Pennsylvania Act 1935-284 — SECOND CLASS CITIES AUTHORIZED TO ISSUE NOTES

Act text

SECOND CLASS CITIES AUTHORIZED TO ISSUE NOTES
                 Act of Jul. 12, 1935, P.L. 722, No. 284              Cl. 11
                                  AN ACT

     Authorizing cities of the second class to issue and sell short
        term promissory notes.

        Section 1.  Be it enacted, &c., That any city of the second
     class, shall have power to issue and sell negotiable short term
     promissory notes of the city, payable not more than three years
     from the date thereof, for the purpose of raising funds for any
     one or more of the following purposes: (a) To pay judgments
     against the city; (b) to pay claims for damages finally
     determined against the city in connection with municipal
     improvements; (c) to pay other items of floating indebtedness to
     the city; (d) to pay the engineering, architectural and other
     expenses incurred, or to be incurred in connection with
     contracts for municipal improvements; and (e) to pay for the
     construction of public improvements within the city and the
     preliminary expenses in connection therewith.
        Section 2.  Such notes shall be issued in the following
     manner: Council shall by ordinance authorize and direct the
     issuance of notes in a definite amount and for a stated purpose
     or purposes, which ordinance shall provide that bids for said
     notes will be received at two or more specified rates of
     interest, not exceeding five per centum per annum; notice of the
     sale of such notes shall be published for one insertion in at
     least two newspapers of general circulation in the city, at the
     time fixed by the advertisement, which shall not be earlier than
     the third calendar business day following said advertisement;
     the mayor and city controller shall receive and tabulate the
     bids, and shall award and sell the notes to the highest
     responsible bidder who shall offer to purchase the same at the
     lowest interest rate at which a bid or bids are received:
     Provided, however, That the notes shall be sold at not less than
     the face value thereof and accrued interest. The notes so
     issued, together with all other indebtedness of the city, other
     than indebtedness incurred with the assent of the electors,
     shall not exceed five per centum upon the assessed value of the
     taxable property therein, as fixed and determined by the last
     preceding assessed value thereof, without the assent of the
     electors duly obtained at a public election in the manner
     provided by law.
        (2 amended Apr. 13, 1967, P.L.19, No.8)
        Section 3.  Unless the note or notes so sold are payable out
     of current revenues of the city, the ordinance, authorizing
     their issuance and sale, shall direct the proper officers of the
     city to prepare and file in the court of quarter sessions of the
     proper county, a statement in the manner and form required by
     law; and council shall by the ordinance, authorizing the
     issuance of said notes, levy taxes for the years during which
     said notes shall be outstanding, sufficient to pay the same at
     maturity, with the interest and State tax thereon. The said
     notes, when issued, may be funded at any time by the issuance of
     bonds, as provided by law.
        Section 4.  When an increase of the indebtedness of the city,
     for a specific purpose, has been duly authorized in the manner
     required by law, the indebtedness so authorized, may first be
     incurred by the city by issuing, from time to time, as funds for
     the specific purpose are required, short term notes as
     hereinbefore provided; and the notes, so issued, shall
     thereafter be paid and funded out of the proceeds of bonds
     issued and sold for the authorized purpose.
        Section 5.  All acts or parts of acts inconsistent herewith
     are hereby repealed.