§ 6143. Enforcement of loan agreement.

401 words·~2 min read·/pa/title-74/chapter-61/6143

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Posting of security.-- The department may, prior to its approval of any loan application, require that the applicant post with the department such security as will assure compliance with the terms of the loan. The amount that shall be posted shall not exceed 25% of the loan application. After a period of demonstrated compliance with the loan agreement, the department may reduce the amount posted or may eliminate the posting entirely. In the event of a default, the security shall be utilized for the retirement of the bonds provided for in Subchapter E (relating to bond issuance).

(b)Lien.-- Upon entering into an agreement with a loan applicant, the department may enter a lien against the property of the applicant. The lien shall attach to all property and rights to the property immediately upon acquisition of any interest therein by any other corporation, association or person, whether the interest be legal, equitable or subject to a security interest as defined by Title 13 (relating to commercial code), including any interest that may be created therein pursuant to a trust, lien or other device by a creditor of the corporation, association or person to secure repayment of any obligation of the corporation, association or person.

(c)Recording and priority.-- The department shall record the lien provided for under this section with the office of the prothonotary of the county wherein the airport is located and the lien shall be given a priority exceeded only by claims of the Federal Government, insofar as the laws of the United States may give a prior claim to the Federal Government.

(d)Release and appeal.-- The department shall release the lien upon a showing by the applicant that he has not violated the loan agreement. The applicant may appeal a determination by the department that he has violated the agreement to the Board of Finance and Revenue. The appeal shall be made in accordance with Title 2 (relating to administrative law and procedure), including appeal to the courts.

74c6161h

SUBCHAPTER E

BOND ISSUANCE

Sec.

6161. Authority to borrow.

6162. Bonds.

6163. Sale of bonds.

6164. Refunding bonds.

6165. Disposition and use of proceeds.

6166. Registration of bonds.

6167. Information to General Assembly.

6168. Redemption of bonds.

6169. Expenses of preparation, issue and sale of bonds.

Cross References. Subchapter E is referred to in section 6143 of this title.

74c6161s