Use of funds on sale of bonds

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    (a)    Upon sale of State bonds authorized by an enabling act, the principal amount of the loan authorized by that enabling act shall be reduced by:

        (1)    the stated principal amount of the State bonds sold, if the bonds are sold at 95% or more of par; or

        (2)    the cash proceeds, excluding any accrued interest, received for the State bonds, if the bonds are sold at less than 95% of par.

    (b)    Whenever State bonds are sold as a consolidated issue at less than 95% of par, the Board, by resolution, shall determine the manner in which the cash proceeds received for the bonds, excluding accrued interest, shall be allocated among the loans included in that issue.


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