LD 889
pg. 2
Page 1 of 3 An Act To Create the County Government Capital Improvements Revolving Loan Fund... Page 3 of 3
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LR 185
Item 1

 
(7) The proceeds of notes or bonds issued by the bank
for the purpose of deposit in the fund; and

 
(8) Other funds from any public or private source
received for use for any of the purposes for which the
fund has been established.

 
2. Uses. The fund may be used for one or more of the following
purposes:

 
A. To make loans to counties for the acquisition, design,
planning, construction, enlargement, repair, protection and
improvement of public service infrastructure and capital
improvements;

 
B. To guarantee or insure, directly or indirectly, the
payment of notes or bonds issued or to be issued by a county
for the purpose of financing the construction of any capital
improvement described in this section;

 
C. To guarantee or insure, directly or indirectly, funds
established by counties for the purpose of financing
construction of any capital improvement;

 
D. To invest available fund balances and to credit the net
interest income on those balances to the fund;

 
E. To invest as a source of revenue or security for the
payment of principal and interest on general or special
obligations of the bank if the proceeds of the sale of the
obligations have been deposited in the fund or loaned to
eligible participants in the programs financed with the
fund, or as a source of revenue to subsidize county loan
payment obligations; and

 
F. To pay the costs of the bank associated with the
administration of the fund and projects financed by it as
long as no more than 2% of the aggregate of the highest fund
balance in any fiscal year is used for these purposes.

 
3. Establishment of accounts. The bank may establish accounts
and subaccounts within the fund as it determines desirable to
effectuate the purposes of this section, including, but not
limited to, accounts to segregate a portion of the fund for
grants and as security for bonds issued by the bank for deposit
in the fund and to be invested for the benefit of specified
projects receiving financial assistance from the fund.

 
4. Eligibility terms. The bank shall develop by rule the terms
of repayment of loans. A loan made pursuant to this section


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