Contract Requirements and Disbursement of Funds
(1) The Authority shall disburse monies from the fund for water projects or technical assistance projects only after entering into a binding contract with the municipality.(2) The contract shall be in a form provided by the Authority.(3) If any portion of the assistance is in the form of a loan or the purchase of a bond of a municipality, a provision granting the Authority a lien on or a security interest in the collateral as determined by the Authority to be necessary to secure repayment of the loan or bond shall be included in the contract.(4) Drinking water projects are subject to the following contract provisions:(a) A provision requiring the municipality to install meters on all new active service connections from any distribution lines that may be included in the project; and(b) For a drinking water project with existing, active unmetered service connections, a provision requiring the municipality to install meters on such service connections no later than two years after the completion of the project; (5) Other funds that may be needed to complete the project must be available or the municipality must have a binding commitment for such funds at the time the contract is executed. If a portion of the other funds needed to complete the project is committed but not available at the time an award is made or the contract executed, the contract shall require that the project be fully funded prior to any disbursement from the fund. (6) The contract for a loan shall be authorized by an ordinance, order or resolution adopted by the governing body of the municipality in accordance with the municipality’s requirements for public notice and authorizing debt.