CHAPTER 13. WASTEWATER REVOLVING LOAN PROGRAM
IC 13-18-13
Chapter 13. Wastewater Revolving Loan Program
IC 13-18-13-1
Establishment
Sec. 1. The wastewater revolving loan program is established.
As added by P.L.1-1996, SEC.8.
IC 13-18-13-2
Revolving loan fund; purpose; source of funds; repayments;investments; costs
Sec. 2. (a) The wastewater revolving loan fund is established toprovide money for loans and other financial assistance to or for thebenefit of participants under this chapter. The authority shalladminister, hold, and manage the fund.
(b) The general assembly may appropriate money to the fund.Grants or gifts of money to the fund from the federal government orother sources and the proceeds of the sale of:
(1) gifts to the fund; and
(2) loans and other financial assistance, as provided in sections10 through 14 of this chapter;
shall be deposited in the fund.
(c) Repayments of loans and other financial assistance, includinginterest, premiums, and penalties, shall be deposited in the fund.
(d) The authority shall invest the money in the fund that is:
(1) not currently needed to meet the obligations of the fund; and
(2) not invested under subsection (e);
in the same manner as other public money may be invested. Earningsthat accrue from these investments shall be deposited in the fund.
(e) As an alternative to subsection (d), the authority may invest orcause to be invested all or a part of the fund in a fiduciary account oraccounts with a trustee that is a financial institution. Notwithstandingany other law, any investment may be made by the trustee inaccordance with at least one (1) trust agreement or indenture. A trustagreement or indenture may permit disbursements by the trustee to:
(1) the department;
(2) the budget agency;
(3) a participant;
(4) the Indiana bond bank;
(5) the authority; or
(6) any person to which the authority or a participant isobligated, as provided in the trust agreement or indenture.
(f) Except as provided in the Clean Water Act, the cost ofadministering the fund may be paid from the fund.
(g) All money accruing to the fund is appropriated continuouslyfor the purposes specified in this chapter.
(h) Money in the fund does not revert to the state general fund atthe end of a state fiscal year.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.8;P.L.235-2005, SEC.131.
IC 13-18-13-3
Use of funds; authority power to contract with other entities toadminister program and fund
Sec. 3. (a) Money in the fund may be used to do the following:
(1) Provide loans or other financial assistance to participants forthe planning, designing, construction, renovation, improvement,or expansion of wastewater collection and treatment systemsand other activities necessary or convenient to complete thesetasks.
(2) Pay the cost of administering the fund and the program.
(3) Conduct all other activities that are permitted by the CleanWater Act.
(b) The authority may contract with the department, the budgetagency, or any other entity or person for assistance in administeringthe program and the fund or in carrying out the purposes of thischapter.
As added by P.L.1-1996, SEC.8. Amended by P.L.235-2005,SEC.132.
IC 13-18-13-4
Repealed
(Repealed by P.L.235-2005, SEC.212.)
IC 13-18-13-5
Authority duties
Sec. 5. The authority shall do the following:
(1) Administer, hold, and manage all aspects of the fund, theprogram, the supplemental fund, and the supplemental programin accordance with this chapter.
(2) Be the point of contact in relations with the United StatesEnvironmental Protection Agency.
(3) Prepare and provide program information.
(4) Ensure that each proposed financial assistance agreementmeets the environmental and technical aspects of the programor supplemental program.
(5) Periodically inspect project design and construction todetermine compliance with the following:
(A) This chapter.
(B) The Clean Water Act.
(C) Construction plans and specifications.
(6) Negotiate the negotiable aspects of each financial assistanceagreement.
(7) Manage any payment systems through which the statereceives grant payments from the federal government for theprogram and disbursements to the fund.
(8) Be the point of contact with participants and other interestedpersons in preparing and providing program information.
(9) Prepare or cause to be prepared each financial assistanceagreement.
(10) Sign each financial assistance agreement. (11) Conduct or cause to be conducted an evaluation as to thefinancial ability of each participant to pay the loan or otherfinancial assistance and other obligations evidencing the loansor other financial assistance, if required to be paid, and complywith the financial assistance agreement in accordance with theterms of the agreement.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.9;P.L.28-2004, SEC.116; P.L.235-2005, SEC.133.
IC 13-18-13-6
Repealed
(Repealed by P.L.235-2005, SEC.212.)
IC 13-18-13-7
Authority powers
Sec. 7. (a) The authority may do the following:
(1) Employ:
(A) fiscal consultants;
(B) engineers;
(C) bond counsel;
(D) other special counsel;
(E) accountants; and
(F) any other consultants, employees, and agents;
that the authority considers necessary to carry out the purposesof this chapter.
(2) Fix and pay the compensation of those persons employed insubdivision (1) from money:
(A) available in the fund or supplemental fund; or
(B) otherwise made available for the program or thesupplemental program.
(3) Enter into memoranda of understanding with the departmentand the budget agency concerning the administration andmanagement of the following:
(A) The fund.
(B) The program.
(C) The supplemental fund.
(D) The supplemental program.
(4) Provide services to a participant in connection with a loanor other financial assistance, including advisory and otherservices.
(b) Notwithstanding any other law, the authority, program, orfund, or any person or agent acting on behalf of the authority orprogram, is not liable in damages or otherwise to any participant orparty seeking to be a participant for any act or omission inconnection with a loan or other financial assistance, or anyapplication, service, or other undertaking, allowed by or taken underthis chapter.
(c) No direction given by or service or other undertaking allowedor taken under this chapter by the authority is a defense for orotherwise excuses any act or omission of a participant otherwise
required or imposed by law upon a participant.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.11;P.L.235-2005, SEC.134.
IC 13-18-13-8
Fees
Sec. 8. (a) The authority may:
(1) charge a fee for services provided; and
(2) charge a fee for costs and services incurred in the review orconsideration of an application for a proposed loan or otherfinancial assistance to or for the benefit of a participant underthis chapter, regardless of whether the application is approvedor rejected.
(b) A participant may pay fees charged under this section.
As added by P.L.1-1996, SEC.8. Amended by P.L.235-2005,SEC.135.
IC 13-18-13-9
Duty to use priority ranking system in making loans
Sec. 9. The authority shall use a priority ranking system in makingloans or other financial assistance from the fund. The authority, inconsultation with the department, shall develop the priority rankingsystem to achieve optimum water quality consistent with the waterquality goals of the state and the Clean Water Act.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.12;P.L.235-2005, SEC.136.
IC 13-18-13-10
Prerequisites for loans or assistance
Sec. 10. The authority may make loans or provide other financialassistance from the fund to or for the benefit of a participant underthe following conditions:
(1) The loan or other financial assistance must be used:
(A) for:
(i) planning, designing, constructing, renovating,improving, or expanding wastewater collection andtreatment systems;
(ii) any purpose eligible for assistance under the CleanWater Act; and
(iii) other activities necessary or convenient to completethese tasks;
(B) to:
(i) establish guaranties, reserves, or sinking funds,including guaranties, reserves, or sinking funds to secureand pay, in whole or in part, loans or other financialassistance made from sources other than the fund(including financial institutions) for a purpose permittedby clause (A); or
(ii) provide interest subsidies;
(C) to pay financing charges, including interest on the loan
or other financial assistance during construction and for areasonable period after the completion of construction; or
(D) to pay the following:
(i) Consultant, advisory, and legal fees.
(ii) Any other costs or expenses necessary or incident tothe loan, other financial assistance, or the administrationof the fund and the program.
(2) The authority shall establish the terms and conditions thatthe authority considers necessary or convenient to:
(A) make loans; or
(B) provide other financial assistance under this chapter.
(3) Notwithstanding any other law, the authority may establishand implement requirements that:
(A) apply to loans and other financial assistance to be madeto participants that are not political subdivisions; and
(B) are different from, or in addition to, requirements thatapply to loans and financial assistance made to politicalsubdivisions.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.13;P.L.235-2005, SEC.137.
IC 13-18-13-11
Documentation
Sec. 11. A loan or other financial assistance from the fund mustbe accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of theauthority, the following:
(A) An approving opinion of nationally recognized bondcounsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or otherfinancial assistance:
(i) no litigation is pending challenging the validity of orentry into the loan or other financial assistance or anysecurity for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have amaterial adverse effect on the validity of the loan or otherfinancial assistance or any security for the loan or otherfinancial assistance.
(D) If litigation is pending, as an alternative to thecertification described in clause (C), an opinion of legalcounsel that the litigation will not have a material adverseeffect on the validity of the loan or other financialassistance.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.14;P.L.235-2005, SEC.138.
IC 13-18-13-12
Financial assistance agreements Sec. 12. A participant receiving a loan or other financialassistance from the fund shall enter into a financial assistanceagreement. A financial assistance agreement is a valid, binding, andenforceable agreement of the participant.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.15;P.L.235-2005, SEC.139.
IC 13-18-13-13
Sale of loans
Sec. 13. The authority may sell loans or evidences of otherfinancial assistance and other obligations of participants evidencingthe loans or other financial assistance from the fund periodically atany price and on terms acceptable to the authority. Proceeds of salesunder this section shall be deposited in the fund.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.16;P.L.235-2005, SEC.140.
IC 13-18-13-14
Pledge of loans
Sec. 14. (a) The authority may pledge loans or evidences of otherfinancial assistance and other obligations of participants evidencingthe loans or other financial assistance from the fund to secure:
(1) other loans or financial assistance from the fund to or for thebenefit of participants; or
(2) other loans or financial assistance from the supplementalfund to or for the benefit of participants;
to the extent permitted by the Clean Water Act.
(b) The authority must approve the terms of a pledge under thissection.
(c) Notwithstanding any other law, a pledge of property made bythe department and the budget agency under this section orIC 4-23-21-8(e) (before its repeal) or a pledge of property made bythe authority under this section is binding from the time the pledgeis made. Any pledge of property made by the department and thebudget agency under this section or IC 4-23-21-8(e) (before itsrepeal) is binding on the authority. Revenues, other money, or otherproperty pledged and thereafter received are immediately subject tothe lien of the pledge without any further act. The lien of a pledge isbinding against all parties having claims of any kind in tort, contract,or otherwise against:
(1) the department;
(2) the budget agency;
(3) the fund; or
(4) the authority;
regardless of whether the parties have notice of any lien.
(d) A resolution, an indenture, or other instrument by which apledge is created does not have to be filed or recorded, except in therecords of the authority.
(e) Action taken to:
(1) enforce a pledge under this section or IC 4-23-21-8(e)
(before its repeal); and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section or IC 4-23-21-8(e) (before itsrepeal) does not create a liability or indebtedness of the state.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.17;P.L.235-2005, SEC.141.
IC 13-18-13-15
Interest rate
Sec. 15. (a) The authority shall establish the interest rate orparameters for establishing the interest rate on each loan made underthis chapter, including parameters for establishing the amount ofinterest subsidies.
(b) The authority, in setting the interest rate or parameters forestablishing the interest rate on each loan, may take into account thefollowing:
(1) Credit risk.
(2) Environmental enforcement and protection.
(3) Affordability.
(4) Other fiscal factors the authority considers relevant,including the program's cost of funds and whether the financialassistance provided to a particular participant is taxable or taxexempt under federal law.
Based on the factors set forth in subdivisions (1) through (4), morethan one (1) interest rate may be established and used for loans orother financial assistance to different participants or for differentloans or other financial assistance to the same participants.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.18;P.L.235-2005, SEC.142.
IC 13-18-13-16
User charges
Sec. 16. The authority shall require that a participant receiving aloan or other financial assistance under this chapter establish underapplicable statute and maintain sufficient user charges or othercharges, fees, taxes, special assessments, or revenues available to theparticipant to:
(1) operate and maintain the wastewater collection andtreatment system; and
(2) pay the obligations of the system.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.19;P.L.235-2005, SEC.143.
IC 13-18-13-17
Defaults; withholding payments from participants; effect onvalidity of loan or financial assistance
Sec. 17. (a) Notwithstanding any other law and if provided in afinancial assistance agreement, any state department or state agency,including the treasurer of state: (1) that is the custodian of money payable to a participant, otherthan money in payment for goods or services provided by theparticipant; and
(2) after written notice from the budget director that theparticipant is in default on the payment of principal or intereston a loan or evidence of other financial assistance;
may withhold payment of money from that participant and pay overthe money to the authority or the Indiana bond bank as directed bythe chairman of the authority, for the purpose of curing the default.
(b) The withholding of payment from the participant and paymentto:
(1) the authority; or
(2) the Indiana bond bank;
as applicable, may not adversely affect the validity of the loan orother financial assistance.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.20;P.L.235-2005, SEC.144.
IC 13-18-13-18
Rules
Sec. 18. The authority may adopt guidelines, without complyingwith IC 4-22-2, to govern the administration of this chapter.
As added by P.L.1-1996, SEC.8. Amended by P.L.235-2005,SEC.145.
IC 13-18-13-19
Borrowing money; issuance and sale of notes; renewal orextension; maturity; compliance with statutory requirements
Sec. 19. (a) Notwithstanding any other law, a political subdivisionmay borrow money from the authority by negotiating a loan or otherfinancial assistance directly and without complying withrequirements for the competitive sale of bonds, notes, or otherobligations or evidences of indebtedness. A political subdivisionshall observe any existing contractual commitments to bondholdersor other persons when entering into a financial assistance agreement.
(b) Notwithstanding any other law, a political subdivision mayissue and sell its notes, the principal and accrued interest on whichshall be paid with proceeds from the issuance of its bonds or otheravailable money at the time the notes are due. The notes must beissued pursuant to a resolution or ordinance and the proceeds mustbe used to carry out the purposes specified in this chapter.
(c) A political subdivision that issues notes under subsection (b)or IC 4-23-21-13 (before its repeal) may renew or extend the notesperiodically on terms agreed to with the authority, and the authoritymay purchase and sell the renewed or extended notes. Accruedinterest on the date of renewal or extension may be paid or added tothe principal amount of the note being renewed or extended.
(d) The notes issued by a political subdivision under subsection(b), including any renewals or extensions, must mature:
(1) in the amounts; and (2) at the times not exceeding four (4) years from the date oforiginal issuance;
that are agreed to by the political subdivision and the authority.
(e) Compliance with subsection (b) constitutes full authority fora political subdivision to issue its notes and sell the notes to theauthority, and the political subdivision is not required to comply withany other law applicable to the authorization, approval, issuance, andsale of its notes. These notes are:
(1) valid and binding obligations of the political subdivision;
(2) enforceable in accordance with the terms of the notes; and
(3) payable solely from the sources specified in the resolutionor ordinance authorizing the issuance of the notes.
(f) If the political subdivision issues bonds, all or part of theproceeds of which will be used to pay the notes issued undersubsection (b), neither:
(1) the provisions of this section; nor
(2) the actual issuance by a political subdivision of notes undersubsection (b);
relieves the political subdivision of the obligation to comply with thestatutory requirements for the issuance of bonds.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.21;P.L.235-2005, SEC.146.
IC 13-18-13-20
Alternative to making loans or providing financial assistance;guarantee of obligations or bonds
Sec. 20. (a) As an alternative to making loans or providing otherfinancial assistance to participants, the authority may use the moneyin the fund or the supplemental fund to provide a leveraged loanprogram and other financial assistance programs permitted by theClean Water Act to or for the benefit of participants, including usingmoney in the fund or the supplemental fund to enhance theobligations of participants issued for the purposes of this chapter by:
(1) granting money to:
(A) be deposited in:
(i) a capital or reserve fund established under IC 4-4-11 oranother statute or a trust agreement or indenture ascontemplated by section 2(e) of this chapter; or
(ii) an account established within such a fund; or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurancepremiums, or credit enhancement, liquidity support,remarketing, or conversion fees, or other similar fees or costsfor obligations of a participant or for bonds issued by theauthority or the Indiana bond bank, if credit market access isimproved or interest rates are reduced; or
(3) guaranteeing all or a part of obligations issued byparticipants or of bonds issued by the authority or the Indianabond bank.
(b) The authority may enter into any agreements with the Indiana
bond bank or participants to carry out the purposes specified in thischapter.
(c) A guarantee of obligations or bonds under subsection (a)(3)must be limited to money in the fund and the supplemental fund. Aguarantee under subsection (a)(3) does not create a liability orindebtedness of the state.
As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.22;P.L.235-2005, SEC.147.
IC 13-18-13-21
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-22
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-23
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-24
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-25
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-26
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-27
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-28
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-29
Repealed
(Repealed by P.L.132-1999, SEC.33.)
IC 13-18-13-30
Use of funds to secure leveraged loan or other financial assistancein connection with drinking water revolving loan fund
Sec. 30. Notwithstanding any other law, and to the extentpermitted by the federal Clean Water Act and the federal Safe
Drinking Water Act (42 U.S.C. 300f et seq.), money in the fund,together with loan repayments to be deposited in the fund, may beused to secure a leveraged loan program or other financial assistanceprograms established in connection with the drinking water revolvingloan fund established by IC 13-18-21-2.
As added by P.L.104-1998, SEC.2.
IC 13-18-13-31
Criminal penalty for application misstatement
Sec. 31. A person who, with intent to defraud, knowingly orintentionally makes a material misstatement in connection with anapplication for a loan or other financial assistance from the fundcommits a Class D felony.
As added by P.L.137-2007, SEC.14.