(a)  The authority is hereby authorized to provide for the issuance of bonds of the authority for the purpose of refunding any bonds of the authority, including temporary notes, then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the bonds.

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(b)  The proceeds of any bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority, be applied to the purchase or retirement at maturity or redemption of the outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof, and may, pending application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on such date as may be determined by the authority.

(c)  Any escrowed proceeds, pending such use, may be invested and reinvested in direct obligations of the United States of America, or in certificates of deposit or time deposits secured by direct obligations of the United States of America, maturing at such time or times as shall be appropriate to ensure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds to be so refunded. The interest, income, and profits, if any, earned or realized on any investment may also be applied to payment of the outstanding bonds to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments thereof may be returned to the authority for use by it in any lawful manner.

(d)  All bonds shall be issued and secured and shall be subject to the provisions of this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter.