(1) Any political subdivision desiring to construct a waste disposal plant approved by the Office of Pollution Control of the Department of Environmental Quality, and which receives a loan from the state for that purpose, shall pledge for the repayment of such loan that part of the sales tax reimbursement to which it is entitled under Section 27-65-75 as may be required to meet a repayment schedule adopted by the State Tax Commission. The repayment schedule shall provide for monthly payments, the largest of which shall not exceed the average monthly payment for the term of years of the contract by more than fifteen percent (15%). The repayment schedule shall provide for the repayment of all funds received within not more than twenty (20) years from the date said loan is actually received by the political subdivision; however, the repayment schedule and the time for repayment of all funds received on loans renegotiated under subsection (6) of this section shall be modified by the State Tax Commission to conform with the terms of the renegotiated loan. The State Tax Commission shall withhold monthly from the amount to be remitted to a political subdivision, a sum equal to the next monthly payment.

(2) When bonds shall have been issued by the State of Mississippi to generate funds to be used for loans to be made under the provisions of Section 49-17-61, all payments made in repayment under this section shall be deposited into the Water Pollution Abatement Bond Fund established under the provisions of Section 49-17-61 so long as any such bonds shall be outstanding and unpaid.

(3) When all the bonds shall have been paid, such payments shall be deposited in the Water Pollution Abatement Loan Fund (“loan fund”) established under the provisions of Section 49-17-61.

(4) When no such bonds shall be outstanding and unpaid, the payments shall be deposited in the loan fund.

(5) Funds on deposit in the loan fund may be used to make loans in aid of construction for water pollution abatement upon appropriation by the Legislature.

(6) The Department of Environmental Quality may, on a case-by-case basis, renegotiate the payment of principal on loans made under Sections 49-17-61 through 49-17-70 to political subdivisions located in the six (6) most southern counties of the state covered by the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005; however, the maturity of the loans shall not be extended for a period of more than forty-eight (48) months.