Section 5. Direct obligations; exemption from taxation; means
of payment.
All bonds issued in accordance with the provisions of this act shall be direct obligations of the Commonwealth, and the full faith and credit of the Commonwealth are hereby pledged for the payment of the interest thereon as the same shall become due and the payment of the principal thereof at maturity. All bonds issued under the provisions of this act shall be exempt from taxation for State and local purposes, except as provided under Article XXIX of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971. The principal of and interest on such bonds shall be payable in lawful money of the United States.