USE OF PROCEEDS

(a) The proceeds of the bonds of a corporation may be used to: (1) finance, refinance, or provide one or more public facilities; (2) maintain reserve funds determined by the sponsor and the corporation to be necessary and appropriate; or (3) pay any costs relating to the issuance or incurrence of bonds by the corporation and the purchase of sponsor obligations by the corporation, including: (A) the cost of: (i) financing charges and interest on the bonds; (ii) financing, legal, accounting, financial advisory, and appraisal fees, expenses, and disbursements; (iii) an insurance policy; (iv) printing, engraving, and reproduction services; (v) the initial and acceptance fees of a trustee, paying agent, bond registrar, or authenticating agent; and (vi) a credit agreement; and (B) reasonable amounts to reimburse the corporation for time spent by its agents or employees with respect to the issuance, incurrence, or purchase. (b) The purchase by the corporation of a sponsor obligation does not extinguish the debt represented by the sponsor obligation. (c) Pending a use described by Subsection (a), the proceeds may be invested in accordance with Section 303.041.