PRIOR PRINTER'S NO. 1203 PRINTER'S NO. 1739
No. 1031 Session of 1989
INTRODUCED BY ARMSTRONG, HESS, PUNT, HELFRICK, STAPLETON,
RHOADES, BRIGHTBILL, MADIGAN, CORMAN, BAKER, ANDREZESKI,
BELL, LEMMOND, SHAFFER, O'PAKE, AFFLERBACH, AND REIBMAN,
JUNE 12, 1989
SENATOR HESS, EDUCATION, AS AMENDED, NOVEMBER 28, 1989
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An <--
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," providing for the issuance of bonds
6 by the Board of Governors of the State System of Higher
7 Education.
8 AMENDING THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), ENTITLED "AN <--
9 ACT RELATING TO THE PUBLIC SCHOOL SYSTEM, INCLUDING CERTAIN
10 PROVISIONS APPLICABLE AS WELL TO PRIVATE AND PAROCHIAL
11 SCHOOLS; AMENDING, REVISING, CONSOLIDATING AND CHANGING THE
12 LAWS RELATING THERETO," FURTHER PROVIDING FOR THE STATE
13 SYSTEM OF HIGHER EDUCATION TO ACT AS BOTH LESSOR AND LESSEE
14 OF PROPERTY; PROVIDING FOR THE ISSUANCE OF BONDS; AND MAKING
15 REPEALS.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Section 2003-A(b) of the act of March 10, 1949 <--
19 (P.L.30, No.14), known as the Public School Code of 1949, is
20 amended by adding a clause to read:
21 Section 2003-A. Purposes and General Powers.--* * *
22 (b) The system is hereby granted and shall have and may
23 exercise all the powers necessary or convenient for the carrying
1 out of the aforesaid purposes, including, but without limiting
2 the generality of the foregoing, the following rights and
3 powers:
4 * * *
5 (4) To borrow money, make and issue negotiable notes, bonds,
6 refunding bonds and other evidences of indebtedness or
7 obligations (herein called "bonds") of the system, subject to
8 all of the following conditions and limitations:
9 (i) The bonds shall have a maturity date not longer than
10 forty (40) years from the date of issue.
11 (ii) The system, by pledge or deed of trust of all or any of
12 its revenues and receipts, may secure the payment of such bonds
13 or any part thereof.
14 (iii) The system may make such agreements with the
15 purchasers or holders of such bonds, or with others in
16 connection with any such bonds, whether issued or to be issued,
17 as the system shall deem advisable.
18 (iv) The system shall provide for the security for the bonds
19 and the rights of the holders thereof.
20 (v) The system shall not issue bonds if, on the date of
21 issuance, the aggregate principal amount of bonds to be
22 outstanding shall exceed one hundred per centum (100%) of the
23 system's average gross revenues for the three (3) fiscal years
24 preceding the fiscal year in which bonds are proposed to be
25 issued, except that leases, capitalized or otherwise, entered
26 into by the system, as lessee, in connection with the
27 acquisition of real and personal property shall not be
28 considered bonds for the purposes of these limitations.
29 (vi) The system shall have no power, at any time or in any
30 manner, to pledge the credit or taxing power of the
19890S1031B1739 - 2 -
1 Commonwealth, nor shall any of the bonds or debts of the system
2 be deemed to be obligations of the Commonwealth, nor shall the
3 Commonwealth be liable for the payment of principal or interest
4 on such bonds or other obligations.
5 * * *
6 Section 2. The act is amended by adding a section to read:
7 Section 2006.1-A. Powers and Duties Relating to Bonds.--(a)
8 The bonds of the system authorized to be issued shall:
9 (1) Be authorized by resolution of the Board of Governors of
10 the system.
11 (2) Be of such series, bear such date or dates, mature at
12 such time or times, not exceeding forty (40) years from their
13 respective dates.
14 (3) Bear interest, payable semiannually, at such rate or
15 rates, as shall be determined by the board as necessary to issue
16 and sell the authorized bonds.
17 (4) Be in such denominations, in such form, either coupon or
18 fully registered without coupons, and carry such registration,
19 exchangeability and interchangeability privileges as the board
20 shall determine.
21 (5) Be payable in such medium of payment and at such place
22 or places as the system shall determine.
23 (6) Be subject to such terms of redemption and be entitled
24 to such priorities in the revenues or receipts of the system as
25 such resolution or resolutions may provide.
26 (b) The bonds shall be signed by or shall bear the facsimile
27 signature of such officers as the board shall determine. Coupons
28 bonds shall have attached thereto interest coupons bearing the
29 facsimile signature of the Chief Fiscal Officer of the system.
30 All bonds shall be authenticated by an authenticating agent,
19890S1031B1739 - 3 -
1 fiscal agent or trustee, as may be prescribed in such resolution
2 or resolutions.
3 (c) Any such bonds may be issued and delivered,
4 notwithstanding that one or more of the officers signing such
5 bonds or the facsimile or whose signature shall be upon such
6 bonds, the coupons, or any thereof, shall have ceased to be such
7 officer or officers at the time when such bonds shall actually
8 be delivered.
9 (d) The bonds may be sold at public or private sale for such
10 price or prices and at such rate of interest as the board shall
11 determine.
12 (e) Pending the preparation of the definitive bonds, interim
13 receipts may be issued to the purchaser of such bonds and may
14 contain such terms and conditions as the system may determine.
15 (f) Any resolution or resolutions authorizing any bonds may
16 contain provisions which shall be part of the contract with the
17 holders thereof as to:
18 (1) The terms and provisions of the bonds.
19 (2) Limitations on the purposes to which the proceeds of the
20 bonds then or thereafter to be issued, or of any loan or grant
21 by the United States, may be applied.
22 (3) The setting aside of reserves or sinking funds and the
23 regulation and disposition thereof.
24 (4) Limitations on the issuance of additional bonds.
25 (5) The terms and provisions of any deed of trust or
26 indenture securing the bonds, or under which the same may be
27 issued.
28 (6) Any other or additional agreements with the holder of
29 the bonds.
30 (g) The system may enter into any deeds of trust indentures
19890S1031B1739 - 4 -
1 or other agreements, with any bank or trust company, or other
2 person or persons in the United States having power to enter
3 into the same, including any Federal agency, as security for
4 such bonds, and may assign and pledge all or any of the revenues
5 or receipts of the system thereunder. The deed of trust,
6 indenture or other agreement may contain such provisions as may
7 be customary in such instruments, or as the system may
8 authorize, including, but without limitation, provisions as to:
9 (1) The construction, improvement, operation, maintenance
10 and repair of any project, and the duties of the system with
11 reference thereto.
12 (2) The application of funds and the safeguarding of funds
13 on hand or on deposit.
14 (3) The rights and remedies of said trustee and the holders
15 of the bonds, (which may include restrictions upon the
16 individual right of action of such bondholders).
17 (4) The terms and provisions of the bonds or the resolutions
18 authorizing the issuance of the same.
19 (h) Except to the extent that the rights herein given may be
20 restricted by resolution passed before the issuance of the
21 bonds, or by the trust indenture, any holder of bonds issued
22 under the provisions of this section, or any of the coupons
23 attached thereto, and the trustee under the trust indenture, if
24 any, may either at law or in equity, by suit, action, mandamus
25 or other proceedings, protect and enforce any and all rights
26 granted hereunder or under such resolution or trust indenture
27 and may enforce and compel performance of all duties required by
28 this act or by such resolution or trust indenture to be
29 performed by the system or any officer thereof.
30 (i) All system bonds shall have all the qualities of
19890S1031B1739 - 5 -
1 negotiable instruments under the law merchant and the negotiable
2 instruments law of the Commonwealth of Pennsylvania.
3 (j) The accomplishment by the system of the authorized
4 purposes stated in this article being for the benefit of the
5 people of the Commonwealth and for the improvement of their
6 education and prosperity, in which accomplishment the system
7 will be performing essential governmental functions, the system
8 shall not be required to pay any taxes or assessments on any
9 property acquired or used by it for the purposes provided in
10 this article, and the bonds, notes or other obligations issued
11 by the system, their transfer and the income therefrom,
12 including any profits made on the sale thereof, shall at all
13 times be free from taxation within the Commonwealth.
14 Section 3. This act shall take effect in 60 days.
15 SECTION 1. SECTION 2001-A(19) OF THE ACT OF MARCH 10, 1949 <--
16 (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, IS
17 REPEALED.
18 SECTION 2. SECTION 2003-A OF THE ACT, ADDED NOVEMBER 12,
19 1982 (P.L.660, NO.188), IS AMENDED TO READ:
20 SECTION 2003-A. PURPOSES AND GENERAL POWERS.--(A) THE STATE
21 SYSTEM OF HIGHER EDUCATION SHALL BE PART OF THE COMMONWEALTH'S
22 SYSTEM OF HIGHER EDUCATION. ITS PURPOSE SHALL BE TO PROVIDE HIGH
23 QUALITY EDUCATION AT THE LOWEST POSSIBLE COST TO THE STUDENTS.
24 THE PRIMARY MISSION OF THE SYSTEM IS THE PROVISION OF
25 INSTRUCTION FOR UNDERGRADUATE AND GRADUATE STUDENTS TO AND
26 BEYOND THE MASTER'S DEGREE IN THE LIBERAL ARTS AND SCIENCES AND
27 IN APPLIED FIELDS, INCLUDING THE TEACHING PROFESSION. GRADUATE
28 INSTRUCTION AT THE DOCTORAL LEVEL, EXCEPT FOR DOCTORAL PROGRAMS
29 PROVIDED FOR IN THE ACT OF DECEMBER 16, 1965 (P.L.1113, NO.430),
30 KNOWN AS THE "INDIANA UNIVERSITY OF PENNSYLVANIA ACT," ONLY MAY
19890S1031B1739 - 6 -
1 BE OFFERED JOINTLY WITH INDIANA UNIVERSITY OR AN INSTITUTION
2 CHARTERED TO OFFER WORK AT THE DOCTORAL LEVEL. PROGRAMS OF
3 RESEARCH AND SERVICE MAY BE PROVIDED WHICH ARE APPROVED BY THE
4 BOARD OF GOVERNORS, AND WHICH ARE CONSISTENT WITH THE PRIMARY
5 MISSION OF THE SYSTEM. EACH INSTITUTION SHALL PROVIDE
6 APPROPRIATE EDUCATIONAL FACILITIES, STUDENT LIVING FACILITIES
7 AND SUCH OTHER FACILITIES AS DEEMED NECESSARY BY THE BOARD.
8 (B) THE SYSTEM IS HEREBY GRANTED AND SHALL HAVE AND MAY
9 EXERCISE ALL THE POWERS NECESSARY OR CONVENIENT FOR THE CARRYING
10 OUT OF THE AFORESAID PURPOSES, INCLUDING, BUT WITHOUT LIMITING
11 THE GENERALITY OF THE FOREGOING, THE FOLLOWING RIGHTS AND
12 POWERS:
13 (1) TO HAVE PERPETUAL EXISTENCE AS A CORPORATION.
14 (2) TO ADOPT, USE AND ALTER AT WILL A CORPORATE SEAL.
15 (3) TO ACQUIRE, PURCHASE, HOLD, LEASE AS LESSEE AND USE ANY
16 PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE, OR
17 ANY INTEREST THEREIN, LEASE AS LESSOR ANY PROPERTY, REAL,
18 PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE, NECESSARY OR
19 DESIRABLE FOR CARRYING OUT THE PURPOSES OF THE SYSTEM, AND TO
20 SELL, [LEASE AS LESSOR,] TRANSFER AND DISPOSE OF ANY PROPERTY
21 [OTHER THAN REAL PROPERTY], REAL, PERSONAL OR MIXED, TANGIBLE OR
22 INTANGIBLE, OR ANY INTEREST THEREIN AT ANY TIME ACQUIRED BY IT
23 AND TO TAKE, DEMAND, RECEIVE AND POSSESS ALL MONEYS, REAL
24 PROPERTY AND GOODS WHICH SHALL BE APPROPRIATED, GIVEN OR GRANTED
25 TO FOR THE USE OF THE SYSTEM AND TO APPLY THE SAME ACCORDING TO
26 THE WILL OF THE DONORS; AND BY GIFT, PURCHASE OR DEVISE TO
27 RECEIVE, POSSESS, ENJOY AND RETAIN FOREVER ANY AND ALL REAL AND
28 PERSONAL ESTATE AND FUNDS, OF WHATSOEVER KIND, NATURE OR QUALITY
29 THE SAME MAY BE, IN SPECIAL TRUST AND CONFIDENCE THAT THE SAME,
30 AND THE PROFITS THEREOF, SHALL BE APPLIED TO AND FOR THE USE AND
19890S1031B1739 - 7 -
1 PURPOSE OF ENDOWING THE SYSTEM, AND SHALL HAVE POWER TO RECEIVE
2 DONATIONS FROM ANY SOURCE WHATEVER, TO BE EXCLUSIVELY DEVOTED TO
3 THE PURPOSES OF THE SYSTEM OR ACCORDING TO THE TERMS OF
4 DONATION: PROVIDED, HOWEVER, THAT THE SYSTEM SHALL HAVE NO POWER
5 AT ANY TIME OR IN ANY MANNER, TO PLEDGE THE CREDIT OR TAXING
6 POWER OF THE COMMONWEALTH, NOR SHALL ANY OF ITS OBLIGATIONS OR
7 DEBTS BE DEEMED TO BE OBLIGATIONS OF THE COMMONWEALTH, NOR SHALL
8 THE COMMONWEALTH BE LIABLE FOR THE PAYMENT OF PRINCIPAL OR
9 INTEREST ON SUCH OBLIGATIONS. NOTHING HEREIN SHALL EMPOWER THE
10 BOARD OF GOVERNORS OR THE CHANCELLOR TO TAKE OR RECEIVE ANY
11 MONEYS, GOODS OR OTHER PROPERTY, REAL OR PERSONAL, WHICH IS
12 GIVEN OR GRANTED TO SPECIFIC INSTITUTIONS.
13 (4) TO UNDERTAKE CONSTRUCTION, REPAIR, RENOVATION AND
14 MAINTENANCE PROJECTS AND THE ADMINISTRATION THEREOF, AND TO
15 RETAIN DESIGN, ENGINEERING, PROJECT MANAGEMENT AND OTHER
16 PROFESSIONAL SERVICES IN CONNECTION THEREWITH. RETENTION OF
17 PROFESSIONAL SERVICES SHALL BE ACCOMPLISHED BY A MERIT SELECTION
18 PROCESS. ALL OTHER CONTRACTS IN EXCESS OF FIVE THOUSAND DOLLARS
19 ($5,000) SHALL BE COMPETITIVELY BID. PROJECT DESIGNS SHALL BE
20 FILED WITH THE DEPARTMENT OF GENERAL SERVICES FOR PROJECTS TO BE
21 ERECTED ON LANDS OWNED BY THE COMMONWEALTH AND PROJECTS
22 INVOLVING EXISTING FACILITIES ERECTED BY THE DEPARTMENT OF
23 GENERAL SERVICES. THE DEPARTMENT OF GENERAL SERVICES SHALL HAVE
24 SIXTY (60) DAYS TO REVIEW SUCH PLANS AND ADVISE THE SYSTEM
25 REGARDING THEIR CONFORMITY TO PUBLISHED STANDARDS. NOTHING IN
26 THIS CLAUSE SHALL BE CONSTRUED AS AMENDING, REPEALING OR
27 OTHERWISE MODIFYING THE PROVISIONS OF THE ACT OF MAY 1, 1913
28 (P.L.155, NO.104), ENTITLED "AN ACT REGULATING THE LETTING OF
29 CERTAIN CONTRACTS FOR THE ERECTION, CONSTRUCTION, AND ALTERATION
30 OF PUBLIC BUILDINGS," OR THE ACT OF AUGUST 15, 1961 (P.L.987,
19890S1031B1739 - 8 -
1 NO.442), KNOWN AS THE "PENNSYLVANIA PREVAILING WAGE ACT."
2 (5) TO TRANSFER AND CONVEY ANY EASEMENTS OR LICENSES
3 NECESSITATED BY ANY CONSTRUCTION PROJECT WHICH HAS BEEN
4 PREVIOUSLY AUTHORIZED BY THE BOARD OF GOVERNORS.
5 (6) TO BORROW MONEY, MAKE AND ISSUE NEGOTIABLE NOTES, BONDS,
6 REFUNDING BONDS AND OTHER EVIDENCES OF INDEBTEDNESS OR
7 OBLIGATIONS (HEREIN CALLED "BONDS") OF THE SYSTEM, SUBJECT TO
8 ALL OF THE FOLLOWING CONDITIONS AND LIMITATIONS:
9 (I) THE BONDS SHALL HAVE A MATURITY DATE NOT LONGER THAN
10 FORTY (40) YEARS FROM THE DATE OF ISSUE.
11 (II) THE SYSTEM, BY PLEDGE OR DEED OF TRUST OF ALL OR ANY OF
12 ITS REVENUES AND RECEIPTS, MAY SECURE THE PAYMENT OF SUCH BONDS
13 OR ANY PART THEREOF.
14 (III) THE SYSTEM MAY MAKE SUCH AGREEMENTS WITH THE
15 PURCHASERS OR HOLDERS OF SUCH BONDS, OR WITH OTHERS IN
16 CONNECTION WITH ANY SUCH BONDS, WHETHER ISSUED OR TO BE ISSUED,
17 AS THE SYSTEM SHALL DEEM ADVISABLE.
18 (IV) THE SYSTEM SHALL PROVIDE FOR THE SECURITY FOR THE BONDS
19 AND THE RIGHTS OF THE HOLDERS THEREOF.
20 (V) THE SYSTEM SHALL NOT ISSUE BONDS IF, ON THE DATE OF
21 ISSUANCE, THE AGGREGATE PRINCIPAL AMOUNT OF BONDS TO BE
22 OUTSTANDING SHALL EXCEED ONE HUNDRED PER CENTUM (100%) OF THE
23 SYSTEM'S AVERAGE GROSS REVENUES FOR THE THREE (3) FISCAL YEARS
24 PRECEDING THE FISCAL YEAR IN WHICH BONDS ARE PROPOSED TO BE
25 ISSUED, EXCEPT THAT LEASES, CAPITALIZED OR OTHERWISE, ENTERED
26 INTO BY THE SYSTEM, AS LESSEE, IN CONNECTION WITH THE
27 ACQUISITION OF REAL AND PERSONAL PROPERTY SHALL NOT BE
28 CONSIDERED BONDS FOR THE PURPOSES OF THESE LIMITATIONS.
29 (VI) THE SYSTEM SHALL HAVE NO POWER, AT ANY TIME OR IN ANY
30 MANNER, TO PLEDGE THE CREDIT OR TAXING POWER OF THE
19890S1031B1739 - 9 -
1 COMMONWEALTH, NOR SHALL ANY OF THE BONDS OR DEBTS OF THE SYSTEM
2 BE DEEMED TO BE OBLIGATIONS OF THE COMMONWEALTH, NOR SHALL THE
3 COMMONWEALTH BE LIABLE FOR THE PAYMENT OF PRINCIPAL OR INTEREST
4 ON SUCH BONDS OR OTHER OBLIGATIONS.
5 (C) COLLECTIVE BARGAINING AGREEMENTS IN FORCE AT THE TIME OF
6 ENACTMENT OF THIS ACT SHALL REMAIN IN FORCE FOR THE TERM OF THE
7 CONTRACT. NEW COLLECTIVE BARGAINING AGREEMENTS WITH PROFESSIONAL
8 EMPLOYES SHALL BE NEGOTIATED ON BEHALF OF THE SYSTEM BY THE
9 CHANCELLOR. THE BOARD SHALL MAKE A COALITION BARGAINING
10 ARRANGEMENT WITH THE COMMONWEALTH FOR THE NEGOTIATION OF NEW
11 COLLECTIVE BARGAINING AGREEMENTS WITH NONINSTRUCTIONAL EMPLOYES.
12 SECTION 3. SECTION 2003-A.1 OF THE ACT IS REPEALED.
13 SECTION 4. SECTION 2005-A OF THE ACT IS AMENDED BY ADDING A
14 CLAUSE TO READ:
15 SECTION 2005-A. THE CHANCELLOR.--THE CHIEF EXECUTIVE OFFICER
16 OF THE SYSTEM SHALL BE A CHANCELLOR, WHO SHALL BE EMPLOYED BY
17 THE BOARD IN ACCORDANCE WITH CLAUSE (1) OF SECTION 2006-A. IN
18 ADDITION TO THOSE PRESCRIBED BY THE BOARD, THE CHANCELLOR SHALL
19 HAVE THE FOLLOWING DUTIES:
20 * * *
21 (12) THE CHANCELLOR SHALL TAKE ALL NECESSARY ACTION IN
22 CONNECTION WITH ISSUANCE OF BONDS AND OTHER INDEBTEDNESS
23 AUTHORIZED BY SECTION 2003-A.
24 SECTION 5. SECTION 2006-A(A)(9) OF THE ACT, ADDED NOVEMBER
25 12, 1982 (P.L.660, NO.188), IS AMENDED AND THE SUBSECTION IS
26 AMENDED BY ADDING A CLAUSE TO READ:
27 SECTION 2006-A. POWERS AND DUTIES OF THE BOARD OF
28 GOVERNORS.--(A) THE BOARD OF GOVERNORS SHALL HAVE OVERALL
29 RESPONSIBILITY FOR PLANNING AND COORDINATING THE DEVELOPMENT AND
30 OPERATION OF THE SYSTEM. THE POWERS AND DUTIES OF THE BOARD OF
19890S1031B1739 - 10 -
1 GOVERNORS SHALL BE:
2 * * *
3 (9) TO RECOMMEND APPROVAL OR DISAPPROVAL OF ALL SYSTEM
4 BUILDING PROJECTS FUNDED BY APPROPRIATIONS PROVIDED IN
5 ACCORDANCE WITH ARTICLE XVI-B OF THE ACT OF APRIL 9, 1929
6 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE," TO THE SECRETARY
7 OF THE BUDGET [AND ADMINISTRATION].
8 * * *
9 (16) TO TAKE ALL NECESSARY ACTION IN CONNECTION WITH
10 ISSUANCE OF BONDS AND OTHER EVIDENCES OF INDEBTEDNESS AUTHORIZED
11 BY SECTION 2003-A.
12 * * *
13 SECTION 6. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
14 SECTION 2006.1-A. POWERS AND DUTIES RELATING TO BONDS.--(A)
15 THE BONDS OF THE SYSTEM AUTHORIZED TO BE ISSUED SHALL:
16 (1) BE AUTHORIZED BY RESOLUTION OF THE BOARD OF GOVERNORS OF
17 THE SYSTEM.
18 (2) BE OF SUCH SERIES, BEAR SUCH DATE OR DATES, MATURE AT
19 SUCH TIME OR TIMES, NOT EXCEEDING FORTY (40) YEARS FROM THEIR
20 RESPECTIVE DATES.
21 (3) BEAR INTEREST, PAYABLE AT SUCH TIMES AND AT SUCH RATE OR
22 RATES, AS SHALL BE DETERMINED BY THE BOARD AS NECESSARY TO ISSUE
23 AND SELL THE AUTHORIZED BONDS.
24 (4) BE IN SUCH DENOMINATIONS, IN SUCH FORM, EITHER COUPON OR
25 FULLY REGISTERED WITHOUT COUPONS, AND CARRY SUCH REGISTRATION,
26 EXCHANGEABILITY AND INTERCHANGEABILITY PRIVILEGES AS THE BOARD
27 SHALL DETERMINE.
28 (5) BE PAYABLE IN SUCH MEDIUM OF PAYMENT AND AT SUCH PLACE
29 OR PLACES AS THE SYSTEM SHALL DETERMINE.
30 (6) BE SUBJECT TO SUCH TERMS OF REDEMPTION AND BE ENTITLED
19890S1031B1739 - 11 -
1 TO SUCH PRIORITIES IN THE REVENUES OR RECEIPTS OF THE SYSTEM AS
2 SUCH RESOLUTION OR RESOLUTIONS MAY PROVIDE.
3 (B) THE BONDS SHALL BE SIGNED BY OR SHALL BEAR THE FACSIMILE
4 SIGNATURE OF SUCH OFFICERS AS THE BOARD SHALL DETERMINE. COUPON
5 BONDS SHALL HAVE ATTACHED THERETO INTEREST COUPONS BEARING THE
6 FACSIMILE SIGNATURE OF THE CHIEF FISCAL OFFICER OF THE SYSTEM.
7 ALL BONDS SHALL BE AUTHENTICATED BY AN AUTHENTICATING AGENT,
8 FISCAL AGENT OR TRUSTEE, AS MAY BE PRESCRIBED IN SUCH RESOLUTION
9 OR RESOLUTIONS.
10 (C) ANY SUCH BONDS MAY BE ISSUED AND DELIVERED,
11 NOTWITHSTANDING THAT ONE OR MORE OF THE OFFICERS SIGNING SUCH
12 BONDS OR THE FACSIMILE OR WHOSE SIGNATURE SHALL BE UPON SUCH
13 BONDS, THE COUPONS, OR ANY THEREOF, SHALL HAVE CEASED TO BE SUCH
14 OFFICER OR OFFICERS AT THE TIME WHEN SUCH BONDS SHALL ACTUALLY
15 BE DELIVERED.
16 (D) THE BONDS MAY BE SOLD AT PUBLIC OR PRIVATE SALE FOR SUCH
17 PRICE OR PRICES AND AT SUCH RATE OF INTEREST AS THE BOARD SHALL
18 DETERMINE.
19 (E) PENDING THE PREPARATION OF THE DEFINITIVE BONDS, INTERIM
20 RECEIPTS MAY BE ISSUED TO THE PURCHASER OF SUCH BONDS AND MAY
21 CONTAIN SUCH TERMS AND CONDITIONS AS THE SYSTEM MAY DETERMINE.
22 (F) ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY BONDS MAY
23 CONTAIN PROVISIONS WHICH SHALL BE PART OF THE CONTRACT WITH THE
24 HOLDERS THEREOF AS TO:
25 (1) THE TERMS AND PROVISIONS OF THE BONDS.
26 (2) LIMITATIONS ON THE PURPOSES TO WHICH THE PROCEEDS OF THE
27 BONDS THEN OR THEREAFTER TO BE ISSUED, OR OF ANY LOAN OR GRANT
28 BY THE UNITED STATES, MAY BE APPLIED.
29 (3) THE SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE
30 REGULATION AND DISPOSITION THEREOF.
19890S1031B1739 - 12 -
1 (4) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS.
2 (5) THE TERMS AND PROVISIONS OF ANY DEED OF TRUST OR
3 INDENTURE SECURING THE BONDS, OR UNDER WHICH THE SAME MAY BE
4 ISSUED.
5 (6) ANY OTHER OR ADDITIONAL AGREEMENTS WITH THE HOLDER OF
6 THE BONDS.
7 (G) THE SYSTEM MAY ENTER INTO ANY DEEDS OF TRUST INDENTURES
8 OR OTHER AGREEMENTS, WITH ANY BANK OR TRUST COMPANY, OR OTHER
9 PERSON OR PERSONS IN THE UNITED STATES HAVING POWER TO ENTER
10 INTO THE SAME, INCLUDING ANY FEDERAL AGENCY, AS SECURITY FOR
11 SUCH BONDS, AND MAY ASSIGN AND PLEDGE ALL OR ANY OF THE REVENUES
12 OR RECEIPTS OF THE SYSTEM THEREUNDER. THE DEED OF TRUST,
13 INDENTURE OR OTHER AGREEMENT MAY CONTAIN SUCH PROVISIONS AS MAY
14 BE CUSTOMARY IN SUCH INSTRUMENTS, OR AS THE SYSTEM MAY
15 AUTHORIZE, INCLUDING, BUT WITHOUT LIMITATION, PROVISIONS AS TO:
16 (1) THE CONSTRUCTION, IMPROVEMENT, OPERATION, MAINTENANCE
17 AND REPAIR OF ANY PROJECT, AND THE DUTIES OF THE SYSTEM WITH
18 REFERENCE THERETO.
19 (2) THE APPLICATION OF FUNDS AND THE SAFEGUARDING OF FUNDS
20 ON HAND OR ON DEPOSIT.
21 (3) THE RIGHTS AND REMEDIES OF SAID TRUSTEE AND THE HOLDERS
22 OF THE BONDS, (WHICH MAY INCLUDE RESTRICTIONS UPON THE
23 INDIVIDUAL RIGHT OF ACTION OF SUCH BONDHOLDERS).
24 (4) THE TERMS AND PROVISIONS OF THE BONDS OR THE RESOLUTIONS
25 AUTHORIZING THE ISSUANCE OF THE SAME.
26 (H) EXCEPT TO THE EXTENT THAT THE RIGHTS HEREIN GIVEN MAY BE
27 RESTRICTED BY RESOLUTION PASSED BEFORE THE ISSUANCE OF THE
28 BONDS, OR BY THE TRUST INDENTURE, ANY HOLDER OF BONDS ISSUED
29 UNDER THE PROVISIONS OF THIS SECTION, OR ANY OF THE COUPONS
30 ATTACHED THERETO, AND THE TRUSTEE UNDER THE TRUST INDENTURE, IF
19890S1031B1739 - 13 -
1 ANY, MAY EITHER AT LAW OR IN EQUITY, BY SUIT, ACTION, MANDAMUS
2 OR OTHER PROCEEDINGS, PROTECT AND ENFORCE ANY AND ALL RIGHTS
3 GRANTED HEREUNDER OR UNDER SUCH RESOLUTION OR TRUST INDENTURE
4 AND MAY ENFORCE AND COMPEL PERFORMANCE OF ALL DUTIES REQUIRED BY
5 THIS ACT OR BY SUCH RESOLUTION OR TRUST INDENTURE TO BE
6 PERFORMED BY THE SYSTEM OR ANY OFFICER THEREOF.
7 (I) ALL SYSTEM BONDS SHALL HAVE ALL THE QUALITIES OF
8 NEGOTIABLE INSTRUMENTS UNDER THE LAW MERCHANT AND THE NEGOTIABLE
9 INSTRUMENTS LAW OF THE COMMONWEALTH OF PENNSYLVANIA.
10 (J) THE ACCOMPLISHMENT BY THE SYSTEM OF THE AUTHORIZED
11 PURPOSES STATED IN THIS ARTICLE BEING FOR THE BENEFIT OF THE
12 PEOPLE OF THE COMMONWEALTH AND FOR THE IMPROVEMENT OF THEIR
13 EDUCATION AND PROSPERITY, IN WHICH ACCOMPLISHMENT THE SYSTEM
14 WILL BE PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS, THE SYSTEM
15 SHALL NOT BE REQUIRED TO PAY ANY TAXES OR ASSESSMENTS ON ANY
16 PROPERTY ACQUIRED OR USED BY IT FOR THE PURPOSES PROVIDED IN
17 THIS ARTICLE, AND THE BONDS, NOTES OR OTHER OBLIGATIONS ISSUED
18 BY THE SYSTEM, THEIR TRANSFER AND THE INCOME THEREFROM,
19 INCLUDING ANY PROFITS MADE ON THE SALE THEREOF, SHALL AT ALL
20 TIMES BE FREE FROM TAXATION WITHIN THE COMMONWEALTH.
21 SECTION 7. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
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