Arizona Laws 49-1273. Water supply development revolving fund; purposes
A. Monies in the water supply development revolving fund may be used for the following purposes:
Terms Used In Arizona Laws 49-1273
- Authority: means the water infrastructure finance authority of Arizona. See Arizona Laws 49-1201
- fund: means the water supply development revolving fund established by section 49-1271. See Arizona Laws 49-1270
- Loan: means leases, loans or other evidence of indebtedness for water supply development purposes issued from the water supply development revolving fund. See Arizona Laws 49-1270
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Water supply development: means any of the following:
(a) Acquiring water or rights to or contracts for water to augment the water supply of a water provider, including any environmental or other reviews, permits or plans reasonably necessary for that acquisition. See Arizona Laws 49-1201
1. Making loans to eligible entities in this state under section 49-1274 for water supply development projects within this state. A single loan shall not exceed $3,000,000.
2. Making grants or providing technical assistance to eligible entities for water supply development projects in this state. A single grant shall not exceed $2,000,000.
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. Conducting water supply studies.
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.