Ch. 673

1997 LAWS OF MARYLAND

(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;

(3) TO ESTABLISH A LINKED DEPOSIT PROGRAM OR PROGRAMS TO
CONTROL NONPOINT SOURCES OF POLLUTION AND FOR ESTUARINE

CONSERVATION AND MANAGEMENT;

(3)    (4) (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) (5) (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 Water Quality Fund;

(5)    (6) (5) To earn interest on Water Quality Fund accounts;

(6)    (7) (6) For the reasonable costs of administering the Water Quality
Fund and conducting activities under Title VI of the Federal Water Pollution Control
Act; and

(7) (8) (7) For any other purpose authorized by Title VI of the Federal
Water Pollution Control Act OR § 302 OF THE FEDERAL SAFE DRINKING WATER ACT.

(e) The costs of administering the Water Quality Fund shall be paid from federal
capitalization grants and awards, from bond sale proceeds, and from amounts received
from borrowers pursuant to loan agreements, and not from any State moneys
appropriated to the Fund, except general funds of the State used to match federal
capitalization grants and awards to the Water Quality Fund.

9-1605.1.

(a) (1) There is a Maryland Drinking Water Revolving Loan Fund. The
Drinking Water Loan Fund shall be maintained and administered by the Administration
in accordance with the provisions of this subtitle and such rules or program directives as
the Secretary or the Board may from time to time prescribe.

(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 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] IN ACCORDANCE
WITH THE PROVISIONS OF THIS SUBTITLE AND THE FEDERAL SAFE DRINKING
WATER ACT.

(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.

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