§ 143-215.94P. Groundwater Protection Loan Fund. - North Carolina Statutes

§ 143‑215.94P.  Groundwater Protection LoanFund.

(a)        There is established under the control and direction of theDepartment the Groundwater Protection Loan Fund. This Loan Fund shall be anonreverting revolving fund consisting of any monies appropriated to it by theGeneral Assembly or available to it from grants, and other monies paid to it orrecovered on behalf of the Loan Fund. The Loan Fund shall be credited withinterest on the Loan Fund by the State Treasurer pursuant to G.S. 147‑69.2and G.S. 147‑69.3.

(b)        The Loan Fund shall be used to provide loans to the ownersof commercial petroleum underground storage tanks who are creditworthy but maybe unable to secure conventional loans to upgrade or replace commercialunderground storage tanks in use on 1 July 1991 so as to meet the performancestandards applicable to tanks installed after 22 December 1988 or therequirements that existing underground storage tanks must meet by 22 December1998. All applications for loans under this section must be received by theDepartment prior to 1 January 1995.

(c)        The Department shall adopt rules for use in managing theLoan Fund. Rules for managing the Loan Fund shall be based on generallyaccepted standards prevailing among commercial lending institutions with such modificationsas may be necessary to achieve the purpose of this section to make loansavailable to creditworthy applicants. The Department shall administer the loanprogram through existing commercial lending institutions. In the event that theDepartment is unable to arrange for the administration of the loan programthrough existing commercial institutions in all or any part of the State, theDepartment may administer the loan program through the Office of State Budget and Management. Each commercial institution or agency that administers any partof the loan program shall collect all charges for securing and administeringeach loan, including but not limited to application fees, recording costs,collection costs, and attorneys' fees from the borrower. Receipt of a loan fromthe Loan Fund is not a right, duty, or privilege; therefore, Article 3 ofChapter 150B of the General Statutes does not apply to the grant or denial of aloan from the Loan Fund.

(d)        Funds received in repayment of loans made from the Loan Fundshall be deposited into the Loan Fund until the proceeds of all approved loansare disbursed to the borrowers. Thereafter, funds received in repayment ofloans made from the Loan Fund and any other funds remaining in the Loan Fundshall be deposited in the Commercial Fund.

(e)        In the event of a default on a loan from the Loan Fund or aviolation of a loan agreement, the Secretary may request the Attorney Generalto bring a civil action for collection of the amount owed or other appropriaterelief. An action shall be filed in the superior court of the county where theloan recipient resides, where the loan recipient does business, or where thetanks replaced or upgraded by the loan are located. In an action, the AttorneyGeneral may recover all costs of litigation, including attorneys' fees.

(f)         If the State incurs liability in extending credit from theLoan Fund and, as a result of the liability, the State is ordered to pay or, aspart of a settlement agreement, agrees to pay damages or other costs, the Stateshall seek reimbursement for the amount of the damages or other costs from thefollowing sources in the order listed:

(1)        Any funds to which the State is entitled under any federalprogram providing for the cleanup of petroleum discharges or releases fromunderground storage tanks, including but not limited to the Leaking UndergroundStorage Tank Trust Fund established pursuant to 26 U.S.C. § 4081 and 42 U.S.C.§ 6991b(h).

(2)        The Noncommercial Fund.

(3)        The Commercial Fund. (1989, c. 652, s.16; 1991, c. 538, ss. 13, 21; 1993, c. 400, s. 15; c. 402, s. 7; 2000‑140,s. 93.1(a); 2001‑424, s. 12.2(b).)