72 Pa. Stat. § 3919.312
The issuing officials, subject to the provisions of a bond resolution or trust indenture, are authorized to issue funding bonds for the purpose of refunding obligations then outstanding to provide funds to redeem and retire such outstanding obligations with accrued interest and any premium payable thereon at maturity or any call date. The issuance of funding bonds, the maturities and other details, the rights of the holders and the duties of the issuing officials shall be governed by the applicable provisions of sections 303 through 311. Funding bonds may be issued to refund bonds previously issued for refunding purposes. The proceeds of the sale of funding bonds shall be paid to the State Treasurer and applied to the payment of the principal of, and any accrued interest and premium on, the bonds or notes for the refunding of which funding bonds have been issued. No funding bonds shall be issued having a stated maturity date later than the expiration of the useful life of the capital projects constructed or acquired from the proceeds of the debt originally incurred in respect of the bonds or notes being refunded, nor shall funding bonds be issued to refund beyond the same fiscal year any portion of debt required by this chapter and the Constitution of Pennsylvania to be retired in the year of issue of the funding bonds in order to comply with the retirement in substantial and regular amounts as provided insection 307(d).
72 P.S. § 3919.312