Section 1600.306 - 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 interchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption at such prices not exceeding one hundred six per cent of the principal amount thereof, and be entitled to such priorities in the revenues or receipts of the authority as such resolution or indenture may provide. The bonds shall be signed manually or by facsimile by such officers as the authority shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the authority, all as may be prescribed in such resolution or indenture. No bond shall be issued or delivered without at least one manual signature, which may be that of an officer of the fiscal agent or of the trustee under the relevant resolution or indenture. Any such bonds may be issued and delivered notwithstanding that one or more of the officers signing such bonds, or the treasurer whose facsimile signature shall be upon the coupons or any thereof, shall have ceased to be such officer or officers at the time when such bonds shall actually be delivered.(d) Such bonds shall be sold to the highest responsible bidder or bidders proposing the lowest net interest cost to the authority, determined by computing the interest on the bonds to their stated maturity dates and adding thereto the discount or subtracting therefrom the premium specified in such bid, after public notice, by two advertisements in not less than three nor more than five newspapers of large general circulation in different parts of the Commonwealth, the first advertisement to be published not less than twenty days and the second not less than five days before the day fixed for the opening of bids. No bonds shall be sold if the net interest cost, computed to stated maturity dates of the bonds, of the money received for any issue of such bonds shall exceed six per cent a year. The advertisement of sale shall contain a general description of the bonds, the manner, place and time of the sale, or the time limit for the receipt of proposals, the name of the officer to whom, or to whose designee, bids or proposals shall be delivered, and a statement of the terms and conditions of sale: Provided, however, That any of said bonds may be sold to the State Employes' Retirement Board, School Employes' Retirement Board, or to any other custodial board or fund, or to State Employes' Retirement Fund, or by private placement with a group of not more than twenty-five ultimate investors who purchase for investment and not with a view to distribution, without advertisement or competitive bidding. Pending the preparation of the definitive bonds, interim receipts or temporary bonds may be issued to the purchaser or purchasers of such bonds and may contain such terms and conditions as the authority may determine.(e) Any resolution or indenture authorizing any bonds may contain provisions which shall be part of the contract with the holders thereof as to: (1) Pledging the full faith and credit of the authority (but not of the Commonwealth or any political subdivision thereof) for such bonds or restricting the same to all or any of the revenues or receipts of the authority;(2) The terms and provisions of the bonds;(3) The setting aside of reserves or sinking funds and the regulation and disposition thereof;(4) Any terms and provisions for the security of the bonds or under which the same may be issued;(5) Any other or additional agreements with the holders of the bonds.(f) The authority may enter into any indentures of trust, or other agreements with any bank or trust company or other person or persons in the United States having power to enter into the same, or may designate any such as fiscal agent under a bond resolution, in order to provide for the security for such bonds, and may assign and pledge all or any of the revenues or receipts of the authority thereunder. Such indenture, resolution, or other agreement may contain such provisions as may be customary in such instruments or as the authority may authorize, including provisions as to:(1) The application of funds and the safeguarding of funds on hand, invested or on deposit;(2) The rights and remedies of said trustees or fiscal agent and the holders of the bonds (which may include restrictions upon the individual right of action of such bondholders); and(3) The terms and provisions of the bonds or the resolutions or indentures authorizing the issuance of the same.1968, July 31, P.L. 738, No. 233, art. III, § 306.