If the use authorized by the order or resolution authorizing the issuance of a bond under Section 221.046, the bond proceeds may be used to:

1. (1) pay interest on the bond during or after the acquisition or construction of an improvement project financed by the bond issue;
2. (2) pay administrative and operation expenses;
3. (3) create a reserve fund for payment of the principal of and interest on the bonds; or
4. (4) create any other fund.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 24.01(a), eff. Sept. 1, 1997.