§ 7305 — Obligations of Pennsylvania governmental organizations

Pennsylvania § 7305

• Jurisdiction: Pennsylvania
• Title 20: DECEDENTS, ESTATES AND FIDUCIARIES
• Ch. 73: MUNICIPALITIES INVESTMENTS

Text

Obligations of the following Pennsylvania governmental organizations shall be authorized investments:

(1) General State Authority and other State authorities.--Obligations issued by The General State Authority and other authorities created by the General Assembly of the Commonwealth of Pennsylvania, for the payment of which faith and credit of the authority is pledged.

(2) Housing authorities.--Obligations of any housing authority issued pursuant to the laws of the Commonwealth relating to the creation or operation of housing authorities.

(3) Pennsylvania Housing Agency.--Bonds and notes of the Pennsylvania Housing Agency created by the "Housing Agency Law."

(4) Municipality authorities.--Obligations of any municipality authority issued pursuant to the laws of the Commonwealth relating to the creation or operation of municipality authorities, if the obligations are not in default and if the project for which the obligations were issued is under lease to a school district or school districts, or if the obligations are not in default and if the project for which the obligations were issued is under lease to a municipality or municipalities or subject to a service contract with a municipality or municipalities, pursuant to which the authority will receive lease rentals or service charges available for fixed charges on the obligations, which will average not less than one and one-fifth times the average annual fixed charges of such obligations over the life thereof, or if the obligations are not in default and if for the period of five fiscal years next preceding the date of acquisition, the income of such authority available for fixed charges has averaged not less than one and one-fifth times its average annual fixed charges of such obligations over the life of such obligations. As used in this clause, the term "income available for fixed charges" shall mean income after deducting operating and maintenance expenses, and, unless the obligations are payable in serial, annual maturities, or are supported by annual sinking fund payments, depreciation, but excluding extraordinary nonrecurring items of income or expenses; and the term "fixed charges" shall include principal, both maturity and sinking fund, and interest on bonded debt. In computing such income available for fixed charges for the purposes of this paragraph, the income so available of any corporation acquired by any municipality authority may be included, such income to be calculated as though such corporation has been operated by a municipality authority and an equivalent amount of bonded debt were outstanding. The eligibility for investment purposes of obligations of each project of a municipality authority shall be separately considered hereunder.

(5) Parking authorities, public auditorium authorities, and port authorities.--Obligations of any parking authority, public auditorium authority, or port authority issued pursuant to the Parking Authority Law, the Public Auditorium Authorities Law or the Second Class County Port Authority Act, as the same have been heretofore or may be hereafter amended, if the obligations are not in default and if the project or facility for which the obligations were issued is under lease to a municipality or municipalities or is subject to a service contract or grant contract with a municipality or municipalities, and if the term of such lease or contract is not less than the term of the final maturity of the obligations, and if the authority will receive or is entitled to receive under such lease or contract annual rentals, service charges, or grants available for fixed charges on such obligations of not less than the average annual fixed charges on such obligations over the life thereof, or if the obligations are not in default, and if for the period of five fiscal years next preceding the date of acquisition the income of such authority available for fixed charges has averaged not less than one and one-fifth times its average annual fixed charges of such obligation over the life of such obligations. As used in this paragraph, the term "income available for fixed charges" shall mean income after deducting operating and maintenance expenses and, unless the obligations are payable in serial, annual maturities, or are supported by annual sinking fund payments, depreciation, but excluding extraordinary nonrecurring items of income or expenses, and the term "fixed charges" shall include principal, both maturity and sinking fund, and interest on bonded debt.

(6) Delaware River Joint Commission.--Obligations of the Delaware River Joint Commission issued pursuant to the act of June 12, 1931 (P.L.575, No.200), and its amendments and supplements heretofore or hereafter enacted.

(7) Delaware River Joint Toll Bridge Commission.--Obligations of the Delaware River Joint Toll Bridge Commission issued pursuant to the act of June 25, 1931 (P.L.1352, No.332), and its amendments and supplements heretofore or hereafter enacted.

(8) Delaware Tunnel Board.--Obligations issued by or with the approval of the Delaware Tunnel Board pursuant to the act of July 8, 1947 (P.L.1452, No.561), and its amendments and supplements heretofore or hereafter enacted.

(9) Pennsylvania Turnpike Commission.--Obligations of the Pennsylvania Turnpike Commission issued pursuant to:

(i) the act of May 21, 1937 (P.L.774, No.211);

(ii) the Pennsylvania Turnpike Philadelphia Extension Act of May 16, 1940 (Spec.Sess. P.L.949, No.11); and

(iii) the Western Pennsylvania Turnpike Extension Act of June 11, 1941 (P.L.101, No.53);

and the amendments and supplements of each heretofore or hereafter enacted.

(10) Pennsylvania Parkway Commission.--Obligations of the Pennsylvania Parkway Commission, issued pursuant to the act of July 16, 1941 (P.L.386, No.149), and its amendments and supplements heretofore or hereafter enacted.

(11) Redevelopment authorities.--Obligations of any redevelopment authority issued pursuant to the laws of the Commonwealth relating to the creation or operation of redevelopment authorities.

(12) The Pennsylvania State University.--Obligations of The Pennsylvania State University.

(13) Municipalities issuing nondebt revenue bonds.--Obligations issued pursuant to subdivision (b) of Article VI of the act of June 25, 1941 (P.L.159, No.87), known as the "Municipal Borrowing Law," and its amendments, if the obligations are not in default and if, for the period of five fiscal years next preceding the date of acquisition the income of the municipality issuing such obligations from the facility from which revenues are pledged for the payment for such obligations, available for fixed charges has averaged not less than one and one-fifth times the average annual fixed charges of such obligations over the life of such obligations. As used in this paragraph, the term "income available for fixed charges" shall mean income after deducting operating and maintenance expenses, and, unless the obligations are payable in serial, annual maturities, or are supported by annual sinking fund payments, depreciation, but excluding extraordinary nonrecurring items of income or expenses; and the term "fixed charges" shall include principal, both maturity and sinking fund, and interest on bonded debt.

Legislative History

References in Text.The General State Authority, referred to in par. (1), was abolished and its functions transferred to the Department of General Services by the act of July 22, 1975 (P.L.75, No.45). The act of June 25, 1941 (P.L.159, No.87), known as the Municipal Borrowing Law, referred to in par. (13), was repealed by the act of July 12, 1972 (P.L.781, No.185), known as the Local Government Unit Debt Act. The Local Government Unit Debt Act was repealed by the act of December 19, 1996 (P.L.1158, No.177). The subject matter is now contained in Subpart B of Part VII (relating to indebtedness and borrowing) of Title 53 (Municipalities Generally). The act of June 5, 1947 (P.L.458, No.208), known as the Parking Authority Law, referred to in par. (5), was repealed by the act of June 19, 2001 (P.L.287, No.22). The subject matter is now contained in Chapter 55 (relating to parking authorities) of Title 53 (Municipalities Generally). The act of July 8, 1947 (P.L.1452, No.561), referred to in par. (8), was repealed by the act of February 18, 1970 (P.L.50, No.20). The short title of the act of December 3, 1959 (P.L.1688, No.621), known as the Housing Agency Law, referred to in par. (3), was amended by the act of December 5, 1972 (P.L.1259, No.282). The amended short title is now the Housing Finance Agency Law. The Pennsylvania Parkway Commission, referred to in par. (10), was terminated December 31, 1983, under the act of December 22, 1981 (P.L.508, No.142), known as the Sunset Act.