8209 - Finality of proceedings as to validity of instruments.

     § 8209.  Finality of proceedings as to validity of instruments.        (a)  General rule.--Where a certificate of approval has been     issued by the department or has been deemed issued under section     8206 (relating to effect of failure of timely action by     department) or, in the case of tax anticipation notes, where the     filing with the department required by section 8128 (relating to     condition precedent to validity of tax anticipation notes) has     occurred and no petition for a declaratory order or complaint     has been filed within the applicable time limits specified in     section 8211 (relating to petitions for declaratory orders and     complaints to the department) or when, after a petition for a     declaratory order or complaint has been filed, the proceedings     have been approved finally by the department and no appeal to     court has been taken, or if an appeal to court has been taken     and the proceedings have been approved finally by the court or     the appeal has been dismissed, the validity of the proceedings,     the right of the local government unit lawfully to issue its     bonds or notes or to enter into a lease, guaranty, subsidy     contract or other agreement evidencing lease rental debt     pursuant to those proceedings, and the validity and due     enforceability of the bonds, notes or other instruments in     accordance with their terms shall not thereafter be inquired     into judicially, in equity, at law or by civil or criminal     proceedings, or otherwise, either directly or collaterally. The     effect of the approval by the department or by the court on     appeal or, in the case of tax anticipation notes, the effect of     filing in compliance with section 8128 shall be to ratify,     validate and confirm the proceedings absolutely, including the     lawful nature of the project and, in the case of tax     anticipation notes, the accuracy of the estimates contained in     the certificate as to taxes and revenues to be collected,     notwithstanding any defect or error in the proceedings, except     as specifically provided otherwise in this section, and any debt     limit imposed by this subpart shall be deemed increased to the     extent necessary to validate the debt or obligation. This     section does not relieve an initial purchaser of bonds or notes     from liability to a local government unit for the payment of the     consideration agreed in the contract of sale or make the bonds     or notes valid and enforceable in the hands of an initial     purchaser unless the issuer has received a substantial     consideration for the series as a whole.        (b)  Liability for willful violations or fraud.--This section     does not relieve any person participating in the proceedings     from liability for knowingly participating in an ultra vires act     of a local government unit or from any civil or criminal     liability for false statements in any certificates filed or     delivered in the proceedings.