Sec. 39.9. Application of periodic payments and proceeds of certificates of participation

Periodic payments to be made under an installment purchase contract and the proceeds of certificates of participation shall only be applied towards the following:

(a) the cost of the capital improvements being financed;

(b) the payment of interest pursuant to paragraph (e) of subdivision 2 of the General Municipal Law, section 109-b;

(c) preliminary costs of surveys, maps, plans, estimates, taking of title and interest during construction;

(d) the establishment of reserve funds;

(e) the cost or premiums of letters of credit, insurance or other credit enhancements;

(f) the costs of bond counsel, financial advisors, underwriters, trustees and paying agents; and

(g) other actual and necessary expenses directly related to the issuance of certificates of participation or execution of the installment purchase contract.