Section 1602-A - Notes to evidence borrowing(a)(1) Any borrowing authorized hereunder shall be evidenced by notes of the Commonwealth of Pennsylvania. All of said notes shall mature not later than the last day of the current fiscal period.(2) The Governor, the Auditor General and the State Treasurer shall authorize and direct the issuance of notes authorized hereunder, which authorization and direction may provide for the subsequent issuance of such notes (hereinafter designated as "replacement notes") to refund such notes or replacement notes and may specify such other terms and conditions with respect to the notes and replacement notes thereby authorized for issuance as they may determine and direct.(3) Such notes shall be offered for sale by the Governor, the Auditor General and the State Treasurer to the highest and best bidder, after due public advertisement and open competitive bidding, on such terms and conditions as the Governor, the Auditor General and the State Treasurer shall direct provided that: (i) When the authorization and direction of the Governor, the Auditor General and the State Treasurer provide for the issuance of replacement notes, the Governor, the Auditor General and the State Treasurer are hereby authorized in the name and on behalf of the Commonwealth to issue, enter into or authorize and direct the State Treasurer to enter into agreements with any banks, trust companies, investment banking firms or other institutions or persons in the United States having the power to enter into the same (A) to purchase or underwrite an issue or series of issues of notes, (B) to credit, to enter into any purchase, loan or credit agreements, to draw moneys pursuant to any such agreements on the terms and conditions set forth therein and to issue notes as evidence of borrowings made under any such agreements, (C) to appoint an issuing and paying agent or agents with respect to notes, and (D) to do such other acts as may be necessary or appropriate to provide for the payment, when due, of the interest on and principal of such notes; such agreements may provide for the compensation of any purchasers or underwriters of notes or replacement notes, by discount in the purchase price of the notes or by payment of a fixed fee or commission at the time of issuance thereof and all other costs and expenses, including fees for agreements related to the notes, issuing and paying agent costs, and costs and expenses of issuance, may be paid from the proceeds of the notes; or(ii) When in a determination by the Governor, the Auditor General and the State Treasurer a more favorable interest rate on the competitive sale of the notes may be obtained by providing a line or letter of credit or some other suitable liquidity support for the notes, the Governor, the Auditor General and the State Treasurer are hereby authorized to enter into agreements with any banks, trust companies or other institutions or persons in the United States having the power to enter the same to credit, to enter into any purchase, loan or credit agreement, to draw moneys pursuant to such agreements and to issue notes as evidence of borrowings made from such agreements.(4) When the authorization and direction of the Governor, the Auditor General and the State Treasurer provide for the issuance of replacement notes, the State Treasurer shall, at or prior to the time of delivery of these notes or replacement notes, determine the principal amounts, dates of issue, interest rate or rates (or procedures for establishing such rates from time to time), rates of discount, denominations and all other terms and conditions relating to the issuance and shall perform all acts and things necessary to pay, or cause to be paid, when due, all principal of and interest on the notes being refunded by replacement notes and to assure that the same may draw upon any moneys available for that purpose pursuant to any purchase, loan or credit agreements established with respect thereto, all subject to the authorization and direction of the Governor, the Auditor General and the State Treasurer.(b) All notes issued under the authority of this article shall bear either the signatures of the Governor, the Auditor General and the State Treasurer, or the facsimile signatures of the Governor, the Auditor General and the State Treasurer, in which latter event such notes shall be countersigned by an officer of the duly designated loan and transfer agent or the issuing and paying agent of the Commonwealth. All such notes shall bear a facsimile of the Great Seal of the Commonwealth.(c) All notes issued under the authority of this article shall have the qualities and incidents of negotiable instruments under the Uniform Commercial Code. (d) The current revenues of the General Fund or the current revenues of the Motor License Fund, or the total current revenues of both funds respectively proportioned, shall be pledged for the payment of the principal and interest of such notes during such fiscal period and shall be payable in lawful money of the United States. All notes issued under the provisions of this article shall be exempt from taxation for State and local purposes except as may be provided under Article XVI of the act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971." 1929, April 9, P.L. 343, art. XVI-A, § 1602-A, added 1984, June 21, P.L. 407, No. 83, § 2, effective in 30 days.