IC 5-19-1.5
    Chapter 1.5. Grant Anticipation Notes

IC 5-19-1.5-1
Definitions
    Sec. 1. As used in this chapter:
    (a) The term "borrower" means any county, any incorporated cityor town, any special taxing district, any regional sewer or waterdistrict, all other political units now existing or hereafter created, andany not-for-profit corporation eligible for federal or state grants.
    (b) The term "governing body" means the legislative body of theborrower.
    (c) The term "grant" means any moneys to be received from theUnited States government or any of its agencies, or the state ofIndiana, or any of its agencies, intended to be used for theconstruction of facilities for any waterworks systems or facilities forsewage works system, or the construction or improvement of anyother public works which the borrower may lawfully undertake as towhich a grant has been made by the granting agency.
    (d) The term "person" means any person, firm, corporation,limited liability company, governmental agency, or lendinginstitution.
    (e) The term "project" means the facilities, public works orundertaking for which the grant is made applicable.
As added by Acts 1981, P.L.61, SEC.1. Amended by P.L.8-1993,SEC.71.

IC 5-19-1.5-2
Authorization; terms
    Sec. 2. Any borrower to which a grant has been allocated, pendingthe receipt thereof, but within the limitation set forth in this chapter,may borrow from any person and evidence the debt so incurred by anote, or a series of notes of equal or unequal amounts, executed byat least two (2) officers or one (1) officer and one (1) employee asauthorized by the governing body of the borrower and containingsuch terms and provisions as may be prescribed by the governingbody of the borrower. Any note shall mature not more than three (3)years from the date of issuance and may pledge for the payment ofthe principal and interest therefor, the proceeds of the grant and anyrevenue which may be derived from the facility being constructed orimproved by the proceeds of the note or notes. However, no amountsmay be borrowed in anticipation of a grant until a written contract isreceived from the grantor indicating that the grant is forthcoming.
As added by Acts 1981, P.L.61, SEC.1.

IC 5-19-1.5-3
Maximum amounts; prepayment upon receipt of grants
    Sec. 3. The maximum amount of any loan made pursuant to thischapter shall not exceed eighty percent (80%) of the estimatedamount of the grant in anticipation of which the loan is made.

Further, the borrower shall make prepayments on the outstandingbalance of its note, or retire one (1) or more of its series ofoutstanding notes, promptly upon partial receipt of grant funds sothat the outstanding amount of any loan made pursuant to theprovisions of this chapter shall not exceed the balance of the grantfunds yet to be received.
As added by Acts 1981, P.L.61, SEC.1.

IC 5-19-1.5-4
Sale
    Sec. 4. The governing body may arrange the issuance and sale ofgrant anticipation notes either at a public or a private negotiated sale.
As added by Acts 1981, P.L.61, SEC.1.

IC 5-19-1.5-5
Application of proceeds
    Sec. 5. It shall be the duty of the governing body to apply theproceeds of any obligations issued pursuant to this chapter to thoseitems of cost for which the grant has been allocated by the grantingagencies, or as to revenue sharing funds, by the governing body. Thepurchaser of any obligations shall not be liable for the properapplication of the proceeds, or to insure that the maximum amountof the loan stays within the maximum limits as grant funds are fromtime to time received by the borrower.
As added by Acts 1981, P.L.61, SEC.1.

IC 5-19-1.5-6
Tax exemption
    Sec. 6. All obligations issued pursuant to this chapter and allinterest to accrue thereon shall have the tax exempt status prescribedby IC 6-8-5.
As added by Acts 1981, P.L.61, SEC.1.

IC 5-19-1.5-7
Indiana economic development corporation; authorization to makegrant anticipation loans
    Sec. 7. Notwithstanding anything to the contrary in IC 5-28-8, theIndiana economic development corporation may make grantanticipation loans as authorized by this chapter from the fundestablished by IC 5-28-8-5.
As added by Acts 1981, P.L.61, SEC.1. Amended by P.L.4-2005,SEC.30.

IC 5-19-1.5-8
Advertisements for bids; inclusion of notice of financing underchapter
    Sec. 8. A borrower may not finance a project with loansauthorized by this chapter unless that fact is included in alladvertisements for bids for construction work on that project.
As added by Acts 1981, P.L.61, SEC.1.