(a) In this section, “governmental agency” means:
(1) The federal government;
(2) This State; or
(3) An agency or instrumentality of the federal government or this State.
(b) A district may borrow from a governmental agency the amount of money that the sanitary commission considers necessary to pay the organization and planning costs for a project or a service area, including costs for:
(1) Engineering services;
(2) Legal services;
(3) Estimates of costs;
(4) Estimates of revenue;
(5) Plans or specifications; and
(6) Surveys.
(c) (1) A district may not pay interest on money borrowed from a governmental agency under this section.
(2) If a district borrows from a governmental agency under this section, the district shall repay the lending governmental agency:
(i) When work begins on the water system or sewerage system for which the borrowing was made; and
(ii) Only from funds or bond revenues that, under this subtitle, relate to the project.