(1) As a part of the Fund, the Authority shall establish in distinct Bank accounts a Loans Fund for the purpose of (a) receiving all moneys borrowed by it including all repayments of loan instalments together with payment of interest made by the borrower on loans, (b) providing all moneys to be made available by the Authority as loans or advances to local authorities and other authorities or persons, (c) repayment of loans raised by the Authority for the purposes of this Act, and (d) expenditure on projects and schemes. (2) All matters connected with the Loans Fund shall be governed by the regulations made in this behalf.