(1) In addition to the powers otherwise granted by law, the authority has the power and is authorized to issue and sell bonds and notes, the proceeds of which may be used to make loans to any grantee for the construction or the refinancing of the construction of a facility pursuant to a loan agreement between the grantee, the department and the authority.
(2) Such loans shall be made from the proceeds of bonds or notes issued by the authority for the purpose of making such loans.