Section 304. Consolidation incentive.
If, after the effective date of this act, two or more volunteer fire companies consolidate their use of facilities, equipment, firefighters and services, the consolidated entity may, upon notification of the agency, be eligible for a reduction of the interest rate payable on any outstanding principal balance owed, as of the date of consolidation, by any or all of the consolidating companies to the Volunteer Companies Loan Fund for loans made under the act of July 15, 1976 (P.L.1036, No.208), known as the Volunteer Fire Company, Ambulance Service and Rescue Squad Assistance Act. The reduction in the interest rate payable shall be from 2% to 1%. Upon receipt of such notification, the agency, in conjunction with the State Fire Commissioner, shall determine and verify that the consolidated entity is in fact a bona fide consolidated volunteer fire company. If the agency determines that the consolidated entity is a bona fide consolidated volunteer fire company, it shall reduce the interest rate payable on any outstanding principal balance owed to the Volunteer Companies Loan Fund for loans made under the Volunteer Fire Company, Ambulance Service and Rescue Squad Assistance Act for which the consolidating companies or the consolidated entity may be individually or jointly responsible. The agency may promulgate such rules and regulations as may be necessary to carry out the provisions of this section.