§2825. Use of Drinking Water Revolving Loan Fund
A.
(1)All monies within, credited to the accounts of, or to be received
by the drinking water loan fund, including sums to be received pursuant to
letters of credit, shall be expended, committed, or pledged in a manner
consistent with the terms and conditions of the grants and other sources of said
deposits, credits, and letters of credit and as provided in federal and state law.
(2)Such funds may be used:
(a)To provide financial assistance, to the extent authorized under state
law, for the planning, design, construction, and rehabilitation of both publicly
and privately owned community water systems, and of nonprofit non-community water systems, which systems are included on the state project
priority list contained within the Intended Us
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§2825. Use of Drinking Water Revolving Loan Fund
A.(1) All monies within, credited to the accounts of, or to be received
by the drinking water loan fund, including sums to be received pursuant to
letters of credit, shall be expended, committed, or pledged in a manner
consistent with the terms and conditions of the grants and other sources of said
deposits, credits, and letters of credit and as provided in federal and state law.
(2) Such funds may be used:
(a) To provide financial assistance, to the extent authorized under state
law, for the planning, design, construction, and rehabilitation of both publicly
and privately owned community water systems, and of nonprofit non-community water systems, which systems are included on the state project
priority list contained within the Intended Use Plan.
(b) To provide financial assistance for the acquisition of real property
or interests therein, only when such acquisition is integral to a project
otherwise authorized by this Chapter, and the purchase is from a willing seller
at a fair market value.
(c) To provide loans at or below market interest rates, including interest
free loans, for a period not to exceed twenty years from the completion date of
the construction of a project so financed; however, loans made for projects for
a disadvantaged community may have a period of up to thirty years if such
loan period does not exceed the expected design life of the project. All such
loans shall be subject to approval by the Louisiana Department of Health,
office of public health.
(d) To purchase or refinance, at an interest rate that is less than or equal
to the market interest rate, debt obligations incurred after July 1, 1993, for
projects for public water systems owned by a governmental agency, public
corporation, or public trust within the state.
(e) To guarantee or purchase insurance for debt obligations, if the total
proceeds of which debt obligation support a project eligible for assistance
under this Chapter, if such guarantee or purchase of insurance would improve
credit market access or reduce the interest rate applicable for the obligation.
(f) To provide a source of revenue or security for the payment of
principal, interest, or premium on revenue or general obligation bonds or other
evidences of indebtedness issued by the Louisiana Department of Health, or
any governmental agency, public corporation, public trust, or any other entity
having the authority to issue debt for or on behalf of the state, if the net
proceeds of such debt instruments are deposited in the drinking water loan
fund, or are used to finance a project approved by the Louisiana Department
of Health, office of public health, or are used to refund any obligation which
finances a project approved under this Chapter.
(g) To provide loan subsidies to disadvantaged communities or to
communities expected to become disadvantaged as a result of a proposed water
system project; however, the total value of all such subsidies granted in any
year shall not exceed thirty percent of the capitalization grant for that year.
(h) To provide for any other expenditure consistent with the
capitalization grant agreement.
B. To the extent that monies within the drinking water loan fund are
not required for current obligations or expenditure, such amounts may be
invested in an interest-bearing account. All such interest earned on
investments shall be credited to the drinking water loan fund.
C. Of the total funds credited to the drinking water loan fund annually,
at least fifteen percent shall be available solely for the provision of loan
assistance to public water systems which regularly serve fewer than ten
thousand persons, to the extent that there is a sufficient number of projects
eligible and ready to receive such assistance.
D. Monies in the drinking water loan fund shall not be used to support
monitoring, operation, or maintenance expenditures associated with public
water systems.
E. Monies in the drinking water loan fund shall not be used to provide
loans or other financial assistance for public water systems owned by federal
agencies.