WILLIAM DONALD SCHAEFER, Governor                         Ch. 396

(2)      THE DRINKING WATER LOAN FUND IS A SPECIAL, CONTINUING,
NONLAPSING FUND WHICH IS NOT SUBJECT TO § 7-302 OF THE STATE FINANCE AND
PROCUREMENT ARTICLE AND WHICH SHALL BE AVAILABLE IN PERPETUITY FOR
THE PURPOSE OF PROVIDING FINANCIAL ASSISTANCE TO WATER SUPPLY SYSTEMS,
AS DEFINED IN § 9-201 (U) OF THIS ARTICLE, OWNED OR OPERATED BY A LOCAL
GOVERNMENT AND RELATED COSTS, LOCAL GOVERNMENTS FOR WATER SUPPLY
SYSTEMS AND COSTS RELATED THERETO, INCLUDING STUDIES, SURVEYS, TESTS,
INSURANCE, ARCHITECTURAL, ENGINEERING AND LEGAL SERVICES, OTHER
SPECIAL SERVICES, ADMINISTRATIVE COSTS, AND OTHER MISCELLANEOUS
EXPENSES.

(3)      SUBJECT TO THE PROVISIONS OF ANY APPLICABLE BOND
RESOLUTION REGARDING THE HOLDING OR APPLICATION OF AMOUNTS IN THE
DRINKING WATER LOAN FUND, THE TREASURER SHALL SEPARATELY HOLD, AND
THE COMPTROLLER SHALL ACCOUNT FOR, THE DRINKING WATER LOAN FUND.

(4)      SUBJECT TO THE PROVISIONS OF ANY APPLICABLE BOND
RESOLUTION GOVERNING THE INVESTMENT OF AMOUNTS IN THE DRINKING
WATER LOAN FUND, THE DRINKING WATER LOAN FUND SHALL BE INVESTED AND
REINVESTED IN THE SAME MANNER AS OTHER STATE FUNDS.

(5)      ANY INVESTMENT EARNINGS SHALL BE RETAINED TO THE CREDIT
OF THE DRINKING WATER LOAN FUND.

(6)      THE DRINKING WATER LOAN FUND SHALL BE SUBJECT TO BIENNIAL
AUDIT BY THE DIVISION OF AUDITS AS PROVIDED FOR IN § 2-1215 OF THE STATE
GOVERNMENT ARTICLE.

(7)      THE ADMINISTRATION SHALL OPERATE THE DRINKING WATER
LOAN FUND IN ACCORDANCE WITH § 9-1616 THROUGH § 9-1621, INCLUSIVE, OF THIS
ARTICLE.

(B) THERE SHALL BE DEPOSITED IN THE DRINKING WATER LOAN FUND:

(1)      FEDERAL GRANTS AND AWARDS OR OTHER FEDERAL ASSISTANCE
RECEIVED BY THE STATE FOR THE PURPOSE OF MAKING LOANS TO LOCAL
GOVERNMENTS FOR CONSTRUCTING IMPROVEMENTS TO DRINKING WATER SUPPLY
SYSTEMS;

(2)      FUNDS APPROPRIATED BY THE GENERAL ASSEMBLY FOR DEPOSIT
TO THE DRINKING WATER LOAN FUND;

(3)      PAYMENTS RECEIVED FROM LOCAL GOVERNMENTS FOR DEPOSIT
TO THE DRINKING WATER LOAN FUND IN REPAYMENT OF A LOAN, INCLUDING
AMOUNTS WITHHELD BY THE STATE COMPTROLLER AND PAID TO THE
ADMINISTRATION PURSUANT TO A PLEDGE MADE BY A BORROWER UNDER §
9-1606(D) OF THIS ARTICLE;

(4)      NET PROCEEDS OF BONDS ISSUED BY THE ADMINISTRATION;

(5)      INTEREST OR OTHER INCOME EARNED ON THE INVESTMENT OF
MONEYS IN THE DRINKING WATER LOAN FUND; AND

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