WILLIAM DONALD SCHAEFER, Governor Ch. 535

(1)  A FEDERAL RECEIPTS ACCOUNT;

(2)  A STATE RECEIPTS ACCOUNT;

(3)  A MANAGEMENT AND ADMINISTRATION EXPENSE ACCOUNT;

(4)  A BOND PROCEEDS ACCOUNT;

(5)  AN ACCOUNT TO SEGREGATE A PORTION OR PORTIONS OF
THE REVENUES OR CORPUS OF THE FUND AS SECURITY FOR BONDS OF THE
ADMINISTRATION;

(6)  A LOAN REPAYMENT ACCOUNT; AND

(7)  AN INVESTMENT EARNINGS ACCOUNT.
(D) AMOUNTS IN THE FUND MAY BE USED ONLY:

(1)  TO MAKE LOANS, ON THE CONDITION THAT:

(I)  THE LOANS ARE MADE AT OR BELOW MARKET
INTEREST RATES, INCLUDING INTEREST FREE LOANS, AT TERMS NOT TO
EXCEED 20 YEARS;

(II)  ANNUAL PRINCIPAL AND INTEREST PAYMENTS
WILL COMMENCE NOT LATER THAN 1 YEAR AFTER COMPLETION OF ANY
WASTEWATER FACILITY AND ALL LOANS WILL BE FULLY AMORTIZED NOT
LATER THAN 20 YEARS AFTER PROJECT COMPLETION;

(III)  THE BORROWER WILL ESTABLISH A DEDICATED
SOURCE OF REVENUE FOR REPAYMENT OF LOANS; AND

(IV)  THE FUND WILL BE CREDITED WITH ALL
PAYMENTS OF PRINCIPAL AND INTEREST ON ALL LOANS;

(2)  TO BUY OR REFINANCE DEBT OBLIGATIONS OF LOCAL
GOVERNMENTS AT OR BELOW MARKET RATES, IF SUCH DEBT OBLIGATIONS
WERE INCURRED AFTER MARCH 7, 1985, AND WITH THE PRIOR APPROVAL OF
THE ADMINISTRATION;

(3)  TO GUARANTEE, OR PURCHASE INSURANCE FOR, BONDS,
NOTES, OR OTHER EVIDENCES OF OBLIGATION ISSUED BY A LOCAL
GOVERNMENT FOR THE PURPOSE OF FINANCING ALL OR A PORTION OF THE
COST OF A WASTEWATER FACILITY, IF SUCH ACTION WOULD IMPROVE
CREDIT MARKET ACCESS OR REDUCE INTEREST RATES;

(4)  AS A SOURCE OF REVENUE OR SECURITY FOR THE
PAYMENT OF PRINCIPAL AND. INTEREST ON BONDS ISSUED BY THE
ADMINISTRATION IF THE PROCEEDS OF THE SALE OF SUCH BONDS WILL BE
DEPOSITED IN THE FUND;

(5)  TO EARN INTEREST ON FUND ACCOUNTS;

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