Pennsylvania Act 1936-12 (session 1) — BONDS "SERIES D" RECALLED

Act text

BONDS "SERIES D" RECALLED
         Act of Jun. 24, 1936, Special Session 1, P.L. 24, No. 12     Cl. 72
                      Special Session No. 1 of 1936
                               No. 1936-12

                                  AN ACT

     Providing for the issue and sale of bonds to the amount of the
        outstanding callable bonds of loan of the Commonwealth of
        Pennsylvania, Series "D," for the purpose of refunding,
        redeeming and retiring said Series "D"; authorizing the
        exchange of bonds of said Series "D" for those issued
        hereunder; defining the powers and duties of the Governor,
        the Auditor General, and the State Treasurer in relation
        thereto; providing for the payment of interest on, and the
        redemption of, such bonds; and making an appropriation.

        Section 1.  Be it enacted, &c., That the Auditor General and
     the State Treasurer, under the direction of the Governor, are
     hereby authorized to give notice to the holders of any or all
     bonds of "Series 'D' Loan of the Commonwealth of Pennsylvania,"
     issued under date of the first day of December, one thousand
     nine hundred twenty-one, in such manner not inconsistent with
     the terms of such bonds, by advertisement or otherwise, as and
     at such times as the Governor may direct, that any or all of
     said bonds are called for redemption, in accordance with the
     terms of said bonds, on the first day of December, one thousand
     nine hundred thirty-six, or on any semiannual interest date
     thereafter prior to maturity.
        Section 2.  (a)  For the purpose of redeeming or retiring any
     or all of said bonds of Series "D," bonds of the Commonwealth of
     Pennsylvania, to be known as "Series 'D' Refunding Loan of the
     Commonwealth of Pennsylvania," shall be issued on the credit of
     the Commonwealth, from time to time, for such total amounts not
     in excess, however, at any time of the amount of bonds of
     "Series 'D' Loan of the Commonwealth of Pennsylvania" then
     outstanding and callable for redemption, as provided in section
     one hereof, less any moneys available in the Sinking Fund and
     applicable to the redemption of said bonds, in such form, in
     such denominations, and subject to such terms and conditions of
     issue, redemption and maturity, not longer than the first day of
     December, one thousand nine hundred fifty-one, rates of
     interest, less, however, than four and three quarters per centum
     (4 3/4%) per annum, and time of payment of interest, as the
     Governor, the Auditor General, and the State Treasurer shall
     direct.
        (b)  All bonds issued under the authority of this act shall
     bear the facsimile signatures of the Governor, the Auditor
     General, and the State Treasurer, and a facsimile of the great
     seal of the Commonwealth of Pennsylvania, and shall be
     countersigned by two duly authorized officers of the duly
     authorized loan and transfer agent of the Commonwealth.
        (c)  The principal and interest of such bonds shall be
     payable in lawful money of the United States. All bonds issued
     under the provisions of this act shall be exempt from taxation
     for State and local purposes.
        (d)  Such bonds may be issued with or without interest
     coupons attached. In case interest coupons are attached they
     shall contain facsimile signatures of the State Treasurer and
     the Auditor General.
        (e)  The Governor, the Auditor General, and the State
     Treasurer shall, from time to time, have the necessary bonds
     prepared and printed. The bonds, as soon as they are  prepared
     and printed, shall be forthwith deposited with the duly
     authorized loan and transfer agent of the Commonwealth, there to
     remain until sold or exchanged, in accordance with the
     provisions of this act.
        Section 3.  Except as herein provided, whenever bonds are
     issued in accordance with the provisions of section two hereof,
     they shall be offered for sale at not less than par and accrued
     interest, and shall be sold by the Governor, the Auditor
     General, and the State Treasurer to the highest and best bidder
     or bidders, on such terms and conditions, and upon such open
     competitive bidding, as the Governor, the Auditor General, and
     the State Treasurer shall direct, after public advertisement in
     such manner and character, and at such times, as the Governor,
     the Auditor General, and the State Treasurer shall prescribe:
     Provided, however, That the Governor, the Auditor General and
     the State Treasurer, upon such terms and under such conditions
     as they shall specify, may exchange bonds issued under the
     provisions of this act for outstanding callable bonds of "Series
     'D' Loan of the Commonwealth of Pennsylvania," but the face
     value of the bonds so authorized to be exchanged shall not
     exceed the face value of the outstanding bonds to be refunded or
     retired. All bonds offered for exchange under the provisions of
     this act shall, after the issuance of new bonds and substitution
     therefor, be canceled and thereafter all payments of interest
     thereon shall cease.
        Any portion of any bond issue so offered and not sold,
     subscribed for or exchanged, may be disposed of by private sale
     by the Governor, the Auditor General, and the State Treasurer,
     in such manner and at such prices, not less than par and accrued
     interest, as the Governor shall direct. No commission shall be
     allowed or paid for the sale or exchange of any bonds issued
     under the authority of this act.
        Section 4.  The proceeds from the sale of bonds under the
     provisions of this act shall be used only for the redemption or
     retirement of bonds of "Series 'D' Loan of the Commonwealth of
     Pennsylvania" called as provided in section one of this act. the
     refunding bonds so issued shall not continue any debt of the
     Commonwealth, represented by the called bonds, beyond the
     maturity date of such called bonds, and shall in no manner
     increase the debt of the Commonwealth as existing at the time
     such refunding bonds are sold or exchanged. The intent of the
     Legislature in authorizing this issue of refunding bonds is to
     lessen the interest charges payable by the Commonwealth on such
     outstanding bonds, and not to increase the debt of the
     Commonwealth, nor to extend the date for the final redemption of
     such debt beyond the date specified in the bonds called.
        Section 5.  The Auditor General shall prepare the necessary
     registry books, to be kept in the office of the duly authorized
     loan and transfer agent of the Commonwealth, for the
     registration of any bonds at the request of owners thereof. All
     bonds which are issued without interest coupons attached shall
     be registered in the registry books kept by the duly authorized
     loan and transfer agent of the Commonwealth.
        Section 6.  All provisions and amendments thereto relating to
     information and reports, to be furnished by the Governor and the
     State Treasurer to the General Assembly, contained in the act,
     approved the eighteenth day of April, one thousand nine hundred
     nineteen (Pamphlet Laws, sixty-two), under the terms of which
     were issued the bonds of "Series 'D' Loan of the Commonwealth of
     Pennsylvania," which bonds are to be redeemed or retired by, or
     exchanged for, the bonds issued under the provisions of this
     act, shall continue in full force and effect, and shall be
     deemed to apply to the refunding bonds issued under the
     provisions of this act.
        All bonds issued under the authority of this act, shall be
     redeemed at maturity, and all interest due, from time to time,
     on such bonds shall be paid from the sinking fund. For the
     specific  purpose of redeeming said bonds at maturity and paying
     all interest thereon, and in accordance with the information
     received from the Governor, the General Assembly shall
     appropriate biennially the moneys necessary for the payment of
     the interest on said bonds and the principal thereof at
     maturity. All moneys so appropriated shall be paid into the
     sinking fund by the State Treasurer, and all of such moneys not
     necessary to pay accruing interest, shall be invested by the
     Board of Finance and Revenue in such securities as are provided
     by law for the investment of the sinking funds of the
     Commonwealth.
        The investments and such moneys and the accumulations thereon
     in the sinking fund shall be devoted to, and used exclusively
     for, the payment of the interest accruing on such bonds and
     their redemption at maturity; Provided, however, That the Board
     of Finance and Revenue is authorized at any time to use any of
     such funds for the purchase and retirement of all or any part of
     the bonds issued under the authority of this act. In the event
     that all or any part of said bonds shall be purchased by the
     Board of Finance and Revenue, they shall be cancelled and
     returned into the State Treasury as cancelled and paid bonds,
     and thereafter all payments of interest thereon shall cease.
        Section 7.  The sum of twenty-five thousand dollars
     ($25,000.00), or so much thereof as may be necessary, is hereby
     specifically appropriated from the Motor License Fund for the
     purpose of providing bonds issued under the provisions of this
     act, for the payment of the cost of advertising the same, and
     for all other expenses in connection with the sale, exchange and
     registration of said bonds. Payments from said appropriation
     shall be made by requisition of the Auditor General after
     approval of vouchers by the Governor, the Auditor General, and
     the State Treasurer.
        Section 8.  This act shall become effective immediately upon
     its final enactment.