Sec. 15.474. USE OF FUND. (a) Except as provided by Subsection (c), money in the fund may be used by the board only to provide financing or refinancing, under terms specified by the board, for an eligible project, as defined by Section 1373.001 , Government Code, or for projects included in the state water plan that are authorized under Subchapter C-1, Q, or R of this chapter, Subchapter E or F, Chapter 16 , or Subchapter J or L, Chapter 17 , including water conservation or reuse projects designed to reduce the need for this state or political subdivisions of this state to develop additional water resources. (b) Financing or refinancing of projects described by Subsection (a) may be provided by using money in the fund to make loans to eligible political subdivisions or to purchase bonds or other obligations of eligible political subdivisions bearing interest at a rate or rates determined by the board, including a rate or rates below prevailing market rates. (c) The board may use money in the fund: (1) as a source of revenue or security for: (A) the payment of the principal of and interest on: (i) revenue bonds issued by the board under this subchapter; or (ii) other bonds issued by the board if the proceeds of the bonds will be deposited in the fund; or (B) a bond enhancement agreement; (2) to acquire loans or other assets from another fund or account administered by the board, including political subdivision bonds sold or disposed of under Section 15.978 or 17.968 ; or (3) to pay the necessary and reasonable expenses of paying agents, bond counsel, and financial advisory services and similar costs incurred by the board in administering the fund. (d) The board, or comptroller or corporate trustee managing the fund at the direction of the board as provided by Section 15.473 (c), shall withdraw from the fund and forward to another person any amounts, as determined by the board, for timely payment of: (1) the principal of and interest on bonds described by Subsection (c)(1)(A) of this section that mature or become due; and (2) any cost related to bonds described by Subsection (c)(1)(A) of this section that become due, including payments under related credit agreements or bond enhancement agreements.
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