Pennsylvania Act 1915-112 — MORTGAGES

Act text

MORTGAGES, RELATING TO
                 Act of Apr. 29, 1915, P.L. 201, No. 112              Cl. 72
                                  AN ACT

     Making mortgages, given by benevolent, charitable,
        philanthropic, educational, and eleemosynary institutions,
        corporations, or unincorporated associations, for permanent
        improvements and refunding purposes, prior liens to the liens
        of the Commonwealth for the appropriation of moneys;
        providing a method for the giving of such mortgages, and
        fixing the duties of the Auditor General and Board of Public
        Charities in connection therewith.

        Section 1.  Be it enacted, &c., That whenever hereafter any
     benevolent, charitable, philanthropic, educational, or
     eleemosynary institution, corporation, or unincorporated
     association, in the manner hereinafter provided, shall give its
     mortgage to secure any bond or other obligation, the proceeds
     whereof are to be used in making permanent improvements, or to
     refund any bonds or other obligations secured by mortgage, or
     both, covering any real estate against which the Commonwealth of
     Pennsylvania holds any non-interest bearing lien for moneys
     appropriated, the said mortgage and the lien thereof shall have
     prior standing, and in all respects be preferred to any and all
     such non-interest bearing liens.
        Section 2.  Every institution, corporation, or unincorporated
     association desiring to give a mortgage for any purpose, as
     aforesaid, shall present to the Auditor General of the
     Commonwealth an application, duly verified by the affidavit of
     its president or other executive officer, setting forth the
     amount and purpose of the mortgage desired to be given, a
     description of the real estate to be covered thereby, a list of
     liens, and, when the mortgage is for the purpose of making
     improvements, a copy of the plans and specifications that have
     been adopted. The application, thereupon, shall be referred by
     the Auditor General to the Board of Public Charities, whose duty
     it shall be to investigate any and all matters touching the
     same, and report back its findings, together with any
     recommendation deemed pertinent.
        Section 3.  Upon the receipt of said report the Auditor
     General shall either approve or disapprove the giving of such
     mortgage; provided he shall not approve the giving of any
     mortgage, for the purpose of making improvements, unless the
     Board of Public Charities has found the improvements to be
     necessary and proper; nor shall he approve the giving of any
     mortgage, the amount whereof is in excess of fifty per centum of
     the fair market value of the property to be covered thereby;
     and, provided further, in approving the giving of any mortgage,
     for the purpose of making improvements, he may require a bond
     for the erection and completion of said improvements. If the
     giving of such mortgage be approved, the Auditor General shall
     issue to the applicant his certificate of approval; and
     thereafter such mortgage, with all the rights and privileges
     hereof, may be executed and delivered. Every mortgage so
     delivered shall contain a recital of the approval, as aforesaid,
     and the purchaser of any bond or other obligation secured
     thereby shall not be responsible for the faithful application of
     the proceeds.
        Section 4.  It shall further be the duty of the Auditor
     General, upon notice, after the recording of any mortgage given
     in pursuance of the provisions hereof, to transmit to the
     prothonotary of the county in which the real estate covered by
     said mortgage is located, a proper certificate of priority, to
     be by that officer filed of record and noted in the
     appropriation lien docket.