Payments Which May be Made Out of Proceeds of Sale of

Bonds. The proceeds of sale of any bonds may be expended for any one or more of the following purposes, all as provided in the indenture relating to such bonds:

(a)For the acquisition of notes of any person secured by a mortgage described in §2103(i) of this Title to accomplish any lawful purpose of the Authority;

(b)For the payment of legal and fiscal fees and costs relating to the issuance and sale of the bonds;

(c)For payment of any other costs or expenses relating to the authorization, issuance or sale of bonds;

(d)For deposit in any one or more reserve funds or accounts or in any working capital fund or account or contingency fund or account relating to mortgage acquisition;

(e)For payment of interest on bonds during the period of actual mortgage acquisition; COL120106 CH. 66 MORTGAGE REVENUE BONDS

(f)For payment of trustees’ fees and costs and fees incurred by it;

(g)For payment of the principal of and interest on any indebtedness incurred pursuant to this Chapter that is by its terms repayable from the proceeds of sale of bonds.