Sec. 501.211. USE OF BOND PROCEEDS. (a) The proceeds of the bonds of each issue shall be: (1) used to pay or make a loan in the amount of all or part of the cost of the project or projects for which the bonds were authorized; and (2) disbursed in the manner and under any restrictions provided in the resolution authorizing the issuance of the bonds or in any trust agreement securing the bonds. (b) Bond proceeds may be used to: (1) pay all costs incurred in issuing the bonds; (2) pay interest on the bonds for any time determined by the board of directors of the corporation issuing the bonds; and (3) establish reserve funds and sinking funds for the bonds. (c) If the proceeds of the bonds of any series issued for a project exceed the cost of the project for which the bonds were issued, the surplus shall be: (1) deposited to the credit of the sinking fund for the bonds; or (2) used to purchase bonds in the open market.
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