Section 16999.12 - Approval by the court(a) No bonds shall be issued under this act until the transcript of the proceedings authorizing their issuance shall have been approved by the court either under this section or under section 13.(b) Prior to the filing of the transcript with the court under section 11, notice of intention to file the same shall be published once a week for two successive weeks in a newspaper of general circulation and also in the legal journal, if any, published in the city. Publication shall be completed at least two days prior to the filing of the transcript and proof of such publication shall be attached to the transcript when filed.(c) If no petition for a declaratory order or complaint under section 13 is filed with the court with respect to a transcript within 20 days after the date of the first publication of notice under subsection (b), or within ten days after the filing of the transcript, whichever is later, the office of clerk of the court shall, on the praecipe of the city, file as of course a final order approving the transcript. Such order shall have the effect of a finding of irrevocable and conclusive waiver of any claim or issue which might have been raised under section 13 and shall be deemed a final order under a statute relating to the authorization of public debt within the meaning of Rule 903(c)(3) of the Pennsylvania Rules of Appellate Procedure.(d) If any bonds shall be sold, or executed and delivered, in violation of subsection (a), such bonds shall be invalid in the hands of or for the security of the holder of such bonds, except to the extent provided in this subsection. If the bonds shall be held by a bona fide purchaser (other than an initial purchaser or member of an underwriting or selling group) for value without actual notice of the violation and if such bonds shall contain a recital that such prior approval has been obtained, then such bonds shall be valid and enforceable in accordance with their terms to the extent necessary to validate and keep valid such bonds, but not for the purpose of reducing the liability of any person under this section. The city shall be entitled to recover all interest and principal or other amounts payable thereon or thereunder from the initial purchasers and the persons, including the officers of the city, responsible for making the unapproved or unauthorized delivery. Notwithstanding the invalidity of the instruments as to them, the initial purchasers and such other persons shall be entitled to credit, in any action determining such invalidity or for the recovery provided by the preceding sentence, for the amount of:(1) any proceeds of the sale of the instruments still held unexpended by the city; and(2) the cost or fair market value, whichever is the lesser, of any project or part thereof or interest therein acquired by the city by an expenditure of a portion or all of the proceeds of such bonds.(e) When no petition for a declaratory order or complaint has been filed within the period specified in subsection (c), or when after a petition for a declaratory order or complaint has been filed the transcript shall have been approved finally by the court, the validity of the proceedings, the right of the city lawfully to issue its bonds pursuant to such proceedings and the validity, and due enforceability of the bonds in accordance with their terms, shall not thereafter be inquired into judicially, in equity, at law, or by civil or criminal proceedings, or otherwise, either directly or collaterally. The effect of the approval by the court or by a court on appeal, shall be to ratify, validate and confirm such proceedings absolutely, including the lawful nature of the project notwithstanding the defect or error in such proceedings, except as provided in subsection (f), and any limit imposed by this act on the principal amount of bonds which may be issued shall be deemed increased to the extent necessary to validate such debt or other obligation.(f) Nothing contained in subsection (e) shall:(1) free an initial purchaser of bonds from liability to the city for the payment of the consideration agreed in the contract of sale, or make all such bonds valid and enforceable in the hands of an initial purchaser unless the city shall have received a substantial consideration for the series as a whole; or(2) relieve any person participating in such proceedings from liability for knowingly participating in an ultra vires act of the city or from any civil or criminal liability for false statements in any certificates filed or delivered in such proceedings. 1982, Dec. 7, P.L. 827, No. 231, § 12, imd. effective.