§340E-36  Drinking water fund; uses andlimitations; types of assistance.  (a)  Moneys in the drinking water fundmay 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 usesinclude loans and other financial assistance for facilitating compliance withapplicable national primary drinking water regulations or otherwisesignificantly furthering the health protection objectives of the Federal Act.

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

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

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

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

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

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

(6)  To provide interest rate subsidies by depositingrevolving fund moneys into interest bearing accounts in participating financialinstitutions that issue loans for the implementation of eligible projects undersection 340E-35.

(c)  Five per cent of the moneys in thedrinking water fund shall be set aside for use in the geographic areas of theState serviced by water catchment systems for the purposes identified insubsection (b); provided, if no such area qualifies for use of the moneys inthe drinking water fund, the moneys shall no longer be set aside and revertback as unrestricted moneys to the fund. [L 1997, c 218, pt of §2; am L 2002, c132, §2]

 

Note

 

  Agency rules shall supersede the 2002 amendment until therules are amended, repealed, or replaced.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