12 Pa. Code § 117.93. Loans for equipment purchases.

§ 117.93. Loans for equipment purchases.

(a)  The municipality shall deliver to the Department a note, security agreement and financing statements describing the specific equipment, which shall be filed with the Department of State, Corporation Bureau and the prothonotary’s office in the county where the equipment is physically housed or used, and other documents in conformity with 13 Pa.C.S. Division 9 (relating to Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper) necessary to create and perfect a security interest in favor of the Department in the property acquired either in whole or in part by the municipality with proceeds from the Department loan.
(b)  If a portion of the proceeds of a Department loan is used by the municipality for the purchase or other acquisition of a motor vehicle, the municipality shall supply to the Department the title to the vehicle being purchased and shall insure that a valid encumbrance is recorded in favor of the Department.
(c)  If other sources are supplying funding in addition to the Department, the Department will accept a subordinate lien position.
(d)  For new or used equipment purchases or procurement, the municipality shall submit one complete set of specifications of the item of equipment. The municipality is responsible for complying with applicable Federal, State or local laws with respect to equipment procurement.
(e)  Loan proceeds for the acquisition of equipment shall be disbursed to the municipality at the time of settlement as a lump sum disbursement.

Authority

   The provisions of this §  117.93 issued under section 7 of the Local Government Capital Project Loan Fund Act (53 P. S. §  6781-7).

Source

   The provisions of this §  117.93 adopted August 21, 1992, effective August 22, 1992, 22 Pa.B. 4315.

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