(a) To supervise and direct the State Treasurer in receiving the incomes and revenues payable, in accordance with the existing laws, into the Sinking Fund, and in applying the same, first, to payment of the accruing interest on the public debt, and, second, to the principal thereof, and not otherwise, except to repel invasion, suppress insurrection, or defend the State in war, in accordance with the provisions of the Constitution of the Commonwealth of Pennsylvania.

(b) To see that the State Treasurer, under its supervision and direction, shall open books in his department, keep separate and distinct accounts of all Sinking Fund moneys received and disbursed under this act, specifying the source of revenue, and when paid, and, from time to time, as the funds paid in may justify, apply the same to the payment of the accruing interest on the public debt, and the principal at or before the semiannual payments thereof may become due, and at no time or in no manner, shall any portion of the fund hereby created be otherwise applied.

(c) On the first business day of each month, to prepare a statement of the total amount of money in said fund, which, having been verified by oath or affirmation, shall be published in two newspapers, in Harrisburg, for public information. The board shall also, on the first business day in the months of January, April, July, and October in each and every year hereafter, apply all the moneys in the Sinking Fund, in excess of the amount required to pay the interest on the public debt, to the redemption, at not above par, of an equivalent amount of the public debt, or to the purchase of bonds of the Commonwealth at such prices as will be advantageous, taking into consideration the best available return upon the purchase of bonds of the United States at the then market prices. They may purchase any evidence of the said debt in the open market, if such purchase can be made to advantage. If they shall determine to redeem any part of said debt, they shall forthwith give legal notice of the amount of said debt which they are prepared to redeem, that the said amount will be redeemed on presentation to the designated disbursing agent of the State, and that the interest upon the certificates thereof shall cease from and after an interest due date to be designated by them, which shall not be more than ninety days after the publication of the notice: Provided, That the loans of the Commonwealth shall be redeemed, as far as practicable, in the order of their maturity.

(d) If in the opinion of the board, the purchase or redemption of loans of the Commonwealth cannot be made for the best interests of the Commonwealth, to purchase bonds of the United States at the then market prices. The State Treasurer, under the direction of the board, shall enter, on the “Sinking Fund Ledger,” the number, amount, and premium, paid for each United States bond so purchased. The board shall have the right to dispose of bonds purchased hereunder, whenever the money shall be required for the extinguishment of the public debt, or whenever the loans of the Commonwealth can be bought at such prices as they may deem for the best interests of the Commonwealth.

(e) To report and certify to the Governor annually, for the preceding calendar year, the amount received under and in accordance with existing laws, the amount of interest paid, the dates of the purchase of the public debt, the prices paid, the place where said sale was effected, the amount of the debt of the Commonwealth redeemed and held by them, and the number and amount of the bonds of the United States purchased and held in the Sinking Fund, and the amount and date of maturity of the respective loans of the Commonwealth, together with a summary statement of the receipts from all sources, and the expenditures of said fund, and a complete statement of the total amount of bonds and money remaining in said fund, whereupon the Governor shall direct the certificates representing the said indebtedness to be cancelled.

(f) Within ten days after the organization of the General Assembly, to report thereto the amount of the public debt so as aforesaid liquidated, the amount then remaining due, and the annual interest thereon, and what increase or modification of the Sinking Fund may be made, and what increase or reduction of taxes may be required or made, in order that the Legislature may provide for such contingencies as may arise.