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(b) Terms.--

(1) The department, with the approval of the Office of the Budget,

shall specify in its application to the authority:

(i) the maximum principal amount of the bonds for each separate

bond issue; and

(ii) the maximum term of the bonds, not to exceed 20 years.

(2) The total principal amount of bonds outstanding under this article

for all bond issues may not exceed $4,500,000,000. (1403 added June 12, 2012, P.L.577, No.60) Section 1404. Issuance of bonds and security.--

(a) Issuance.--The authority shall consider issuance of bonds upon application by the

department. Bonds issued under this article shall be subject to the provisions of

the Financing Law, unless otherwise specified by this article.

(b) Agreements.--The authority and the department may enter into loan agreements, .

credit agreements, bond purchase agreements and other contracts, instruments

and agreements in connection with the bonds in order to effectuate the purposes

of the Financing Law and this article.

(c) Security.--The bond obligations and bond administrative expenses are secured, ...

for the benefit of the holders of the bonds and the obligees under any agreements

in subsection (b), by pledge of, security interest in and first lien on all of the

following:

(1) Additional contributions collected under section 301.6.

(2) Moneys on deposit in the Debt Service Fund. This paragraph includes

all investment income on those moneys.

(3) All moneys relating to the bonds held on deposit in any other fund or

account under an instrument or agreement pertaining to the bonds. This

paragraph includes bond reserves and interest income on the moneys.

The security provided in this subsection does not apply to moneys

in any fund or account related to arbitrage rebate obligations.