Section 8. Disaster Relief Redemption Fund.
(a) Establishment.--All bonds issued under the authority of this act shall be paid at maturity and all interest due from time to time on such bonds and on all notes issued under the provisions of this act shall be paid from the Disaster Relief Redemption Fund. The General Assembly shall appropriate annually the moneys necessary to pay the aforesaid interest on said bonds and notes and the principal of said bonds and notes at maturity for which other provision is not made. All moneys so appropriated shall be paid into the Disaster Relief Redemption Fund by the State Treasurer. All of such moneys so received prior to the date for disbursement thereof shall be invested by the State Treasurer pending disbursement in such securities as are provided by law for the investment of surplus moneys of the Commonwealth.
(b) Use of fund.--The investment of such moneys and the accumulations thereon in the Disaster Relief Redemption Fund shall be devoted to and be used exclusively for the payment of the interest accruing on such bonds and notes and for the redemption of such bonds and notes at maturity or upon the redemption date, if called for prior redemption. The State Treasurer, with the approval of the Governor, is authorized at any time to use any of such funds for the purchase and retirement of all or any part of the bonds issued under the provisions of this act. No purchase shall be made which will reduce the moneys in the Disaster Relief Redemption Fund below the amount necessary to pay all principal and interest still to become due in the fiscal year of such purchase. In the event that all or any part of said bonds shall be purchased by the Commonwealth, they shall be canceled and returned to the State Treasurer as canceled and paid bonds and thereafter all payments of interest thereon shall cease and the canceled bonds and coupons shall be destroyed as promptly as possible after cancellation but not later than two years after cancellation. A certificate evidencing the destruction of the canceled bonds, notes and coupons shall be provided by the loan and transfer agent to the issuing officials. All canceled bonds, notes and coupons shall be so mutilated as to make the canceled bonds, notes and coupons nonnegotiable.