(a) The Arkansas Water Resources Cost Share Revolving Fund created under § 19-5-1042 is a depository for funds which may be appropriated or otherwise secured for cost-sharing with the federal government in local water resources development projects under this subchapter.
(b)
(1) The fund shall be used to:
(A) Provide loans or grants to local governments under this subchapter; and
(B) Pay the administrative costs of a water resources development project not to exceed twenty percent (20%) of the total cost of the water resources development project.
(2) Funds from the repayment of loans from the fund shall be returned to the fund and shall be reused in a manner consistent with the purpose of this subchapter.
(c)
(1) Loans from the fund shall be repaid in full at an interest rate up to the maximum allowed under the Arkansas Constitution.
(2) The terms and conditions of repayment of the loans for cost-sharing shall be specified and agreed to in writing before awarding the loan.