Section 61May 25, 1973, Sec./Art. 61

Loans. - Administration may make loans from its Revolving Loan Fund to qualified local water utilities, upon the following conditions and pursuant to the following procedures:

(a) Qualification of Borrower. Before any loan may be granted, the local water utility shall (1) hold a valid certificate of Conformance or a Condition Certificate of Compliance from the Administration, and (2) meet such other and further loan qualification requirements as the trustees may establish;

(b) Feasibility Study. A feasibility study of any proposed project for which loan funds are sought shall be made by a consultant prequalified by the Administration;

(c) Security. The Administration may take as security for such loans the authorized revenue bonds or other evidence of debt by the local water utility;

(d) Loan Document and Procedures. The trustees shall adopt uniform rules, loan documents and procedures to be used in the granting of loans. Such rules shall include provisions for security, payment and default, and shall authorize the Administration to act as receiver in the event of Court proceedings for enforcement.

(e) Funding of Loan. When a loan is made to a local water utility, the entire amount of such loan shall be funded and set aside to assure completion of the subject for which such loan was granted.