NAC354.290. Temporary interfund loans: Conditions; interest.

     1. Unless otherwise prohibited by law, the governing body of a local government may make a temporary interfund loan if:

     (a) The governing body complies with the provisions of NRS 354.6118;

     (b) Any money for the loan which is obtained from the proceeds from the sale of a bond is used only for the purposes set forth in the bond ordinances;

     (c) The loan is not made from any debt service fund or from any fund established or maintained as a fund dedicated to the payment of bonded debt and interest;

     (d) The resolution authorizing the loan specifies whether interest will be charged and the rate thereof, if any;

     (e) It is agreed in writing that the loan must be repaid within 1 year after the date on which the loan was made;

     (f) A copy of the resolution authorizing the loan is filed with the Department; and

     (g) The governing body agrees to notify the Department when the loan has been repaid.

     2. If the resolution authorizing the making of a temporary interfund loan does not specify whether interest will be charged as required pursuant to paragraph (d) of subsection 1, no interest may be charged.

     3. As used in this section:

     (a) “Component unit” means a separate legal entity from a local government whose financial statements must be included in the annual audit of that local government conducted pursuant to NRS 354.624.

     (b) “Temporary interfund loan” means a loan of money for a term of less than 1 year from a fund to meet an immediate obligation of another fund in advance of receipt by the borrowing fund of sufficient revenues from regular sources, including such a loan from a fund of:

          (1) A local government to:

               (I) Another fund of that local government;

               (II) A fund of a component unit of that local government;

               (III) A fund of another local government; or

               (IV) A fund of a component unit of another local government; and

          (2) A component unit of a local government to:

               (I) Another fund of that component unit;

               (II) A fund of another component unit of that local government;

               (III) A fund of that local government or of another local government; or

               (IV) A fund of a component unit of another local government.

     (Added to NAC by Com. on Local Gov’t Finance by R135-10, eff. 12-16-2010)