchange or sell
     registered or coupon bonds, based solely upon the assessments
     and liens filed for such improvements which remain unpaid and
     the lien whereof has not been lost, which bonds shall impose no
     municipal liability. Such bonds shall bear a rate of interest
     not exceeding the rate expressed in the bonds to be redeemed,
     exchanged or paid off, shall be redeemable at any time not
     exceeding ten years from the date thereof, and shall not exceed
     in the aggregate the amount of bonds to be so redeemed,
     exchanged or paid off. Such bonds shall be exempt from taxation
     except for State purposes: Provided, however, That all moneys
     collected which are by law made applicable to the redemption of
     the issue of bonds proposed to be refunded shall first be
     applied to the payment of the principal of such bonds, and the
     balance of such issue only shall be redeemed by the issue of new
     bonds.