US Laws, Codes, Statutes & Cases

                                  TITLE  42
                       IRRIGATION AND DRAINAGE -- WATER
                            RIGHTS AND RECLAMATION
                                  CHAPTER 17
                       DEPARTMENT OF WATER RESOURCES --
                             WATER RESOURCE BOARD
    42-1756.  LOANS FROM  ACCOUNT -- APPLICATION -- INVESTIGATION -- APPROVAL
-- REPAYMENT -- STATEMENT -- FILING -- DEFAULT. (1) Any irrigation district,
canal or irrigation company, water users' association, municipal corporation,
municipality, private corporation, aquifer protection district, or, in special
cases approved by the board, an individual may file an application with the
board for a loan from the revolving account for the purpose of financing
project costs. Such application shall be filed in such manner, and shall be in
such form and be accompanied by such information as may be prescribed by the
board; provided, however, that any such application filed with the board under
the provisions of this act, shall:
    (a)  Describe the nature and purpose(s) of the proposed project.
    (b)  Set forth or be accompanied by a plan for development of the proposed
    project, together with such engineering and economic feasibility data and
    estimated costs of construction as may be required by the board.
    (c)  State whether money other than that for which application is made to
    the board will be used for project costs, and whether such money is
    available or has been sought for this purpose.
    (d)  Show that the applicant holds or can acquire title to all lands or
    has the necessary easements and rights-of-way for the project and related
    lands, and has or can acquire all water rights necessary for the
    construction, operation and maintenance of the proposed project, or that
    there exists sufficient water available for appropriation by proof of a
    permit issued by the director of the department of water resources.
    (2)  Upon receipt of an application, the board shall evaluate and, if it
deems it to be necessary, investigate all aspects of the proposed project and
the proposed construction thereof. As a part of such investigation, the board
shall determine whether the plan for development of the project is
satisfactory. If the board determines that the plan is unsatisfactory, it
shall return the application to the applicant and may make such
recommendations to the applicant as are considered necessary to make the plan
satisfactory.
    (3)  The board may approve a loan for project costs if after investigation
(if this is deemed necessary,) and evaluation it finds that:
    (a)  The plan does not conflict with any extant Idaho state water plan;
    (b)  The proposed project is feasible from an engineering standpoint and
    economically justified, with studies showing a favorable benefit to cost
    ratio;
    (c)  The plan for development of the proposed project is satisfactory;
    (d)  The applicant is qualified and responsible;
    (e)  There is reasonable assurance that the borrower can repay the loan;
    and
    (f)  That money in the revolving account is available for the loan.
    (4)  If the board approves a loan, the board and the applicant or
applicants shall enter into an agreement for repayment to the revolving
account of money loaned therefrom, together with interest thereon at
reasonable rates as determined by the board. The agreement shall further
provide that repayment of the loan, together with interest thereon, shall
commence no later than one (1) full year after construction of the project is
completed, and that repayment shall be completed within the time period
specified by the board; provided that repayment to reserve accounts or
guarantee funds shall be made as provided by order of the board. The repayment
period shall not exceed sixty (60) years, except that the board may extend the
time for making repayment in the event of emergency or hardship. Such
agreement shall also provide for such assurances of, and security for,
repayment of the loan as are considered necessary by the board.
    (5)  The state shall have a lien upon a project constructed with money
from the revolving account for the amount of the loan, together with the
interest thereon. This lien shall attach to all project facilities, equipment,
easements, real property and property of any kind or nature associated with
the project and all water rights associated in any way with the project. The
board shall file a statement of the loan, its amount, terms and a description
of the project with the county recorder of each county in which the project or
any part thereof is located. The county recorder shall record the lien in a
book kept for the recording of liens and it shall be indexed as other liens
are required by law to be indexed. The lien shall be valid until paid in full
or otherwise discharged. The lien shall be foreclosed in accordance with
applicable state law governing foreclosure of mortgages and liens as set forth
in chapter 1 of title 6, Idaho Code, chapter 13 of title 45, Idaho Code, and
related provisions of the statutes of this state.
    (6)  If an applicant fails to comply with the repayment contract, its
interest in the project may be conveyed to a successor upon approval by the
board, which may contract with the qualified successor in interest of the
original obligor for repayment of the loan, together with the interest
thereon, and for succession to its rights and obligations in any contract with
the board.
    (7)  The state shall have a lien on any or all projects which the board
improves or renovates with money from the revolving account, and such lien
shall be valid and continue in effect until such funds, together with interest
thereon, have been paid in full and the lien discharged. The board shall file
a statement of the lien, and the lien shall be foreclosed upon all project
property and rights as provided in subsection (5) of this section.