35 Pa. Stat. § 1557

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 1557 - Bonds of an Authority

An Authority shall have power to issue bonds for any of its corporate purposes. An Authority may issue such types of bonds as it may determine, including bonds on which the principal and interest are payable--

(a) exclusively from the income and revenues of the housing project financed with the proceeds of such bonds, or with such proceeds together with a grant from the Federal or State Government in aid of such project; (b) exclusively from the income and revenues of certain designated housing projects, whether or not they were financed, in whole or in part, with the proceeds of such bonds; or (c) from its revenues generally. Any such bonds may be additionally secured by a pledge of any revenues, including grants or contributions from the Federal or State Government or any agency and instrumentality thereof, or a mortgage of any housing project, projects or other property of the Authority.

The bonds issued by an Authority are hereby declared to have all the qualities of negotiable instruments under the law merchant and the negotiable instruments law of the Commonwealth of Pennsylvania.

If the bonds of an Authority created under the provisions of this act are secured by pledge of annual contributions or capital grants to be made by the United States Government, the Commonwealth of Pennsylvania, or any agency or instrumentality thereof, such bonds and the income therefrom shall, at all times, be free from taxation for State or local purposes under any law of this Commonwealth.

Neither the members of the Authority nor any person executing the bonds shall be liable personally on any such bonds by reason of the issuance thereof. Such bonds or other obligations of an Authority shall not be a debt of any city, county, municipal subdivision or of the Commonwealth, and shall so state on their face, nor shall any city, county, municipal subdivision or the commonwealth, nor any revenues or any property of any city, county, municipal subdivision or of the Commonwealth be liable therefor.

35 P.S. § 1557

1937, May 28, P.L. 955, § 17. Amended 1939, June 19, P.L. 424, § 1; 1949, May 20, P.L. 1614, No. 486, § 4.