Loan application by municipality; process; agreement; disposition of money received as repayment.

Sec. 5203. (1) A municipality that wishes to apply for a loan shall submit a loan application to the department as follows: (a) In compliance with the application requirements provided in part 53, for activities described in section 5202(1)(a) or (b). (b) On a form approved by the department, for activities described in section 5202(1)(c) or (d). (2) The department shall process the loan applications submitted under this part. (3) Prior to releasing a loan, the authority in consultation with the department shall enter into a loan agreement with the loan recipient. (4) All money that is received for the repayment of a loan shall be forwarded to the state treasurer for deposit into the fund.