NMSA 1978, § 74-6A-1 Short title
74-6A-1. Short title
Chapter 74, Article 6A NMSA 1978 may be cited as the "Wastewater Facility Construction Loan Act".
Laws 1986, ch. 72, § 1; 1991, ch. 172, § 2.
Wastewater Facility Construction Loans
NMSA 1978 ch. 74, art. 6A
in effectNMSA 1978, § 74-6A-2 Purpose
74-6A-2. Purpose
The purpose of the Wastewater Facility Construction Loan Act is to provide state agencies, local authorities, interstate agencies and other qualified borrowers in New Mexico with low-cost financial assistance in the construction of necessary wastewater facilities and other eligible projects through the creation of a self-sustaining program so as to improve and protect water quality and public health.
Laws 1986, ch. 72, § 2; 1989, ch. 323, § 1; 2017, ch. 114, § 1; 2018, ch. 19, § 1.
NMSA 1978, § 74-6A-3 Definitions
74-6A-3. Definitions
As used in the Wastewater Facility Construction Loan Act:
A. "account" means the wastewater suspense account;
B. "administrative fee" means a fee assessed and collected by the department from a qualified borrower on each loan and expressed as a percentage per year on the outstanding principal amount of the loan, payable by the borrower on the same date that principal and interest on the loan are due, for deposit in the clean water administrative fund;
C. "board" means the state board of finance;
D. "bonds" means wastewater bonds or other obligations authorized by the commission to be issued by the board pursuant to the Wastewater Facility Construction Loan Act;
E. "Clean Water Act" means the federal Clean Water Act of 1977 and its subsequent amendments or successor provisions;
F. "commission" means the water quality control commission;
G. "division" or "department" means the department of environment;
H. "eligible project" means a project or activity that is eligible for funding assistance under Section 603(c) of the Clean Water Act, Section 1383 of Title 33 of the United States Code, as of January 1, 2018 including a wastewater facility project, a nonpoint source water pollution control project and a watershed project that meet the criteria of the Clean Water Act;
I. "federal securities" means direct obligations of the United States, or obligations the principal and interest of which are unconditionally guaranteed by the United States, or an ownership interest in either of the foregoing;
J. "financial assistance" means loans, the purchase or refinancing of existing state agency or local political subdivision obligations, loan guarantees, credit enhancement techniques to reduce interest on loans and bonds, bond insurance and bond guarantees or any combination of these purposes;
K. "force account construction" means construction performed by the employees of a local authority rather than through a contractor;
L. "fund" means the wastewater facility construction loan fund;
M. "holders" means persons who are owners of bonds, whether registered or not, issued pursuant to the Wastewater Facility Construction Loan Act;
N. "issuing resolution" means a formal statement adopted by the board to issue bonds pursuant to the Wastewater Facility Construction Loan Act, including any trust agreement, trust indenture or similar instrument providing terms and conditions for the bonds to be issued;
O. "local authority" means a municipality, intermunicipal agency, county, incorporated county, mutual domestic water consumers association as defined by the Sanitary Projects Act [Chapter 3, Article 29 NMSA 1978], sanitation district, water and sanitation district or any similar district, recognized Indian tribe or other issuing agency created pursuant to a joint powers agreement acting on behalf of any entity listed in this subsection;
P. "operate and maintain" means to perform all necessary activities, including replacement of equipment or appurtenances, to ensure the dependable and economical function of an eligible project in accordance with its intended purpose;
Q. "qualified borrower" means a creditworthy borrower with an identified and verifiable repayment source that is eligible to receive funding pursuant to the Clean Water Act, as of January 1, 2018 including a state agency, an interstate agency and a local authority;
R. "recommending resolution" means a formal statement adopted by the commission recommending to the board that bonds be issued pursuant to the Wastewater Facility Construction Loan Act, including any trust agreement, trust indenture or similar instrument providing the terms and conditions for the bonds that are issued;
S. "state agency" means an agency or department of the executive branch of government; and
T. "wastewater facility" means a publicly owned system for treating or disposing of sewage or wastes either by surface or underground methods, including any equipment, plant, treatment works, structure, machinery, apparatus or land, in any combination, that is acquired, used, constructed or operated for the storage, collection, reduction, recycling, reclamation, disposal, separation or treatment of water or wastes or for the final disposal of residues resulting from the treatment of water or wastes, such as pumping and ventilating stations, facilities, plants and works, outfall sewers, interceptor sewers and collector sewers and other real or personal property and appurtenances incident to their use or operation.
Laws 1986, ch. 72, § 3; 1989, ch. 323, § 2; 1991, ch. 172, § 3; 2007, ch. 344, § 2; 2015, ch. 112, § 1; 2017, ch. 114, § 2; 2018, ch. 19, § 2.
NMSA 1978, § 74-6A-4 Wastewater facility construction loan fund created; administration
74-6A-4. Wastewater facility construction loan fund created; administration
A. There is created in the state treasury a revolving loan fund to be known as the "wastewater facility construction loan fund", which shall be administered by the division as agent for the commission and operated as a separate account. The commission is authorized to establish procedures and adopt regulations as required to administer the fund in accordance with the Clean Water Act and state law. Any regulations relating to the issuance of bonds and the expenditure of proceeds of bond issues shall be approved by the board. The commission shall, whenever possible, coordinate application procedures and funding cycles with the New Mexico Community Assistance Act [11-6-1 NMSA 1978].
B. The following shall be deposited directly in the fund:
(1) grants from the federal government or its agencies allotted to the state for capitalization of the fund;
(2) funds as appropriated by the legislature to implement the provisions of the Wastewater Facility Construction Loan Act or to provide state matching funds that are required by the terms of any federal grant under the Clean Water Act;
(3) loan principal, interest and penalty payments if required by the terms of any federal grant under the Clean Water Act;
(4) money transferred from the account as needed to fulfill requirements of the Clean Water Act; and
(5) any other public or private money dedicated to the fund.
C. Money in the fund is appropriated for expenditure by the commission in a manner consistent with the terms and conditions of the federal capitalization grants and the Clean Water Act and may be used:
(1) to provide funding for eligible projects;
(2) to purchase, refund or refinance obligations incurred by local authorities in the state for eligible projects where the obligations were incurred and construction commenced after March 7, 1985;
(3) to guarantee, or purchase insurance for, obligations of local authorities to improve credit market access or reduce interest rates;
(4) to provide a source of revenue or security for the payments of principal and interest on bonds recommended by the commission and issued by the board if the proceeds of the bonds are deposited in the fund to the extent provided in the terms of the federal grant;
(5) to provide loan guarantees for similar revolving funds established by local authorities;
(6) to fund the administrative expenses of the board, the commission and the division necessary to implement the provisions of the Wastewater Facility Construction Loan Act, including costs of servicing loans and issuing bonds, fund start-up costs, financial management and legal consulting fees and reimbursement costs for support services from other state agencies; and
(7) to fund other programs for which the federal government authorizes use of wastewater grants or to provide for any other expenditure consistent with the Clean Water Act grant program and state law.
D. Pursuant to regulations adopted by the commission, the division may impose and collect an administrative fee from each qualified borrower that receives financial assistance from the fund, which fee shall not exceed five percent of the total loan amount and which shall be deposited in the clean water administrative fund.
E. Money not currently needed for the operation of the fund or otherwise dedicated may be invested according to the provisions of Chapter 6, Article 10 NMSA 1978, and all interest earned on such investments shall be credited to the fund. Money remaining in the fund at the end of any fiscal year shall not revert to the general fund but shall accrue to the credit of the fund.
F. Acting as agent for the commission, the division shall maintain full authority for the operation of the fund in accordance with applicable federal and state law, including preparing the annual intended use plan and ensuring that loan recipients are on the state priority list or otherwise satisfy Clean Water Act requirements.
G. The division shall establish fiscal controls and accounting procedures that are sufficient to ensure proper accounting for fund payments, disbursements and balances and shall provide an annual report and an annual independent audit on the fund to the governor and to the United States environmental protection agency as required by the Clean Water Act.
1978 Comp., § 74-6A-4, enacted by Laws 1991, ch. 172, § 4; 2007, ch. 344, § 3; 2018, ch. 19, § 3.
NMSA 1978, § 74-6A-4.1 Clean water administrative fund; created; use
74-6A-4.1. Clean water administrative fund; created; use
A. The "clean water administrative fund" is created in the state treasury and shall be administered by the department as agent for the commission. The clean water administrative fund shall be a dedicated fund, and all money in the clean water administrative fund is appropriated to the department to be used solely to administer the wastewater facility construction loan fund, which may include water quality planning and water quality analysis and protection studies if authorized by the department and, if necessary, the United States environmental protection agency. The commission may establish procedures, adopt regulations and set fees as required to administer the clean water administrative fund in accordance with the Clean Water Act and state law. The clean water administrative fund shall consist of money deposited from:
(1) loan administration fees collected by the department after the effective date of this section on loans made from the wastewater facility construction loan fund;
(2) interest earned on investment of the clean water administrative fund;
(3) grants from the federal government allotted to the state for the clean water administrative fund;
(4) funds as appropriated by the legislature for administration to implement the provisions of the Clean Water Act; and
(5) any other public or private money dedicated to the clean water administrative fund.
B. Money in the clean water administrative fund not currently needed for the operation of the fund or otherwise dedicated may be invested according to the provisions of Chapter 6, Article 10 NMSA 1978, and all interest earned on such investments shall be credited to the clean water administrative fund. Money remaining in the clean water administrative fund at the end of any fiscal year shall not revert to the general fund but shall accrue to the credit of the clean water administrative fund.
C. The department shall establish fiscal controls and accounting procedures that are sufficient to ensure proper accounting for clean water administrative fund payments, disbursements and balances and shall provide an annual report and an annual independent audit on the clean water administrative fund to the governor and to the United States environmental protection agency as required by the Clean Water Act.
Laws 2007, ch. 344, § 1.
NMSA 1978, § 74-6A-7 Loan program; administration
74-6A-7. Loan program; administration
A. The division shall establish a program to provide financial assistance to qualified borrowers, individually or jointly, for eligible projects. The division as agent of the commission is authorized to enter into contracts and other agreements to carry out the provisions of the Wastewater Facility Construction Loan Act, including contracts and agreements with federal agencies, local authorities and other parties.
B. The commission shall adopt a system for the ranking of eligible projects for financial assistance.
Laws 1991, ch. 172, § 5; 2018, ch. 19, § 4.
NMSA 1978, § 74-6A-8 Financial assistance; criteria
74-6A-8. Financial assistance; criteria
A. Financial assistance shall be provided only to qualified borrowers that:
(1) meet the requirements for financial capability set by the division to assure sufficient revenues to operate and maintain the eligible project for its useful life, if applicable, and to repay the financial assistance;
(2) agree to operate and maintain the eligible project facility so that the project facility will function properly over its structural and material design life, if applicable;
(3) agree to maintain separate project accounts, to maintain project accounts properly in accordance with generally accepted governmental accounting standards and to conduct an audit of the project's financial records;
(4) provide a written assurance, signed by an attorney or other authorized representative, that the qualified borrower has or will acquire proper title, easements and rights of way to the property upon or through which the eligible project facility proposed for funding is to be constructed or extended;
(5) require the contractor of the eligible project to post a performance and payment bond in accordance with the requirements of Section 13-4-18 NMSA 1978 and its subsequent amendments and successor provisions;
(6) provide a written notice of completion of the eligible project;
(7) appear on the priority list of the fund, regardless of rank on such list; and
(8) provide such information to the division as required by the commission in order to comply with the provisions of the Clean Water Act and state law.
B. Loans shall be made only to qualified borrowers that establish one or more dedicated sources of revenue to repay the money received from the commission and to provide for operation, maintenance and equipment replacement expenses. Notwithstanding any existing statute to the contrary, a qualified borrower may do any of the following:
(1) obligate itself to pay to the commission at periodic intervals a sum sufficient to provide all or any part of bond debt service with respect to the bonds recommended by the commission and issued by the board to fund the loan for the eligible project and pay over the debt service to the account of the eligible project for deposit to the fund;
(2) fulfill any obligation to pay the commission by the issuance of bonds, notes or other obligations in accordance with the laws authorizing issuance of state or local authority obligations; provided, however, that, notwithstanding the provisions of Section 4-54-3 or 6-15-5 NMSA 1978 or other statute or law requiring the public sale of local authority obligations, the obligations may be sold at private sale to the commission at the price and upon the terms and conditions the local authority shall determine;
(3) levy, collect and pay over to the commission and obligate itself to continue to levy, collect and pay over to the commission the proceeds of one or more of the following:
(a) sewer or waste disposal service fees or charges;
(b) licenses, permits, taxes and fees;
(c) special assessments on the property served or benefited by the eligible project; or
(d) other revenue available to the qualified borrower;
(4) undertake and obligate itself to pay its contractual obligation to the commission solely from the proceeds from any of the sources specified in Paragraph (3) of this subsection or, in accordance with the laws authorizing issuance of qualified borrower obligations, impose upon itself a general obligation pledge to the commission additionally secured by a pledge of any of the sources specified in Paragraph (3) of this subsection; or
(5) enter into agreements, perform acts and delegate functions and duties as its governing body shall determine is necessary or desirable to enable the division as agent for the commission to fund a loan to the qualified borrower to aid it with an eligible project.
C. Each loan made by the division as agent for the commission shall provide that repayment of the loan shall begin not later than one year after completion of the eligible project for which the loan was made and shall be repaid in full no later than thirty years after completion of the eligible project. All principal and interest on loan payments shall be deposited in the fund.
D. Financial assistance shall be made with an annual interest rate to be five percent or less as determined by the commission.
E. A zero-percent interest rate may be approved by the division when the following conditions have been met by the local authority:
(1) the local authority's average user cost is greater than one and eighty-two hundredths percent of the local authority's per capita income; and
(2) the local authority's per capita income is less than three-fourths of the statewide per capita income.
F. A local authority may use the proceeds from financial assistance received under the Wastewater Facility Construction Loan Act to provide a local match or any other nonfederal share of an eligible project as allowed pursuant to the Clean Water Act.
G. Financial assistance received pursuant to the Wastewater Facility Construction Loan Act shall not be used by a qualified borrower on any eligible project constructed in fulfillment or partial fulfillment of requirements made of a subdivider under the provisions of the Land Subdivision Act [47-5-1 to 47-5-8 NMSA 1978] or the New Mexico Subdivision Act [Chapter 47, Article 6 NMSA 1978].
H. Financial assistance shall be made only to qualified borrowers that employ or contract with a New Mexico licensed professional engineer to provide and be responsible for engineering services on the eligible project. Such services include an engineering report, construction contract documents, supervision of construction and start-up services.
I. Financial assistance shall be made only for eligible items. For financial assistance composed entirely of state funds, eligible items include the costs of engineering reports, contracted engineering design, inspection of construction, special engineering services, start-up services, contracted construction, materials purchased or equipment leased for force account construction, land or acquisition of existing facilities, but eligible items do not include the costs of water rights and local authority administrative costs. For financial assistance made from federal funds, eligible items are those identified pursuant to the Clean Water Act.
J. In the event of default by the qualified borrower, the commission may enforce its rights by suit or mandamus or may utilize all other available remedies under state law.
Laws 1991, ch. 172, § 6; 2015, ch. 112, § 2; 2017, ch. 114, § 3; 2018, ch. 19, § 5.
NMSA 1978, § 74-6A-9 Commission; powers
74-6A-9. Commission; powers
A. In administering the Wastewater Facility Construction Loan Act, the commission shall have the following powers, which may be implemented by the division, in addition to those specified in the Water Quality Act [Chapter 74, Article 6 NMSA 1978]:
(1) to provide financial assistance to qualified borrowers to finance all or part of an eligible project, including all forms of assistance for which the fund may be used pursuant to the Wastewater Facility Construction Loan Act;
(2) to adopt resolutions recommending that the board issue bonds or refunding bonds pursuant to the provisions of the Wastewater Facility Construction Loan Act;
(3) to execute agreements concerning state contributions to the fund made pursuant to the Clean Water Act, including obligating the commission to pay a portion of the estimated reasonable cost of an eligible project of a local authority as may be required to meet the water quality goals of the Clean Water Act and the state;
(4) to foreclose upon, attach or condemn any eligible project facility, property or interest in the project pledged, mortgaged or otherwise available as security for a project financed in whole or in part pursuant to the Wastewater Facility Construction Loan Act in the event of a default by a qualified borrower;
(5) to acquire and hold title to or leasehold interest in real and personal property and to sell, convey or lease that property for the purpose of satisfying a default or enforcing the provisions of a loan agreement;
(6) through its agent the division, to manage the fund, to grant and administer financial assistance to qualified borrowers and to apply for and accept grants, including capitalization grant awards made to the state in accordance with the Clean Water Act and the Wastewater Facility Construction Loan Act;
(7) to appoint and employ attorneys, financial advisors, underwriters and other experts and agents and employees as the business of the commission may require;
(8) to sue or be sued and to prosecute and defend, at law or in equity, in any court having jurisdiction over the subject matter and the parties to the matter;
(9) to collect application, origination and administrative fees from qualified borrowers, the total of which for any loan shall not exceed four percent of the value of the loan requested or authorized;
(10) to adopt regulations necessary and appropriate to implement the provisions of the Wastewater Facility Construction Loan Act; and
(11) to have and exercise all the rights and powers necessary, incidental to or implied from the specific powers enumerated in this section.
B. Specific powers enumerated in this section shall not limit any power necessary or appropriate to carry out the purposes and intent of the Wastewater Facility Construction Loan Act.
C. The commission shall use accounting, audit and fiscal procedures conforming to generally accepted government accounting standards and shall otherwise prepare audits and budgets in accordance with state law. The fiscal year of the commission shall coincide with the fiscal year of the state.
D. The commission shall deliver an annual report during the first week of each regular session of the legislature on the status of the wastewater facility construction loan program and the fund to the governor and legislature.
Laws 1991, ch. 172, § 7; 2017, ch. 114, § 4; 2018, ch. 19, § 6.
NMSA 1978, § 74-6A-10 Board; duties and powers
74-6A-10. Board; duties and powers
A. The board may issue bonds or refunding bonds pursuant to the Wastewater Facility Construction Loan Act when the commission issues a recommending resolution to the board stating that a bond issue is required to implement the provisions of that act.
B. The board may enter into agreements regarding the sale of bonds recommended by the commission, including arrangements for letters of credit, bond insurance or other credit enhancement devices, provided that no agreement shall obligate funds under the control of the commission other than as provided in the Wastewater Facility Construction Loan Act.
C. Prior to issuance of bonds recommended by the commission pursuant to the Wastewater Facility Construction Loan Act, the board may adopt regulations related to the issuance of bonds and the expenditure of bond proceeds pursuant to that act.
Laws 1991, ch. 172, § 8.
NMSA 1978, § 74-6A-11 Wastewater suspense account created
74-6A-11. Wastewater suspense account created
A. There is created in the state treasury a fund to be known as the "wastewater suspense account". The proceeds of bonds recommended by the commission and issued and sold by the board pursuant to provisions of the Wastewater Facility Construction Loan Act shall be deposited in the account. The commission shall be the administrator of the account. All expenditures or transfers from the account shall be approved by the commission. Money in the account shall be withdrawn, expended or transferred as necessary to comply with the provisions of the recommending and issuing resolutions for the bonds, the proceeds of which have been deposited in the account, and to fund the provisions of the Wastewater Facility Construction Loan Act and the Clean Water Act.
B. Money in the account may be invested according to provisions of Chapter 6, Article 10 NMSA 1978. All interest earned on the investments shall be credited to the account.
C. Money in the account shall not revert to the general fund but accrue to the credit of the account.
Laws 1991, ch. 172, § 9.
NMSA 1978, § 74-6A-12 Commission bonds
74-6A-12. Commission bonds
A. The board, upon recommendation from the commission, may issue and sell bonds or other obligations recommended by the commission to provide funds for any purpose enumerated in the Wastewater Facility Construction Loan Act or for payment of obligations incurred or temporary loans made to accomplish any purpose of that act. As prescribed in the recommending resolution, bonds may be issued in one or more series; shall bear prescribed dates; shall be in the form provided in the Supplemental Public Securities Act [6-14-8 to 6-14-11 NMSA 1978]; shall be issued in prescribed denominations; shall have terms and maturities that do not exceed twenty-five years from the date of issue of each series; shall bear interest at prescribed rates; shall be payable and evidenced in the manner and times as set by the board; may be redeemed with or without premiums prior to maturity; may be ranked or assigned priority status; and may contain provisions not inconsistent with this subsection.
B. As security for the payment of the principal and interest on bonds recommended by the commission and issued by the board, the commission is authorized to pledge, transfer and assign after consultation with the board:
(1) any obligations of each qualified borrower, payable to the commission;
(2) the security for the qualified borrower obligations;
(3) any grant, subsidy or contribution from the United States or any of its agencies or instrumentalities; or
(4) any income, revenues, funds or other money of the commission from any other source appropriated or authorized for use for the purpose of implementing the provisions of the Wastewater Facility Construction Loan Act.
C. The bonds and other obligations recommended by the commission and issued by the board may be sold at any time the commission and the board agree upon. The bonds may be sold at private or public sale at prices as provided in the Public Securities Act [6-14-1 to 6-14-3 NMSA 1978] and in a manner agreed upon by the board and the commission. The commission may apply the proceeds of the sale of the bonds it recommends that have been issued by the board to:
(1) the purposes of the Wastewater Facility Construction Loan Act or the purposes for which the fund may be used;
(2) the payment of interest on bonds recommended by the commission and issued by the board for a period not to exceed three years from the date of issuance of the bonds; and
(3) the payment of all expenses, including publication and printing charges, attorney fees, financial advisory and underwriter fees, and premiums or commissions that the commission or the board determines are necessary or advantageous in connection with the recommendation, advertisement, sale, creation and issuance of commission-recommended obligations.
The board retains the power to fix the date of sale of the bonds and to take all actions necessary to sell and deliver the bonds.
D. In anticipation of the issuance of bonds, the board or the commission may borrow such sums as may be needed for any of the purposes enumerated in Subsection C of this section, obligate itself by certificate or promissory note, bearing interest at a rate to be specified by the commission and maturing within fifteen months from the date of the certificate or promissory note. The certificates or promissory notes shall be payable solely from the proceeds of the bonds recommended by the commission and issued by the board and from the funds from which commission-recommended bonds are payable. In the event that commission funds are not available for a loan for an eligible project when application is made, in order to accelerate the completion of any eligible project, the local authority may, with the approval of the commission, obligate such local authority to provide local funds to pay that portion of the cost of the eligible project that the commission agrees to make available by loan, and the commission may refund the amount expended on its behalf by the local authority.
E. The commission may recommend that the board issue and sell refunding bonds for the purpose of paying, defeasing or refunding the principal of, interest on and any redemption premiums on any matured or unmatured outstanding bonds recommended by the commission and issued by the board or any matured or unmatured bonds of the state issued to finance eligible projects constructed pursuant to the Clean Water Act grant program. Refunding bonds issued by the board pursuant to a recommendation by the commission shall be subject to the provisions of the Wastewater Facility Construction Loan Act in the same manner and to the same extent as other bonds issued pursuant to that act. The holders of refunding bonds shall be subrogated and entitled to all priorities, rights and pledges to which the bonds refunded thereby were entitled.
F. Except as otherwise provided in the Wastewater Facility Construction Loan Act, the proceeds of refunding bonds shall be immediately applied to the retirement of the bonds to be refunded or be placed in escrow or trust in one or more trust banks within or without the state to be applied to the payment of the refunded bonds or the refunding bonds, or both, in such priority and in the manner that the commission and the board may determine.
G. The incidental costs of refunding bonds may be paid by the purchaser of the refunding bonds or be defrayed from other available revenues of the commission, from the proceeds of the refunding bonds, from the interest or other yield derived from the investment of any refunding bond proceeds or other money in escrow or trust, from any other sources legally available for that purpose or from any combination of sources as the commission may determine.
H. Any accrued interest and any premium appertaining to a sale of refunding bonds may be applied to the payment of the interest or the principal of the bonds, or to both interest and principal, may be deposited in the account or in the fund and expended solely for the purposes of this subsection, may be used to refund bonds by deposit in escrow, trust or otherwise or may be used to defray any incidental costs appertaining to the refunding or any combination thereof, as the commission may determine.
I. An escrow or trust shall be limited to proceeds of refunding bonds.
J. A trust bank accounting for federal securities and other securities issued by the federal government in escrow or trust may place those securities for safekeeping wholly or in part in one or more trust banks within or without the state. Proceeds in escrow or trust may be invested or reinvested in federal securities and, in the case of an escrow or trust for the refunding of outstanding bonds or securities, in other securities issued by the federal government if the recommending and issuing resolutions expressly permit the investment or reinvestment in securities issued by the federal government other than federal securities.
K. A trust bank shall continuously secure, by a pledge of federal securities in an amount at all times at least equal to the total uninvested amount of the money, any money placed in escrow or trust in that trust bank, or by that trust bank in one or more trust banks within or without the state, and not invested or reinvested in federal securities and other securities issued by the federal government.
L. Proceeds and investments in escrow or trust, together with interest or gain to be derived from that investment, shall be in an amount at all times sufficient to pay principal, interest, prior redemption premiums due, charges of the escrow agent or trustee and other incidental expenses, except to the extent otherwise provided for, as the obligations become due at their respective maturities or due at designated prior redemption dates in connection with which the commission has exercised or is obligated to exercise a prior redemption option.
M. The computations made in determining sufficiency shall be verified by a certified public accountant.
N. A purchaser of a refunding bond issued pursuant to this section shall not be responsible for the application of the proceeds by the commission or any of the officers, agents or employees of the commission.
O. The state treasurer may invest any idle or surplus money of the state in bonds recommended by the commission and issued by the board. The governing body of any public entity in the state may invest any idle or surplus money held in its treasury in bonds recommended by the commission and issued by the board. Bonds recommended by the commission and issued by the board shall be legal investments for executors, administrators, trustees and other fiduciaries, unless otherwise directed by the court having jurisdiction of the fiduciary relation or by the document that is the source of the fiduciary's authority, and for savings banks and insurance companies organized under the laws of the state.
P. Bonds or other obligations recommended by the commission and issued by the board and the interest applicable thereto and the income therefrom and all projects or parts thereof and all assets of the commission shall be exempt from taxation in the state.
Q. Bonds may be issued under the provisions of the Wastewater Facility Construction Loan Act only with the approval of the commission and the board pursuant to authority provided in that act.
R. Commission members or employees or board members or employees and any person executing bonds issued pursuant to the Wastewater Facility Construction Loan Act shall not be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance of the bonds.
S. All bonds recommended by the commission and issued by the board, while registered, are declared and shall be construed to be negotiable instruments.
T. All bonds, notes and certificates recommended by the commission and issued by the board shall be special obligations of the board, payable solely from the revenue, income, fees or charges that may, pursuant to the provisions of the Wastewater Facility Construction Loan Act, be pledged to the payment of such obligations, and the bonds, notes or certificates shall not create an obligation, debt or liability of the state. No breach of any pledge, obligation or agreement of the commission shall impose a pecuniary liability upon the state or a charge upon its general credit or taxing power.
U. Any recommending or issuing resolution shall provide that each bond recommended or authorized shall recite that it is issued by the board under recommendation of the commission. The recital shall clearly state that the bonds are in full compliance with all of the provisions of the Wastewater Facility Construction Loan Act, and all bonds issued containing such recital shall be incontestable for any cause whatsoever after their delivery for value.
Laws 1991, ch. 172, § 10; 2017, ch. 114, § 5; 2018, ch. 19, § 7.
NMSA 1978, § 74-6A-13 Agreement of the state not to limit or alter rights of obligees
74-6A-13. Agreement of the state not to limit or alter rights of obligees
The state hereby pledges to and agrees with the holders of any bonds or other obligations issued under the Wastewater Facility Construction Loan Act and with those parties who enter into contracts with the commission or with the division pursuant to the provisions of the Wastewater Facility Construction Loan Act, that the state shall not limit, alter, restrict or impair the rights vested in the commission to fulfill the terms of agreements made with the holders of bonds or other obligations recommended and issued pursuant to the Wastewater Facility Construction Loan Act and with the parties who may enter into contracts with the commission pursuant to the Wastewater Facility Construction Loan Act, and that the state shall not limit, alter, restrict, or impair the rights vested in a local authority or in the commission, the board or the division to fulfill the terms of contracts made with the commission or the board and with parties who enter into contracts with such local authorities or with the division acting as agent of the commission pursuant to the Wastewater Facility Construction Loan Act. The state further agrees that it shall not in any way impair the rights or remedies of the holders of such bonds or other obligations of such parties until such bonds and other obligations, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged and such contracts are fully performed on the part of the commission, the board, the local authorities or the division acting as agent of the commission. Nothing in this subsection precludes such limitation or alteration if and when adequate provision is made by law for the protection of the holders of bonds or other obligations recommended by the commission and issued by the board or those entering into such contracts with the commission, or the commission under any contract with a local authority, or with the division acting as agent for the commission. The commission or the board may include this pledge and undertaking for the state in such bonds or other obligations and in such contracts.
Laws 1991, ch. 172, § 11.
NMSA 1978, § 74-6A-14 Validation
74-6A-14. Validation
All outstanding securities of the state and of all qualified borrowers, all loan or other agreements entered into between the state or the division and any qualified borrower, all regulations promulgated by the commission and all acts and proceedings taken by or on behalf of the state or any qualified borrower with respect to the financing of eligible projects are validated, ratified, approved and confirmed. To the extent necessary to carry out its purposes, the commission shall treat any bonds, obligations or agreements of the state or the division that were entered into prior to April 4, 1991 for the purpose of effecting the provisions of the Wastewater Facility Construction Loan Act or the Clean Water Act as if such bonds, obligations or agreements were those recommended by the commission and issued by the board.
Laws 1991, ch. 172, § 12; 2018, ch. 19, § 8.
NMSA 1978, § 74-6A-15 Water quality control commission; instrumentality
74-6A-15. Water quality control commission; instrumentality
The water quality control commission shall be an instrumentality of the state.
Laws 1991, ch. 172, § 13.
Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18577/index.doFetched: 10/20/2026