§ 51. Liability of state or municipality. 1. The bonds or other
obligations of an authority shall not be a debt of the state or the
municipality and neither the state nor the municipality shall be liable
thereon nor shall an authority have power in any way to pledge the
credit of the state or the municipality, nor shall the transfer from the
authority to the municipality or the vesting in the municipality of
property theretofore belonging to an authority impose upon the
municipality any obligations except such as it may expressly assume. The
foregoing provisions shall not apply in the event of a guaranty by a
municipality of the bonds or obligations of an authority.

2. Notwithstanding the provisions of the foregoing paragraph, a
municipality shall be liable for the repayment of any loans and interest
thereon made by the state to an authority, acting as an instrumentality
of such municipality.