Ch. 673

1997 LAWS OF MARYLAND

(II) IN THE CASE OF A WATER SUPPLY SYSTEM OWNED BY A
BORROWER OTHER THAN A LOCAL GOVERNMENT, THE BORROWER SHALL
DEMONSTRATE THAT THERE IS PROVIDE ADEQUATE SECURITY FOR THE
REPAYMENT OF THE LOAN;

(III) THE DRINKING WATER LOAN FUND WILL BE CREDITED WITH
ALL PAYMENTS OF PRINCIPAL AND INTEREST ON ALL LOANS; AND

(IV) ANNUAL PRINCIPAL AND INTEREST PAYMENTS WILL
COMMENCE NOT LATER THAN 1 YEAR AFTER COMPLETION OF ANY DRINKING
WATER FACILITY AND, EXCEPT AS PROVIDED IN § 130 OF THE FEDERAL SAFE
DRINKING WATER ACT. ALL LOANS WILL BE FULLY AMORTIZED NOT LATER THAN 20
YEARS AFTER PROJECT COMPLETION:

(2) To buy or refinance debt obligations of local governments issued by a
local government for the purposes of financing all or a portion of the cost of a water
supply system at or below market rates, IF SUCH DEBT OBLIGATIONS WERE INCURRED
AFTER JULY 1, 1993:

(3) TO ESTABLISH A LINKED DEPOSIT PROGRAM OR PROGRAMS FOR
LOANS IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBTITLE AND THE
FEDERAL SAFE DRINKING WATER ACT;

(3) (4) (3) To guarantee or purchase insurance for bonds, notes, or

other evidences of indebtedness issued by a local government for the purposes of

financing all or a portion of the cost of a water supply system, 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 Drinking Water Loan Fund;

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

(6) (7) (6) For the reasonable costs of administering the Drinking
Water Loan Fund and conducting activities under any federal law that may apply to
federal deposits to the Drinking Water Loan Fund; and

(8) (7) FOR LOAN SUBSIDIES FOR DISADVANTAGED COMMUNITIES AS
PROVIDED BY THE FEDERAL SAFE DRINKING WATER ACT, INCLUDING BUT NOT
LIMITED TO LOAN FORGIVENESS, PROVIDED THAT SUCH LOAN SUBSIDIES SHALL
NOT EXCEED 30% OF THE ANNUAL FEDERAL CAPITALIZATION GRANT RECEIVED BY
THE ADMINISTRATION: AND

(7) (9) (8) For any other purpose authorized for any federal funds
deposited in the Drinking Water Loan Fund INCLUDING, WITHOUT LIMITATION, ANY
PURPOSE AUTHORIZED BY THE FEDERAL SAFE DRINKING WATER ACT. INCLUDING
SOURCE WATER PROTECTION EXPENDITURES ELIGIBLE FOR ASSISTANCE FROM
THE DRINKING WATER LOAN FUND.

(e) The costs of administering the Drinking Water Loan Fund shall be paid from
federal grants and awards, from bond sale proceeds, and from amounts received from

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