Which statement describes the primary use of bond or note proceeds?

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Bond or note proceeds are the funds raised when an issuer sells debt to finance a capital project. The primary use is to provide the money for the project itself and to cover the costs of preparing, issuing, and marketing the notes or bonds. This means the total proceeds are intended to fund the project plus the issuance costs (legal fees, underwriting, rating, printing, and related expenses). These proceeds are not meant for funding ongoing operating deficits or private ventures, and while some refunding issues involve debt to refinance existing debt, the standard, primary purpose described here focuses on financing the project and covering issuance costs.