Section 5. (a) Where cash shall be needed for the immediate requirements of the city for any fiscal year in advance of the receipt of income, the mayor, the city controller, and the city solicitor, or any two of them, shall have power to negotiate, on behalf of the city, temporary loans, upon notes for periods not to extend beyond such fiscal year and in aggregate amount not to exceed ninety per centum of the estimated receipts for such fiscal year other than loan funds, but, at the time of issuing said loans, provision must be made to repay the same out of the income of the same fiscal year for which they are negotiated, the intention of this section being that the negotiation of said loans shall be solely for the purpose of anticipating receipt of income. The negotiation of said loans may be initiated not more than thirty days before the beginning of the fiscal year for which notes are to be issued, but said notes shall not be issued before the first day of such fiscal year.
(b) If through emergency it shall become necessary for the council to obtain additional appropriating power, it shall be lawful for the council to authorize the creation of one or more emergency loans, not exceeding in the aggregate two million ($2,000,000) dollars at any one time, which, unless paid within the fiscal year in which they were created, shall be included by the city controller in his estimate of liabilities which must be met out of the receipts of the ensuing fiscal year before ordinary appropriations may be made therefrom.
(5 amended Jun. 19, 1975, P.L.27, No.11)
Compiler's Note: Section 708(a) of Act 6 of 1991 provided that section 5(a) is repealed absolutely except as to loans or notes issued by a city pursuant to section 5(a) which remain outstanding on the effective date of Act 6.