Pennsylvania Consolidated Statutes

53 Pa. Cons. Stat. § 5602 (2026)

Definitions.

✓ current as of May 2026

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§ 5602. Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Administrative service." In the case of authorities created for the purpose of making business improvements or providing administrative services, the term means those services which improve the ability of the commercial establishments of a district to serve the consumers, such as free or reduced-fee parking for customers, transportation repayments, public relations programs, group advertising and district maintenance and security services.

"Authority." A body politic and corporate created under this chapter; under the former act of June 28, 1935 (P.L.463, No.191), known as the Municipality Authorities Act of one thousand nine hundred and thirty-five; or under the act of May 2, 1945 (P.L.382, No.164), known as the Municipality Authorities Act of 1945.

"Board." The governing body of an authority.

"Bonds." Notes, bonds and other evidence of indebtedness or obligations which each authority is authorized to issue pursuant to section 5608 (relating to bonds).

"Business improvement." In the case of authorities created for the purpose of making business improvements or providing administrative services, the term means those improvements designated by an authority to be needed by a district in general or by specific areas or individual properties within or near the district, including, but not limited to, sidewalks, retaining walls, street paving, street lighting, parking lots, parking garages, trees and shrubbery, pedestrian walks, sewers, water lines, rest areas and acquisition and remodeling or demolition of blighted buildings or structures. Improvements shall not be made to property not acquired by purchase or lease other than those improvements made within a right-of-way.

"Construction." Acquisition and construction. The term "to construct" shall mean and include to acquire and to construct, all in such manner as may be deemed desirable.

"Eligible educational institution." An independent institution of higher education located in and chartered by the Commonwealth or a private secondary school located in this Commonwealth and approved by the Department of Education which is not a State-owned institution, which is operated not for profit, which is determined by the authority not to be a theological seminary or school of theology or a sectarian and denominational institution and which is approved as eligible by the authority pursuant to regulations approved by it.

"Federal agency." The United States of America, the President of the United States of America and any department of or corporation, agency or instrumentality created, designated or established by the United States of America.

"Financing," "to finance" or "financed." The lending or providing of funds to or on behalf of a person for payment of the costs of a project or for refinancing such costs, repayment of loans previously incurred to pay the cost of a project or otherwise.

"Health center." A facility which:

(1) is operated by a nonprofit corporation and:

(i) provides health care services to the public;

(ii) provides health care-related services or assistance to one or more organizations in aid of the provision of health care services to the public, including, without limitation, such facilities as blood banks, laboratories, research and testing facilities, medical and administrative office buildings and ancillary facilities;

(iii) constitutes an integrated facility which provides substantial health care services on a nonsectarian basis and other reasonably related services, including, without limitation, life care or continuing care communities and nursing, personal care or assisted living facilities for the elderly, handicapped or disabled; or

(iv) provides educational and counseling services regarding the prevention, diagnosis and treatment of health care problems; and

(2) if required by law to be licensed to provide such services by the Department of Health, the Department of Public Welfare or the Insurance Department, is so licensed or, in the case of a facility to be constructed, renovated or expanded, is designed to comply with applicable standards for such licensure.

"Improvement." Extension, enlargement and improvement. The term "to improve" shall mean and include to extend, to enlarge and to improve all in such manner as may be deemed desirable.

"Local government unit." This term shall have the same meaning as provided under section 8002 (relating to definitions).

"Municipal authority." The body or board authorized by law to enact ordinances or adopt resolutions for the particular municipality.

"Municipality." A county, city, town, borough, township or school district of the Commonwealth.

"Project." Equipment leased by an authority to the municipality or municipalities that organized it or to any municipality or school district located wholly or partially within the boundaries of the municipality or municipalities that organized it, or any structure, facility or undertaking which an authority is authorized to acquire, construct, finance, improve, maintain or operate, or provide financing for insurance reserves under the provisions of this chapter, or any working capital which an authority is authorized to finance under the provisions of this chapter.

"Provide financing for insurance reserves." Financing, on behalf of one or more local government units or authorities, all or any portion of a reserve or a contribution toward a combined reserve, pool or other arrangement relating to self-insurance which has been established by one or more local government units pursuant to 42 Pa.C.S. § 8564 (relating to liability insurance and self-insurance) up to, but not exceeding, the amount provided in section 8007 (relating to cost of project).

"Working capital." Shall include, but not be limited to, funds for supplies, materials, services, salaries, pensions and any other proper operating expenses, provided that the term shall be limited solely to hospitals and health centers, and private, nonprofit, nonsectarian colleges and universities, State-related universities and community colleges, which are determined by the authority to be eligible educational institutions. Nothing in this chapter shall prohibit the borrowing of working capital as may be necessary or incidental to the undertaking or placing in operation of any project undertaken in whole or in part pursuant to this chapter.

(Dec. 17, 2001, P.L.926, No.110, eff. imd.)

2001 Amendment. Act 110 amended the defs. of "authority" and "provide financing for insurance reserves," retroactive to June 19, 2001.

References in Text. The act of May 2, 1945 (P.L.382, No.164), known as the Municipality Authorities Act of 1945, referred to in the def. of "authority," was repealed by the act of June 19, 2001 (P.L.287, No.22).

The Department of Public Welfare, referred to in this section, was redesignated as the Department of Human Services by Act 132 of 2014.

Cross References. Section 5602 is referred to in sections 2305, 2307, 2314 of this title; section 1201.3 of Title 8 (Boroughs and Incorporated Towns); section 4304 of Title 73 (Townships).

Notes of Decisions

Cited in 11 cases (5 in the last 5 years), 2006–2026 · leading case: Holt's Cigar Co., Inc. v. City of Philadelphia, 952 A.2d 1199 (Pa. Commw. Ct. 2008).

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Holt's Cigar Co., Inc. v. City of Philadelphia, 952 A.2d 1199 (Pa. Commw. Ct. 2008). · cites it 2× “" Municipality Authorities Act, [5] 53 Pa.C.S. § 5602. From this it can be reasonably inferred that "other authority" was meant to include local legislative bodies.”

Pennsylvania v. Susquehanna Area Reg'l Airport Auth., 423 F. Supp. 2d 472 (M.D. Penn. 2006). “” See 53 Pa. Cons. Stat. Ann. § 5602 (" 'Construction.”

Harrisburg Auth. v. CIT Capital USA, Inc., 869 F. Supp. 2d 578 (M.D. Penn. 2012). “at 58 (citing 53 Pa. Cons. Stat. § 5602 )). Therefore, Dauphin claims that the license fees cannot be operating *601 expenses because the repayment of a financing cannot, under the Trust Indentures, also be “operating expenses.”

In Re: Chester Water Auth; Cross Aplt. Chester Co. (Pa. 2026). · cites it 6× “53 Pa.C.S. § 5602. Pertinent here, the structures, facilities, undertakings, or working capital that constitute projects are cabined by additional language contained in that definition.”

In Re: Chester Water Auth. Trust ~ Appeal of: City of Chester (Pa. Commw. Ct. 2021). · cites it 5× “” Section 5602 of the MAA, 53 Pa.C.S. §5602 (Definitions). By contrast, the MAA states that a municipality can establish and/or incorporate an “authority,” see 53 Pa.”

C. Carulli & B. Carulli, h/w v. N. Versailles Twp. Sanitary Auth. v. Port Vue Plumbing, Inc. (Pa. Commw. Ct. 2019). “]” 53 Pa.C.S. § 5602. The Act authorizes the creation of an authority for: (a) Scope of projects permitted.”

Reading Blue Mountain & N. R.R. v. Seda-Cog Jt. Rail Auth. (Pa. Commw. Ct. 2020). “]” 53 Pa.C.S. § 5602. 13 authorizes an authority to acquire and lease property.”

Chester Water Auth. v. Kennett Twp. ZHB (Pa. Commw. Ct. 2021). “53 Pa. C.S. § 5602. 4 The Zoning Officer further determined that the proposed improvements to the Property would be accessory uses to the primary use as a “Pennsylvania Municipal Authority,”7 which she concluded was an existing nonconforming use.”

Lower Perkiomen Valley Reg'l Sewer Auth. v. Beyer, 24 Pa. D. & C.5th 437 (2011). “The Lower Perkiomen Valley Regional Sewer authority is a municipal authority duly organized pursuant to the Pennsylvania Municipality Authorities Act, 53 Pa. C.S. §5602, et seq. . According to Condemnor’s website, at http://www.”

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