WILLIAM DONALD SCHAEFER, Governor                         Ch. 396

9-1605.2.

THE ADMINISTRATION MAY ISSUE BONDS TO FURTHER THE PURPOSE OF
DEPOSITING THE NET BOND SALE PROCEEDS IN THE DRINKING WATER LOAN FUND
IN ACCORDANCE WITH THE PROCEDURES DESCRIBED IN § 9-1607 THROUGH § 9-1615,
INCLUSIVE, OF THIS ARTICLE.

9-1606.

(a)     A loan made by the Administration shall be evidenced by a loan agreement.
LOANS MADE FROM THE WATER QUALITY FUND SHALL BE [Subject] SUBJECT to the
provisions of § 9-1605(d)(1) of this article. [and the] SUBJECT TO THE provisions of any
applicable bond resolution, the Administration may consent to the modification, with
respect to rate of interest, time of payment of any installment of principal or interest,
security, or any other term of any loan agreement or loan obligation. In connection with
any security received by or owned by the Administration, including any loan obligations,
the Administration may commence any action to protect or enforce the rights conferred
upon it by any law or loan agreement or loan obligation.

(b)     Notwithstanding any other provision of public general or public local law,
charter, or ordinance, a borrower may issue and sell loan obligations to the
Administration:

(1)     At private sale, without public bidding;

(2)     Without regard to any limitations on the denomination of such
obligations; and

(3)     At any interest rate or cost or at any price that the borrower considers
necessary or desirable.

(c)     A borrower may pay any fees or charges necessary to enable the
Administration to sell its bonds, including any fees for the insurance of its loan
obligations or bonds of the Administration, or to provide any other guarantee, credit
enhancement, or additional security for any such loan obligations or bonds.

(d)     Notwithstanding any other provision of public general or public local law,
charter, or ordinance, a borrower may agree with the Administration to pledge any
moneys that the borrower is entitled to receive from the State, including the borrower's
share of the State income tax, to secure its obligations under a loan agreement. The State
Comptroller and the State Treasurer shall cause any moneys withheld under such a
pledge to be paid to, or applied at the direction of, the Administration.

(e)     Each loan agreement shall contain a provision whereby the borrower
acknowledges and agrees that the borrower's loan obligation is cancelable only upon
repayment in full and that neither the Administration, the Secretary, nor the Board is
authorized to forgive the repayment of all or any portion of the loan.

9-1607.

(a) The Administration may, subject to the prior approval of the Board and the
Secretary, issue bonds for the purpose of providing moneys for deposit to [the] A Fund.

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