An Act To Create the County Government Capital Improvements Revolving Loan Fund
Maine Legislature, Session 122, LD 0889
Committee: State and Local Government
Sponsors: WESTON, DAMON, DAVIS, ASH, FAIRCLOTH, KAELIN
Amends: 30-A MRSA §6006-G

Legislative Document 
No. 889 
S.P.297 
In Senate, February 22, 2005 
An Act To Create the County Government Capital Improvements 
Revolving Loan Fund 
Reference to the Committee on State and Local Government suggested and ordered printed. 
Presented by Senator WESTON of Waldo. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senators: DAMON of Hancock, DAVIS of Piscataquis, Representatives: ASH 
of Belfast, FAIRCLOTH of Bangor, KAELIN of Winterport. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 30-A MRSA §6006-G is enacted to read: 
§6006-G. County Government Capital ImprOVements Reyolving Loan 
Fund 
1. 
Establishment; 
administration. 
The 
County 
Goyernment 
Capital Improvements Revolving Loan Fund, 
referred to in this 
section as "the fund," is established in the custody of the bank 
as a special fund as provided in this section. 
A. 
The 
purpose 
of 
the 
fund 
is 
to 
provide 
financial 
assistance under subsection 2 for the acguisi tion, design, 
planning, construction, enlargement, repair, protection and 
improvement of public service infrastructure 
and capital 
improvements. 
B. 
The bank shall administer the fund. 
The fund must be 
invested in the same manner as permitted for investment of 
funds belonging to the State or held in the State Treasury. 
The fund must be established and held separate from 
any 
other funds or money of the State or the bank and used and 
administered eXClusively for the purpose of this section. 
The fund consists of the following: 
(1) 
Sums that are appropriated by the Legislature or 
transferred to 
the 
fund 
from 
time 
to 
time 
by 
the 
Treasurer of State; 
(2) Principal and interest received from the repayment 
of loans made from the fund; 
(3) Capitalization grants and awards made to the State 
or 
an 
instrumentality of 
the State 
by 
the 
Federal 
Goyernment for any of the purposes for which the fund 
has 
been 
established. 
These 
amounts 
must 
be 
paid 
directly into the fund without need for appropriation 
by the State; 
(4) 
Interest 
earned 
from 
the 
investment 
of 
fund 
balances; 
(5) Private gifts, beguests and donations made to the 
State for any of the purposes for which the fund has 
been established; 
(6) The proceeds of notes or bonds issued by the State 
for the purpose of deposit in the fund; 
(7) The proceeds of notes or bonds issued by the bank 
for the purpose of deposit in the fund: and 
(8) 
Other 
funds 
from 
any public or private 
source 
received for use for any of the purposes for which the 
fund has been established. 
2. Uses. 
The 
fund may be used for 
one or more of the 
following purposes: 
A. 
To make loans to counties for the acquisition, design, 
planning, construction, enlargement, repair, protection and 
improvement 
of 
public service infrastructure and capital 
improvements; 
B. 
To 
guarantee or insure, 
directly or indirectly, 
the 
payment of notes or bonds issued or to be issued by a county 
for the purpose of financing the construction of any capital 
improvement described in this section; 
C. 
To guarantee or insure, directly or indirectly, 
funds 
established 
by 
counties 
for 
the 
purpose 
of 
financing 
construction of any capital improvement; 
D. 
To invest available fund balances and to credit the net 
interest income on those balances to the fund; 
E. 
To invest as a 
source of revenue or security for the 
payment of plincipal and interest on general or special 
obligations of the bank if the proceeds of the sale of the 
obligations have been deposited in the fund or loaned to 
eligible participants in the 
programs 
financed with 
the 
fund, or as a source of revenue to subsidize county loan 
payment obligations; and 
F. 
To 
pay 
the 
costs 
of 
the 
bank 
associated with 
the 
administration of the fund and projects financed by it as 
long as no more than 2% of the aggregate of the highest fund 
balance in any fiscal year is used for these purposes. 
3. 
Establishment 
of 
accounts. 
The 
bank 
may 
establish 
accounts 
and 
subaccounts 
within 
the 
fund 
as 
it determines 
desirable to effectuate the purposes of this section, including, 
but not limited to, accounts to segregate a portion of the fund 
for grants and as security for bonds issued by the bank for 
deposit in the 
fund 
and to 
be invested for 
the benefit of 
specified projects receiving financial assistance from the fund. 
4. Eligibility terms. The bank shall develop by rule the 
terms of repayment of loans. A loan made pursuant to this section 
may not carry an interest rate higher than 
00,-0. 
The repayment 
period may vary depending upon the financial 
condition of 
a 
county as identified by the bank. 
5. Rules. The bank shall adopt rules necessary to implement 
this section. Rules adopted by the bank to implement this section 
are major substantive rules pursuant to Title 5, chapter 375, 
subchapter 2-A. 
SUMMARY 
This 
bill 
establishes 
the 
County 
Government 
Capital 
Improvements Revolving Loan Fund.