45-1491 - Arizona Statutes

45-1491. Flood control loans A. The director of water resources may grant loans to defray the cost to a county flood control district, organized pursuant to title 48, chapter 21, for flood control projects eligible for alternative flood control assistance under article 4 of this chapter. Loans may be granted, subject to the provisions of this article, in such manner and upon such terms and conditions as may be prescribed by the director. B. Upon application, the director shall make full and careful investigation of the qualifications of the applicant district and the proposed project. The director shall determine whether the proposed project would provide meaningful flood control and is in the best interests of this state. C. The loans granted by the director shall be for not more than twenty-five per cent of the cost of a project or two and one-half million dollars, whichever is less, and for a term of not more than twenty years. D. The loans shall bear interest at the following rates: 1. If the loan is for a term of not more than five years, the rate is three per cent per year. 2. If the loan is for a term of more than five years, but not more than ten years, the rate is five per cent per year. 3. If the loan is for a term of more than ten years, the rate is six per cent per year. E. Each loan shall be evidenced by a contract between the district and the director, acting on behalf of this state. The contract shall provide for the loan by this state of a stated sum defraying up to twenty-five per cent of the costs of the flood control project. The contract shall provide for equal annual payments of principal and interest for the term of the loan. F. The district board shall each year levy a tax sufficient to pay the annual amount of principal and interest due on the loan. G. The attorney general may commence whatever actions are necessary to enforce the contract and achieve repayment of loans provided by the director pursuant to this article.