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 Korean Conflict Veterans' Compensation Fund, and shall be used for the payment of compensation to certain veterans as provided for in the Constitutional Amendment hereinbefore cited and in legislation passed in conformity therewith.

Whenever the Adjutant General of the Commonwealth shall certify that sufficient moneys are accumulated in the Korean Conflict Veterans' Compensation Fund to meet all valid and outstanding applications for compensation, excess moneys from such fund shall be transferred to the Korean Conflict Veterans' Compensation Sinking Fund in an amount which together with the then balance in the sinking fund and the interest to be earned thereon are sufficient to redeem the bonds for which such fund is liable, and the balance, if any, in excess of the amount necessary to meet such applications and administration costs shall be transferred from the Korean Conflict Veterans' Compensation Fund to the General Fund.