PARRIS N. GLENDENING, Governor

Ch. 673

(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, EXCEPT THAT
THE ADMINISTRATION MAY. IN COOPERATION WITH THE TREASURER. ESTABLISH A
LINKED DEPOSIT PROGRAM TO EFFECT THE PURPOSES OF THIS SUBTITLE AND THE
FEDERAL SAFE DRINKING WATER ACT.

(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
Office of Legislative 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] BORROWERS for water
supply systems AND ANY FUNDS TRANSFERRED FROM THE WATER QUALITY FUND
PURSUANT TO § 302 OF THE FEDERAL SAFE DRINKING WATER ACT;

(2)     Funds appropriated by the General Assembly for deposit to the
Drinking Water Loan Fund;

(3)     Payments received from [local governments] BORROWERS 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(6) of this article OR § 7-222 OF THE STATE FINANCE AND
PROCUREMENT 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

(6)     Any additional moneys made available from any sources, public or
private, for the purposes for which the Drinking Water Loan Fund has been established.

(c)     The Administration may from time to time establish accounts and subaccounts
within the Drinking Water Loan Fund as may be deemed desirable to effectuate the
purposes of this subtitle, to comply with the provisions of any bond resolution, to meet the
requirements of any federal law, or of any federal grant or award to the Drinking Water
Loan Fund, or to meet any rules or program directives established by the Secretary or the
Board.

(d)     Amounts in the Drinking Water Loan Fund may be used only:

(1) To make loans at or below market rates ON THE CONDITION THAT:

(I) THE LOCAL GOVERNMENT BORROWER WILL ESTABLISH A
DEDICATED SOURCE OF REVENUE; OR

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