the 20% requirement of subsection (a), then a political
subdivision which is served by the [volunteer] fire company,
volunteer ambulance service or volunteer rescue service may
pledge its credit in the amount of funds necessary to satisfy
the 20% requirement and, if it does so, shall cosign the
application submitted by the [volunteer] fire company, volunteer
ambulance service or volunteer rescue service.
(d) Use.--Loans shall be used for the acquisition by
[volunteer] fire companies, volunteer ambulance services or
volunteer rescue services of new or used apparatus equipment,
new or used ambulances, new or used rescue vehicles, new or used
communications equipment, new or used accessory equipment or new
or used protective equipment or for the acquisition and
renovation of existing structures to house firefighting
equipment, ambulance or rescue vehicles or for the construction
or modernization of facilities and, except as provided in
subsection (a)(4), shall not be used for operating expenses or
for the refinancing of renovated structures, refinancing of
construction or modernization of facilities, apparatus
equipment, communication equipment, accessory equipment, nor,
except as provided in subsection (a)(4), shall be made or used
to reduce any debt or other obligations issued prior to the
effective date of this subchapter.
(e) Payment.--Loans made by the office shall be paid from
the [Volunteer Companies Loan Fund] fund to the [volunteer] fire
companies, volunteer ambulance services and volunteer rescue
[squads] services in accordance with guidelines and procedures
developed by the office.
(f) Deposit.--All payments of interest on the loans and the
principal thereof shall be deposited by the office in the
20190SB0785PN1050 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30