loan repayments and interest earned on such amounts, to provide financial assistance described in subsection (f) to a covered entity to implement the approved working waterfronts plan of such eligible coastal state through preservation, improvement, restoration, rehabilitation, and acquisition of working waterfronts pursuant to criteria established by the Secretary. (B) Sale of bonds A covered entity may use amounts received under this section as a source of revenue (restricted solely to interest earnings of the applicable working waterfronts preservation loan fund) or security for payment of the principal and interest on a revenue or general obligation bond issued by the eligible coastal state to provide matching funds under subsection (e) if the proceeds of the sale of the bond will be deposited in the working waterfronts preservation loan fund of such eligible coastal state. (C) No increased bonding authority Amounts deposited in the working waterfronts preservation loan fund of an eligible coastal state may not be used as a source of payment of, or security for (directly or indirectly), in whole or in part, any obligation the interest on which is exempt from the tax imposed under chapter 1 of the Internal Revenue Code of 1986. (3) Limitation An eligible coastal state may not provide financial assistance described in subsection (f) to a covered entity that does not have the technical, managerial, and financial capability to ensure compliance with the requirements of this section. (4) Prevailing wages The Secretary shall ensure compliance with the provisions of the Act of March 3, 1931 ( 40 U.S.C. 3141 et seq.