Pennsylvania Act 1933-51 (session 1) — MUNICIPAL BONDS, REFUNDING PERMITTED

Act text

MUNICIPAL BONDS, REFUNDING PERMITTED
     Act of Jan. 5, (1934) 1933, Special Session 1, P.L. 218, No. 51  Cl. 11
                      Special Session No. 1 of 1933
                               No. 1933-51

                                  AN ACT

     Authorizing counties, cities, boroughs, townships, incorporated
        towns, poor districts and school districts to issue bonds for
        the purpose of refunding or retiring outstanding bonds, and
        to exchange said new bonds for such outstanding bonds without
        payment of cash or public bidding, and limiting any
        compensation payable therefor.

        Compiler's Note:  Section 803 of Act 87 of 1941 provided that
            Act 51 is repealed except insofar as it relates to cites
            of the first class.
        Section 1.  Be it enacted, &c., That whenever any county,
     city, borough, incorporated town, township, poor district, or
     school district of this Commonwealth shall have issued bonds
     which have matured and remain unpaid, or which may hereafter
     mature and remain unpaid, or whenever any such county, city,
     borough, incorporated town, township, poor district or school
     district of this Commonwealth shall have issued bonds which have
     not matured but which the holders thereof have consented to
     surrender, it shall be lawful for such county, city, borough,
     incorporated town, township, poor district or school district,
     for the purpose of refunding or retiring such outstanding bonds
     either at, or subsequent to maturity, or in advance of maturity,
     where the holders of such outstanding bonds have consented to
     surrender the same, to issue new bonds, bearing interest not
     exceeding six per centum (6%) per annum, except in the case of
     bonds whose holders are willing to surrender the same in advance
     of maturity, in which case the new bonds shall bear interest at
     a rate not exceeding the rate of interest borne by the bonds to
     be refunded, and payable not more than twenty years from the
     date thereof, except in the case of cities of the first class
     where said bonds shall be payable not more than forty years from
     the date thereof, and to exchange such new bonds for such
     outstanding bonds: Provided, however, That the face value of the
     new bonds so authorized to be exchanged shall not exceed the
     face value of the outstanding bonds to be refunded or retired:
     And provided further, That such municipality shall not pay any
     compensation or commission for obtaining such exchanges in
     excess of one per centum (1%) of the face value of any new bonds
     actually exchanged as aforesaid.
        (1 amended June 19, 1939, P.L.428, No.241)
        Section 2.  The provisions of any other law regulating the
     manner of the sale, or offering for sale, of bonds of any
     municipal subdivision, and especially any law requiring sale of
     bonds for cash and by public bidding, shall not apply to any
     bonds exchanged under the provisions of this act.
        Section 3.  Nothing in this act shall be construed as
     compelling any holder or holders of outstanding bonds of any
     municipality of this Commonwealth to surrender the same in
     exchange for new bonds.