2748

LAWS OF MARYLAND

Ch. 777

Chapter 286 of the Acts of 1974

SECTION 5. AND BE IT FURTHER ENACTED, That the actual
cash proceeds of the sale of the bonds to be issued under
this Act shall be paid to the Treasurer of the State upon
the warrant of the Comptroller and such proceeds shall be
used exclusively for the following purposes, to wit:

(C) FROM THE PROCEEDS OF THE SALE OF THE BONDS ISSUED
UNDER THIS ACT, THE SUM OF FIVE MILLION DOLLARS ($5,000,000)
MAY BE USED TO PROVIDE LOANS TO ASSIST IN THE CONSTRUCTION
OF SEWER FACILITIES. ANY COUNTY OR MUNICIPALITY, OR ANY
AGENCY OF THE STATE OR ITS SUBDIVISIONS CHARGED WITH
PROVIDING SEWER FACILITIES, MAY PETITION THE DEPARTMENT OF
HEALTH AND MENTAL HYGIENE FOR A LOAN TO ASSIST IN THE
CONSTRUCTION OF THESE FACILITIES, AFTER HAVING SUBMITTED A
COPY OF ITS PETITION TO THE STATE CLEARINGHOUSE IN THE
DEPARTMENT OF STATE PLANNING. THE DEPARTMENT MAY MAKE A
LOAN AVAILABLE FOR A PROJECT, WITH THE APPROVAL OF THE BOARD
OF PUBLIC WORKS, AND SUBJECT TO THE FOLLOWING CONDITIONS AND
LIMITATIONS:

(1)  THE PROJECT MUST BE INCLUDED IN THE COUNTY
WATER AND SEWER PLAN APPROVED BY THE COUNTY GOVERNING BODY
AND THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE PURSUANT TO
SECTION 387C OF ARTICLE 43 OF THE ANNOTATED CODE OF
MARYLAND, AS AMENDED FROM TIME TO TIME.

(2)  THE TOTAL AMOUNT OF THE STATE LOAN(S) FOR
ANY PROJECT MAY NOT EXCEED THE ELIGIBLE COST OF THE PROJECT
LESS THE TOTAL OF FEDERAL AND STATE GRANTS AND ANY FEDERAL
LOAN FOR THE PROJECT, NOR MAY IT EXCEED FIVE HUNDRED
THOUSAND DOLLARS ($500,000).

(3)  THE ELIGIBLE COST OF A PROJECT FOR WHICH A
LOAN IS MADE UNDER THIS SUBSECTION INCLUDES THE COST OF
REPORTS, PLANS, SPECIFICATIONS, LEGAL AND ADMINISTRATIVE
SERVICES, EQUIPMENT, CONSTRUCTION, LAND, AND EASEMENTS AND
RIGHTS-OF-WAY.

(4)  THE SEWER FACILITY MUST MEET ALL
REQUIREMENTS OF STATE LAW AND REGULATIONS AND MUST HAVE THE
FINAL APPROVAL OF THE DEPARTMENT OF HEALTH AND MENTAL
HYGIENE PURSUANT TO SECTION 394 OF ARTICLE 43 OF THE
ANNOTATED CODE OF MARYLAND, AS AMENDED FROM TIME TO TIME.
NO LOAN MAY BE MADE 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 MAY BE
MADE FOR A PROJECT WHICH IS LIKELY TO CAUSE UNTREATED SEWAGE
TO SPILL FROM AN EXISTING SEWER OR TO CAUSE UNTREATED OR
INADEQUATELY TREATED SEWAGE TO BYPASS A SEWAGE TREATMENT
PLANT.

(5)  THE LOAN SHALL BEAR THE SAME RATE OF
INTEREST AS THE BONDS FROM WHICH PROCEEDS ARE USED TO
PROVIDE THE LOAN.