AZ Rev Stat § 49-1223 (2021)
2021 Arizona Revised Statutes|Title 49 - The Environment|§ 49-1223 - Clean water revolving fund; purposes; capitalization grants

49-1223.  Clean water revolving fund;  purposes;  capitalization grants A. Monies in the clean water revolving fund may be used for the following purposes: 1. Making wastewater treatment facility and nonpoint source project loans to political subdivisions and Indian tribes under section 49-1225. 2. Purchasing or refinancing debt obligations of political subdivisions or refinancing debt obligations of Indian tribes at or below market rates,  provided that the debt obligation was issued after March 7,  1985 for the purpose of constructing,  acquiring or improving wastewater treatment facilities or nonpoint source projects. 3. Providing financial assistance to political subdivisions to purchase insurance for local wastewater treatment facility or nonpoint source project bond obligations. 4. Paying the costs to administer the fund,  but no more than four per cent of the aggregate of federal capitalization grants may be used to pay these costs. Monies from other sources may be used without limit to pay these costs. 5. Funding other programs that are authorized for federal monies deposited in the fund including programs relating to nonpoint source discharges. 6. Providing linked deposit guarantees through third party lenders by depositing monies with the lender on the condition that the lender make a loan on terms approved by the board,  at a rate of return on the deposit approved by the board and the state treasurer and by giving the lender recourse against the deposit of loan repayments that are not made when due. B. If the monies pledged to secure water quality bonds become insufficient to pay the principal and interest on the water quality bonds that are guaranteed by the clean water revolving fund,  the board shall direct the state treasurer to liquidate securities in the fund as may be necessary and apply those proceeds to make current all payments then due on the bonds. The state treasurer shall immediately notify the attorney general and auditor general of the insufficiency. The auditor general shall audit the circumstances surrounding the depletion of the fund and report the findings to the attorney general. The attorney general shall conduct an investigation and report those findings to the governor and the legislature. C. All proceeds of capitalization grants received from the United States pursuant to the clean water act shall be deposited in the capitalization grant transfer account and shall be used solely to provide financial assistance to political subdivisions and Indian tribes to construct,  acquire,  restore or rebuild wastewater treatment facilities,  to purchase bond insurance or for any other purpose permitted by the clean water act including nonpoint source projects. All principal received on loan repayments made by borrowers pursuant to this section shall be deposited in the clean water revolving fund and shall be invested and used to provide additional financial assistance or shall be used to support the administration of the fund subject to the limits prescribed by the clean water act.