IC 8-9.5-9
    Chapter 9. Powers and Duties of Authorities Related to SwapAgreements

IC 8-9.5-9-1
Construction and application of chapter
    Sec. 1. This chapter applies notwithstanding any other law andshall be liberally construed.
As added by P.L.55-1994, SEC.1.

IC 8-9.5-9-2
"Authority" defined
    Sec. 2. As used in this chapter, "authority" means:
        (1) an authority or agency established under IC 8-1-2.2 orIC 8-9.5 through IC 8-23;
        (2) when acting under an affected statute (as defined inIC 4-4-10.9-1.2), the Indiana finance authority established byIC 4-4-11;
        (3) only in connection with a program established underIC 13-18-13 or IC 13-18-21, the bank established underIC 5-1.5;
        (4) a fund or program established under IC 13-18-13 orIC 13-18-21;
        (5) the Indiana housing and community development authorityestablished by IC 5-20-1;
        (6) the authority established under IC 4-4-11; or
        (7) the authority established under IC 5-1-17.
As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,SEC.45; P.L.235-2005, SEC.108; P.L.214-2005, SEC.50;P.L.1-2006, SEC.153 and P.L.181-2006, SEC.49; P.L.162-2007,SEC.30.

IC 8-9.5-9-3
"Obligations" defined
    Sec. 3. As used in this chapter, "obligations" means bonds, loancontracts, notes, bond anticipation notes, commercial paper, leases,lease-purchases, installment purchases, certificates of participationin agreements or programs, other evidences of indebtedness, or otheragreements or purchasing programs, whether or not the obligationshave been issued or entered into.
As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,SEC.46.

IC 8-9.5-9-4
"Swap agreement" defined
    Sec. 4. As used in this chapter, "swap agreement" refers to:
        (1) an agreement (including terms and conditions incorporatedby reference in the agreement) that is a rate swap agreement,basis swap, forward rate agreement, interest rate option, ratecap agreement, rate floor agreement, rate collar agreement, or

any other similar agreement (including any option to enter intoany of the agreements described in this subdivision);
        (2) any combination of the agreements described in subdivision(1); or
        (3) a master agreement for an agreement or a combination ofagreements described in subdivision (1) or (2), together with allsupplements to the agreement.
As added by P.L.55-1994, SEC.1.

IC 8-9.5-9-5
Powers and duties of authorities
    Sec. 5. (a) Subject to subsections (b) through (d), an authoritymay enter into and modify, amend, or terminate one (1) or more swapagreements that the authority determines to be necessary or desirablein connection with or incidental to the issuance, carrying, or securingof obligations. Swap agreements entered into by an authority shall:
        (1) contain the provisions (including payment, term, security,default, and remedy provisions); and
        (2) be with the parties;
that the authority determines are necessary or desirable after dueconsideration is given to the creditworthiness of the parties.
    (b) The authority may not:
        (1) enter into any swap agreement under this section other thanfor the purpose of managing an interest rate or similar risk thatarises in connection with or incidental to the issuance, carrying,or securing of obligations by the authority; or
        (2) carry on a business of acting as a dealer in swap agreements.
    (c) A swap agreement shall be considered as being entered into inconnection with or incidental to the issuance, carrying, or securingof obligations if:
        (1) the swap agreement is entered into not more than onehundred eighty (180) days after the issuance of the obligationsand specifically indicates the agreement's relationship to theobligations;
        (2) the authority designates the swap agreement as having arelationship to the obligations;
        (3) the swap agreement amends, modifies, or reverses a swapagreement described in subdivision (1) or (2); or
        (4) the terms of the swap agreement bear a reasonablerelationship to the terms of the obligations.
    (d) Payments to be made by the authority to any other party undera swap agreement may be payable from:
        (1) the same source or sources of funds from which theobligations are, will be, or may be payable; or
        (2) any other lawfully available source.
    (e) This chapter does not create a debt or liability of the authorityor the state for purposes of any constitutional or statutory limitation.
As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,SEC.47.
IC 8-9.5-9-6
Investment powers
    Sec. 6. The provisions of this chapter shall not be construed aslimiting or restricting the investment powers otherwise provided tothe authority.
As added by P.L.55-1994, SEC.1.

IC 8-9.5-9-7
Credit enhancement and liquidity agreements
    Sec. 7. With regard to entering into any swap agreement, theauthority may enter into credit enhancement or liquidity agreementswith payment, security, default, remedy, and other terms andconditions as determined by the authority.
As added by P.L.55-1994, SEC.1.

IC 8-9.5-9-8
Payments under swap agreements
    Sec. 8. (a) With respect to all leases and contracts entered into bythe authority with the Indiana department of transportation, theIndiana department of administration, a fund or program establishedunder IC 13-18-13 or IC 13-18-21, or any other entity to supportobligations, the lease or contract may provide that payments undera swap agreement are treated as a debt service on the obligations oras additional rental or other payment due under the lease or contractas the authority may determine.
    (b) The authority may determine that payments under a swapagreement may be integrated with payments on obligations for thepurpose of meeting any statutory requirements related to the issuanceof obligations.
As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,SEC.48.

IC 8-9.5-9-9
Enforcement of swap agreements
    Sec. 9. (a) This section does not apply in cases of bad faith oractual knowledge to the contrary by a party.
    (b) A party that enters into any swap agreement with an authoritymay rely on a representation by the authority that the authority isauthorized or empowered to enter into the swap agreement, andnotwithstanding the failure by the authority to comply with theprovisions of this chapter, that party may enforce the swap agreementagainst the authority, subject to the terms of the swap agreement andsubject to prior claims on sources from which the swap agreementmay be payable.
As added by P.L.55-1994, SEC.1.