(1) Any public agency or qualified institution desiring a loan from the Water Pollution Control Revolving Fund shall submit an application to the Department of Environmental Quality on the form provided by the department. The department may require an opinion from the department’s bond counsel or other counsel that the applicant has the legal authority to borrow from the Water Pollution Control Revolving Fund. If a public agency relies on borrowing authority granted by charter or law other than ORS § 468.439, then with the consent of the department and notwithstanding any limitation or requirement of the charter or law, the public agency may borrow directly from the Water Pollution Control Revolving Fund by issuing revenue bonds to the department. The requirements of ORS § 287A.150 do not apply to revenue bonds that are sold to the department pursuant to this section.

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(2) Any public agency or qualified institution receiving a loan from the Water Pollution Control Revolving Fund shall establish and maintain a dedicated source of revenue or other acceptable source of revenue for the repayment of the loan.

(3) If a public agency or qualified institution defaults on payments due to the Water Pollution Control Revolving Fund, the state may withhold any amounts otherwise due to the public agency or qualified institution and direct that such funds be applied to the payments and deposited into the fund. If the department finds that the loan to the public agency or qualified institution is otherwise adequately secured, the department may waive this right in the loan agreement or other loan documentation. [1987 c.648 § 6; 1989 c.560 § 3; 2007 c.783 § 205; 2019 c.558 § 5]