75-5-1106. Revolving fund. (1) There is established in the state treasury a separate account designated as the water pollution control state revolving fund. There are established in the revolving fund as subaccounts a federal allocation account, a state allocation account, an administration account, an investment income account, and a debt service account.
     (2) There must be credited to:
     (a) the federal allocation account, all amounts received by the state from the following sources:
     (i) funds provided pursuant to the federal act as capitalization grants for a state revolving fund to assist construction of projects;
     (ii) grants or transfers of grants received under subchapter II of the federal act for projects; and
     (iii) money transferred to the fund from the drinking water state revolving fund pursuant to 75-6-211;
     (b) the state allocation account, the net proceeds of bonds of the state issued pursuant to 75-5-1121 and other money appropriated by the legislature;
     (c) the administration account, 4% of the capitalization grant award or the maximum amount allowed by the federal act for payment of administrative costs;
     (d) the investment account, all money received from investment of amounts in those accounts in the revolving fund designated by the board of examiners in the resolution or trust indenture authorizing the issuance of bonds; and
     (e) the debt service account, the interest portion of loan repayments.
     (3) Each loan made as authorized by 75-5-1113 must be funded and disbursed from the federal allocation account or the state allocation account, or both, by the department and the department of natural resources and conservation as recommended by the department. All amounts received in payment of principal or interest on a loan must be credited to the revolving fund. If bonds have been issued pursuant to 75-5-1121 and are outstanding, the interest payments must be transferred to the debt service account securing the bonds. Money in the debt service account that is not required for debt service may be transferred to other accounts within the revolving fund as provided in the resolution or trust indenture authorizing the bonds.
     (4) The department of natural resources and conservation may establish additional accounts and subaccounts within the revolving fund as it considers necessary to account for the program money and to ensure compliance with the federal act and this part.
     (5) As allowed under the federal Safe Drinking Water Act, 42 U.S.C. 300f, et seq., and with the governor's permission, an amount equivalent to up to 33% of each year's drinking water state revolving fund federal capitalization grant may be transferred from the federal allocation account, established under subsection (2)(a), to the drinking water state revolving fund federal allocation account established in 75-6-211.

     History: En. Sec. 5, Ch. 678, L. 1989; amd. Sec. 1, Ch. 788, L. 1991; amd. Sec. 187, Ch. 418, L. 1995; amd. Sec. 7, Ch. 538, L. 1997.