(a) Powers.--In addition to its other powers, the authority is authorized to finance projects to retrofit existing college dormitories and housing units with sprinklers by making loans to colleges.

(b) Reimbursement.--For any authority bond issued under subsection (a), the authority shall reimburse the college, each fiscal year, for the cost of interest paid by the college during the fiscal year on the bond in excess of an interest rate of 3%, using funds from appropriations to the department for such purpose or from any other funds available to the department for such use. The department shall deposit any funds appropriated for this purpose into a restricted account to be used to pay to the authority the interest reimbursements when due.

(c) Bonds.--The bonds of the authority issued to pay the cost of a project under this act shall be authorized by resolution of the board thereof or by the terms of a trust indenture authorized by such board and shall be of such series, shall bear such date or dates, shall mature at such time or times, not exceeding 20 years from their respective dates, shall bear interest at such rate or rates, shall be in such denominations, shall be in such form, either coupon or fully registered without coupons, shall carry such registration, exchangeability and interchangeability privileges, shall be payable in such medium of payment and at such place or places, shall be subject to such terms of redemption, not exceeding 105% of the principal amount thereof and shall be entitled to such priorities in the revenues, rentals or receipts of the authority as such trust, indenture, resolution or resolutions may provide. The bonds shall be signed by such officers, either manually or by facsimile, as the authority shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the authority, all as may be prescribed in such resolution or resolutions. Bonds may be issued and delivered notwithstanding that one or more of the officers signing such bonds or the treasurer whose facsimile signature shall be upon the coupons or any thereof shall have ceased to be such officer or officer or officers at the time when such bonds actually shall be delivered. Such bonds may be sold at public or private sale for such price or prices as the authority shall determine, with the approval of the college for whose use the project is being constructed.