CHAPTER 31. AGRICULTURAL LOAN AND RURAL DEVELOPMENT PROJECT GUARANTEE FUND
IC 5-28-31
Chapter 31. Agricultural Loan and Rural Development ProjectGuarantee Fund
IC 5-28-31-1
"Agriculture"; "agricultural enterprise"
Sec. 1. As used in this chapter, "agriculture" or "agriculturalenterprise" includes:
(1) the real and personal property constituting farms;
(2) acquiring, enlarging, or improving farms, including farmbuildings, land and water development, use, and conservation;
(3) recreational uses and facilities when incidental to farming;
(4) enterprises incidental to farming needed to supplement farmincome;
(5) purchasing livestock, poultry, and farm equipment;
(6) purchasing feed, seed, fertilizer, insecticides, and farmsupplies and other essential farm operating expenses includingcash rent; and
(7) other farm and home needs, including farm subsistence.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-2
"Authority"
Sec. 2. As used in this chapter, "authority" refers to the Indianafinance authority created by IC 4-4-11.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-3
"Bonds"
Sec. 3. As used in this chapter, "bonds" has the meaning set forthin IC 4-4-10.9-2.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-4
"Borrower"
Sec. 4. As used in this chapter, "borrower" means a person whoreceives a loan under this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-5
"Contracting party"
Sec. 5. As used in this chapter, "contracting party" means a partyto a lease, sales contract, or loan agreement except the authority.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-6
"Equipment"
Sec. 6. As used in this chapter, "equipment" means a capital item.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-7
"Guarantee fund"
Sec. 7. As used in this chapter, "guarantee fund" refers to theagricultural loan and rural development project guarantee fundestablished by section 32 of this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-8
"Guarantee program"
Sec. 8. As used in this chapter, "guarantee program" means theprogram of the corporation described in this chapter under which thecorporation guarantees certain portions of particular mortgages,security agreements, or leases with funds available from itsagricultural loan and rural development project guarantee fund.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-9
"Lease"
Sec. 9. As used in this chapter, "lease" means a lease containing:
(1) an option to purchase the agricultural enterprise for anominal sum upon payment in full or provision for payment infull of all bonds issued in connection with the agriculturalenterprise or rural development project, all interest on thebonds, and all other expenses in connection with theagricultural enterprise or rural development project; and
(2) a lease containing an option to purchase the agriculturalenterprise or rural development project at any time, as providedin the lease, upon payment of the purchase price sufficient topay all bonds issued in connection with the agriculturalenterprise or rural development project, all interest on thebonds, and all other expenses incurred in connection with theagricultural enterprise or rural development project but underwhich payment may be made in the form of one (1) or morenotes, debentures, or other secured or unsecured debtobligations of the lessee providing for timely payments,including interest on the notes, debentures, or debt obligationssufficient for these purposes and delivered to the authority or tothe trustee under the indenture under which the bonds wereissued.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-10
"Lender"
Sec. 10. As used in this chapter, "lender" means:
(1) a federal or state chartered bank;
(2) the Federal Land Bank;
(3) a production credit association;
(4) bank for cooperatives;
(5) a savings association;
(6) a small business investment company; or (7) an institution qualified within Indiana to originate andservice loans, including an insurance company, credit union, ormortgage loan company.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-11
"Loan"
Sec. 11. As used in this chapter, "loan" means a lease, loanagreement, or sale contract.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-12
"Loan agreement"
Sec. 12. As used in this chapter, "loan agreement" means anagreement providing for:
(1) the corporation, or a lender with which the corporation hascontracted, to loan the proceeds derived from the issuance ofbonds by the authority to one (1) or more contracting parties tobe used for agriculture or agricultural enterprises or ruraldevelopment projects; and
(2) the repayment of the loan by the contracting party or parties.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-13
"Loan insurer"
Sec. 13. As used in this chapter, "loan insurer" means:
(1) an agency, a department, an administration, or aninstrumentality, corporate or otherwise, of or in the UnitedStates Department of Housing and Urban Development;
(2) the Farmers Home Administration of the United StatesDepartment of Agriculture;
(3) the United States Department of Veterans Affairs;
(4) a private mortgage insurance company; or
(5) a public or private agency that insures or guarantees loans.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-14
"Maturity date"
Sec. 14. As used in this chapter, "maturity date" means the date onwhich the mortgage or security agreement indebtedness, or leaseobligations, would be extinguished if paid in accordance withperiodic payments provided for in the mortgage, security agreement,or lease.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-15
"Mortgage"
Sec. 15. As used in this chapter, "mortgage" refers to a mortgageon an agricultural enterprise or rural development project, or theunpaid purchase price of real estate under the laws of this state,
together with the credit instruments, if any, that have been secured,including a financing agreement or a financing agreement within themeaning of IC 36-7-12 in connection with real property.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-16
"Mortgagee"
Sec. 16. As used in this chapter, "mortgagee" means the originallender under a mortgage and the original lender's successors andassigns approved by the corporation, including insurance companies,trust companies, banks, investment companies, savings banks,executors, trustees, and other fiduciaries, such as pensions andretirement funds.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-17
"Mortgage payments"
Sec. 17. As used in this chapter, "mortgage payments" meansperiodic payments called for by the mortgage that cover interest,installments of principal, taxes and assessments, mortgage insurancepremiums, and hazard insurance premiums.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-18
"Mortgagor"
Sec. 18. As used in this chapter, "mortgagor" means the originalborrower under a mortgage and the original borrower's successorsand assigns.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-19
"Person"
Sec. 19. As used in this chapter, "person" means an individual, apartnership, a firm, an association, a joint venture, a limited liabilitycompany, or a corporation.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-20
"Rural development project"
Sec. 20. As used in this chapter, "rural development project"includes:
(1) the acquisition of land;
(2) interests in land;
(3) site improvements;
(4) infrastructure improvements;
(5) buildings;
(6) structures;
(7) rehabilitation, renovation, and enlargement of buildings andstructures;
(8) machinery; (9) equipment;
(10) furnishings; or
(11) facilities;
or any combination of these, comprising or being functionally relatedand subordinate to any project (whether manufacturing, commercial,agricultural, agribusiness, or otherwise) for which the developmentis determined by the corporation to promote, further, enhance, orassist in the growth or maintenance of rural areas in Indiana and toserve the public purposes of the corporation and the authority setforth in this chapter and IC 4-4-11.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-21
"Sale contract"
Sec. 21. As used in this chapter, "sale contract" means a contractproviding for the sale of one (1) or more agricultural enterprisesconsisting of real or personal property to one (1) or more contractingparties and includes a contract providing for payment of the purchaseprice in one (1) or more installments.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-22
"Security agreement"
Sec. 22. As used in this chapter, "security agreement" means anagreement which creates or provides for security interest inequipment, including an equipment lease under that program orwithin the meaning of IC 36-7-12, and a successor provision relatedto equipment.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-23
"Taxable bonds"
Sec. 23. As used in this chapter, "taxable bonds" means bonds theinterest on which will not be excluded from the gross income of theowners of the bonds under Section 103 of the Internal Revenue Code.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-24
"Tax exempt bonds"
Sec. 24. As used in this chapter, "tax exempt bonds" means bondsthe interest on which will be excluded from the gross income of theowners of the bonds under Section 103 of the Internal Revenue Code.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-25
Findings
Sec. 25. It is found and declared that:
(1) There exists in Indiana an inadequate supply of affordablefarm credit and agricultural loan financing at interest rateswhich are consistent with the needs of borrowers for farming
and agricultural enterprises, which if not supplemented willmake it difficult for farmers and other agricultural enterprisesto maintain or increase present employment levels and tomaintain or increase crops, livestock, and business productivity,all of which will have an adverse effect upon the welfare of thecitizens of Indiana and the economy of Indiana.
(2) There exists in particular in Indiana a need for affordablefarm credit and agricultural loan financing for new and youngfarmers, for small farmers, for family farm operations, and forfarmers for whom loans in the conventional farm credit marketsare either not available or not affordable at interest rates foundin conventional farm credit markets. Alleviation of theproblems described in this subdivision and subdivision (1) asthey apply to the agricultural enterprises described in thisparagraph is the primary purpose of this chapter.
(3) Such problems cannot be remedied through the operation ofprivate enterprise alone, but can be alleviated through thecreation of a governmental body to encourage the investment ofprivate capital in the agricultural sector through the use ofpublic financing as provided by this chapter for the purpose ofmaking loans available at interest rates lower than thoseavailable in the conventional farm credit markets, and bycoordinating and cooperating with farmers, other agriculturalenterprises, and local communities, which is essential toalleviating these conditions and is in the public interest.
(4) Alleviating the conditions and problems by theencouragement of private investment through a governmentalbody is a public purpose and a use for which revenue bondsmay be issued.
(5) The necessity for this chapter to protect the health, safety,morals, and general welfare of all the people of Indiana isdeclared as a matter of legislative determination.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-26
Power to make loans to lenders
Sec. 26. The corporation may make and undertake commitmentsto make loans to lenders under terms and conditions requiring theproceeds thereof to be used by such lenders to make loans foragricultural enterprises. Loan commitments or actual loans shalloriginate through and be serviced by any eligible lender.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-27
Loans may be secured
Sec. 27. A loan agreement under this chapter may provide for theloans to be secured by or evidenced by one (1) or more notes,debentures, or other secured or unsecured debt obligations of thecontracting party or parties delivered to the corporation, theauthority, or the trustee under the indenture under which the bonds
were issued.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-28
Sale contract; title
Sec. 28. If a sale contract permits title to the project to pass to thecontracting party or parties before payment in full of the entirepurchase price, it must also provide for the contracting party orparties to deliver to the corporation, the authority, or the trusteeunder the indenture under which the bonds were issued one (1) ormore notes, debentures, or other secured or unsecured debtobligations of the contracting party or parties providing for timelypayments, including interest on the notes, debentures, or debtobligations for the balance of the purchase price at or before thepassage of title.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-29
Power to engage in financing activities
Sec. 29. (a) The corporation may invest in, purchase or makecommitments to invest in or purchase, and take assignments or makecommitments to take assignments of loans made for agriculture oragricultural enterprises or for refinancing loans made for agricultureor agricultural enterprises. Before investment, purchase, assignment,or commitment, the lender shall certify that the proceeds therefromor its equivalent will be reinvested in loans or used to make loans toprovide agricultural enterprises or, pending reinvestment in suchloans or the making of such loans, invested in short term obligationscomplying with the requirements of this chapter. The corporationshall purchase loans at a purchase price equal to the outstandingprincipal balance, but the corporation may require a discount fromthe principal balance or make a payment of a premium to effect a fairrate of return for the lender, as determined by the rate of return oncomparable investments under market conditions existing at the timeof purchase. In addition to the payment of outstanding principalbalance, the corporation shall pay the accrued interest due thereon onthe date the loan is delivered against payment therefor or on anotherdate as may be established by agreement between the corporation andthe selling lender.
(b) The corporation may not invest in, purchase, or makecommitments to invest in or purchase, and take assignments or makecommitments to take assignments of loans made for the construction,rehabilitation, or purchase of real property unless the borrower, in awritten contract separate from the mortgage, promises that for aperiod of ten (10) years from the date of the loan the borrower willnot convey the real property without a written release from thecorporation. The corporation shall record the contract in the samemanner as a mortgage on real property, and when recorded thecontract constitutes an absolute bar on the alienation of the propertyuntil ten (10) years after the date of the mortgage or until released in
writing by the corporation. The corporation may not release acontract under this subsection unless the release is compatible withsection 25 of this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-30
Lender certifications
Sec. 30. Before exercising any of the powers authorized insections 26 and 29 of this chapter, the corporation shall require thelender to certify and agree that:
(1) the loan is or, if the loan has not been made, will at the timeof making be in all respects a prudent investment; and
(2) the lender will use the proceeds of the loan, investment sale,or assignment within a reasonable period of time to make loansor purchase loans to provide agricultural enterprises or, if thelender has made a commitment to make loans to provideagricultural enterprises on the basis of a commitment from thecorporation to purchase the loans, the lender will make theloans and sell the loans to the corporation within a reasonabletime.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-31
Additional security provisions
Sec. 31. Before exercising any of the powers conferred bysections 26 and 29 of this chapter, the corporation may:
(1) require that the loan involved be:
(A) insured by a loan insurer; or
(B) guaranteed by a loan guarantor or the corporation undersections 32 through 43 of this chapter;
(2) require any type of security that the corporation considersreasonable and necessary; or
(3) authorize the reservation of funds by lenders in the amountand subject to conditions that the corporation considersreasonable and necessary under this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-32
Agricultural loan and rural development project guarantee fund
Sec. 32. The agricultural loan and rural development projectguarantee fund is established. The corporation shall use theguarantee fund as a nonlapsing, revolving fund for carrying out theprovisions of the guarantee program. The corporation may expendmoney from the guarantee fund as the authority considers appropriateto carry out the purposes of this chapter and IC 4-4-11. Theguarantee fund consists of the money appropriated to the guaranteefund by the general assembly, and money, property, and other thingsof value contributed to the guarantee fund by any other source. Tothis sum shall be charged those expenses of the corporationattributable and allocated by the corporation to the corporation's
guarantee program, including interest, principal, and lease paymentsrequired by loan or lease defaults. To this sum shall be credited thatincome of the corporation attributable and allocated by thecorporation to the corporation's guarantee program, includingguarantee premiums.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-33
Guarantees; secured loans
Sec. 33. Subject to the conditions set forth in section 34 of thischapter and the other provisions of this chapter, if the corporationmakes a written finding that:
(1) the guarantee of a particular loan secured by, or lease of,real property or tangible or intangible personal property to orfor the benefit of any agricultural enterprise or ruraldevelopment project would tend to accomplish the purposes ofthis chapter, including the creation or retention of employmentin Indiana through the guarantee of the lease;
(2) the proposed borrower or lessee cannot obtain the loan orlease upon reasonable terms; and
(3) the proposed borrower, lessee, lender, or lessor has filed anapplication on a form prescribed by the corporation;
the corporation may, under its guarantee program, guarantee the loanor lease upon the terms and conditions that the corporationprescribes.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-34
Guarantees; conditions
Sec. 34. The conditions referred to in section 33 of this chapterare as follows:
(1) No new or additional guarantee of a loan or lease undersection 33, 35, or 40 of this chapter may be entered into if theguarantee would cause the outstanding aggregate guaranteeobligations with respect to all loans and leases guaranteed undersections 33, 35, and 40 of this chapter to exceed eight (8) timesthe amount of money in the guarantee fund.
(2) The amount of all guarantees by the corporation of loans orleases to or for the benefit of any single agricultural enterpriseor rural development project may not exceed three hundredthousand dollars ($300,000), less the outstanding aggregateprincipal balance under any loans made and owed to thecorporation under section 40 of this chapter to or for the benefitof the enterprise or rural development project.
(3) A guarantee of a loan secured by either real estate or a realestate lease may not exceed ninety percent (90%) of the unpaidprincipal balance of the loan from time to time outstanding orninety percent (90%) of the amount of any lease payment, asapplicable, and the original principal amount of the loan or thetotal amount of the lease payments, as applicable, may not
exceed ninety percent (90%) of the appraised fair market valueof the real estate.
(4) A guarantee of a loan secured by personal property or of apersonal property lease may not exceed seventy-five percent(75%) of the unpaid principal balance of the loan from time totime outstanding or seventy-five percent (75%) of the amountof any lease payment, as applicable, and the original principalamount of the loan or the total amount of the lease payments, asapplicable, may not exceed seventy-five percent (75%) of theappraised fair market value of the personal property.
(5) A guarantee involving both real estate and personal propertymay not exceed the percentage proportionate to each type ofproperty.
(6) To be eligible for a guarantee under this section, a loan orlease must:
(A) be one that is to be made to and held by a lender orlessor approved by the corporation as responsible and ableto service the loan or lease properly;
(B) involve a principal obligation or lease payments, asapplicable, which may include initial service charges andappraisal, inspection, and other fees approved by thecorporation;
(C) have a maturity or term satisfactory to the corporationbut in no case later than twenty (20) years after the date ofthe guarantee;
(D) contain payment terms satisfactory to the corporationrequiring periodic payments by the developer or user,including principal and interest payments, cost of localproperty taxes and assessments, land lease rentals, if any,insurance on the property, as applicable, and the guaranteepremiums that are fixed by the corporation; and
(E) contain terms and provisions with respect to propertyinsurance, repairs, alterations, payment of taxes andassessments, default reserves, delinquency charges, defaultremedies, anticipation of maturity, additional and secondaryliens, and other matters that the corporation prescribes.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-35
Guarantees; unsecured loans
Sec. 35. The corporation may guarantee an unsecured loan forworking capital purposes if the corporation determines, under criteriathat the corporation establishes, that:
(1) the loan for working capital is for an agricultural enterpriseor a rural development project; and
(2) the loan for working capital will lead directly to increasedproduction or job creation or retention through sales of productsor provision of services to federal, state, or local government orprivate business or individuals or through exports to foreignmarkets.The working capital loan guarantee may not exceed two hundredthousand dollars ($200,000) for any single agricultural enterprise orrural development project and may be in addition to any otherguarantees of the corporation under this section. The guaranteedterms must include a time limit for working capital loan guaranteesthat may not exceed eighteen (18) months. However, the guaranteesare renewable. A working capital loan guarantee may not exceedeighty percent (80%) of the unpaid principal balance from time totime outstanding of the loan being guaranteed. The corporation mayimpose additional terms that the corporation considers appropriatefor any particular agricultural enterprise or rural developmentproject.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-36
Guarantee premiums
Sec. 36. The corporation may fix guarantee premiums for theguarantee under this chapter of any loan or lease outstanding at thebeginning of each year or at the time the guarantee is entered into,and the corporation may fix loan application, placement, origination,commitment, administrative, processing, or other fees or charges inconnection with the powers of the corporation under section 40 ofthis chapter. These premiums, fees, or charges may be payable inamounts or based upon formulas established by the corporation andmay be payable, at the election of the corporation, in whole or inpart, in the form of cash, shares of stock, warrants for the purchaseof shares of stock, or other securities, property, or rights acceptableto the corporation. These premiums, fees, or charges are payable bythe borrower or user to the corporation in a manner prescribed by thecorporation.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-37
Letters of credit
Sec. 37. Any guarantee made by the corporation under section 33,35, or 40 of this chapter may be effected or enhanced, in whole or inpart, through the provision by the corporation of a letter of credit oran equivalent form of credit enhancement instrument. However, themaximum principal payment obligation of the corporation under thecredit instrument, as the credit instrument may be effective from timeto time, is the amount of the guarantee or part of the guarantee madeunder section 33, 35, or 40 of this chapter and for purposes of thelimitations on the amount of guarantees under section 33, 35, or 40of this chapter. The term of any letter of credit may not exceed therespective terms established for guarantees or loans under sections34, 35, and 40 of this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-38
Legal investments Sec. 38. Notwithstanding any other law, loans or leasesguaranteed or made by the corporation or the authority under thischapter are legal investments for all insurance companies, trustcompanies, banks, investment companies, savings banks, executors,trustees and other fiduciaries, and pension or retirement funds, aswell as the board for depositories.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-39
Guarantees of bonds issued by the authority; subordination
Sec. 39. To further the purposes of this chapter and subject to thischapter, the corporation may also use any part of the guarantee fundto guarantee any bonds issued by the authority under section 46 ofthis chapter or by any authorized issuer under IC 36-7-12. Withregard to direct obligations of the authority that are guaranteed by thecorporation, the corporation may permit a subordination of any validsecurity agreement, mortgage, combinations thereof, or otherappropriate documents securing the direct obligations if thecorporation in its discretion determines that the subordination isreasonably necessary to accomplish the objectives of the authority.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-40
Power to make direct loans
Sec. 40. To further the purposes of this chapter, and in addition tothe corporation's other powers under this chapter, the corporationmay, upon a written finding as described in section 33 of thischapter, also make direct loans from money in the guarantee fund toor for the benefit of any agricultural enterprise or rural developmentproject upon the terms and conditions that the corporation prescribes.Loans made under this section are subject to the followingconditions:
(1) No new or additional loan may be made if the loan wouldcause the then outstanding aggregate guarantee obligations withrespect to all loans and leases guaranteed under this section andsections 33 and 35 of this chapter to exceed eight (8) times theamount of money then in the guarantee fund or would cause thethen outstanding aggregate principal balance of all loans madeunder this section and then owing to the corporation to exceedtwenty percent (20%) of the amount of money then in theguarantee fund.
(2) The principal amount of a loan under this section to or forthe benefit of an enterprise or rural development project maynot exceed two hundred thousand dollars ($200,000), less thethen outstanding total guarantee obligations with respect to anyloans or leases guaranteed under this section and sections 33and 35 of this chapter to or for the benefit of that enterprise orrural development project.
(3) With respect to any loan made under this section, a loanagreement with the corporation must contain the following
terms:
(A) A requirement that the loan proceeds be used forspecified purposes consistent with and in furtherance of thepurposes of the corporation under this chapter.
(B) The term of the loan, which must be not later thantwenty (20) years after the date of the loan.
(C) The repayment schedule.
(D) The interest rate or rates of the loan, which may includevariations in the rate, but which may not be less than theamount necessary to cover all expenses of the corporation inmaking the loan.
(E) Any other terms and provisions that the corporationrequires.
(4) Any loan agreement under this section may also contain arequirement that the loan be insured directly or indirectly by aloan insurer or be guaranteed by a loan guarantor and arequirement of any other type or types of security or collateralthat the corporation considers to be reasonable or necessary.
(5) A loan made under this section may be sold by thecorporation, and the corporation may permit other lenders toparticipate in any loan made under this section, at the time ortimes and upon the terms and conditions that the corporationconsiders reasonable or necessary. A loan sold or in which otherlenders participate may be guaranteed by the corporation uponterms and conditions established by the corporation.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-41
Proceeds of sales
Sec. 41. All proceeds received by the corporation or the Indianafinance authority from the disposal by sale or in some other mannerof property acquired under this chapter and in connection with theguarantee program or otherwise under this chapter shall be creditedto the guarantee fund.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-42
Guarantee fund nonreverting; exception
Sec. 42. The money in the guarantee fund does not revert to thestate general fund at the end of a fiscal year. However, if theguarantee fund ceases to exist, the money in the guarantee fundattributable to transfers from the state general fund reverts to thestate general fund.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-43
Expenses; reimbursement by borrower
Sec. 43. Upon the issuance of a loan or a guarantee of a loan orlease under this chapter, any expenses incurred by the corporation inconnection with the loan or guarantee or the enterprise or rural
development project for which the loan or guarantee is being madeshall be reimbursed to the corporation by the borrower, in the case ofa loan (to the extent not provided for under section 36 of thischapter), or by the borrower, lender, lessee, or lessor in the case ofa guarantee of a loan or lease, from the proceeds of the loan or thepayments under the lease or otherwise.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-44
Powers in the event of default
Sec. 44. The corporation may take assignments of notes andmortgages and security agreements securing notes and other formsof security, and attach, seize, or take title by foreclosure orconveyance to any agricultural enterprise or rural developmentproject when a guaranteed loan to the enterprise or rural developmentproject is clearly in default and when in the opinion of thecorporation the acquisition is necessary to safeguard the guaranteefund, and sell, or on a temporary basis, lease or rent the agriculturalenterprise or rural development project for any use.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-45
Authorization to adopt rules
Sec. 45. (a) Before carrying out any of the powers granted undersection 26, section 29, or sections 32 through 43 of this chapter, thecorporation may adopt rules under IC 4-22-2 governing its activitiesauthorized under this chapter, including rules relating to thefollowing:
(1) Procedures for the submission of requests or invitations andproposals for making loans to lenders and the investment in andpurchase, assignment, and sale of loans.
(2) The reinvestment by lenders of the proceeds or anequivalent amount, from any loan to lenders or the investmentin or purchase by the corporation or the authority or theassignment or sale of loans to the corporation or the authority,in loans to provide agricultural enterprises or rural developmentprojects.
(3) The number of agricultural projects and rural developmentprojects, location of the projects, and other characteristics ofagricultural enterprises and rural development projects,including to the extent reasonably possible assurance that theagricultural enterprises or rural development projects to befinanced by an issue of bonds or series of issues will improveemployment conditions and enhance the welfare of persons inthe agricultural sector, as determined by the corporation, to befinanced directly or indirectly by the corporation and theauthority under section 26, section 29, or sections 32 through 43of this chapter.
(4) Rates, fees, charges, and other terms and conditions oforiginating or servicing loans in order to protect against
realization of an excessive financial return or benefit by theoriginator or servicer.
(5) The type and amount of collateral or security to be providedto assure repayment of loans made or guaranteed by thecorporation and the fees to be charged under sections 32through 43 of this chapter.
(6) The type of collateral, payment bonds, performance bonds,or other security to be provided for any loans made by a lenderfor construction loans.
(7) The nature and amount of fees to be charged by thecorporation or the authority to provide for expenses andreserves of the corporation or the authority.
(8) Standards and requirements for the allocation of availablemoney among lenders and the determination of the maturities,terms, conditions, and interest rates for loans made, purchased,sold, assigned, or committed under section 26, section 29, orsections 32 through 43 of this chapter.
(9) Commitment requirements for agricultural financing bylenders involving money provided directly or indirectly by thecorporation or the authority.
(10) Any other matters related to the duties or exercise of thecorporation's or the authority's powers or duties under thischapter.
(b) In adopting rules governing its activities, the corporation shallconsider the following factors relative to eligibility of borrowers forloans made or guaranteed under this chapter:
(1) The length of time any borrower has been engaged in thebusiness of agriculture or development.
(2) The net income of any borrower in the preceding year oryears.
(3) The net worth of any borrower.
(4) The availability or feasibility of alternative financingmethods for any borrower.
(c) The following entities may not be borrowers:
(1) A corporation that has more than ten (10) shareholders.
(2) A corporation that has any shareholder that is a corporation,a subsidiary of a corporation, or a subsidiary of a subsidiary ofa corporation with more than ten (10) shareholders.
(3) A partnership, joint venture, firm, limited liability company,or association that has any member who is a corporation, asubsidiary of a corporation, or a subsidiary of a subsidiary of acorporation with more than ten (10) shareholders.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-46
Power to issue bonds
Sec. 46. For purposes of this chapter, the authority may issue andsecure bonds in accordance with IC 4-4-11. Whether the bonds arein the form and character of negotiable instruments, the bonds arehereby made negotiable instruments, subject only to provisions of the
bonds relating to registration.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-47
Powers are cumulative
Sec. 47. This chapter shall not be construed as a restriction orlimitation upon any powers which the corporation or the authoritymight otherwise have under any other law of this state, and thischapter is cumulative to those powers. This chapter shall beconstrued to provide a complete, additional, and alternative methodfor the doing of the things authorized and shall be regarded assupplemental and additional to powers conferred by any other laws.
As added by P.L.162-2007, SEC.26.