(a) Temporary borrowing.--Pending the issuance of bonds of the Commonwealth, the Governor, the Auditor General and the State Treasurer are authorized, on the credit of the Commonwealth, to make temporary borrowings of such moneys as may from time to time be necessary to carry out the purposes of this chapter and are authorized in the name and on behalf of the Commonwealth to enter into loan or credit agreements with any banks or trust companies or other lending institutions or persons in the United States having power to enter into the same.

(b) Form.--All temporary borrowings made under the authority of this section shall be evidenced by notes of the Commonwealth, which shall be issued from time to time for such amounts, not exceeding in the aggregate the sum of $200,000,000, in such form and in such denominations, and subject to such terms and conditions of issue, prepayment or redemption and maturity, rate of interest and time of payment of interest as the issuing officials shall direct. All notes issued under the authority of this section shall bear the facsimile signatures of the issuing officials and a facsimile of the Great Seal of the Commonwealth and shall be countersigned by two duly authorized officers of a duly authorized loan and transfer agent of the Commonwealth.

(c) Funding and retirement.--All notes under this section shall be funded and retired by the issuance and sale of bonds of the Commonwealth to the extent that payment of these notes has not otherwise been made or provided for.

(d) Proceeds.--The proceeds of all temporary borrowings under this section shall be paid into the Local Criminal Justice Fund.