75-10-121. Solid waste management loans -- requisites. (1) The department may, in the name of the state of Montana, enter into agreements with a local government for loans, subject to any existing contractual obligations of the local government.
     (2) A loan agreement must include but not be limited to the following:
     (a) the amount of the loan, not to exceed the estimated reasonable amount of the total implementation cost, excluding equipment, construction, or land acquisition as determined by the department;
     (b) an agreement by the department to pay part of the amount of the loan to the local government on a timetable as may be agreed upon by the parties;
     (c) an agreement by the local government to proceed with the solid waste management system in accordance with plans approved by the department;
     (d) an agreement by the local government to commence operation of the solid waste management system on its completion and not to discontinue operations or dispose of the solid waste management system without the approval of the department;
     (e) an agreement by the local government to operate and maintain a solid waste management system in accordance with applicable provisions of part 2 of this chapter and rules of the department;
     (f) an agreement by the local government to pledge any available sources of revenue to the repayment of loans according to the schedule established by the department. Any revenues from the sale of energy or recycled materials recovered from the solid waste management system and any money received under federal grants for local solid waste management may be used to make such payments. State loan funds for local solid waste management systems may be used only for front-end organizational activities.
     (g) an agreement by the local government to establish and maintain adequate financial records for the solid waste management system, including an annual audit of the financial records and transactions covering each fiscal year by a certified public accountant. A copy of each audit must be submitted to the department of administration and the department within 30 days after its completion. Failure of a local government to file a copy of the audit as required by this section shall be grounds for rescinding the loan agreement.
     (3) The department may enter into further agreements with a local government and acquire further guarantees or securities as are necessary to implement the provisions of this part.

     History: En. 69-4018 by Sec. 8, Ch. 575, L. 1977; R.C.M. 1947, 69-4018(1), (3); amd. Sec. 10, Ch. 68, L. 1979.