Section 16-1-111 - Loans to political subdivisions; requirements; limitations; rulemaking(a) The state loan and investment board may negotiate and make loans from the permanent Wyoming mineral trust fund to political subdivisions of this state as provided in this section. The aggregate sum of all outstanding loans made under this section shall not exceed one hundred seventy-five million dollars ($175,000,000.00). Loans may be made for infrastructure projects and street and road projects as provided in this section. The board shall adopt rules and procedures as it deems advisable or necessary to administer the program. The rules shall include requirements and standards which the board determines to be necessary or advisable in accordance with the following: (i) To qualify for a loan an applicant shall demonstrate:(A) A commitment to adequately maintain the project for which the loan is requested during a reasonable period of time;(B) That all project costs will be funded at the time of receipt of the loan, with funding sources specified within the project application;(C) Compliance with any other criteria developed by the board consistent with this section.(ii) The determination of whether to make a loan shall include consideration of: (A) The contribution of the project to health, safety and welfare;(B) The applicant's need for the project and financial needs of the applicant in relation to the project;(C) The ability of the applicant to repay the loan.(b)Loans may be made to cities, towns, counties, special districts specifically involved in providing facilities or functions enumerated in W.S. 16-1-104(c), school districts and community college districts for infrastructure projects and to airport boards and joint powers boards for projects for the construction, development and improvement of airport facilities generating user fees. A loan under this subsection shall be at an interest rate equal to the yield on a United States treasury security of the same duration of the loan. The board may add an additional percentage not to exceed two percent (2%) as a risk premium to the interest rate established under this subsection. The rate of interest for all loans issued under this subsection shall not be less than three percent (3%). In the event of prepayment of a loan, the interest rate shall be calculated at the actual loan period, but no refund of interest payment shall be made to the borrowing entity. Any loan made under this subsection shall be for a term of not fewer than five (5) years and not greater than twenty-five (25) years for repayment. Adequate security for loans shall be required and may include: (i) A pledge of the revenues from the project for which the loan was granted;(ii) A pledge of other revenues available to the entity receiving the loan;(iii) A mortgage covering all or any part of the project or by a pledge of the lease of the project;(iv) Any other security device or requirement deemed advantageous or necessary by the board.(c) Loans may be made to cities, towns and counties for road or street projects. To qualify for a road or street project loan, in addition to the requirements of subsections (a) and (b) of this section, an applicant shall demonstrate that all related infrastructure including water and sewer is or will be in place at the time of receipt of the loan. No loan shall be provided under this subsection to any city, town or county that has any outstanding or unpaid loan under this subsection. Any loan under this subsection shall be at an interest rate equal to the yield on a United States treasury security of the same duration of the loan. The board may add an additional percentage not to exceed two percent (2%) as a risk premium to the interest rate established under this subsection. The rate of interest for all loans issued under this subsection shall not be less than three percent (3%). In the event of prepayment of a loan, the interest rate shall be calculated at the actual loan period, but no refund of interest payment shall be made to the borrowing entity. Any loan made under this subsection shall be for a term of not fewer than five (5) years and not greater than twenty-five (25) years for repayment. (i) through (iii) Repealed by Laws 2023, ch. 135,§ 2;(d) Loans may be made to irrigation or water conservancy districts for replacement or major maintenance projects of storage, diversion, transmission, and distribution systems. A loan under this subsection shall be at an interest rate equal to yield of a United States treasury security of the same duration of the loan. The board may add an additional percentage not to exceed two percent (2%) as a risk premium to the interest rate established under this subsection. The rate of interest for all loans issued under this subsection shall not be less than three percent (3%). In the event of prepayment of a loan, the interest rate shall be calculated at the actual loan period, but no refund of interest payment shall be made to the borrowing entity. Any loan made under this subsection shall be for a term of not fewer than five (5) years and not greater than twenty-five (25) years for repayment. The board shall require an irrigation or a water conservancy district to apply for other grant or loan programs prior to authorizing a loan under this subsection. Adequate security for loans shall be required and may include:(i) A pledge of the revenues from the project for which the loan was granted;(ii) A pledge of other revenues available to the irrigation or water conservancy district receiving the loan;(iii) A mortgage covering all or any part of the project or by a pledge of the lease of the project;(iv) Any other security device or requirement deemed advantageous or necessary by the board.(e) No loan shall be made without the written opinion of the attorney general certifying the legality of the transaction and all documents connected therewith. An election approving the project and borrowing for the project by the qualified electors of the borrowing entity shall be required only if the attorney general determines such an election is otherwise required by law.(f) There is created a loss reserve account for loans made under this section. A loan origination fee of one-half of one percent (0.5%) of the loan shall be paid by the loan applicant and deposited to the loss reserve account for any loan approved under this section. If, as a result of default in the payment of any loan made under this section, there occurs a nonrecoverable loss either to the corpus of, or interest due to the permanent Wyoming mineral trust fund, the board shall restore the loss to the permanent fund using any funds available in the loss reserve account. If the funds in the loss reserve account are insufficient to restore the full amount of the loss, the board shall submit a detailed report of the loss to the legislature and shall request an appropriation to restore the balance of the loss to the permanent fund. (g) As used in this section: (i) "Board" means the state loan and investment board to include the office of state lands and investments;(ii) "Infrastructure project" means a capital construction project which may lawfully be undertaken within the powers of the political subdivision authorized to receive a loan under this section;(iii) "Road or street project" means the construction, maintenance or improvement of a public street, road or alley within a city, town or county.Amended by Laws 2023, ch. 157,§ 2, eff. 7/1/2023.Amended by Laws 2023, ch. 135,§ 2, eff. 3/1/2023.Amended by Laws 2023, ch. 135,§ 1, eff. 3/1/2023.Amended by Laws 2021 , ch. 123, § 1, eff. 7/1/2021.Amended by Laws 2019 , ch. 112, § 1, eff. 2/26/2019.Added by Laws 2018 , ch. 136, § 1, eff. 7/1/2018.