IC 21-34-7
    Chapter 7. Grant Anticipation Loans

IC 21-34-7-1
Written contract for grants
    Sec. 1. (a) The board of trustees of a state educational institutionthat has entered into a written contract for a grant, pending thereceipt of the grant, but within the limitations set forth in section 2of this chapter, may:
        (1) borrow from any person; and
        (2) evidence the debt by a note or a series of notes of equal orunequal amounts containing the terms and conditions that theboard of trustees of the state educational institution prescribes.
    (b) Any note may pledge, for the payment of the principal andinterest of the note:
        (1) the proceeds of the grant; and
        (2) any revenue that may be derived from the building facilitybeing constructed, acquired, renovated, or improved by theproceeds of the note or notes.
As added by P.L.2-2007, SEC.275. Amended by P.L.3-2008,SEC.139.

IC 21-34-7-2
Maximum amount of grant anticipation loan; sources of payment
    Sec. 2. A grant anticipation loan may not exceed the estimatedaggregate amount of the grant or grants in anticipation of which theloan is made. The grant anticipation note must be structured toamortize and to pay principal of and interest on the loan inaccordance with anticipated receipts of the grant or grants. A grantanticipation note may also be payable from other revenues oramounts available for pledge under IC 21-34-6-2.
As added by P.L.2-2007, SEC.275. Amended by P.L.79-2010, SEC.6.

IC 21-34-7-3
Notes for a grant anticipation loan
    Sec. 3. The notes for a grant anticipation loan must be:
        (1) executed in the same manner as provided for bonds inIC 21-34-6-18; and
        (2) sold in the same manner as provided for bonds inIC 21-34-6-8 through IC 21-34-6-17.
As added by P.L.2-2007, SEC.275.

IC 21-34-7-4
Proceeds of a grant anticipation loan
    Sec. 4. The board of trustees of a state educational institution shallapply the proceeds of any grant anticipation notes to those items ofcost for which the grant has been allocated by the granting agencies.The purchaser of any notes:
        (1) is not liable for any improper use of the proceeds; and
        (2) does not have to insure that the amount of the loan stays

within the maximum limits specified in section 2 of this chapteras grant funds are received by the state educational institution.
As added by P.L.2-2007, SEC.275.