(a) The loans made and bonds, notes, and other evidences of indebtedness purchased with moneys in the Construction Assistance State Revolving Loan Fund shall bear interest at rates of interest, including without limitation negative rates of interest, established by the Arkansas Natural Resources Commission.
(b) However, the commission may establish negative rates of interest only for loans made and bonds, notes, and other evidences of indebtedness purchased with moneys in the fund provided by the federal government under the Clean Water Act for the purpose of providing additional subsidization to eligible recipients in the form of forgiveness of principal, negative interest loans, or grants or any combination of principal, negative interest loans, or grants.
(c) Notwithstanding any other provision of law, loans, bonds, notes, and other evidences of indebtedness issued by owners may bear interest at a negative rate if they are purchased with moneys in the fund.
Structure Arkansas Code
Title 15 - Natural Resources and Economic Development
Subtitle 1 - Development Of Economic And Natural Resources Generally
Chapter 5 - Arkansas Development Finance Authority
Subchapter 9 - Construction Assistance Revolving Loans
§ 15-5-901. Fund — Establishment — Uses — Accounts
§ 15-5-902. Fund — Administration
§ 15-5-903. Fund — Grants — Deposits — Cash funds
§ 15-5-904. Fees for technical and administrative services
§ 15-5-905. Federal grants deposited into fund
§ 15-5-906. Security for bonds
§ 15-5-907. Substitution of loans — Forgiveness of principal