(a) The proceeds of an issue of taxable bonds and the investment earnings on the proceeds shall be used in the manner and to the extent specified in the ordinance or resolution providing for the issuance of the taxable bonds, by the governmental unit issuing the taxable bonds for a purpose specified for the issuance of taxable bonds in the law under authority of which the taxable bonds are issued.
(b) Notwithstanding subsection (a) of this section, invested or reinvested proceeds of an issue of taxable bonds shall be deemed to have been expended for a purpose specified for the issuance of taxable bonds in the law under authority of which the taxable bonds are issued if the earnings on the proceeds and proceeds of liquidation of the investments are acquired with the proceeds, to the extent that they are:(1) Applied to pay or service debt service on the taxable bonds; or(2) Applied toward that purpose.
(1) Applied to pay or service debt service on the taxable bonds; or
(2) Applied toward that purpose.
(c) When the bond proceeds of taxable bonds are invested or reinvested by the governmental unit in obligations permitted by this subchapter, the issuance of the taxable bonds shall be deemed to be for a public purpose, provided that the net proceeds of such an investment or reinvestment, after sufficient provision is made for debt service on the taxable bonds, are then applied to a purpose for which the governmental unit has authority to issue taxable bonds and the governmental unit has determined upon appropriate findings of fact that the application of net proceeds is for a public purpose that the governmental unit may perform.