PRINTER'S NO. 963
No. 889 Session of 1999
INTRODUCED BY BELARDI, GEORGE, LYNCH, YOUNGBLOOD, CAPPABIANCA,
DALEY, ARGALL, HALUSKA, LAUGHLIN, ROBINSON, CAWLEY, GRUCELA,
TIGUE, BEBKO-JONES, SANTONI, SHANER, SURRA, TRAVAGLIO, PESCI,
McNAUGHTON, BELFANTI, DeLUCA, WALKO, MARSICO, CLARK, SOLOBAY,
TRICH, READSHAW, CASORIO, STABACK, TRELLO, RUFFING,
WOJNAROSKI, HARHAI, SERAFINI, PETRARCA, JAMES, MYERS,
STEELMAN AND GRUITZA, MARCH 15, 1999
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
MARCH 15, 1999
AN ACT
1 Amending the act of March 1, 1988 (P.L.82, No.16), entitled "An
2 act providing for the establishment, implementation and
3 administration of the Pennsylvania Infrastructure Investment
4 Authority; imposing powers and duties on a board of trustees;
5 transferring the rights, powers, duties and obligations of
6 the Water Facilities Loan Board to the Pennsylvania
7 Infrastructure Investment Authority; providing for the
8 issuance of notes and bonds; providing for financial
9 assistance and for a comprehensive water facilities plan;
10 authorizing a referendum to incur indebtedness; making an
11 appropriation; and making repeals," further providing for the
12 term of loans.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 10(f) of the act of March 1, 1988
16 (P.L.82, No.16), known as the Pennsylvania Infrastructure
17 Investment Authority Act, is amended to read:
18 Section 10. Financial assistance.
19 * * *
20 (f) Loans.--Subject to any agreements with the holders of
1 bonds, the board shall have the power to set terms applicable to
2 loans in any manner it deems appropriate, subject to the
3 provisions of this subsection. The board shall fix the term of
4 any loan for a 50-year period. The board may consider such
5 factors as it deems relevant, including current market interest
6 rates, the financial and economic distress of the area which the
7 project serves, and the necessity to maintain the authority
8 funds in a financially sound manner. Loans may be made based on
9 the ability to repay the loan from future revenue to be derived
10 from the project, by a mortgage or other property lien, or on
11 any other fiscal matters which the authority deems appropriate.
12 The board shall have the power to defer principal on loans for
13 up to five years. In the event of a default on the repayment of
14 a loan, the board may apply to the court of common pleas of the
15 county where the project is located for the appointment of a
16 receiver to assume operation and supervision of the facility
17 under the supervision of the court. The minimum rate of interest
18 to be paid on any loan made pursuant to this act shall be 1%.
19 The maximum rate of interest shall not exceed the following:
20 (1) For projects in counties whose unemployment rate
21 exceeds the Statewide unemployment rate by 40% or more, 1%
22 for the first five years and 25% of the bond issue rate for
23 the remainder of the loan.
24 (2) For projects in counties whose unemployment rate
25 exceeds the Statewide unemployment rate, but exceeds it by
26 less than 40%, 30% of the bond issue rate for the first five
27 years and 60% of the bond issue rate for the remainder of the
28 loan.
29 (3) For all other projects, 60% of the bond issue rate
30 for the first five years and 75% of the bond issue rate for
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1 the remainder of the loan.
2 (4) For projects located within municipalities for which
3 unemployment rates exist which would qualify the project for
4 lower interest rates than if the relevant county unemployment
5 rate were used, the unemployment rate of that municipality
6 may be used in determining the interest rate on the loan.
7 For purposes of this subsection, the phrase "unemployment rate
8 of the county" shall mean the average unemployment rate for the
9 county in the most recent calendar year for which data has been
10 finalized. For the projects which serve multiple counties, the
11 highest unemployment rate of the counties involved shall be
12 used. The unemployment data utilized shall be data reported by
13 the Department of Labor and Industry. For purposes of this
14 subsection, the phrase "bond interest rate" shall be the rate of
15 interest paid by the Commonwealth immediately preceding the date
16 of the loan for the bonds issued under sections 16 and 17.
17 * * *
18 Section 2. This act shall take effect in 60 days.
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