582                              Laws of Maryland                        Ch. 246

4.  The sewer facility must meet all requirements and regulations
of the State and have the final approval of the State Department of
Health pursuant to Section 390 of Article 43. No loan may be
granted for a project that is not connected directly or indirectly
through a sewer system of adequate capacity to a sewage treatment
plant capable of maintaining the Water Quality Standards of the
State. No loan shall be made for a project which is likely to cause
untreated sewage to spill from an existing sewer or cause untreated
or inadequately treated sewage to by-pass a sewage treatment plant.

5.  The loan shall bear the same rate of interest as the Certifi-
cates of Indebtedness from which cash proceeds are used to provide
the loan.

6.  The loan shall be repaid within thirty (30) years, and the
first payment shall be made at such time as stipulated by the Board
of Public Works.

7.  Before any loan has been allowed, the petitioner shall execute
and acknowledge in a manner according to law, an agreement which
will specify the purpose, amount, and manner of repayment of the
loan and such other terms and conditions as may be required by
regulations of the Board of Public Works. The agreement shall be
signed on behalf of the State of Maryland by the Department of
Health and shall be approved by the Board of Public Works.

ADMINISTRATION OF GRANTS AND LOANS

(d)  Petitions in the first instance shall be directed to the State
Department of Health, and copies of all petitions shall be sent by
the State Department of Health to the Board of Public Works for
the informational use of the latter agency. The State Department
of Health shall study and investigate the several petitions from
time to time, to ascertain the projects most necessary and desirable
under the provisions of this Act; and the Department shall give
first approval to those projects and petitions most likely to abate,
prevent, and reduce pollution of the waters, rivers, streams, bays,
and coastal areas of the State of Maryland. In approving petitions
and projects, the Department shall specify the allocation of bond
proceeds among the several programs "Construction Grants," "Loans
for Sewer Construction," and "Comprehensive River Basin Pro-
grams." For those petitions approved, the State Department of
Health shall submit a report to the Board of Public Works. The re-
port shall certify the sum of the outright State grant or loan and
the sum which is required to advance all or part of any Federal
grant for which the project is eligible and shall incorporate a recom-
mendation that the Board of Public Works shall make available the
necessary funds as provided hereunder; and the Board of Public
Works thereupon shall make the funds available from moneys avail-
able under this Act.

(e)  The Board of Public Works may allocate from monies avail-
able under this Act, to every county, municipality, or any agency
thereof, or any special governmental agency which is charged with
providing a sanitary facility, whose plan is approved, the sum rec-
ommended by the State Department of Health. The Board of Public
Works shall certify the allocation of State Funds to the Treasurer
of the State and the Treasurer shall make them available to the local
governments and agencies which submitted the petitions, when
needed for the construction of the respective projects.