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217 PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW (1404 added June 12, 2012, P.L.577, No.60) Section 1405. Sale of bonds.--The sale of bonds issued under this article shall be subject to the following:

(1) The authority shall give first consideration to issuing the bonds by means of a

public, competitive sale at not less than 98% of the principal amount and accrued

interest to the highest bidders. The authority shall publicly advertise the sale. The

manner and times of advertising shall be prescribed by the authority.

(2) If, in the judgment of the authority, a public, competitive sale will not produce the

most benefit to employers and the Commonwealth, the authority shall adopt a

resolution setting forth in detail the reasons for this determination. A copy of the

resolution shall be transmitted to the Governor, the chairman and minority

chairman of the Labor & Industry Committee of the Senate and the chairman and

minority chairman of the Labor & Industry Committee of the House of

Representatives. After adoption of the resolution, the authority shall have the

option to pursuea negotiated sale. (1405 added June 12, 2012, P.L.577, No.60) Section 1406. Use of bond proceeds.--

(a) Order.--Upon issuance of bonds, the proceeds shall be applied in the

following order:

(1) pay the costs of issuance of the bonds;

(2) fund bond reserves;

(3) deposit in an appropriate fund moneys to pay capitalized interest on the

bonds for the period determined by the department, not to exceed two years;

(4) refund outstanding bonds, if applicable;

(5) make any other deposit required under any instrument or agreement

pertaining to the bonds;

(6) repay the principal and interest of Federal advances; and

(7) deposit any balance into an unemployment compensation program

fund under any instrument or agreement relating to the bonds.