The Connecticut Higher Education Supplemental Loan Authority shall maintain a separate, nonlapsing account to hold funds for the Alliance District Teacher Loan Subsidy Program established pursuant to § 10a-247. The account shall contain any moneys required by law to be deposited in the account, including, but not limited to, any state appropriation or the proceeds from the sale of bonds issued for the purpose of § 10a-247. Moneys in the account shall be used (1) for the purposes of the Alliance District Teacher Loan Subsidy Program and for reasonable and necessary expenses for the administration of such program, (2) for the issuance of authority loans to refinance one or more eligible loans, and (3) to maintain a reserve held by the authority to cover any losses incurred by the authority from the issuance of such authority loans. For the purposes of this section, “authority loans” and “eligible loans” have the same meaning as provided in § 10a-223.