(a) Capital Debt Fund.--Bonds issued under this chapter shall be paid at maturity. Interest due after July 1, 1968, on bonds and on notes issued under this chapter
shall be paid by the State Treasurer from the Capital Debt Fund. The General Assembly shall appropriate annually the money necessary to pay the interest
on the bonds and notes and the principal of the bonds and notes at maturity if no
other provision is made. Money appropriated shall be paid into the Capital Debt Fund by the State Treasurer.
(b) Investment.--Money received under subsection (a) prior to the date for disbursement shall be invested
by the State Treasurer pending disbursement in securities as are provided by law for
the investment of surplus money of the Commonwealth. The investment and the accumulations in the Capital Debt Fund shall be devoted to
and be used exclusively for the payment of the interest accruing on the bonds and
notes and for the redemption of the bonds and notes at maturity or upon the redemption
date if called for prior redemption. The State Treasurer is authorized to use such funds for the purchase and retirement
of all or any part of the bonds issued under this chapter; but no purchase may be
made which will reduce the money in the Capital Debt Fund below the amount necessary
to pay all principal and interest still to become due in the fiscal year of the purchase. If all or any part of any bonds issued under this chapter are purchased by the Commonwealth,
they shall be canceled and returned to the State Treasurer as canceled and paid bonds. Thereafter, all payment of interest on the bonds shall cease; and the canceled
bonds and coupons shall be destroyed in accordance with the act of April 27, 1925
(P.L. 319, No. 180), 1 entitled, “An act relating to the destruction of cancelled or unused bonds or other
evidences of indebtedness of this Commonwealth.”
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