49-1273

49-1273. Water supply development revolving
fund; purposes; limitation

(L07, Ch. 226, sec. 11. Eff. until 10/1/11)

A. Monies in the water supply development revolving fund may be used for the
following purposes:

1. Making water supply development loans to water providers in this state under
section 49-1274 for water supply development purposes.

2. Making loans or grants to water providers for the planning or design of water
supply development projects. A single grant shall not exceed one hundred thousand
dollars.

3. Purchasing or refinancing debt obligations of water providers at or below market
rate if the debt obligation was issued for a water supply development purpose.

4. Providing financial assistance to water providers with bonding authority to
purchase insurance for local bond obligations incurred by them for water supply
development purposes.

5. Paying the costs to administer the fund.

6. Providing linked deposit guarantees through third party lenders by depositing
monies with the lender on the condition that the lender make a loan on terms approved by
the committee, at a rate of return on the deposit approved by the committee and the state
treasurer and by giving the lender recourse against the deposit of loan repayments that
are not made when due.

B. If the monies pledged to secure water supply development bonds issued pursuant
to section 49-1278 become insufficient to pay the principal and interest on the water
supply development bonds guaranteed by the water supply development revolving fund, the
authority shall direct the state treasurer to liquidate securities in the fund as may be
necessary and shall apply those proceeds to make current all payments then due on the
bonds. The state treasurer shall immediately notify the attorney general and auditor
general of the insufficiency. The auditor general shall audit the circumstances
surrounding the depletion of the fund and report the findings to the attorney
general. The attorney general shall conduct an investigation and report those findings
to the governor and the legislature.

C. Monies in the water supply development revolving fund shall not be used to
provide financial assistance to a water provider, other than an Indian tribe, unless one
of the following applies:

1. The board of supervisors of the county in which the water provider is located
has adopted the provision authorized by section 11-806.01, subsection F.

2. The water provider is located in a city or town and the legislative body of the
city or town has enacted the ordinance authorized by section 9-463.01, subsection O.

3. The water provider is located in an active management area established pursuant
to title 45, chapter 2, article 2.