(2) The Oregon Infrastructure Finance Authority shall administer the Safe Drinking Water Revolving Loan Fund in accordance with a memorandum of understanding between the Oregon Infrastructure Finance Authority and the Oregon Health Authority.

(3) The Safe Drinking Water Revolving Loan Fund shall consist of:

(a) Moneys transferred to the fund by the Oregon Health Authority for purposes authorized by the memorandum of understanding between the Oregon Health Authority and the Oregon Infrastructure Finance Authority.

(b) Moneys transferred to the fund by the federal government, other state agencies or local governments.

(c) Moneys transferred to the fund by the Legislative Assembly or the Oregon Infrastructure Finance Authority.

(d) Proceeds from the sale of revenue bonds.

(e) Repayment of financial assistance provided with moneys from the fund.

(f) Interest and other earnings on moneys in the fund.

(4) Moneys in the Safe Drinking Water Revolving Loan Fund shall be used to provide financial or other assistance to publicly owned and privately owned water systems under the Safe Drinking Water Act Amendments of 1996, P.L. 104-182, and rules of the Oregon Business Development Department. As used in this subsection, "assistance" includes direct purchase by the Oregon Infrastructure Finance Authority of goods or services related to a water system project to the extent permitted by the memorandum of understanding between the Oregon Infrastructure Finance Authority and the Oregon Health Authority, and by the Safe Drinking Water Act Amendments of 1996, and as authorized by rules of the Oregon Business Development Department.

(5) The owner of a water system may borrow from the Safe Drinking Water Revolving Loan Fund by entering into a loan agreement with the Oregon Infrastructure Finance Authority. The owner of a municipally owned water system may enter into a loan agreement with the Oregon Infrastructure Finance Authority notwithstanding any restriction on indebtedness in the charter or bylaws of the municipality or any other provision of law. Moneys owed to the Oregon Infrastructure Finance Authority by the borrower under a loan agreement may be paid from:

(a) Revenue from any water system project of the borrower, including special assessment revenue;

(b) Amounts withheld under subsection (6) of this section;

(c) The general fund of the borrower;

(d) Any combination of sources listed in paragraphs (a) to (c) of this subsection; or

(e) Any other source.

(6) If a borrower fails to comply with a loan agreement entered into under subsection (5) of this section, the Oregon Business Development Department may seek appropriate legal remedies to secure any repayment due the Safe Drinking Water Revolving Loan Fund. If a borrower defaults on repayment due the fund, the State of Oregon may withhold any amounts otherwise due to the borrower. Any amounts withheld under this subsection shall be credited toward repayment of the borrower’s indebtedness to the fund. [1999 c.236 §1; 2001 c.883 §4a; 2003 c.773 §2; 2009 c.595 §199; 2009 c.830 §26a]