The interstate stream commission is authorized to make loans, on such terms and for such length of time not exceeding fifty years as it shall deem proper, to irrigation and similar districts organized under the laws of the state, to acequia and community ditch associations and to municipalities and other political subdivisions of the state, out of any unpledged funds in the New Mexico irrigation works construction fund for any of the following purposes:

A. doing all engineering and design work necessary for a project;

B. construction of a project; or

C. rehabilitation of any existing project.

History: 1953 Comp., § 75-34-28, enacted by Laws 1957, ch. 80, § 1; 2001, ch. 221, § 1.

The 2001 amendment, effective June 15, 2001, added the section heading; and in the introductory paragraph, inserted "to acequia and community ditch associations"; and inserted "other" preceding "political subdivisions".

Loan to acequia permitted. — Since an acequia is a political subdivision of the state, this section expressly approves lending of funds to it, provided that the acequia conforms in all necessary respects with the statutory scheme governing it, and that the purpose of the loan is one permitted by the section. 1964 Op. Att'y Gen. No. 64-95.

Power of acequias to borrow from commission is established both by necessary implication from power of the commission to lend to them, and from general power of political subdivisions of the state to incur indebtedness necessarily or reasonably related to their statutory powers and functions. 1964 Op. Att'y Gen. No. 64-95.

Commission may make loan to municipal corporation for purposes described in the act, pursuant to contract guaranteeing repayment of loan to be entered into by the commission and municipal corporation either with or without issuance of revenue bonds by municipal corporation to guarantee the loan so long as trust funds are not involved. 1958 Op. Att'y Gen. No. 58-169.

Loan to municipal corporation to be used to repay moneys already received from state board of finance and expended in rehabilitation of an existing project as defined in the act would be a loan authorized under the act so long as trust funds are not involved. 1958 Op. Att'y Gen. No. 58-169.

Loan to irrigation district for use in establishing a water storage reservoir is authorized under this act. 1958 Op. Att'y Gen. No. 58-169.

Commission is authorized by this section to lend money from the irrigation works construction fund to a soil and water conservation district for water conservation purposes. 1972 Op. Att'y Gen. No. 72-54.

Evaluation of loan applicants. — In addition to conditions precedent to such loans as are stated in this section, it is apparent that the commission must exercise banker's judgment in evaluating necessity of specific loans and repayment ability of applicants. 1964 Op. Att'y Gen. No. 64-95.

Investment of income fund limited. — Treasurer can invest only that part of income fund which is not currently needed to carry out lawful trust purposes, and before investments of income funds are made, treasurer should determine that such moneys will not be needed for period of proposed investment. 1958 Op. Att'y Gen. No. 58-207.

Use of funds for commercial irrigation. — Proposal of an acequia to employ funds borrowed from commission for improvement of commercial irrigation was consistent with this section. 1964 Op. Att'y Gen. No. 64-95.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 45 Am. Jur. 2d Irrigation §§ 80 to 87.

93 C.J.S. Waters § 190.