(a) The proceeds from the sale of school bonds issued under § 49-3-1002 constitute a special fund to be known as the special school fund, except funds for aiding this state in the construction of state education facilities or institutions as provided for in subsection (b), which shall be kept by the trustees of such county and the treasurer of the city schools separate and apart from all other funds and shall be applied exclusively to purchase property for school purposes, to purchase sites for school buildings, to erect or repair school buildings, to furnish and equip school buildings and to refund, call or make principal and interest payments on bonds or other obligations previously issued for the same purposes, and to be used for no other purposes by the county board of education of the county, the city board of education or the governing board of the city. The city board shall have a right to draw warrants on the funds only for the purposes mentioned in this subsection (a).

(b)

(1) Funds may also be raised by counties in this state in accordance with this part for the purpose of contributing or granting the funds to the state to aid in the constructing and equipping of any type of state educational facilities or institutions within the boundaries of such counties, or neighboring counties nearby enough so that the contributing county will be directly benefited by the facilities or institutions, either separately or in conjunction with other political subdivisions.

(2) Funds raised for the purposes listed in subdivision (b)(1) shall be paid to the state immediately upon the sale of bonds for that purpose by such counties rather than being kept by the trustee in such counties as a part of the special school fund provided for in subsection (a).

(c) Section 49-3-1003(b) shall not apply when the proceeds from the bonds are to be used for the purpose mentioned in subdivision (b)(1).