Section 1805-A. Issuance of bonds, pledge, service agreement and security.
(a) Issuance.--The authority shall issue bonds upon approval of an application by the department. Bonds issued under this article shall be subject to the provisions of the Financing Law, unless otherwise specified in this article.
(b) Service agreement authorized.--
(1) The authority, the Commonwealth Financing Authority and the department may enter into an agreement or service agreement to effectuate this article, under which the department and the Commonwealth Financing Authority shall agree to pay the bond obligations and bond administrative expenses to the authority in each fiscal year that the bonds or refunding bonds are outstanding in amounts sufficient to timely pay in full the bond obligations, bond administrative expenses and any other financing costs due on the bonds issued for the purposes specified in this article.
(2) The department's and the Commonwealth Financing Authority's payment of bond obligations, bond administrative expenses and other financing costs due on the bonds as service charges under an agreement or service agreement shall be subject to and dependent upon the appropriation of funds by the General Assembly to the department and the Commonwealth Financing Authority for payment of the service charges. The service agreements may be amended or supplemented by the authority, the Commonwealth Financing Authority, and the department in connection with the issuance of a series of bonds or refunding bonds authorized under this section.
(c) Security.--Bond obligations and bond administrative expenses may be secured for the benefit of the holders of the bonds and the obligees under credit agreements or the agreements under subsection (b), by pledge of a security interest in the following:
(1) Money relating to the bonds held on deposit in any other fund or account under an instrument or agreement pertaining to the bonds, including bond reserves and interest income on the money.
(2) The security provided under this subsection shall not apply to money in any fund relating to arbitrage rebate obligations.
(1805-A added July 11, 2024, P.L.550, No.54)