10.1-639 - Conditions for making loan. - Virginia Statutes

§ 10.1-639. Conditions for making loan.

The Board shall authorize the making of a loan under the provisions of §10.1-638 A only when the following conditions exist:

1. An application for the loan has been submitted by the borrower in themanner and form specified by the Board, setting forth in detail the need forthe storage of water, the amount of the loan requested and the use to whichthe loan shall be applied as well as any efforts made to secure funds fromany other source, and such other information required by the Board. Theapplication shall be first submitted to the soil and water conservationdistrict or districts encompassing the watershed wherein the proceeds of theloan would be applied. When the application is approved by the district ordistricts, the application shall be forwarded to the Board.

2. The borrower agrees and furnishes assurance, satisfactory to the Board,that it will satisfactorily maintain any structure financed in whole or inpart through the loans provided by this article.

3. The purpose for which the loan is sought is to acquire land, easements andrights-of-way, or engineering or legal services necessary for a water storagefacility or project, or to construct the water storage facility itself.

If the requested loan or any part thereof is for the purpose of acquiringland, easements and rights-of-way, then the loan or part thereof designatedfor such purpose shall not be granted in the absence of evidence satisfactoryto the Board that the borrower requesting the loan will in fact acquire theland, easements or rights-of-way if the loan is granted.

(1970, c. 591, § 21-11.5; 1988, c. 891.)