There is hereby created a commission to be known as the “Pennsylvania Parkway Commission”, and by that name the commission may sue and be sued, plead and be impleaded, contract and be contracted with, and have an official seal. The commission is hereby constituted an instrumentality of the Commonwealth, and the exercise by the commission of the powers conferred by this act in the construction, operation and maintenance of the parkway shall be deemed and held to be an essential governmental function of the Commonwealth. The commission shall consist of three members, and the Secretary of Highways shall be a member ex officio. The two remaining members shall be appointed by the Governor by and with the advice and consent of two-thirds of the members of the Senate, and shall be residents of the Commonwealth of Pennsylvania at the time of their appointment and qualification, and shall also at such time have been qualified electors therein for a period of at least one year next preceding their appointment. The appointed members of the commission shall continue in office for terms of eight and ten years respectively from the dates of their appointment and until their respective successors shall be duly appointed and qualified, the term of each appointed member to be designated by the Governor at the time of his appointment, but their successors shall each be appointed for a term of ten years, except that any person appointed to fill a vacancy shall serve only for the unexpired term, and any member of the commission shall be eligible for reappointment. Immediately after such appointments the members of the commission shall enter upon their duties. Each appointed member of the commission before entering upon his duties shall take the oath prescribed by Article VIII of the Constitution of the Commonwealth. The commission shall elect one of the appointed members as chairman of the commission and shall also elect a secretary and treasurer who may not be a member of the commission. Two members of the commission shall constitute a quorum who for all purposes must act unanimously. No vacancy in the commission shall impair the right of a quorum of the commissioners to exercise all the rights and perform all the duties of the commission. Before the issuance of any parkway revenue bonds under the provisions of this act, each appointed member of the commission shall execute a bond in the penalty of twenty-five thousand dollars ($25,000), and the secretary and treasurer shall execute a bond in the penalty of fifty thousand dollars ($50,000), each such bond to be approved by the Governor, and to be conditioned upon the faithful performance of the duties of his office, which bonds shall be filed in the office of the Secretary of the Commonwealth. The commission shall make necessary rules and regulations for its own government and shall have power and authority to acquire, own, use, hire, lease, operate and dispose of personal property, real property and interests in real property, and to make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this act, and to employ engineering, traffic, architectural and construction experts and inspectors and attorneys and such other employes as may be necessary in its judgment, and fix their compensation: Provided, however, That all contracts and agreements relating to the construction of the parkway and connecting tunnels and bridges shall be approved by the Department of Highways, and the parkway and connecting tunnels and bridges shall be constructed under the supervision of the Department of Highways. Each appointed member of the commission shall receive an annual salary of five thousand dollars ($5,000) payable in monthly installments, and each member of the commission shall be reimbursed for necessary expenses incurred in the performance of his duties. All such compensation and salaries and all expenses incurred in carrying out the provisions of this act shall be paid solely from funds provided under the authority of this act, and no liability or obligation shall be incurred hereunder beyond the extent to which money shall have been provided under the authority of this act. All public or private property damaged or destroyed in carrying out the powers granted by this act shall be restored or repaired and placed in their original condition as nearly as practicable, or adequate compensation made therefor out of funds provided under the authority of this act.