8024 - Exclusion of subsidized debt from net nonelectoral debt or net lease rental debt.

     § 8024.  Exclusion of subsidized debt from net nonelectoral debt                or net lease rental debt.        (a)  Filings with department.--Subsidized debt shall not be     excluded from nonelectoral debt or lease rental debt, as the     case may be, for the purposes of establishing net outstanding     debt of either category until the following have been filed with     and approved by the department:            (1)  A copy, certified by the secretary of the board of        the local government unit or of the authority, of the        permanent or preliminary approval from the Commonwealth or        from the Federal Government of the project of the related        bonds or notes, or of the interest thereon, for subsidization        or for reimbursement of all or part of debt service or on        account of operations, but measured by the cost of the        project, or a certified copy of the subsidy contract with        another local government unit or an authority.            (2)  Evidence satisfactory to the department from the        subsidizing agency as to the indicated annual amount of the        subsidy.            (3)  Appropriate reference to the legislation authorizing        the reimbursement or subsidy indicating the legislated        recurring nature of the subsidy or, in the case of a subsidy        contract with another local government unit, evidence        satisfactory to the department that the amount to be excluded        is within the debt limitations of the other local government        unit or has been approved as electoral debt.            (4)  A computation, in reasonable detail, certified by        the proper officers of the local government unit or of the        authority, or by the financial advisor if one be retained,        showing the principal amount of the bonds to be serviced by        the reimbursement or subsidy, determined in the proportion        that the total indicated subsidy or reimbursement to be        received over the remaining life of the issue bears to the        total debt service to be paid over the remaining life of the        issue, computed to stated maturity or earlier mandatory call        dates.     The principal amount of the bonds or notes of the local     government unit of the authority which will constitute     subsidized debt shall, in those instances where the subsidy is     related to a percentage of lease rentals or to a percentage of     sinking fund payments, in either case applicable solely to debt     service, be that stated percentage of the bonds or notes. That     proportion of the bonds or of lease rental debt shall be     excluded as subsidized debt. The filing may be made     simultaneously with the filing for the approval of the balance     of the bonds then being issued or may be made or corrected at a     later date.        (b)  Incurring new debt.--Each time any new debt is to be     incurred, if subsidized debt is to be excluded, a new     certification shall be made to the department, stating one of     the following:            (1)  That there has been no decrease in the subsidy.            (2)  That there has been a decrease, in which case the        certification shall include a recomputation of the principal        amount to be excluded.            (3)  That there has been an increase and the local        government unit desires an increased exclusion certifying all        matters so changed and recomputing the principal amount to be        excluded.        (c)  Approval by department.--If the department approves the     exclusion of the principal amount of bonds or notes or lease     rental debt as being subsidized debt in accordance with this     subpart, originally or upon any recertification it shall return     a duplicate original of the filing to the local government unit     with its approval endorsed thereon. Upon receipt of the approval     by the local government unit, the principal amount of bonds     shall be excluded from nonelectoral debt or lease rental debt     for the purpose of determining net debt in each category.        Cross References.  Section 8024 is referred to in sections     8002, 8022, 8201 of this title.