(a)Failure to budget amounts due under a qualified interest rate management agreement.--
(1)This subsection applies if a local government unit fails or refuses to budget for any fiscal year a periodic scheduled payment:
(i)due in that year pursuant to the provisions of a qualified interest rate management agreement; and
(ii)payable from the general revenues of the local government unit.
(2)If a local government unit commits a failure or refusal under paragraph (1), the following apply:
(i)The other party to the interest rate management agreement may bring an enforcement action in a court of common pleas.
(ii)After a hearing held upon notice to the local government unit as the court may direct, if the court finds a failure or refusal under paragraph (1), the court may, by order
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(a) Failure to budget amounts due under a qualified interest rate management agreement.--
(1) This subsection applies if a local government unit fails or refuses to budget for any fiscal year a periodic scheduled payment:
(i) due in that year pursuant to the provisions of a qualified interest rate management agreement; and
(ii) payable from the general revenues of the local government unit.
(2) If a local government unit commits a failure or refusal under paragraph (1), the following apply:
(i) The other party to the interest rate management agreement may bring an enforcement action in a court of common pleas.
(ii) After a hearing held upon notice to the local government unit as the court may direct, if the court finds a failure or refusal under paragraph (1), the court may, by order of mandamus, require the treasurer of the local government unit to pay to the other party out of the first tax money or other available revenue or money thereafter received in the fiscal year by the treasurer the periodic scheduled payments due pursuant to the provisions of the qualified interest rate management agreement. The order shall be subject to section 8281(c)(8) (relating qualified interest rate management agreements).
(iii) Any priority on incoming tax money accorded to a separate sinking fund for tax anticipation notes under the authority of section 8125 (relating to security for tax anticipation notes and sinking fund) shall not be affected by an order under subparagraph (ii) until the sum on deposit in each sinking fund equals the money which should have been budgeted or appropriated for each series.
(b) Failure to pay amounts due under a qualified interest rate management agreement.--
(1) This subsection applies if:
(i) a local government unit fails to pay any amount due under a qualified interest rate management agreement when it becomes due and payable; and
(ii) the failure continues for 30 days.
(2) If there is a failure under paragraph (1), the other party to the qualified interest rate management agreement may bring an action in a court of common pleas to recover the amount due. This paragraph is subject to:
(i) the priorities under sections 8125 and 8281(c)(8); and
(ii) any limitations upon rights of action properly provided in the qualified interest rate management agreement.
(3) The judgment recovered under paragraph (2) shall:
(i) have an appropriate priority upon the money next coming into the treasury of the local government unit; and
(ii) be a judgment upon which funding bonds may be issued pursuant to Ch. 81 Subch. B (relating to tax anticipation notes and funding debt).
(c) Failure to pay by school districts.--
(1) This subsection applies if a board of directors of a school district fails to pay or to provide for the payment of periodic scheduled payments, not including any termination payments, due pursuant to the provisions of a qualified interest rate management agreement.
(2) A party to a qualified interest rate management agreement must notify the Secretary of Education of a failure under paragraph (1).
(3) Upon notice under paragraph (2), the following apply:
(i) The secretary shall notify the Department of Community and Economic Development and the offending board of school directors.
(ii) If the secretary finds that the amount due and payable by the school district has not been paid, the secretary shall withhold out of any State appropriation due the school district an amount equal to the amount due pursuant to the qualified interest rate management agreement and shall pay over the amount so withheld to the party to the qualified interest rate management agreement to whom the amount is due.