| | | (7) The proceeds of notes or bonds issued by the bank | | for the purpose of deposit in the fund; and |
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| | | (8) Other funds from any public or private source | | received for use for any of the purposes for which the | | fund has been established. |
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| | | 2. Uses. The fund may be used for one or more of the following | | purposes: |
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| | | A. To make loans to counties for the acquisition, design, | | planning, construction, enlargement, repair, protection and | | improvement of public service infrastructure and capital | | improvements; |
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| | | B. To guarantee or insure, directly or indirectly, the | | payment of notes or bonds issued or to be issued by a county | | for the purpose of financing the construction of any capital | | improvement described in this section; |
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| | | C. To guarantee or insure, directly or indirectly, funds | | established by counties for the purpose of financing | | construction of any capital improvement; |
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| | | D. To invest available fund balances and to credit the net | | interest income on those balances to the fund; |
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| | | E. To invest as a source of revenue or security for the | | payment of principal and interest on general or special | | obligations of the bank if the proceeds of the sale of the | | obligations have been deposited in the fund or loaned to | | eligible participants in the programs financed with the | | fund, or as a source of revenue to subsidize county loan | | payment obligations; and |
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| | | F. To pay the costs of the bank associated with the | | administration of the fund and projects financed by it as | | long as no more than 2% of the aggregate of the highest fund | | balance in any fiscal year is used for these purposes. |
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| | | 3. Establishment of accounts. The bank may establish accounts | | and subaccounts within the fund as it determines desirable to | | effectuate the purposes of this section, including, but not | | limited to, accounts to segregate a portion of the fund for | | grants and as security for bonds issued by the bank for deposit | | in the fund and to be invested for the benefit of specified | | projects receiving financial assistance from the fund. |
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| | | 4. Eligibility terms. The bank shall develop by rule the terms | | of repayment of loans. A loan made pursuant to this section |
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