The metropolitan transit authority shall have the power to borrow money for the purpose of acquiring any transportation system, or acquiring necessary cash for working funds, or for acquiring, constructing, extending or improving its transportation system, or any part thereof, and for acquiring property or equipment necessary and useful in the operation of its transportation system. For the purpose of evidencing the obligation of the authority to repay any money borrowed as aforesaid, the authority, pursuant to resolution adopted by the authority, may from time to time issue, sell and dispose of its interest-bearing bonds, short-term notes or obligations. All such bonds, notes and obligations shall be payable from the revenues or income to be derived from the transportation system or from incomes to be derived from any tax levied by or on behalf of the authority or from a combination of such sources as determined by the authority. Said bonds, notes or obligations shall not mature exceeding 20 years from the respective date of issue. No lien upon any real property of the authority shall be created thereby.

Any bonds or notes issued under the provisions of this section, their transfer and the income therefrom (including any profit made on the sale thereof) shall at all times be free from taxation within this state. (C.O. 23 § 2, 7-23-73.)