(b) Any money received from bonds issued under this chapter, after reimbursement and payment under subsection (a), may be used for the following purposes:

1. (1) The payment of the costs of economic development and pollution control facilities on account of which the bonds are issued, including both direct financing of such facilities and program financing under section 18.5 of this chapter.
2. (2) Issuance expenses for bonds authorized by this chapter.
3. (3) Interest on bonds authorized by this chapter for the anticipated construction period of the facilities being financed, plus interest on bonds authorized by this chapter for a period of one (1) year after that.
4. (4) Funding a reserve fund for payment of the principal of, premium (if any), and interest on bonds issued under this chapter.

5. (5) Working capital when financed in conjunction with economic development or pollution control facilities financed pursuant to program financing authorized under section 18.5 of this chapter if the program is funded with proceeds of taxable bonds.

   Until the money is applied under subdivision (1), it is subject to a lien in favor of the holders of the bonds or the trustee under the trust indenture, if any.

   [Pre-Local Government Recodification Citation: 18-6-4.5-23.]

   As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1982, P.L.28, SEC.9; P.L.25-1987, SEC.55; P.L.35-1990, SEC.50.