(a) Payment of costs.--Payment of project costs may be made by any of the following methods or combination thereof:

(c) Resolution.--Tax increment bonds or notes shall be authorized by resolution of the issuing authority. The resolution shall state the name of the tax increment district, the amount of bonds or notes authorized and the interest rate or rates to be borne by the bonds or notes. The resolution may prescribe the terms, form and content of the bonds or notes and other matters as the authority deems useful.

(d) Amount and term.--Tax increment bonds or notes may not be issued in an amount exceeding the aggregate project costs. The bonds or notes shall mature over a period not exceeding 20 years from the date of issue. The principal and interest on the bonds and notes may be payable at any time and at any place. The bonds or notes may be payable to bearer or may be registered as to the principal or principal and interest. The bonds or notes may be in any denominations. The bonds or notes may be sold at public or private sale.

(e) Exempt from taxation.--The tax increment bonds issued hereunder and the income therefrom shall at all times be free from taxation for State or local purposes under any law of this Commonwealth. The interest on the bonds or notes may or may not be excluded from gross income for purposes of Federal income taxation.

(f) Liability; presumption.--Neither the members of an issuing authority nor any person executing the bonds shall be liable personally on any such bonds by reason of the issuance thereof. Any bond reciting in substance that it has been issued to accomplish the public purposes of this act shall be conclusively deemed, in any suit, action or proceeding involving the validity or enforceability of such bond or security therefor, to have been issued for such purpose.

(g) Negotiable instruments.--The tax increment bonds issued in this act are hereby declared to have all the qualities of negotiable instruments under the law merchant and the negotiable instruments law of this Commonwealth.

(h) Payment of bonds and notes.--Tax increment bonds or notes are payable in whole or in part from the tax increment fund. To the extent that bonds or notes are payable in whole, each bond or note shall contain recitals as are necessary to show that it is only so payable and that it does not constitute an indebtedness of any municipality or school district or a charge against the general taxing power thereof. The issuing authority shall irrevocably pledge all or a part of the tax increment fund to the payment of the bonds or notes. The fund or designated part thereof may thereafter be used only for the payment of the bonds or notes and interest until they have been fully paid, and a holder of the bonds or notes or of any coupons appertaining thereto shall have a lien against the fund for payment of the bonds or notes and interest, and may either at law or in equity protect and enforce the lien. Notwithstanding the foregoing, a municipality or school district may guarantee the payment of tax increment bonds or notes pursuant to the provisions of the act of July 12, 1972 (P.L. 781, No. 185),¹ known as the Local Government Unit Debt Act. In such instance, appropriate notation of such shall be reflected in the recitals of each bond or note.

(i) Security of bonds or notes.--To increase the security and marketability of tax increment bonds or notes, the issuing authority may:

(j) Additional payment method.--For the purpose of paying project costs, the governing body of the municipality may also allow payments to be made in full at the time such costs accrue, thus allowing the project to be all or partially funded on a pay-as-you-go basis.