1. (1)

   1. (a) There is created an enterprise fund known as the Local Government Emergency Response Loan Fund.
   2. (b) The division as defined in Section 53-2a-103 is the administrator of the fund.

2. (2) The fund consists of:

   1. (a) money appropriated to the fund by the Legislature;
   2. (b) money received for the repayment of loans made from the fund;
   3. (c) interest earned on the fund; and
   4. (d) money deposited into the fund in accordance with Section 63J-1-314.
3. (3) The money in the fund shall be invested by the state treasurer according to the procedures and requirements of Title 51, Chapter 7, State Money Management Act, except that all interest or other earnings derived from money in the fund shall be deposited into the fund.

4. (4) Local government entities may apply through the division for a short-term loan from the fund for the purposes provided in Section 53-2a-608, provided that the local government entity:

   1. (a) agrees to the terms of the loan; and
   2. (b) is not in default on any other state loans administered by the Division of Finance or any other state agency.

5. (5) The division may not loan out:

   1. (a) more than 50% of the total account balance available at the time that a loan request is made by a local government entity; or
   2. (b) an amount that will leave the fund balance at less than $10,000,000.

Enacted by Chapter 134, 2016 General Session