Sec. 1. 30-A MRSA §5953-E, sub-§1, as enacted by PL 1997, c. 787, §12, is amended to read:

1. Loan application. In addition to the other forms of financial assistance available under this chapter, a public school, school administrative district, municipality, community school district or other school administrative unit may apply for a loan from the School Revolving Renovation and Small Construction Fund under section 6006-F, in this section called the "fund," the proceeds of which must be used to finance the cost of school repair and renovation or small construction under section 6006-F, subsection 3, as designated by the Department of Education.

A. The bank may prescribe an application form or procedure for a school administrative unit to apply for a loan under this section. The application must include any information that the bank determines necessary for the purpose of implementing this section and section 6006-F.

Sec. 2. 30-A MRSA §6006-F, as amended by PL 1999, c. 81, §16, is further amended to read:

§6006-F. School Revolving Renovation and Small Construction Fund

1. Fund established. The School Revolving Renovation and Small Construction Fund, referred to in this section as the "fund," is established in the custody of the bank.

2. Administration. The bank shall administer and invest the fund. The fund must be established and held separate and apart from any other funds or money of the State or the bank and must be used and administered exclusively for the purposes authorized in this section. The fund consists of:

A. Sums that may be appropriated by the Legislature or transferred to the fund by the Treasurer of State;

B. Principal and interest received from the repayment of loans made from the fund;

C. Capitalization grants and awards made to the State or an instrumentality of the State by the United States for any of the purposes for which the fund has been established. These amounts may be paid directly into the fund without appropriation by the State and the bank is designated as the recipient for the State of any such funds;