

     § 7517.  Supervision of project and security from default.
        (a)  Inspection of project and records.--The applicant shall
     allow the Water Facilities Loan Board and its successors, agents
     and representatives the right at all reasonable times during
     construction and after completion of the project to enter upon
     and inspect the project and to examine and make copies of the
     applicant's books, records, accounting data and other documents
     pertaining to the project and the financial condition of the
     applicant.
        (b)  Independent audits.--The applicant may be required by
     the board or its agent to have prepared independent audits of
     its financial documents and conditions and submit a certified
     copy of the audits to the board.
        (c)  Security for loan.--The loan shall be secured by
     agreements, mortgages or other security instruments as the board
     finds necessary and adequate to secure the loan. The board and
     its successors may use any procedure or remedy available under
     any other existing or future laws for the protection of
     creditors.
        (d)  Default on community water supply systems projects.--In
     the event of a default on repayment of a loan for a community
     water supply system project, the board or its successors may
     apply to the court of common pleas of the county where the
     project is located to have a receiver appointed to assume
     operation and supervision of the water supply system. The
     receiver shall collect the revenues and disburse funds to pay
     operating costs and loan obligations under the supervision of
     the court. Receivership shall continue until the default is
     cured and regular repayments established or the board and court
     determine to reorganize the water system or sell its assets and
     turn over operations to another entity.

        Cross References.  Section 7517 is referred to in section
     7505 of this title.

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Last modified: November 27, 2007