(a) The proceeds realized from the sale of bonds under the provisions of this act shall be paid into a special fund in the State treasury, hereby created, to be known as the “Nursing Home Loan Development Fund,” and are hereby specifically dedicated to the purposes of the referendum of May 21, 1974 and the referendum of November 2, 1982 as implemented by this act. The moneys shall be paid by the State Treasurer periodically to those departments, agencies, or authorities authorized to expand same at such times and in such amounts as may be necessary to satisfy the funding needs of the department, agency or authority.

(b) Pending their application to the purposes authorized, moneys held or deposited by the State Treasurer may be invested or reinvested as are other funds in the custody of the State Treasurer in the manner provided by law. All earnings received from the investment or deposit of such funds shall be paid into the State treasury to the credit of the Nursing Home Loan Sinking Fund.