Pennsylvania Act 1919-50 — BONDS, SALE AND ISSUE BY COMMONWEALTH AUTHORIZED

Act text

BONDS, SALE AND ISSUE BY COMMONWEALTH AUTHORIZED
                  Act of Apr. 18, 1919, P.L. 62, No. 50               Cl. 72
                                  AN ACT

     Authorizing the issue and sale of bonds to the amount of fifty
        millions of dollars by the Commonwealth of Pennsylvania;
        defining the powers and duties of the Governor, the Auditor
        General, and the State Treasurer, in relation thereto; making
        an appropriation of the proceeds of such bonds for the
        purpose of improving and rebuilding the highways of the
        Commonwealth; providing for the payment of interest on, and
        the redemption of, such bonds by the Sinking Fund Commission;
        and making an appropriation to carry out the provisions of
        this act.

                          POWER TO BORROW MONEY.

        Section 1.  Be it enacted, &c., That in accordance with the
     provisions of section four, article nine of the Constitution of
     Pennsylvania, as amended the fifth day of November, one thousand
     nine hundred eighteen, the Governor, on behalf of the
     Commonwealth of Pennsylvania, is hereby authorized to borrow,
     from time to time, on the credit of the Commonwealth of
     Pennsylvania, for the purpose of improving and rebuilding the
     highways of the Commonwealth, a sum or sums of money not
     exceeding in the aggregate fifty millions of dollars.

               BONDS-ISSUE, MATURITY, INTEREST, ET CETERA.

        Section 2.  (a)  As evidence of the indebtedness herein
     authorized, bonds of the Commonwealth of Pennsylvania shall be
     issued from time to time, for such total amounts, in such forms,
     in such denominations, and subject to such terms and conditions
     of issue, redemption, and maturity, not to exceed thirty years,
     rate of interest not to exceed six per centum per annum, and
     time of payment of interest, as the Governor shall direct.
        (b)  All bonds issued under the authority of this act shall
     be signed by the Governor, under the great seal of the
     Commonwealth of Pennsylvania, and shall be countersigned by the
     State Treasurer and Auditor General.
        (c)  The principal and interest of such bonds shall be
     payable in lawful money of the United States. All bonds issued
     under the provisions of this act shall be exempt from taxation
     for State and local purposes.
        (d)  Such bonds may be issued with or without interest
     coupons attached. In case interest coupons are attached, they
     shall contain lithographed facsimile signatures of the State
     Treasurer and the Auditor General.
        (e)  When directed so to do by the Governor, the Auditor
     General and the State Treasurer shall proceed to have the
     necessary bonds prepared and printed. The bonds, as soon as they
     are prepared and printed, shall be forthwith deposited with the
     State Treasurer, there to remain until sold in accordance with
     the provisions of this act.
        (2 amended Feb. 16, 1921, P.L.3, No.1)

                              SALE OF BONDS.

        Section 3.  Whenever bonds are issued under the direction of
     the Governor, they shall be offered for sale at not less than
     par, and shall be sold by the Auditor General and State
     Treasurer to the highest and best bidder or bidders, after due
     public advertisement, on such terms and conditions and upon such
     open competitive bidding, as the Governor shall direct. The
     manner and character of such advertisements and the times of
     advertising shall be prescribed by the Governor.
        Any portion of any bond issue so offered and not sold or
     subscribed for, may be disposed of otherwise by the Auditor
     General and the State Treasurer, in such manner, and at such
     prices not less than par, as the Governor shall direct. No
     commission shall be allowed or paid for the sale of any bonds
     issued under the authority of this act.

             DISPOSITION AND USE OF PROCEEDS; APPROPRIATIONS.

        Section 4.  The proceeds realized from the sale of bonds
     under the provisions of this act shall be paid into the State
     Treasury, and shall be set apart and be kept in a separate fund,
     which shall be known as "The State Bond Road Fund."
        All moneys in the State Bond Road Fund from time to time, are
     hereby specifically appropriated to the State Highway Department
     for the purpose of improving and rebuilding the highways of the
     Commonwealth.
        The Auditor General shall, upon requisition from time to time
     of the State Highway Commissioner, draw his warrant upon the
     State Treasurer for the amounts specified in such requisitions
     not exceeding, however, the amount in such fund at the time of
     making such requisitions.

                          REGISTRATION OF BONDS.

        Section 5.  The Auditor General shall prepare the necessary
     registry books, to be kept in his office, for the registration
     of any bonds at the request of owners thereof. All bonds which
     are issued without interest coupons attached shall be registered
     in the registry books kept by the Auditor General.

                    DEPOSITS WITH STATE DEPOSITORIES.

        Section 6.  The State Treasurer, with the approval of the
     Governor and Auditor General, is authorized to deposit any of
     the moneys in the State Bond Road Fund, not requisitioned by the
     State Highway Department, in any of the qualified State
     depositories of the Commonwealth. All such deposits shall be
     secured in such manner, and shall be made upon such terms and
     conditions, as are now provided for by existing law relative to
     State deposits.

                     INFORMATION TO GENERAL ASSEMBLY.

        Section 7.  It shall be the duty of the Governor, during the
     biennial sessions of the General Assembly, to give to the
     General Assembly full information in relation to the issuing of
     bonds under the provisions of this act, to enable the General
     Assembly to provide by appropriation the moneys necessary for
     the sinking fund of the Commonwealth for the payment of the
     interest on said bonds and the principal thereof at maturity.

             SINKING FUND. INVESTMENTS. REDEMPTION OF BONDS.

        Section 8.  All bonds issued under the authority of this act,
     shall be redeemed at maturity, and all interest due from time to
     time on such bonds shall be paid by the Sinking Fund Commission
     of the Commonwealth. For the specific purpose of redeeming said
     bonds at maturity and paying all interest thereon, and in
     accordance with the information received from the Governor as
     provided in section seven of this act, the General Assembly
     shall appropriate biennially the moneys necessary for the
     payment of the interest on said bonds and the principal thereof
     at maturity. All moneys so appropriated shall be paid into the
     sinking fund by the State Treasurer, and all of such moneys not
     necessary to pay accruing interest, shall be invested by the
     Sinking Fund Commission in such securities as are provided by
     law for the investment of the sinking funds of the Commonwealth.
        The investments and such moneys and the accumulations thereon
     in the sinking fund shall be devoted to, and used exclusively
     for, the payment of the interest accruing on such bonds and
     their redemption at maturity: Provided, however, That the
     Sinking Fund Commission is authorized at any time to use any of
     such funds for the purchase and retirement of all or any part of
     the bonds issued under the authority of this act. In the event
     that all or any part of said bonds shall be purchased by the
     Sinking Fund Commission, they shall be cancelled, and returned
     into the State Treasury as cancelled and paid bonds, and
     thereafter all payments of interest thereon shall cease.

                        REPORT OF STATE TREASURER.

        Section 9.  The State Treasurer shall, in his report, furnish
     to the General Assembly a detailed statement of the total amount
     of bonds, and the total amount of the proceeds thereof used by
     the State Highway Department to carry out the provisions of this
     act.

                              APPROPRIATION.

        Section 10.  In order to defray all the necessary expenses
     connected with the issues of bonds authorized by the provisions
     of this act, the sum of fifty thousand dollars, or so much
     thereof as may be necessary, is hereby specifically
     appropriated. Payments from said appropriations shall be made on
     order of the Governor, by warrant of the Auditor General on the
     State Treasurer.