(1) (a) Each recipient of a loan under the program shall establish a dedicated source of revenue for repayment of the loan in the event that the Federal Emergency Management Agency disallows a reimbursement request for an expenditure for which loan proceeds were used. Before any local government shall receive any loan, it shall have executed with the Department of Revenue and the agency a loan agreement evidencing that loan and the dedicated source of revenue.(b) All borrowers must agree to pay an amount not greater than twelve and one-half percent (12.5%) of the matching funds required by the Federal Emergency Management Agency for the receipt of federal grant funds.(c) The executed loan agreement shall obligate the local government to repay the proceeds of the loan to the agency receipt of any reimbursements from the Federal Emergency Management Agency.(d) In the event that the Federal Emergency Management Agency disallows a reimbursement request for an expenditure for which loan proceeds were used, the repayment schedule in each loan agreement shall provide for (i) monthly payments, (ii) semiannual payments, or (iii) other periodic payments. The loan agreement shall provide for the repayment of all funds received from the emergency fund to the agency within not more than two (2) years from the date that the Federal Emergency Management Agency disallowed a reimbursement request for an expenditure for which loan proceeds were used. The Department of Revenue shall withhold semiannually from counties and monthly from municipalities from the amount to be remitted to the county or municipality, a sum equal to the next repayment as provided in the loan agreement in the event that the Federal Emergency Management Agency disallows a reimbursement request for an expenditure for which loan proceeds were used and the county or municipality has pledged such revenue.
(a) Each recipient of a loan under the program shall establish a dedicated source of revenue for repayment of the loan in the event that the Federal Emergency Management Agency disallows a reimbursement request for an expenditure for which loan proceeds were used. Before any local government shall receive any loan, it shall have executed with the Department of Revenue and the agency a loan agreement evidencing that loan and the dedicated source of revenue.
(b) All borrowers must agree to pay an amount not greater than twelve and one-half percent (12.5%) of the matching funds required by the Federal Emergency Management Agency for the receipt of federal grant funds.
(c) The executed loan agreement shall obligate the local government to repay the proceeds of the loan to the agency receipt of any reimbursements from the Federal Emergency Management Agency.
(d) In the event that the Federal Emergency Management Agency disallows a reimbursement request for an expenditure for which loan proceeds were used, the repayment schedule in each loan agreement shall provide for (i) monthly payments, (ii) semiannual payments, or (iii) other periodic payments. The loan agreement shall provide for the repayment of all funds received from the emergency fund to the agency within not more than two (2) years from the date that the Federal Emergency Management Agency disallowed a reimbursement request for an expenditure for which loan proceeds were used. The Department of Revenue shall withhold semiannually from counties and monthly from municipalities from the amount to be remitted to the county or municipality, a sum equal to the next repayment as provided in the loan agreement in the event that the Federal Emergency Management Agency disallows a reimbursement request for an expenditure for which loan proceeds were used and the county or municipality has pledged such revenue.
(2) A county that receives a loan from the emergency fund shall pledge for repayment of the loan any part of the use tax to which it may be entitled under Chapter 67, Title 27, Mississippi Code of 1972, or any other revenue source to which it is entitled by law, as may be required to meet the repayment schedule contained in the loan agreement in the event that the Federal Emergency Management Agency disallows a reimbursement request for an expenditure for which loan proceeds were used.
(3) A municipality that receives a loan from the emergency fund shall pledge for repayment of the loan any part of the sales tax revenue distribution to which it may be entitled under Section 27-65-75, or any other revenue source to which it is entitled by law, as may be required to meet the repayment schedule contained in the loan agreement in the event that the Federal Emergency Management Agency disallows a reimbursement request for an expenditure for which loan proceeds were used.
(4) Upon receipt of any funds in repayment from the borrower and the Department of Revenue to the credit of a borrower for loan obligations under this article, the agency shall immediately deposit such funds into the emergency fund.
(5) The State Auditor, upon request of the agency, shall audit the receipts and expenditures of a local government whose loan repayments appear to be in arrears, and if the Auditor finds the local government is in arrears in those repayments, the Auditor shall immediately notify the executive director of the agency and the State Fiscal Officer, who may take any action as may be necessary to enforce the terms of the loan agreement, including liquidation and enforcement of the dedicated source of revenue given as security for repayment of the loan and the withholding of all future payments to the county of homestead exemption annual tax loss reimbursements under Section 27-33-77 and all sums allocated to the county or the municipality under Section 27-65-75 until such time as the county or the municipality is again current in its loan repayments as certified by the agency.