(A) There is established the Drinking Water Revolving Loan Fund, which must be held and administered by the authority in accordance with the provisions of this chapter and policies, rules, regulations, directives, and agreements as may be promulgated or entered into by the authority pursuant to this chapter. Earnings on balances in the drinking water fund must be credited to the drinking water fund. Amounts remaining in the drinking water fund at the end of a fiscal year accrue only to the credit of the drinking water fund. Amounts in the drinking water fund must be available in perpetuity for the purpose of providing financial assistance in accordance with the provisions of this chapter and the Safe Drinking Water Act.
(B) There must be deposited in the drinking water fund:
(1) federal capitalization grants, awards, or other federal assistance received by the department under authority of the Safe Drinking Water Act for purposes of the drinking water fund;
(2) funds appropriated by the General Assembly for deposit to the drinking water fund;
(3) payments received from a project sponsor in repayment of a loan, including amounts withheld by the State Treasurer and paid to the authority pursuant to Section 48-5-170;
(4) net proceeds of bonds issued by the authority;
(5) interest or other income earned on the investment of monies in the drinking water fund; and
(6) additional monies made available from public or private sources for the purposes for which the drinking water fund has been established.
(C) Amounts in the drinking water fund may be used only:
(1) to make loans to project sponsors in accordance with provisions of this chapter and the Safe Drinking Water Act;
(2) to buy or refinance debt obligations of project sponsors at or below market rates, if the debt obligations were incurred after July 1, 1993;
(3) to guarantee, or purchase insurance for, bonds, notes, or other evidences of obligation issued by a project sponsor for the purpose of financing all or a portion of the cost of a project, if the action improves credit market access or reduces interest rates;
(4) as a source of revenue or security for the payment of principal and interest on bonds issued by the authority if the proceeds of the sale of the bonds are deposited in the drinking water fund;
(5) to earn interest on drinking water fund accounts; and
(6) for any other purposes authorized by the Safe Drinking Water Act or any other federal law governing or appropriating funds for the drinking water fund.
(D) The authority may establish accounts and subaccounts within the drinking water fund as considered desirable to effectuate the purposes of this chapter, to comply with the provisions of a bond resolution, or to meet a requirement of the Safe Drinking Water Act.
HISTORY: 1997 Act No. 41, Section 1; 2010 Act No. 185, Section 2, eff May 28, 2010.
Effect of Amendment
The 2010 amendment in subsection (C)(6) added the text following the reference to the Safe Drinking Water Act.