81-15,151.03.

Linked deposit program; eligible financial institution; duties; linked deposit program loans; use.

(1) The department may establish and administer the linked deposit program, pursuant to rules and regulations adopted and promulgated by the council, to promote loans by eligible financial institutions for the construction, rehabilitation, and enhancement of nonpoint source control systems for public or private owners thereof. When an eligible financial institution has executed a linked deposit agreement with the director, the director may deposit a portion of the Wastewater Treatment Facilities Construction Loan Fund with the eligible financial institution in low-yielding deposit accounts, certificates of deposit, or other authorized deposits as set forth in the linked deposit agreement between the director and the eligible financial institution. Such deposits shall not be subject to the requirements of the Public Funds Deposit Security Act. In the linked deposit agreement, the eligible financial institution shall make loans available at an interest rate lower than the otherwise prevailing interest rate for construction, rehabilitation, and enhancement of nonpoint source control systems. Eligibility for the linked deposit program shall be determined pursuant to rules and regulations adopted and promulgated by the council.

(2) Linked deposit program loans may be made to public or private owners by eligible financial institutions for the construction, rehabilitation, and enhancement of nonpoint source control systems including:

(a) Onsite wastewater and private septic systems;

(b) Local water protection projects, including best management practices for nutrient controls; and

(c) Eligible nonpoint source activities under the Livestock Waste Management Act.