A. The "public project revolving fund" is created within the authority. The fund shall be administered by the authority as a separate account, but may consist of such subaccounts as the authority deems necessary to carry out the purposes of the fund. The authority may establish procedures and adopt rules as required to administer the fund in accordance with the New Mexico Finance Authority Act.

B. Except as otherwise provided in the New Mexico Finance Authority Act, money from payments of principal of and interest on loans and payments of principal of and interest on securities held by the authority for public projects authorized specifically by law shall be deposited in the public project revolving fund. The fund shall also consist of any other money appropriated, distributed or otherwise allocated to the fund for the purpose of financing public projects authorized specifically by law.

C. Money appropriated to pay administrative costs, money available for administrative costs from other sources and money from payments of interest on loans or securities held by the authority, including payments of interest on loans and securities held by the authority for public projects authorized specifically by law, that represents payments for administrative costs shall not be deposited in the public project revolving fund and shall be deposited in a separate account of the authority and may be used by the authority to meet administrative costs of the authority.

D. Except as otherwise provided in the New Mexico Finance Authority Act, money in the public project revolving fund is appropriated to the authority to pay the reasonably necessary costs of originating and servicing loans, grants or securities funded by the fund and to make loans or grants and to purchase or sell securities to assist qualified entities in financing public projects in accordance with the New Mexico Finance Authority Act and pursuant to specific authorization by law for each project.

E. Money in the public project revolving fund not needed for immediate disbursement, including money held in reserve, may be deposited with the state treasurer for short-term investment pursuant to Section 6-10-10.1 NMSA 1978 or may be invested in direct and general obligations of or obligations fully and unconditionally guaranteed by the United States, obligations issued by agencies of the United States, obligations of this state or any political subdivision of the state, interest-bearing time deposits, commercial paper issued by corporations organized and operating in the United States and rated "prime" quality by a national rating service, other investments permitted by Section 6-10-10 NMSA 1978 or as otherwise provided by the trust indenture or bond resolution, if money is pledged for or secures payment of bonds issued by the authority.

F. The authority shall establish fiscal controls and accounting procedures that are sufficient to assure proper accounting for public project revolving fund payments, disbursements and balances.

G. Money on deposit in the public project revolving fund may be used to make interim loans for a term not exceeding two years to qualified entities for the purpose of providing interim financing for any project approved or funded by the legislature.

H. Money on deposit in the public project revolving fund may be used to acquire securities or to make loans to qualified entities in connection with the small loan program. As used in this subsection, "small loan program" means the program of the authority designed to provide financing for public projects in amounts not to exceed one million dollars ($1,000,000) per project. A public project financed pursuant to the small loan program shall not require specific authorization by law.

I. Money on deposit in the public project revolving fund may be designated as a reserve for any bonds issued by the authority, including bonds payable from sources other than the public project revolving fund, and the authority may covenant in any bond resolution or trust indenture to maintain and replenish the reserve from money deposited in the public project revolving fund after issuance of bonds by the authority.

J. Money on deposit in the public project revolving fund may be used to purchase bonds issued by the authority, which are payable from any designated source of revenues or collateral. Purchasing and holding the bonds in the public project revolving fund shall not, as a matter of law, result in cancellation or merger of the bonds notwithstanding the fact that the authority as the issuer of the bonds is obligated to make the required debt service payments and the public project revolving fund held by the authority is entitled to receive the required debt service payments.

K. Money on deposit in the public project revolving fund may be used to capitalize other financing programs of the authority authorized by law, either directly or from proceeds of bonds issued by the authority and secured by money in the public project revolving fund.

History: Laws 1992, ch. 61, § 6; 1994, ch. 145, § 3; 1995, ch. 141, § 16; 1996, ch. 28, § 1; 2000, ch. 80, § 3; 2000, ch. 93, § 1; 2002, ch. 53, § 1; 2003, ch. 25, § 2; 2006, ch. 65, § 3.

Cross references. — For appropriations from the public project revolving fund to other funds, see 6-21-6.1 NMSA 1978.

For distributions to the public projects revolving fund from the governmental gross receipts tax, see 7-1-6.38 NMSA 1978.

For wastewater facility construction loan fund, see 74-6A-4 NMSA 1978.

For solid waste facility grant fund, see 74-9-41 NMSA 1978.

For rural infrastructure revolving loan fund, see 75-1-3 NMSA 1978.

For the water project fund, see 72-4A-9 NMSA 1978.

Appropriations. — Laws 2015, ch. 80, § 1, effective July 1, 2015, provided that three million dollars ($3,000,000) is appropriated from the public project revolving fund to the local government planning fund administered by the New Mexico finance authority for expenditure in fiscal year 2016 and subsequent fiscal years to make grants to qualified entities to evaluate and estimate the costs of implementing the most feasible alternatives for infrastructure, water or wastewater public projects or to develop water conservation plans, long-term master plans, economic development plans or energy audits and to pay the administrative costs of the local government planning program. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the public project revolving fund.

Compiler's notes. — Laws 2009, ch. 148, § 3, effective April 7, 2009, provided that if a qualified entity listed in Laws 2009, ch. 148, §§ 1 and 2 has not certified to the New Mexico finance authority by the end of fiscal year 2012 its desire to continue to pursue a loan from the public project revolving fund for a public project listed in that section, the legislative authorization granted to the New Mexico finance authority by Laws 2009, ch. 148, §§ 1 and 2 to make a loan from the public project revolving fund to that qualified entity for that public project is void.

The 2006 amendment, effective March 6, 2006, in Subsection H, changed "equipment program" to "small loan program"; deleted the provisions that related to the acquisition of equipment and acquisition, construction and improvement of fire stations; and provided that the small loan program means the program to provide financing for public projects in amounts not to exceed one million dollars and to provide that a project financed through the small loan program shall not require specific authorization by law; deleted Subsection I, which provided a limit on the amount of securities acquired from, or the loan made to, a qualified entity and required authorization by law for a project; and added Subsection L, which provides that money on deposit in the fund may be used to capitalize other programs authorized by law.

The 2003 amendment, effective July 1, 2003, substituted "seven hundred fifty thousand dollars ($750,000)" for "five hundred thousand dollars ($500,000)" at the end of the first sentence of Subsection I.

The 2002 amendment, effective March 4, 2002, added Subsection K.

2000 amendments. — Laws 2000, ch. 80, § 3, effective March 7, 2000, adding the designations in former Subsection H and making stylistic changes, was approved March 7, 2000. However, Laws 2000, ch. 93, § 1, effective March 7, 2000, substituting "rules" for "regulations" in Subsection A; inserting "to pay the reasonably necessary costs of originating and servicing loans, grants or securities funded by the fund and" in Subsection D, substituting "not exceeding two years" for "not exceeding one year" in Subsection G, rewriting former Subsection H as present Subsections H and I, and redesignating former Subsection I as present Subsection J, was approved later on March 7, 2000. This section is set out as amended by Laws 2000, ch. 93, § 1. See 12-1-8 NMSA 1978.

The 1996 amendment, effective March 4, 1996, deleted "but not limited to" following "including" in Subsections A and I, substituted "other investments permitted by Section 6-10-10 NMSA 1978" for "prime bankers' acceptances issued by money center banks" near the end of Subsection E, inserted "public project revolving" in Subsection F, added Subsection H, and redesignated former Subsection H as Subsection I.

The 1995 amendment, effective April 5, 1995, inserted "Except as otherwise provided in the New Mexico Finance Authority Act" and substituted "payments of principal of and interest on loans and payments of principal of and interest" for "repayments of loans or payments" in Subsection B, added Subsection C, redesignated former Subsections C through E as Subsections D through F, inserted "interest-bearing time deposits, commercial paper issued by corporations organized and operating in the United States and rated 'prime' quality by a national rating service, prime bankers' acceptances issued by money center banks" in Subsection E, and added Subsections G and H.

The 1994 amendment, effective May 18, 1994, inserted "Except as otherwise provided in the New Mexico Finance Authority Act" at the beginning of Subsection C.