2006 Louisiana Laws - RS 30:2078 — Municipal facilities revolving loan fund program; purposes; establishment; capitalization of fund; disposition of monies; administration; exemption from certain public bond trust restrictions

§2078.  Municipal Facilities Revolving Loan Fund Program; purposes; establishment; capitalization of fund; disposition of monies; administration; exemption from certain public bond trust restrictions

A.  It is the determination of the legislature that the federal funds for the administration and implementation of the Federal Wastewater Construction Grants Program will decline within the years to come, thereby decreasing the amount of funds that the state will have to operate and carry out the functions that it has been assigned to accomplish.  In order to continue to provide funds to municipalities and other political subdivisions for the planning, design, construction, and rehabilitation of wastewater treatment facilities, and other lawful activities connected with this program, it is the purpose of this Section to provide for the establishment of a clean water revolving loan fund to be capitalized by federal grants, state funds when required or available, and by any other funds generated by the operation of the clean water revolving loan fund, to authorize the Department of Environmental Quality, the "department", to engage in activities regarding the sums on deposit in, credited to, or to be received by the clean water revolving loan fund, to authorize the department to guarantee debt issued and incurred by other entities, and to authorize the department to pledge such sums, including sums to be received pursuant to letter of credit payments, to secure the debt of other entities.

B.(1)  There is hereby established a clean water revolving loan fund to be known as the Municipal Facilities Revolving Loan Fund which shall be maintained and operated by the department.  Grants from the federal government or its agencies allotted to the state for the capitalization of the Municipal Facilities Revolving Loan Fund, and state funds when required, or otherwise made available shall be deposited directly in or credited to the account of the Municipal Facilities Revolving Loan Fund in compliance with the terms of the federal or state grant.

(2)  Money in, credited to the account of or to be received by the Municipal Facilities Revolving Loan Fund including sums to be received pursuant to letters of credit, shall be expended, committed or pledged in a manner consistent with terms and conditions of the grants and other sources of said deposits, credits and letters of credit, and of all applicable federal and state legislation and may be used:

(a)  To make loans from federal funds or funds on deposit in, credited to, or to be received by the Municipal Facilities Revolving Loan Fund, including from the proceeds of letters of credit, at or below market interest rates for a period not to exceed twenty years from the completion of the construction of a project approved by the department.

(b)  To offer and to make or enter into loan guarantees.

(c)  To provide payments to reduce interest on loans and loan guarantees.

(d)  To make bond interest subsidies.

(e)  To provide bond guarantees to municipalities, other political subdivisions, public trusts, and intermunicipal or interstate agencies.

(f)  To provide assistance to a municipality, other local political subdivisions, public trusts, or intermunicipal or interstate agencies with respect to the non-federal share of the costs of a project.

(g)  To finance the cost of facility planning and the preparation of plans, specifications, and estimates for construction of publicly owned projects approved by the department.

(h)  To provide financial assistance for the construction and rehabilitation of a project on the state priority list.

(i)  To secure principal, interest, and premium if any, on bonds or other evidence of indebtedness issued by the department, or any agency, commission, authority, or public corporation of the state, by any public trust or by any other entity having the authority to issue debt for or on behalf of the state, or any municipality or other political subdivision of the state if the proceeds of such bonds are deposited in the Municipal Facilities Revolving Loan Fund, the proceeds of such bonds are used to pay for a project approved by the department, or the proceeds of such bonds are used to refund any obligation the proceeds of which are used to pay for an approved project to the extent provided and allowed by the terms of the federal grant.

(j)  To make, enter into, or provide for loan guarantees for similar revolving funds established by instrumentalities, public trusts or agencies of the state, municipalities, other political subdivisions, or intermunicipal or interstate agencies.

(k)  To purchase or refinance, at or below market rates, debt incurred by municipalities or other local political subdivisions for wastewater treatment projects, where such debt obligations were incurred after March 7, 1985.

(l)  To improve credit market access by guaranteeing, arranging or purchasing bond insurance or other credit enhancement devices for debt obligations issued by the department, any municipality or other political subdivision, public trust, or agency, commission or authority of the state issued for a purpose authorized by this Paragraph (B)(2).

(m)  To fund other programs which the federal government authorizes by the terms of the grants.

(n)  To fund the administrative expenses of the office of the secretary of the Department of Environmental Quality.

(o)  To provide for any other expenditure consistent with the federal grant program and state law.

(3)  Money not currently needed for the operation of the Municipal Facilities Revolving Loan Fund or otherwise dedicated may be invested in an interest bearing account.  All such interest earned on investments shall be credited to the Municipal Facilities Revolving Loan Fund.

C.  The Municipal Facilities Revolving Loan Fund shall be administered by the department, which is authorized to enter into contracts and other agreements in connection with the operation of the Municipal Facilities Revolving Loan Fund, including but not limited to credit enhancement devices, guarantees, pledges, interest rate swap agreements, contracts and agreements with federal agencies, political subdivisions, public trusts, agencies or commissions of the state, and other parties to the extent necessary or convenient for the implementation of the Municipal Facilities Revolving Loan Fund Program.  The department shall maintain full authority for the operation of the Municipal Facilities Revolving Loan Fund in accordance with applicable federal and state law.

Acts 1986, No. 349, §1, eff. June 30, 1986; Acts 1987, No. 257, §1, eff. July 3, 1987; Acts 1987, No. 841, §1, eff. July 20, 1987; Acts 1989, No. 565, §1, eff. July 5, 1989; Acts 1990, No. 244, §1; Acts 1990, No. 595, §1, eff. July 18, 1990; Acts 1997, No. 480, §1, eff. June 30, 1997.