ELIGIBLE FUND USES

(a) Money in the fund, excluding money in the interest and sinking fund, may be used by the board to: (1) provide a grant to a state agency to fund a conservation program or conservation project, including a conservation program that provides funding to a political subdivision or person for a conservation project; (2) provide a grant or loan to a political subdivision for a conservation program or conservation project; (3) provide a linked deposit to an eligible financial institution for a loan to a person for a conservation project; (4) pay for a board conservation program; (5) make a transfer to the interest and sinking fund; (6) pay the costs of a bond issuance; and (7) pay for a board expense in administering the agricultural water conservation program under this subchapter. (b) Money in the interest and sinking fund may be used for the payment of bonds or, to the extent there are funds in excess of bond payment requirements, for transfers to the fund, or any other account in the funds. (c) The board shall transfer back to the state water implementation fund for Texas any money disbursed to the fund as described by Section 17.895(6) if the requirements of Section 15.435 are satisfied.