Okla. Stat. tit. 82, § 82-1085.74

A. All funds available in the Drinking Water Treatment

Revolving Loan Account shall first be used to assure maintenance of

progress towards compliance with enforceable deadlines, goals and

Oklahoma Statutes - Title 82. Waters and Water Rights Page 254

requirements of the Oklahoma Environmental Quality Code and the

federal Safe Drinking Water Act.

B. The Board shall use the Drinking Water Treatment Revolving

Loan Account only as provided by the federal Safe Drinking Water Act

for the following purposes:

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

a. the loan application, project and planning documents

have been approved by the Department or Board,

b. the loan is made at or below market interest rates,

including interest-free loans, at terms consistent

with the federal Safe Drinking Water Act,

c. principal and interest payments will begin not later

than one (1) year after completion of any drinking

water treatment project and all loans will be fully

amortized consistent with the federal Safe Drinking

Water Act,

d. the Drinking Water Treatment Revolving Loan Account

will be credited with all payments of principal of and

interest on all loans,

e. the applicant demonstrates to the satisfaction of the

Board the legal, managerial and financial capability

to assure sufficient revenues to pay debt service,

f. the recipient of the loan establishes a dedicated

source of revenue for payment of debt service for the

loan, and

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. To buy or refinance eligible entity obligations at or below

market rates where the debt obligation was incurred after July 1,

1993;

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. 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 Drinking Water Treatment Revolving Loan

Account in compliance with applicable bond resolutions or indentures

authorizing the sale;

5. To earn interest on accounts established under the Drinking

Water Treatment Revolving Loan Account; and

6. For such other purpose or in such other manner, as is

determined by the Board to be an appropriate use of the Drinking

Water Treatment Revolving Loan Account and which has been

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specifically approved by the Environmental Protection Agency

pursuant to the federal Safe Drinking Water Act.