3.__Sufficient investments essential.__Ensuring sufficient investments in teacher and state employee retirement is essential to the continued vitality of the economy of this State;

4.__Funding increased investment.__Funding increased investment in teacher and state employee retirement with increased taxes or by cutting essential services to the most vulnerable citizens of this State is not in the best interests of the State and would undermine the economic recovery in this State; and

5.__Pension obligation financings.__Pension obligation financings as authorized in this subchapter are tax-exempt or taxable bonds repaid as provided in this subchapter and therefore do not represent constitutional debt of or the pledge of the full faith and credit of the State.

§6042.__Pension cost reduction bonds authorized

Notwithstanding any other provision of law, no later than August 15, 2005, the bank may issue up to $410,000,138 plus financing costs, excluding bonds to refund bonds for the purpose of obtaining the economic benefit of reducing the debt service on the outstanding bonds, of pension cost reduction bonds, to be repaid solely from funds provided in this subchapter.

The bank may issue pension cost reduction bonds pursuant to a resolution to be adopted by the bank in the amount and upon such terms as it considers appropriate. The terms of the pension cost reduction bonds, their repayment schedule and other

provisions to facilitate their creditworthiness must be determined by the bank.

The pension cost reduction bonds must be in the form, must bear interest at the rate or rates that, under the United States Internal Revenue Code of 1986, as amended, in the opinion of bond counsel to the bank may be included in or excludable from the gross income of the owners for federal income tax purposes and state income tax purposes, must mature at the time and must have such other terms as are determined by the bank except that no pension cost reduction bond may mature more than 20 years from the date of its issue.

Pension cost reduction bonds are not, and may not be deemed to constitute, a debt or liability of the State or of any political subdivision of the State, or a pledge of the full faith