Pennsylvania Act 1941-54 — ALLOWING FIRST CLASS CITIES TO ISSUE BONDS

Act text

ALLOWING FIRST CLASS CITIES TO ISSUE BONDS
                  Act of Jun. 11, 1941, P.L. 113, No. 54              Cl. 11
                                  AN ACT

     Authorizing cities of the first class which have issued or may
        hereafter issue bonds to redeem the same and issue and sell
        new bonds therefor; further providing that a city of the
        first class may sell bonds or other securities, except as
        provided herein, issued by it at public sale or at a private
        negotiated sale, at, above or below their par value plus
        accrued interest, as shall be determined by the authorities
        of the city; and providing that the provisions hereof shall
        apply to all borrowings and the issuance of bonds or other
        securities therefor, whenever authorized. (Title amended Dec.
        8, 1985, P.L.324, No.85)

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  In all cases where any city of the first class
     has by virtue of any general or special act of Assembly issued,
     or may hereafter issue, bonds, with or without interest coupons
     attached, to secure any indebtedness of any such city, which
     bonds may have matured but remain unpaid and uncancelled, or are
     about to mature and become payable, or whenever any such city
     shall have determined to redeem or pay any or all of such bonds
     upon or prior to maturity, or whenever holders of any such bonds
     of any such city which may not have matured or become redeemable
     are willing to surrender the whole or any part of any issue
     thereof, it shall be lawful for any such city for the purpose of
     redeeming or paying off upon, prior to, or after maturity any or
     all such bonds payable, redeemable or offered for redemption as
     aforesaid, including interest, premium and costs of issuance,
     redemption or payment, to issue and sell either registered or
     coupon bonds payable at any time not exceeding forty (40) years
     after the date of issuance thereof, and not exceeding in the
     aggregate the amount of the bonds necessary to accomplish the
     refunding, and the said bonds so issued and sold in accordance
     with the provisions of this act shall be exempt from taxation to
     the same extent as provided in section 1303 of the act of July
     12, 1972 (P.L.781, No.185), known as the "Local Government Unit
     Debt Act": Provided, however, That such new bonds shall not
     mature later than fifty (50) years from the date of issuance of
     the original bonds: And provided further, That all assets in the
     sinking fund, if any, for the redemption of the issue of bonds
     proposed to be refunded shall first be applied to the payment,
     as far as applicable, of the principal of such bonds, and the
     balance of such issue only shall be paid or redeemed by the
     issue of new bonds.
        (1 amended Dec. 8, 1985, P.L.324, No.85)
        Section 2.  When any such city shall borrow money and shall
     issue and sell new bonds for the purpose of redeeming or paying
     off bonds theretofore issued and proposed to be refunded the
     authorities of such city may sell the same at, above or below
     par, either at a private negotiated sale or a public sale to the
     highest responsible bidder after public notice by advertisement
     in at least one newspaper of general circulation published in
     the county in which such city shall be situated at least one
     time not less than ten (10) nor more than thirty (30) days prior
     to the date fixed for opening bids. Notwithstanding any act of
     Assembly to the contrary, for the purpose of determining the
     outstanding net debt of the city, the bonds to be refunded shall
     no longer be deemed to be outstanding obligations of the city:
        (1)  when the city shall have deposited with a bank, bank and
     trust company, or trust company funds:
        (i)  which are represented by demand deposits, interest-
     bearing time accounts, savings deposits or certificates of
     deposit, or noncallable obligations of the United States or of
     this Commonwealth, in each case subject to withdrawal, maturing
     or payable at the option of the holder at or prior to the dates
     needed for disbursement, provided such deposits or accounts,
     whether deposited by the city or any depository, are insured or
     secured as public deposits with securities having a market value
     equal to the principal amount thereof;
        (ii)  which are irrevocably pledged for the payment of such
     obligations; and
        (iii)  which are sufficient, together with the interest to
     disbursement date payable with respect thereto, if also pledged,
     to meet such obligations in full; and
        (2)  when the city shall have called for redemption the bonds
     that it determines to call and shall have met all notice
     requirements or given irrevocable instructions to give such
     notice.
        (2 amended Dec. 8, 1985, P.L.324, No.85)
        Section 2.1.  When any city of the first class, having
     authority so to do, shall borrow money and issue bonds or other
     securities therefor, except in the case of the giving of notes
     for temporary loans as may be authorized by law and except in
     the case of the issuance of bonds or other securities under the
     act of October 18, 1972 (P.L.955, No.234), known as "The First
     Class City Revenue Bond Act," the authorities thereof may sell
     the same at, above or below their par value plus accrued
     interest either at a private negotiated sale or a public sale to
     the highest responsible bidder, as shall be determined by the
     authorities of such city, after public notice by advertisement
     of either the official invitation for bids or of the
     availability of the official invitation for bids in at least one
     newspaper of general circulation published in such city at least
     one time not less than ten (10) days nor more than thirty (30)
     days prior to the date fixed for opening bids. Before the
     authorities of such city shall make any private sale of bonds or
     securities, the legislative body of such city shall adopt by a
     vote of a majority of the members thereof a resolution finding
     that a private sale is in the best financial interest of the
     city. This section shall apply to all borrowings and the
     issuance of bonds or other securities therefor, whether
     heretofore or hereafter authorized.
        (2.1 added Dec. 8, 1985, P.L.324, No.85)
        Section 3.  All acts and parts of acts inconsistent with the
     provisions of this act are hereby repealed, except the
     provisions of the act, approved the fifth day of January, one
     thousand nine hundred thirty-four (Pamphlet Laws, two hundred
     eighteen--1933-34), entitled "An act authorizing counties,
     cities, boroughs, townships, incorporated towns, poor districts,
     and school districts to issue bonds for the purpose of refunding
     or retiring outstanding bonds and to exchange said new bonds for
     such outstanding bonds without payment of cash or public
     bidding; and limiting any compensation payable therefor", as
     amended by the act, approved the nineteenth day of June, one
     thousand nine hundred thirty-nine (Pamphlet Laws, four hundred
     twenty-eight), which shall remain in full force and effect.
        Section 4.  This act shall become effective immediately upon
     its final enactment.