GARVEE bonds issued under the provisions of this Act do not constitute a debt or liability of the State or of any political subdivision of the State, or a pledge of the full faith and credit of the State or of any political subdivision of the State, but are payable solely from the funds and revenues pledged for that purpose.

The proceeds from the sale of the GARVEE bonds are to be deposited into the appropriate highway fund capital account or other appropriate dedicated revenue account.

Sec. 4. Maine Municipal Bond Bank provisions. The bank has all the powers and duties provided by the Maine Revised Statutes, Title 30-A, chapter 225, modified and supplemented as provided in this section for the purposes set forth in this section. All words, terms and phrases have the same meaning as provided in Title 30- A, chapter 225, except as modified and supplemented in this section for the purposes set forth in this section.

1. Lending and borrowing powers. The bank may assist the State by borrowing money to finance or refinance from time to time all or a portion of the costs of the qualified transportation project and make the proceeds of such borrowing available to the Department of Transportation at terms agreed upon by the bank, the State Budget Officer and the Department of Transportation. The principal of and interest on any bonds or notes issued by the bank to finance or refinance the qualified transportation project must be secured by a pledge of funds paid by the Federal Highway Administration and any matching funds of the State as necessary and legally available that are allocated for such purpose on an annual basis by the Department of Transportation in its sole discretion and may further be secured by a pledge of any rights, grants, reserves, contracts, agreements or other revenues or property as may be determined by resolution of the bank. Bonds, notes, leases, agreements or other forms of debt or liability entered into or issued by the bank under this section are not in any way a debt or liability of the State and do not constitute a loan of the credit of the State or create any debt or liability on behalf of the State or constitute a pledge of the faith and credit of the State. Each bond, note, lease, agreement or other evidence of debt or liability entered into by the bank must contain a statement to the effect that the bank is obligated to pay the principal, interest, redemption premium, if any, and other amounts payable solely from the sources pledged for that purpose by the bank and that neither the faith and credit nor the taxing power of the State is pledged to the payment of the principal, interest,