2654                                  LAWS OF MARYLAND                                Ch. 306

IT IS UNABLE TO OBTAIN ON REASONABLE TERMS SUFFICIENT CREDIT
TO FINANCE ITS ACTUAL NEEDS WITHOUT SUCH GUARANTEE AND IF
THE BOARD OF PUBLIC WORKS DETERMINES THAT THERE IS A
REASONABLE ASSURANCE OF REPAYMENT OF THE LOAN OBLIGATION.

[(4)] (11) The Secretary of the Department of
Health and Mental Hygiene shall report on or before January
1 of each year to the Governor and the General Assembly on
the status of Bond Funds for the construction of [sewerage]
facilities under this [and previous Bond Authorization Acts]
Act. His report shall indicate funds expended, funds
committed, and funds remaining; and a list of projects for
which funds have been expended and are committed. It shall
also contain his projection of projects to be constructed
for the following two years for which grants, LOANS, OR LOAN
GUARANTEES are anticipated.

(c) From the proceeds of the sale of the bonds issued
under this Act, the sum of [Five Million Dollars
($5,000,000)] TEN MILLION DOLLARS ($10,000,000) 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