(1) Any political subdivision desiring to construct a waste disposal plant approved by the Office of Pollution Control of the Department of Environmental Quality and which receives a loan from the state for that purpose but which is not eligible to pledge for repayment under the provisions of Sections 49-17-65 and 49-17-67, shall repay the loan by making payments each month to the State Treasurer through the Department of Environmental Quality according to the provisions of Section 7-7-15, to be credited to the appropriate fund in lieu of pledging sales tax reimbursements.

(2) The repayment shall be according to a schedule prepared by the State Tax Commission in the same manner as such schedules are prepared for the state’s other political subdivisions. The repayment schedule shall provide for monthly payments, the largest of which shall not exceed the average monthly payment for the term of years of the contract by more than fifteen percent (15%). The repayment schedule shall provide for the repayment of all funds received within no more than twenty (20) years from the date the loan is actually received by the political subdivision; however, the repayment schedule and the time for repayment of all funds received on loans renegotiated under Section 49-17-61(6) shall be modified by the State Tax Commission to conform with the terms of the renegotiated loan. The political subdivision shall remit its monthly payment by the twentieth of the month to the Department of Environmental Quality and the payments shall be made prior to the payments of principal or interest on any bonds issued by the political subdivision in connection with the project or projects to which the pollution abatement loans are made.

(3) The State Auditor shall annually audit the receipts and expenditures of each district whose monthly payments are to be received by him, and if he should find such political subdivision in arrears for two (2) consecutive years, he shall immediately begin withholding from funds due the taxing district in which the political subdivision is located, under the provisions of Section 27-33-41(g) and (h), an amount equal to twelve (12) times the largest monthly payment due and issue his warrant for such amount to either one (1) of the two (2) special funds as directed below.

(4) The repayment schedule provided for in this section shall not be construed to prohibit any recipient from prepaying any part or all of the funds received.

(5) When bonds shall have been issued by the State of Mississippi to generate funds to be used for loans to be made under the provisions of Section 49-17-61, all payments made in repayment under this section shall be deposited into the Water Pollution Abatement Bond Fund established under the provisions of Section 49-17-61 so long as any such bonds shall be outstanding and unpaid.

(6) When all such bonds shall have been paid, the payments shall be deposited in the Water Pollution Abatement Loan Fund (“loan fund”) established under the provisions of Section 49-17-61.

(7) When no such bonds shall be outstanding and unpaid, the payments shall be deposited in the loan fund.

(8) Funds on deposit in the loan fund may be used to make loans in aid of construction for water pollution abatement upon appropriation by the Legislature.