(a)  The agency shall have all the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter including, without limiting the generality of the preceding statement, the authority:

(1)  To receive and disburse such funds from the state as may be available for the purpose of the revolving fund subject to the provisions of this chapter;

(2)  To make and enter into binding commitments to provide financial assistance to local cities and towns from amounts on deposit in the revolving fund;

(3)  To enter into binding commitments to provide subsidy assistance for loans and city and town obligations from amounts on deposit in the revolving fund;

(4)  To levy administrative fees on cities and towns as necessary to effectuate the provisions of this chapter, provided the fees have been previously authorized by an agreement between the agency and the city or town;

(5)  To engage the services of third-party vendors to provide professional services; and

(6)  To establish one or more accounts within the revolving fund; and

(7)  Such other authority as granted to the agency under chapter 12.2 of Title 46.

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(b)  Subject to the provisions of this chapter, to the provisions of any agreement with the state authorized by § 24-18-6, and to any agreements with the holders of any bonds of the agency or any trustee therefor, amounts held by the agency for the account of the revolving fund shall be applied by the agency, either by direct expenditure, disbursement, or transfer to one or more other funds and accounts held by the agency or maintained under any trust agreement pertaining to bonds, either alone or with other funds of the agency, to the following purposes:

(1)  To provide financial assistance to cities and towns to finance costs of approved projects, and to refinance the costs of the projects, subject to such terms and conditions, if any, as are determined by the department and/or the agency in accordance with § 24-18-7;

(2)  To fund reserves for bonds of the agency and to purchase insurance and pay the premiums therefor, and pay fees and expenses of letters or lines of credit and costs of reimbursement to the issuers thereof for any payments made thereon or on any insurance, and to otherwise provide security for, and a source of payment for obligations of the agency, by pledge, lien, assignment, or otherwise as provided in chapter 12.2 of Title 46;

(3)  To pay expenses of the agency and the department in administering the revolving fund. As part of the annual appropriations bill, the department shall set forth the gross amount of expenses received from the agency and a complete, specific breakdown of the sums retained and/or expended for administrative expenses;

(4)  To pay or provide for subsidy assistance equivalent to one-third (?) of the market rate or such other subsidy assistance as determined by the agency;

(5)  To provide a reserve for, or to otherwise secure, amounts payable by cities and towns on loans and city and town obligations outstanding in the event of default thereof; amounts in any account in the revolving fund may be applied to defaults on loans outstanding to the city or town for which the account was established and, on a parity basis with all other accounts, to defaults on any loans or city or town obligations outstanding; and

(6)  To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or otherwise as provided in chapter 12.2 of Title 46, any bonds of the agency.

(c)  In addition to other remedies of the agency under any loan agreement or otherwise provided by law, the agency may also recover from a city or town, in an action in superior court, any amount due the agency together with any other actual damages the agency shall have sustained from the failure or refusal of the city or town to make the payments or abide by the terms of the loan agreement.

(d)  Within ninety (90) days after the end of each fiscal year, the agency shall submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the secretary of state of its activities during that fiscal year. The report shall provide: a summary of the agency’s meetings including when the agency met, subjects addressed, decisions rendered and meeting minutes; a summary of the agency’s actions including a listing of rules, regulations, or procedures adopted or amended, applications received for financial assistance for contracts or agreements entered into, applications and intended use plans submitted to federal agencies for capitalization grants, properties acquired or leased, and bonds issued; a synopsis of any complaints, suspensions, or other legal matters related to the authority of the agency; a consolidated financial statement of all funds received and disbursed by the agency including the source of and recipient of the funds which shall be audited by an independent certified public accountant firm; copies of audits or reports required under federal law; a listing of the staff and/or consultants employed by the agency; a listing of findings and recommendation derived from agency activities; and a summary of performance during the previous fiscal year including accomplishments, shortcomings and remedies. The report shall be posted as prescribed in § 42-20-8.2. The director of the department of administration shall be responsible for the enforcement of this provision. The initial report shall be due no later than January 1, 2015.