Section 54-0511. Loans for municipal landfill closure projects and municipal landfill gas management projects

1. A municipality eligible for a state assistance payment pursuant  to
  subdivision  two  of  section  54-0509  of  this  title  and which has a
  population smaller than thirty-five hundred as determined by the current
  federal decennial census is also eligible for a loan to a maximum of the
  unfunded portion of such project.
    2. Loans pursuant to this title shall be without interest  and  for  a
  term not to exceed twenty years.
    3.  Loan  repayments under this title shall be deposited to the credit
  of the environmental protection fund  pursuant  to  subdivision  two  of
  section ninety-two-s of the state finance law.
    4.  A  municipality  obtaining  a  loan  under subdivision one of this
  section shall enter into a contract with the commissioner. That contract
  shall contain the following provisions:
    a. the loan shall be repaid in appropriate equal  installments.  There
  shall  be a one percent per month surcharge for each month of delinquent
  payment added to any such installment  tendered  more  than  sixty  days
  after the due date.
    b.  in  the event a municipality shall fail to make any payment due to
  the state pursuant to this title, the commissioner shall certify to  the
  comptroller  and  notify  the  chairman  of  the assembly ways and means
  committee, the chairman of the senate finance committee, the director of
  the division of the budget and the governing body  of  the  municipality
  that such municipality has failed to make such payment. Such certificate
  shall  be  in the form as may be determined by the commissioner provided
  such certificate  shall  specify  the  exact  amount  of  principal  and
  surcharge required to satisfy such municipality's unpaid obligation. The
  comptroller,  upon  receipt  of  such certificate from the commissioner,
  shall withhold from such municipality any state aid payable to it to the
  extent necessary to meet the certified amount of principal and surcharge
  due the commissioner and shall immediately pay over to the environmental
  protection fund the amount so withheld.