1. A. All funds available in the Wastewater Facility Construction Revolving Loan Account shall first be used to assure maintenance of progress towards compliance with enforceable deadlines, goals, and requirements of the Oklahoma Environmental Quality Code, Oklahoma's Water Quality Standards, and Federal Clean Water Act, including urban storm water activities conducted pursuant to Section 2-15-101, et. seq. of Title 27A of the Oklahoma Statutes, that are exempt from funds administered under the Nonpoint Source Management Program of the Federal Clean Water Act.

   Upon the determination by the Board that all enforceable requirements have been met by Oklahoma communities and all other eligible wastewater projects have been funded, funds in the account may be used for the implementation of the nonpoint source management program pursuant to Section of this title.

2. B. The Board shall use the Wastewater Facility Construction Revolving Loan Account only as provided by the federal Water Quality Act of 1987 for the following purposes:

   1. 1. To make a loan to an eligible entity if:

      1. a. the loan application, project and planning documents have been approved by the Board pursuant to Section of this title or the Oklahoma Conservation Commission pursuant to Section of this title,
      2. b. the loan is made at or below market interest rates, including interest-free loans, at terms consistent with the federal Water Quality Act of 1987,
      3. c. principal and interest payments will begin not later than one year after completion of any wastewater project and all loans will be fully amortized consistent with the federal Water Quality Act of 1987,
      4. d. the Wastewater Facility Construction Revolving Loan Account will be credited with all payments of principal of and interest on all loans,
      5. e. the applicant demonstrates to the satisfaction of the Board the financial capability to assure sufficient revenues to pay debt service,
      6. f. the recipient of the loan establishes a dedicated source of revenue for payment of debt service for the loan, and
      7. g. the recipient agrees to maintain financial records in accordance with governmental accounting standards, to conduct an annual audit of the financial records relating to the treatment works, and to submit the audit report to the Board on a scheduled annual basis;
   2. 2. To buy or refinance eligible entity obligations at or below market rates if the eligible entity obligations were incurred in construction which began after March 7, 1985;
   3. 3. To guarantee or purchase insurance for eligible entities if the guarantee or insurance would improve access to market credit or reduce interest rates;
   4. 4. As a source of revenue or security for the payment of principal of and interest on any investment certificate issued by the Board. The proceeds of the sale of such investment certificates shall be deposited in the Wastewater Facility Construction Revolving Loan Account in compliance with applicable bond resolutions or indentures authorizing the sale;
   5. 5. To provide loan guarantees to similar revolving loan accounts or funds established by eligible entities;
   6. 6. To earn interest on accounts established under the Wastewater Facility Construction Revolving Loan Account;
   7. 7. To administer the Wastewater Facility Construction Revolving Loan Account pursuant to the provisions of this act. All funds to be utilized for administrative costs from the Wastewater Facility Construction Revolving Loan Account shall be subject to annual designation by the State Legislature; and
   8. 8. For such other purpose or in such other manner, as is determined by the Board to be an appropriate use of the Wastewater Facility Construction Revolving Loan Account and which has been specifically approved by the Environmental Protection Agency pursuant to the federal Water Quality Act of 1987.

Laws 1988, c. 202, § 4, eff. July 1, 1988; Amended by Laws 1993, c. 145, § 326, eff. July 1, 1993; Amended by Laws 1999, SB 241, c. 381, § 3, emerg. eff. June 8, 1999 (superseded document available).