(A) The Cash Reserve Fund may be used to make loans to another utility owned by the town for periods not to exceed five years, at any interest rate. The repayment of the loan and interest shall be returned to the Cash Reserve Fund.
(B) (1) Also, the Board may, by resolution, lend money to the town the utility has on hand:
(a) A surplus of cash exceeding by at least the amount loaned the sum of all amounts required to pay the indebtedness of the utility failing due during the current calendar year and the following year;
(b) The amount necessary to meet current expenses during the year; and
(c) The amount necessary to pay for improvements contemplated to be made during the calendar year minus the estimated receipts during the calendar year.
(2) A loan may not be made for a sum in excess of 50% of the amount estimated to be collected from anticipated taxes. The loan must be evidenced by an obligation to the town, be signed by the members of the Town Council, be made due on or before 30 days after the last day for the payment of anticipated taxes and may bear interest at any rate as determined by the Board, payable at maturity.
(Prior Code, § 2-3-6) (Ord. 83-2, passed - -1983)