to issue bonds to fund Federal payments (A) Issuance In connection with a covered event for which the Secretary is required to make a payment under paragraph (1) to a participating State, the Secretary shall issue bonds under this paragraph, the proceeds of which shall be used for making such payment. (B) Terms Bonds issued under this paragraph shall be in such form and denominations, and shall be subject to such terms and conditions of issue, conversion, redemption, maturation, and payment as the Secretary may prescribe and shall be fully and unconditionally guaranteed both as to interest and principal by the United States, and such guaranty shall be expressed on the face of each bond. (C) Interest Bonds issued under this paragraph shall bear interest at a rate not less than the current average yield on outstanding market obligations of the United States of comparable maturity during the month preceding the issuance of the obligation as determined by the Secretary. (D) Amount The aggregate amount of bonds issued under this paragraph in connection with a covered event shall be equal to the aggregate amount of payments made by the Secretary pursuant to paragraph (1) in connection with such covered event and such additional amount as the Secretary considers appropriate to cover any administrative costs incurred by the State in connection with borrowing under this paragraph in connection with such covered event. (E) Treatment All bonds issued under this paragraph, and the interest on or credits with respect to such obligations, shall not be subject to taxation by any State, county, municipality, or local taxing authority. (4) Recoupment of Federal amounts Each participating State that receives a payment pursuant to paragraph (1) shall repay the Secretary, pursuant to its pledge made in accordance with subsection (a)(4)(D) and within 10 years of such receipt, an amount equal to such payment, together with interest on such amount sufficient to cover the costs to the Secretary of borrowing such amounts pursuant to