7517 - Supervision of project and security from default.
§ 7517. Supervision of project and security from default. (a) Inspection of project and records.--The applicant shall allow the Water Facilities Loan Board and its successors, agents and representatives the right at all reasonable times during construction and after completion of the project to enter upon and inspect the project and to examine and make copies of the applicant's books, records, accounting data and other documents pertaining to the project and the financial condition of the applicant. (b) Independent audits.--The applicant may be required by the board or its agent to have prepared independent audits of its financial documents and conditions and submit a certified copy of the audits to the board. (c) Security for loan.--The loan shall be secured by agreements, mortgages or other security instruments as the board finds necessary and adequate to secure the loan. The board and its successors may use any procedure or remedy available under any other existing or future laws for the protection of creditors. (d) Default on community water supply systems projects.--In the event of a default on repayment of a loan for a community water supply system project, the board or its successors may apply to the court of common pleas of the county where the project is located to have a receiver appointed to assume operation and supervision of the water supply system. The receiver shall collect the revenues and disburse funds to pay operating costs and loan obligations under the supervision of the court. Receivership shall continue until the default is cured and regular repayments established or the board and court determine to reorganize the water system or sell its assets and turn over operations to another entity. Cross References. Section 7517 is referred to in section 7505 of this title.