Cities and towns are authorized to:
(1) enter into suitable agreements with the United States of America, the state of Montana, or a building and loan association, savings and loan association, bank, or credit union that is a regulated lender as defined in 31-1-111 for loans of money and for receiving financial assistance to do the work and improvements contemplated by 7-12-4405; and
(2) provide for the repayment of the loans by yearly payments from funds derived from districts created under 7-12-4402, apportioned over a period of time not exceeding 20 years.