10.1-638 - Purposes for which fund to be used.
§ 10.1-638. Purposes for which fund to be used.
A. The Board is authorized, with the concurrence of the State Treasurer, toorder the State Comptroller to make loans from the revolving fund to anycounty, city, town, water authority, utility or service authority or specialtaxing district, hereafter referred to as the borrower, having the legalcapacity and organizational arrangements necessary for obtaining, givingsecurity for, and raising revenues for repaying authorized loans, and foroperating and maintaining facilities for which the loan is made. The moneyloaned shall be used by the borrower for facilities to store additional waterin feasible flood prevention sites or to store water in sites not feasiblefor flood prevention programs. The amount of any loan or the sum of anyoutstanding loans to any one borrower shall not exceed $500,000 without thewritten approval of the Governor.
B. To promote the economic growth of the Commonwealth, the Board, afterpublic hearing and with the written approval of the Governor, may investfunds from the revolving fund in facilities to store additional water infeasible flood prevention sites for municipal, industrial, and otherbeneficial uses where localities fail to do so, or in facilities to createthe potential to store additional water in feasible flood prevention siteswhere impoundment projects are being developed to less than optimumpotential, thereby allowing the enlargement of such impoundments as the needarises. Such action may be initiated by a request from the soil and waterconservation district or districts encompassing such water storage sites.
C. The Board may draw on the revolving fund to meet maintenance expensesincident to the proper management and operation of facilities resulting fromthe investments authorized by subsection B above. In addition, the Board maydraw on the revolving fund for emergency repairs to the above facilities andfacilities constituting the security for loans made by authority ofsubsection A above. The Board shall not provide funds for emergency repairsto facilities constituting security for loans unless it appears to the Boardthat funds for repairs are not available from other sources.
D. The Board is authorized to purchase, operate and maintain necessarymachinery and other equipment suitable for engineering and other operationsincident to soil and water conservation and other purposes of the Board. TheBoard shall have the custody and control of the machinery and otherequipment, and shall provide storage for it, and it shall be available to thedistricts upon terms the Board prescribes. In addition to other terms theBoard may prescribe, it shall have authority to execute rental-purchasecontracts with individual districts for the equipment, whereby the title tomachinery and other equipment purchased under authority of this law may betransferred to such district when approved by the Board. The Board may, inits discretion, sell the same to any person upon terms and conditions it maydeem proper. The proceeds derived from the sale or rental of machinery,provided for in this section and in § 10.1-552, shall be paid into therevolving fund.
E. The Board is authorized to make loans from the revolving fund to any soiland water conservation district for the purchase of necessary machinery andother equipment suitable for engineering and other operations incident tosoil and water conservation and other purposes of the district. Terms forloans to districts under this section shall be prescribed by the Board, andpayments of interest and principal shall be made to the State Treasurer andcredited to the revolving fund.
(1970, c. 591, § 21-11.3; 1972, c. 821; 1982, c. 68; 1988, c. 891.)