(a) The authority is authorized and empowered to apply the proceeds of any bonds and any other funds belonging to the authority for any of the following purposes or uses:

(1) For the purposes for which the bonds were authorized to be issued, in the following order:

a. To repay the General Fund Rainy Day Account for the $161,565,874 transferred to the State General Fund in fiscal year 2010 pursuant to Amendment 803 to the Constitution of Alabama of 1901.

b. To repay a total of $238,434,126 to the Alabama Trust Fund for amounts transferred to the State General Fund in fiscal years 2013, 2014, and 2015 pursuant to Section 4 of Amendment 856 to the Constitution of Alabama of 1901.

c. To provide one hundred twenty million dollars ($120,000,000) to the Alabama Medicaid Agency to be distributed fifteen million dollars ($15,000,000) in fiscal year 2017 and one hundred five million dollars ($105,000,000) in fiscal year 2018. The Alabama Medicaid Agency shall use these additional funds and other administrative mechanisms to restore physician reimbursements that were reduced on August 1, 2016. Further, the Alabama Medicaid Agency shall ensure that not less than four million dollars ($4,000,000) is allocated for federal matching funds to provide outpatient dialysis care.

d. The remaining proceeds, not to exceed one hundred twenty million dollars ($120,000,000), to supplement existing allocated revenues or any planned revenues, whether federal, state, or local for transportation projects to be distributed sixty-five million dollars ($65,000,000) to the Alabama Department of Transportation District 91 of the Southwest Region for Highway 98/Highway 158 from the Mississippi state line to Interstate 65 and fifty-five million dollars ($55,000,000) to the Alabama Department of Transportation District 92 of the Southwest Region.

e. Any proceeds remaining after paragraphs a., b., c., and d. shall be used to repay the Alabama Trust Fund for amounts transferred to the State General Fund in fiscal years 2013, 2014, and 2015 pursuant to Section 4 of Amendment 856 to the Constitution of Alabama 1901. The proceeds allocated pursuant to this paragraph shall be in addition to the payment provided in paragraph b. above.

(2) To fund any reserve fund established in connection with an authorized issue if the authority deems the establishment of such reserve fund to be necessary and desirable.

(3) To pay for the cost of obtaining credit enhancement for the bonds.

(4) To pay capitalized interest on the bonds.

(5) To pay the costs of issuing the bonds.

(6) If refunding bonds are issued pursuant to this article, to pay debt service on, and the redemption price of, any bonds to be refunded.

(b) Pending the application of the proceeds of bonds of the authority to the purpose or purposes for which the bonds were issued, the proceeds and any monies held in funds created as security for the bonds may be invested by the authority in permitted investments, as the authority shall deem advisable.

(c) Any and all revenues, receipts, investment earnings, and other funds paid to, or otherwise coming into the possession of the authority shall be held, deposited, administered, invested, and applied as provided in the resolution of the directors authorizing the issuance of the bonds and as provided in any trust indenture or other agreement delivered in connection therewith, or otherwise as the authority may direct, consistent with the resolution, trust indenture, or other agreement and this article.