reinsured by the Federal reinsurance facility in the
Commonwealth during the current year.
Section 306. Bonds of Authority.--(a) Within thirty days
following receipt of a direction from the Treasurer of the
Commonwealth to make payment of a claim to the Federal
reinsurance facility, the authority shall offer to sell bonds,
the aggregate principal amount of which shall be adequate to pay
the total amount of the claim received from the Federal
reinsurance facility, subject to the limitation contained in
section 305(b) above, plus the reasonable expenses of the sale,
due consideration having been first given to the moneys at that
time in the fund and available for payment of the claim of the
Federal reinsurance facility.
(b) The proceeds of the sale of such bonds shall be paid
into the fund and shall be used to satisfy the claim of the
Federal reinsurance facility which occasioned the sale of such
bonds; any amount remaining after satisfaction of such claim
shall be held in the fund and may be used for any of the
purposes set forth in section 304.
(c) The bonds of the authority shall be authorized by
resolution of the board or by and pursuant to an indenture of
trust and shall be of such series, bear such date or dates, be
stated to mature at such time or times, not exceeding thirty
years from their respective dates, be issued as serial or term
bonds, or as part serial and part term bonds, or any combination
thereof, or as a single bond payable in installments, bear
interest payable annually, semi-annually or quarterly, be in
such denominations, be in such form, either as negotiable
commercial paper, or as investment securities in bearer or
registered form, carry such registration, exchangeability and
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