CHAPTER 21. DRINKING WATER REVOLVING LOAN PROGRAM
IC 13-18-21
Chapter 21. Drinking Water Revolving Loan Program
IC 13-18-21-1
Establishment
Sec. 1. The drinking water revolving loan program is established.
As added by P.L.126-1997, SEC.30.
IC 13-18-21-2
Revolving loan fund; source of funds; repayments; investments;costs
Sec. 2. (a) The drinking water revolving loan fund is establishedto provide money for loans and other financial assistance under thischapter to or for the benefit of participants, including forgiveness ofprincipal if allowed under federal law. 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 part of the fund in a fiduciary account oraccounts with a trustee that is a financial institution. Notwithstandingany other law, an investment may be made by the trustee inaccordance with at least one (1) trust agreement or indenture. A trustagreement or indenture may allow 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 Safe Drinking Water Act, the cost ofadministering the fund and the program may be paid from the fundor from other money.
(g) All money accruing to the fund and money allotted to the stateunder 42 U.S.C. 300j-12 is appropriated continuously for thepurposes specified in this chapter.
(h) Money in the fund does not revert to the state general fund at
the end of a state fiscal year.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.11; P.L.235-2005, SEC.148.
IC 13-18-21-3
Use of funds; power of authority 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:
(A) planning;
(B) designing;
(C) construction;
(D) renovation;
(E) improvement;
(F) expansion; or
(G) any combination of clauses (A) through (F);
for public water systems that will facilitate compliance withnational primary drinking water regulations applicable to publicwater systems under the Safe Drinking Water Act or otherwisesignificantly further the health protection objectives of the SafeDrinking Water Act and other activities necessary or convenientto complete these tasks.
(2) Pay the cost of administering the fund and the program.
(3) Conduct all other activities that are allowed by the SafeDrinking Water Act.
(b) The authority shall develop and implement a strategy to assistparticipants in acquiring and maintaining technical, managerial, andfinancial capacity as contemplated by 42 U.S.C. 300g-9. Theauthority shall ensure that all new community water systems and newnontransient, noncommunity water systems, as contemplated by theSafe Drinking Water Act, commencing operations after October 1,1999, demonstrate technical, managerial, and financial capacity withrespect to each federal primary drinking water regulation in effect onthe date operations commence.
(c) This chapter does not require the authority to provide a loanor other financial assistance to any participant that would cause anybonds or other obligations issued to finance the program to lose theirexemption from federal income taxation.
(d) The authority may contract with the department, the budgetagency, or any other entity or person for assistance in administeringthe program and the fund and in carrying out the purposes of thischapter.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.12; P.L.184-2002, SEC.25; P.L.235-2005, SEC.149.
IC 13-18-21-4
Repealed
(Repealed by P.L.235-2005, SEC.212.)
IC 13-18-21-5
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 and supplemental programinformation.
(4) Ensure that each proposed financial assistance agreementmeets the environmental and technical aspects of the programor the supplemental program.
(5) Periodically inspect project design and construction todetermine compliance with the following:
(A) This chapter.
(B) The Safe Drinking Water Act.
(C) Construction plans and specifications.
(6) Negotiate the negotiable aspects of each financial assistanceagreement.
(7) Manage any payment system through which the statereceives grant payments from the federal government for theprogram and disbursements to the fund.
(8) Prepare annual reports concerning the following:
(A) The fund.
(B) The program.
(C) The supplemental fund.
(D) The supplemental program.
(9) Be the point of contact with participants and other interestedpersons in preparing and providing program information.
(10) Prepare or cause to be prepared each financial assistanceagreement.
(11) Sign each financial assistance agreement.
(12) 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.
As added by P.L.126-1997, SEC.30. Amended by P.L.28-2004,SEC.119; P.L.235-2005, SEC.150.
IC 13-18-21-6
Repealed
(Repealed by P.L.235-2005, SEC.212.)
IC 13-18-21-7
Authority powers
Sec. 7. The authority may do the following:
(1) Employ:
(A) fiscal consultants; (B) engineers;
(C) bond counsel;
(D) 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 persons employed insubdivision (1) from money:
(A) available in the fund and the supplemental fund; or
(B) otherwise made available for the program and thesupplemental program.
(3) Enter into memoranda of understanding with the departmentand the budget agency concerning the administration andmanagement of the fund, the program, the supplemental fund,and the supplemental program.
(4) Provide services to a participant in connection with a loanor other financial assistance, including advisory and otherservices.
As added by P.L.126-1997, SEC.30. Amended by P.L.235-2005,SEC.151.
IC 13-18-21-8
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 under this chapter to or for the benefit of aparticipant, regardless of whether the application is approved orrejected.
(b) A participant may pay fees charged under this section.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.14; P.L.235-2005, SEC.152.
IC 13-18-21-9
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 shalldevelop the priority ranking system consistent with federal primarydrinking water regulations and health protection objectives of theSafe Drinking Water Act.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.15; P.L.235-2005, SEC.153.
IC 13-18-21-10
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, and expanding public water systems;
(ii) any purpose eligible for assistance under the SafeDrinking Water Act; and
(iii) for other activities necessary or convenient tocomplete these 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 loanor 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) Other costs or expenses necessary or incident to theloan, other financial assistance, or the administration ofthe 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.126-1997, SEC.30. Amended by P.L.132-1999,SEC.16; P.L.235-2005, SEC.154.
IC 13-18-21-11
Documentation accompanying loan or other financial assistance
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.126-1997, SEC.30. Amended by P.L.235-2005,SEC.155.
IC 13-18-21-12
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.126-1997, SEC.30. Amended by P.L.132-1999,SEC.17.
IC 13-18-21-13
Sale of loans
Sec. 13. The authority may sell loans or evidence 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.126-1997, SEC.30. Amended by P.L.132-1999,SEC.18; P.L.235-2005, SEC.156.
IC 13-18-21-14
Pledge of loans
Sec. 14. (a) The authority may pledge loans or evidence 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 allowed by the Safe Drinking 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, or a pledgeof property made by the authority under this section, is binding fromthe time the pledge is made. Any pledge of property made by the
department and the budget agency under this section is binding onthe authority. Revenues, other money, or other property pledged andreceived are immediately subject to the lien of the pledge withoutany other act. The lien of a pledge is binding against all partieshaving 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; and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section does not create a liability orindebtedness of the state.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.19; P.L.235-2005, SEC.157.
IC 13-18-21-15
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, water quality, and health 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.126-1997, SEC.30. Amended by P.L.132-1999,SEC.20; P.L.235-2005, SEC.158.
IC 13-18-21-16
User charges
Sec. 16. The authority shall require a participant receiving a loanor other financial assistance under this chapter to establish underapplicable law and maintain sufficient user charges or other charges,
fees, taxes, special assessments, or revenues available to theparticipant to:
(1) operate and maintain the public water system; and
(2) pay the obligations of the public water system.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.21; P.L.235-2005, SEC.159.
IC 13-18-21-17
Withholding payment from participants
Sec. 17. (a) Notwithstanding any other law and if provided in afinancial assistance agreement, a state department or state agency,including the treasurer of state, that is the custodian of moneypayable to a participant, other than money in payment for goods orservices provided by the participant, may withhold payment ofmoney from that participant and pay over the money to the authorityor the Indiana bond bank, as directed by the chairman of theauthority, for the purpose of curing a 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.126-1997, SEC.30. Amended by P.L.132-1999,SEC.22; P.L.235-2005, SEC.160.
IC 13-18-21-18
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.126-1997, SEC.30. Amended by P.L.235-2005,SEC.161.
IC 13-18-21-19
Borrowing money; issuance and sale of notes; renewal orextension; maturity; compliance with statutes
Sec. 19. (a) Notwithstanding any other law, a political subdivisionmay borrow money under this chapter 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 notes, the principal and accrued interest on which shallbe paid with proceeds from the issuance of bonds or other availablemoney at the time the notes are due. The notes must be issued undera resolution or ordinance and the proceeds must be used to carry outthe purposes specified in this chapter.
(c) A political subdivision that issues notes under subsection (b)
may renew or extend the notes periodically on terms agreed to withthe authority, and the authority may purchase and sell the renewed orextended notes. Accrued interest on the date of renewal or extensionmay be paid or added to the principal amount of the note beingrenewed 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 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 the notes. The 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 notes issued under subsection(b), the:
(1) provisions of this section; or
(2) actual issuance by a political subdivision of notes undersubsection (b);
do not relieve the political subdivision of the obligation to complywith the statutory requirements for the issuance of bonds.
As added by P.L.126-1997, SEC.30. Amended by P.L.235-2005,SEC.162.
IC 13-18-21-20
Alternatives to making loans or providing financial assistance
Sec. 20. (a) As an alternative to making loans or providing otherfinancial assistance to participants, the authority may use the moneyin the fund to provide a leveraged loan program and other financialassistance programs allowed by the Safe Drinking Water Act to orfor the benefit of participants, including using money in the fund ora supplemental fund, including the supplemental fund established bysection 22 of this chapter, to enhance the obligations of participantsissued 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 IC 13-18-21-2(e); or
(ii) an account established within a fund described in item(i); or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurance
premiums, or credit enhancement, liquidity support,remarketing, or conversion fees, or other similar fees or costsfor obligations of a participant or for bonds issued by theIndiana bond bank or the authority if credit market access isimproved or interest rates are reduced; or
(3) guaranteeing all or part of:
(A) obligations issued by participants; or
(B) bonds issued by the Indiana bond bank or the authority.
(b) The authority may enter into any agreements with the Indianabond 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. A guarantee under subsection(a)(3) does not create a liability or indebtedness of the state.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.23; P.L.235-2005, SEC.163.
IC 13-18-21-21
Supplemental drinking water and wastewater assistance program
Sec. 21. The supplemental drinking water and wastewaterassistance program is established.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.24.
IC 13-18-21-22
Supplemental drinking water and wastewater assistance fund
Sec. 22. (a) The supplemental drinking water and wastewaterassistance fund is established to provide money for grants, loans, andother financial assistance to or for the benefit of participants for thepurposes described in section 23 of this chapter.
(b) The general assembly may appropriate money to thesupplemental fund. Grants or gifts of money to the supplementalfund and proceeds of the sale of:
(1) gifts to the supplemental fund; and
(2) loans and other financial assistance, as provided in sections25 through 29 of this chapter;
shall be deposited in the supplemental fund.
(c) Repayments of loans and other financial assistance from thesupplemental fund, including interest, premiums, and penalties, shallbe deposited in the supplemental fund.
(d) The authority shall invest the money in the supplemental fundthat is:
(1) not currently needed to meet the obligations of thesupplemental fund; and
(2) not invested under subsection (e);
in the same manner as other public money may be invested. Earningsthat accrue from the investments shall be deposited in thesupplemental fund.
(e) As an alternative to the investment provided for in subsection(d), the authority may invest or cause to be invested all or a part of
the supplemental fund in a fiduciary account or accounts with atrustee that is a financial institution. Notwithstanding any other law,any investment may be made by the trustee in accordance with one(1) or more trust agreements or indentures. A trust agreement orindenture may permit disbursements by the trustee to the authority,the department, the budget agency, a participant, or any other personas provided in the trust agreement or indenture.
(f) The cost of administering the supplemental fund may be paidfrom money in the supplemental fund.
(g) All money accruing to the supplemental fund is appropriatedcontinuously for the purposes specified in this chapter.
(h) Money in the supplemental fund does not revert to the stategeneral fund at the end of a state fiscal year.
(i) The authority shall administer, hold, and manage thesupplemental fund.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.25; P.L.235-2005, SEC.164.
IC 13-18-21-23
Supplemental drinking water and wastewater assistance fund; useof money
Sec. 23. Money in the supplemental fund may be used to do thefollowing:
(1) Provide grants, loans, or other financial assistance to or forthe benefit of participants for the planning, designing,acquisition, construction, renovation, improvement, orexpansion of public water systems and other activitiesnecessary or convenient to complete these tasks, whether or notthose other activities are permitted by the Clean Water Act orthe Safe Drinking Water Act.
(2) Provide grants, loans, or other financial assistance to or forthe benefit of participants for the planning, designing,acquisition, construction, renovation, improvement, orexpansion of wastewater or storm water collection andtreatment systems and other activities necessary or convenientto complete these tasks, whether or not those other activities arepermitted by the Clean Water Act or the Safe Drinking WaterAct.
(3) Provide grants to political subdivisions for tasks associatedwith the development and preparation of:
(A) long term control plans;
(B) use attainability analyses; and
(C) storm water management programs.
(4) Pay the cost of administering the supplemental fund and thesupplemental program.
(5) Conduct all other activities that are permitted by the CleanWater Act or the Safe Drinking Water Act.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.26; P.L.55-2001, SEC.2; P.L.235-2005, SEC.165.
IC 13-18-21-24
Supplemental drinking water and wastewater assistance fund;financial assistance
Sec. 24. The authority shall develop criteria to make or providegrants, loans, or other financial assistance from the supplementalfund.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.27; P.L.235-2005, SEC.166.
IC 13-18-21-25
Supplemental drinking water and wastewater assistance fund;authority to make loans
Sec. 25. (a) The authority may make grants or loans or provideother financial assistance from the supplemental fund for the benefitof a participant under the following conditions:
(1) A grant, loan, or other financial assistance may be used:
(A) for planning, designing, acquiring, constructing,renovating, improving, or expanding public water systems,and 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 loanduring construction and for a reasonable period after thecompletion of construction; or
(D) to pay the following:
(i) Consultant, advisory, and legal fees.
(ii) Other costs or expenses necessary or incident to thegrant, loan, or other financial assistance or theadministration of the supplemental fund or thesupplemental program.
(2) The authority must establish the terms and conditions thatthe authority considers necessary or convenient to make grantsor loans or provide other financial assistance under this chapter.
(b) In addition to its powers under subsection (a), the authoritymay also make grants or loans or provide other financial assistancefrom the supplemental fund to or for the benefit of a participantunder the following conditions:
(1) A grant, loan, or other financial assistance may be used:
(A) for planning, designing, acquiring, constructing,renovating, improving, or expanding wastewater or stormwater collection and treatment systems, and other activitiesnecessary or convenient to complete these 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 loanduring construction and for a reasonable period after thecompletion of construction; or
(D) to pay the following:
(i) Consultant, advisory, and legal fees.
(ii) Other costs or expenses necessary or incident to thegrant, loan, or other financial assistance or theadministration of the supplemental fund or thesupplemental program.
(2) A grant may be used for tasks associated with thedevelopment and preparation of:
(A) long term control plans;
(B) use attainability analyses; and
(C) storm water management programs.
(3) The authority must establish the terms and conditions thatthe authority considers necessary or convenient to make grantsor loans or provide other financial assistance under this chapter.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.28; P.L.55-2001, SEC.3; P.L.235-2005, SEC.167.
IC 13-18-21-26
Supplemental drinking water and wastewater assistance fund;documentation to accompany financial assistance
Sec. 26. (a) A grant, loan, or other financial assistance from thesupplemental fund must be accompanied by all papers and opinionsrequired by the authority.
(b) The authority may require that a loan or other financialassistance be accompanied by the following:
(1) A certification and guarantee of signatures.
(2) A certification that, as of the date of the loan or otherfinancial assistance, no litigation is pending challenging thevalidity of or entry into:
(A) the grant, loan, or other financial assistance; or
(B) any security for the loan or other financial assistance.
(3) Any other certifications, agreements, security, orrequirements that the authority requests.
(4) An approving opinion of nationally recognized bondcounsel.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.29; P.L.235-2005, SEC.168.
IC 13-18-21-27
Supplemental drinking water and wastewater assistance fund;
financial assistance agreements
Sec. 27. A participant receiving a grant, loan, or other financialassistance from the supplemental fund shall enter into a financialassistance agreement. A financial assistance agreement under thissection is a valid, binding, and enforceable agreement of theparticipant.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.30.
IC 13-18-21-28
Supplemental drinking water and wastewater assistance fund; saleof loans
Sec. 28. (a) The authority may sell loans or evidences of otherfinancial assistance and other obligations evidencing the loans orother financial assistance from the supplemental fund:
(1) periodically;
(2) at any price; and
(3) on terms acceptable to the authority.
(b) Proceeds of sales under this section shall be deposited in thesupplemental fund, the wastewater revolving loan fund, or the fundat the direction of the authority.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.31; P.L.235-2005, SEC.169.
IC 13-18-21-29
Supplemental drinking water and wastewater assistance fund;pledge of loans
Sec. 29. (a) The authority may pledge:
(1) loans or evidences of other financial assistance; and
(2) other obligations evidencing the loans or other financialassistance;
from the supplemental fund to secure other loans or financialassistance from the fund, the wastewater revolving loan fund, or thesupplemental fund for the benefit of participants.
(b) The terms of a pledge under this section must be acceptable tothe authority.
(c) Notwithstanding any other law, a pledge of property made bythe authority under this section is binding from the time the pledgeis made. Revenues, other money, or other property pledged andthereafter received are immediately subject to the lien of the pledgewithout any further act. The lien of a pledge is binding against allparties having claims of any kind in tort, contract, or otherwiseagainst:
(1) the authority;
(2) the budget agency; or
(3) the supplemental fund;
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; and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section does not create a liability orindebtedness of the state.
As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999,SEC.32; P.L.235-2005, SEC.170.
IC 13-18-21-30
Use of funds to secure leveraged loan or other financial assistancein connection with wastewater revolving loan fund
Sec. 30. Notwithstanding any other law, and to the extentpermitted by the federal Safe Drinking Water Act (42 U.S.C. 300f etseq.) and the federal Clean Water Act, money in the fund, togetherwith loan repayments to be deposited in the fund, may be used tosecure a leveraged loan program or other financial assistanceprograms established in connection with the wastewater revolvingloan fund established by IC 13-18-13-2.
As added by P.L.104-1998, SEC.4.
IC 13-18-21-31
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.15.