The proceeds of the loan other than amounts required to establish reserves, to pay interest on the loan for a period not to exceed one (1) year, or to pay costs of the loan and of issuing bonds, all of which shall be set forth in written directions executed by the Secretary of the Department of Health, shall be deposited as cash funds into an account of the State Board of Health designated the “State Board of Health Public Health Laboratory Construction Fund” and disbursed by the secretary for the construction of the expansion.