A county may expend the net proceeds of the sale of an issue of notes only to:
(1) make grants and loans in accordance with § 9-1605.2(h)(2)(i) of the Environment Article;
(2) make grants and loans to cover engineering costs and non-best- available-technology components, including drainfields, needed for the repair of existing on-site sewage disposal systems or the installation of new on-site sewage disposal systems that use the best available technology for nitrogen removal; or
(3) refund one or more issues of notes.