(a) The proceeds of all temporary borrowings made pursuant to the provisions of section 5 of this act,¹ and the proceeds from the sale of bonds, other than funding bonds, issued pursuant to the provisions of section 6 of this act,² shall be paid to the State Treasurer and be held by him in a separate fund and be deposited in such depositories as may be selected by him to the credit of such fund, which fund shall be known as the “Land and Water Development Fund” (hereinafter referred to as the “Development Fund”).

(b) The moneys in the Development Fund are hereby specifically dedicated to meeting the cost of development of lands for conservation and reclamation purposes, and for recreation and historical purposes and the Commonwealth's administrative expenses thereof as herein authorized and defined and shall not be expended except in accordance with the terms of this act.

(c) Pending their application to the purposes provided in this act, moneys in the Development Fund may be invested and 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 and become a part of a sinking fund which shall be known as the “Land and Water Development Sinking Fund,” to be devoted to and to be used exclusively for the payment of interest accruing on bonds and notes issued under the authority of this act and the redemption of such bonds at maturity.