Section 15907 - Contents of bond ordinance authorizing revenue bonds(a) The ordinance or ordinances of the city authorizing the issuance of revenue bonds or any series thereof shall contain in substance: (1) A brief description of the project or projects in respect of which the bonds are to be issued.(2) A statement of the aggregate principal amount of bonds or of the series thereof to be issued.(3) A pledge of and grant of a security interest in a specified part or all of the project revenues from the project or projects in respect of which the bonds are to be issued and a statement of the priority or priorities, if any, in the application of such project revenues to operation and maintenance costs, to the payment of capital additions or improvements, to the establishment and maintenance of reserves, if any, and to the payment of the principal of and interest on outstanding bonds, on the bonds to be issued and on any future additional bonds.(4) A covenant with the obligees of the bonds to pay from the pledged project revenues on the respective due dates the amounts required to pay the interest on and principal of the bonds as specified in such bonds.(5) A finding based on the report of the chief fiscal officer of the city required by section 8 of this act that the pledged project revenues will be sufficient to pay any prior parity charges thereon and to pay also the principal of and interest on the bonds.(6) Determinations of the form, terms and provisions of the bonds permitted by section 5 of this act and of the method of sale, the terms upon which or the prices for which the bonds are to be sold or exchanged including, if applicable, competitive bidding specifications or such thereof as the city may wish to make by the bond ordinance and, to the extent not so made and unless authorization shall have previously been granted by ordinance, authority to a designated officer or officers of the city to make such determinations.(7) Provisions for a sinking fund complying with section 9 of this act. The foregoing requirements in respect of any issue of revenue bonds or series thereof, may be contained in a single ordinance or in successive ordinances enacted, in either case, prior to the issuance of such bonds or of such series thereof.
(b) Subject to currently applicable constitutional provisions prohibiting the delegation to any special commission, private corporation, or association of any power to make, supervise or interfere with any improvement, money, property or effects of the city or perform any municipal function whatsoever and subject to other applicable provisions of this act, the bond ordinance may also contain: (1) Covenants with the obligees of the bonds or other provisions governing: (i) the segregation, custody, investment and disbursement of construction funds;(ii) the imposition, collection, custody, investment and disbursement of project revenues;(iii) the operation, maintenance, replacement and insurance of the project or projects;(iv) the establishment, segregation, maintenance, custody, investment and disbursement of sinking and other special funds, accounts or reserves;(v) the issuance of additional priority or parity bonds;(vi) the redemption, with or without premium, of bonds and the requirements and effect of the call for redemption;(vii) the rights and remedies of obligees upon default, and(viii) such other provisions as the city may deem necessary or desirable in the interest of or for the protection of the city or of such obligees.(2) Agreements with any bank, bank and trust company or trust company, appointing the same as paying agent or fiscal agent and containing appropriate provisions governing the deposit, custody and payment of moneys, the maintenance of accounts and records, the authentication, registration, transfer and exchange of bonds, the redemption or purchase of bonds, the payment of principal of, interest on and redemption premium, if any, of the bonds, the cremation or other disposal of cancelled bonds and coupons, the rights, duties, privileges and immunities of the paying agent or fiscal agent, and such other matters as are customary or appropriate. The covenants, terms and provisions of the bond ordinance made for the benefit of obligees of the bonds shall constitute contractual obligations of the city subject to modification (with such limitations as may be specified in the bond ordinance) by agreement with a majority in interest of the holders or registered owners of the bonds or such larger portion thereof as may be provided in the bond ordinance.
1972, Oct. 18, P.L. 955, No. 234, § 7, imd. effective.