(1) A special fund, entitled the “Water, Sewer and Solid Waste Systems Revolving Fund”, is created to provide a depository for funds which may be appropriated or otherwise secured.
(2) The revolving fund shall be used to provide low interest loans or grants to an eligible applicant for the purposes established in this chapter. Funds from the repayment of loans made under this chapter shall return to the revolving fund and shall be reused in a manner which is consistent with the purposes of this chapter.
(3) The commission is authorized to use the funds made available under this chapter for grants to or for suspended repayment of loans to eligible applicants.
(4) Special terms for repayment of loans, including a negotiated schedule of repayment that reasonably minimizes the user charges and tax burden upon customers of an eligible applicant, may be negotiated by the commission and concluded by contractual agreement. Repayment of loans not exceeding a fifty-year period is authorized.
(5) The commission is authorized to require partial or complete repayment of grants plus the payment of interest accumulated on the sum granted if the operation of a water, sewer, or solid waste management system constructed with the assistance of such grants produces an income which exceeds the sum necessary to repay the federal, state, or other loans for construction of the system and the expenses of operating the system.
(6) The terms and conditions of possible repayment of grants shall be specified and agreed to in writing prior to the disbursement of the grant.