§ 1602. Application; loans; conditions

(a) Upon application of a municipality or two or more municipalities applying jointly, the State Treasurer may loan money from the Fund to that municipality or municipalities for the purchase of equipment. Purchases of equipment eligible for loans from the Fund shall have a useful life of at least five years and a purchase price of at least $20,000.00 but shall not be eligible for loans in excess of $110,000.00 from this Fund.

(b) The Treasurer is authorized to establish terms and conditions, including repayment schedules of up to five years for loans from the Fund to ensure repayment of loans to the Fund. Before a municipality may receive a loan from the Fund, it shall give to the Treasurer security for the repayment of the funds. The security shall be in such form and amount as the Treasurer may determine and may include a lien on the equipment financed by the loan.

(c) The rates of interest shall be as established by this section to assist municipalities in purchasing equipment upon terms more favorable than in the commercial market. Such rates shall be no more than two percent per annum for a loan to a single municipality, and loans shall bear no interest charge if made to two or more municipalities purchasing equipment jointly.

(d) In any fiscal year, new loans from the Municipal Equipment Fund shall not exceed an aggregate of $1,500,000.00. (Added 1985, No. 187 (Adj. Sess.), § 3; amended 1987, No. 89, § 314c; 1991, No. 172 (Adj. Sess.), §§ 1, 2; 1999, No. 156 (Adj. Sess.), § 46, eff. May 29, 2000; 2005, No. 175 (Adj. Sess.), § 24.)