                                 CODE OF VIRGINIA

PURPOSES FOR WHICH FUND TO BE USED (§ 10.1-638)

A. The Board is authorized, with the concurrence of the State Treasurer, to
order the State Comptroller to make loans from the revolving fund to any county,
city, town, water authority, utility or service authority or special taxing
district, hereafter referred to as the borrower, having the legal capacity and
organizational arrangements necessary for obtaining, giving security for, and
raising revenues for repaying authorized loans, and for operating and
maintaining facilities for which the loan is made. The money loaned shall be
used by the borrower for facilities to store additional water in feasible flood
prevention sites or to store water in sites not feasible for flood prevention
programs. The amount of any loan or the sum of any outstanding loans to any one
borrower shall not exceed $500,000 without the written approval of the Governor.

B. To promote the economic growth of the Commonwealth, the Board, after public
hearing and with the written approval of the Governor, may invest funds from the
revolving fund in facilities to store additional water in feasible flood
prevention sites for municipal, industrial, and other beneficial uses where
localities fail to do so, or in facilities to create the potential to store
additional water in feasible flood prevention sites where impoundment projects
are being developed to less than optimum potential, thereby allowing the
enlargement of such impoundments as the need arises. Such action may be
initiated by a request from the soil and water conservation district or
districts encompassing such water storage sites.

C. The Board may draw on the revolving fund to meet maintenance expenses
incident to the proper management and operation of facilities resulting from the
investments authorized by subsection B above. In addition, the Board may draw on
the revolving fund for emergency repairs to the above facilities and facilities
constituting the security for loans made by authority of subsection A above. The
Board shall not provide funds for emergency repairs to facilities constituting
security for loans unless it appears to the Board that funds for repairs are not
available from other sources.

D. The Board is authorized to purchase, operate and maintain necessary machinery
and other equipment suitable for engineering and other operations incident to
soil and water conservation and other purposes of the Board. The Board shall
have the custody and control of the machinery and other equipment, and shall
provide storage for it, and it shall be available to the districts upon terms
the Board prescribes. In addition to other terms the Board may prescribe, it
shall have authority to execute rental-purchase contracts with individual
districts for the equipment, whereby the title to machinery and other equipment
purchased under authority of this law may be transferred to such district when
approved by the Board. The Board may, in its discretion, sell the same to any
person upon terms and conditions it may deem proper. The proceeds derived from
the sale or rental of machinery, provided for in this section and in &#xA7;
10.1-552, shall be paid into the revolving fund.

E. The Board is authorized to make loans from the revolving fund to any soil and
water conservation district for the purchase of necessary machinery and other
equipment suitable for engineering and other operations incident to soil and
water conservation and other purposes of the district. Terms for loans to
districts under this section shall be prescribed by the Board, and payments of
interest and principal shall be made to the State Treasurer and credited to the
revolving fund.

HISTORY: 1970, c. 591, § 21-11.3; 1972, c. 821; 1982, c. 68; 1988, c. 891.