§340E-36  Drinking water fund; uses and
limitations; types of assistance.  (a)  Moneys in the drinking water fund
may be used only as allowed and limited by sections 1452(a)(2) and (3),
1452(d), and 1452(k)(1) and (2) of the Federal Act and this part.  Such uses
include loans and other financial assistance for facilitating compliance with
applicable national primary drinking water regulations or otherwise
significantly furthering the health protection objectives of the Federal Act.



(b)  Moneys in the drinking water fund may be
used only:



(1)  To provide, make, and condition loans;



(2)  To buy or refinance debt obligations of a
municipality, as defined by the Federal Act, at or below market interest rates
if the debt obligation is incurred after July 1, 1993;



(3)  To guarantee or purchase or provide insurance for
a public water system obligation if such action would improve credit market
access or reduce interest rates applicable to the obligation;



(4)  As a source of revenue or security for the
payment of principal and interest on revenue or general obligation bonds issued
by the State if the proceeds of the sale of the bonds will be deposited into
the drinking water fund;



(5)  To earn interest on the amounts deposited into
the drinking water fund; and



(6)  To provide interest rate subsidies by depositing
revolving fund moneys into interest bearing accounts in participating financial
institutions that issue loans for the implementation of eligible projects under
section 340E-35.



(c)  Five per cent of the moneys in the
drinking water fund shall be set aside for use in the geographic areas of the
State serviced by water catchment systems for the purposes identified in
subsection (b); provided, if no such area qualifies for use of the moneys in
the drinking water fund, the moneys shall no longer be set aside and revert
back as unrestricted moneys to the fund. [L 1997, c 218, pt of §2; am L 2002, c
132, §2]



 



Note



 



  Agency rules shall supersede the 2002 amendment until the
rules are amended, repealed, or replaced.  L 2002, c 132, §9.