IC 21-29-3-1 Liberal construction
Sec. 1. This chapter applies notwithstanding any other law. This
chapter shall be liberally construed. As added by P.L.2-2007, SEC.270.
IC 21-29-3-2 Investment powers
Sec. 2. This chapter shall not be construed as limiting or
restricting the investment powers otherwise provided state
educational institutions, including the power to adopt and implement
investment policies under IC 21-29-2-1 and IC 21-29-2-2. As added by P.L.2-2007, SEC.270. Amended by P.L.79-2010, SEC.1.
IC 21-29-3-3 Powers and duties of state educational institutions
Sec. 3. (a) Subject to subsections (b) through (d), any state
educational institution may enter into and modify, amend, or
terminate one (1) or more swap agreements that the state educational
institution determines to be necessary or desirable in connection with
or incidental to the issuance, carrying, or securing of obligations.
Swap agreements entered into by a state educational institution must:
(1) contain the provisions (including payment, term, security,
default, and remedy provisions); and
(2) be with the parties;
that the state educational institution determines are necessary or
desirable after due consideration is given to the creditworthiness of
the parties.
(b) A state educational institution may not:
(1) enter into, modify, amend, or terminate any swap agreement
without the specific approval of the public finance director
appointed under IC 4-4-11-9;
(2) enter into any swap agreement under this section other than
for the purpose of managing an interest rate or similar risk that
arises in connection with or incidental to the issuance, carrying,
or securing of obligations by the state educational institution; or
(3) carry on a business of acting as a dealer in swap agreements.
(c) A swap agreement is considered as being entered into in
connection with or incidental to the issuance, carrying, or securing
of obligations if:
(1) the swap agreement is entered into not more than one
hundred eighty (180) days after the issuance of the obligations
and specifically indicates the agreement's relationship to the
obligations;
(2) the board of trustees of the state educational institution
specifically designates the swap agreement as having a
relationship to the particular obligations;
(3) the swap agreement amends, modifies, or reverses a swap
agreement described in subdivision (1) or (2); or
(4) the terms of the swap agreement bear a reasonable
relationship to the terms of the obligations.
(d) Payments to be made by a state educational institution to any
other party under a swap agreement are payable only from the same
source or sources of funds from which the related obligations are
payable. As added by P.L.2-2007, SEC.270. Amended by P.L.182-2009(ss),
SEC.365.
IC 21-29-3-4 Credit enhancement and liquidity agreements
Sec. 4. With regard to entering into any swap agreement, the state
educational institution may enter into credit enhancement or liquidity
agreements with payment, security, default, remedy, and other terms
and conditions as determined by the state educational institution. As added by P.L.2-2007, SEC.270.
IC 21-29-3-5 Enforcement of swap agreements.
Sec. 5. (a) This section does not apply in cases of bad faith or
actual knowledge to the contrary by a party.
(b) A party that enters into any swap agreement with a state
educational institution may rely on a representation by that state
educational institution that the state educational institution is
authorized or empowered to enter into the swap agreement, and
notwithstanding the failure by the state educational institution to
comply with the provisions of this chapter, that party may enforce the
swap agreement against the state educational institution, subject to
the terms of the swap agreement and subject to prior claims on
sources from which the swap agreement may be payable. As added by P.L.2-2007, SEC.270.
IC 21-29-3-1 Liberal construction
Sec. 1. This chapter applies notwithstanding any other law. This
chapter shall be liberally construed. As added by P.L.2-2007, SEC.270.
IC 21-29-3-2 Investment powers
Sec. 2. This chapter shall not be construed as limiting or
restricting the investment powers otherwise provided state
educational institutions, including the power to adopt and implement
investment policies under IC 21-29-2-1 and IC 21-29-2-2. As added by P.L.2-2007, SEC.270. Amended by P.L.79-2010, SEC.1.
IC 21-29-3-3 Powers and duties of state educational institutions
Sec. 3. (a) Subject to subsections (b) through (d), any state
educational institution may enter into and modify, amend, or
terminate one (1) or more swap agreements that the state educational
institution determines to be necessary or desirable in connection with
or incidental to the issuance, carrying, or securing of obligations.
Swap agreements entered into by a state educational institution must:
(1) contain the provisions (including payment, term, security,
default, and remedy provisions); and
(2) be with the parties;
that the state educational institution determines are necessary or
desirable after due consideration is given to the creditworthiness of
the parties.
(b) A state educational institution may not:
(1) enter into, modify, amend, or terminate any swap agreement
without the specific approval of the public finance director
appointed under IC 4-4-11-9;
(2) enter into any swap agreement under this section other than
for the purpose of managing an interest rate or similar risk that
arises in connection with or incidental to the issuance, carrying,
or securing of obligations by the state educational institution; or
(3) carry on a business of acting as a dealer in swap agreements.
(c) A swap agreement is considered as being entered into in
connection with or incidental to the issuance, carrying, or securing
of obligations if:
(1) the swap agreement is entered into not more than one
hundred eighty (180) days after the issuance of the obligations
and specifically indicates the agreement's relationship to the
obligations;
(2) the board of trustees of the state educational institution
specifically designates the swap agreement as having a
relationship to the particular obligations;
(3) the swap agreement amends, modifies, or reverses a swap
agreement described in subdivision (1) or (2); or
(4) the terms of the swap agreement bear a reasonable
relationship to the terms of the obligations.
(d) Payments to be made by a state educational institution to any
other party under a swap agreement are payable only from the same
source or sources of funds from which the related obligations are
payable. As added by P.L.2-2007, SEC.270. Amended by P.L.182-2009(ss),
SEC.365.
IC 21-29-3-4 Credit enhancement and liquidity agreements
Sec. 4. With regard to entering into any swap agreement, the state
educational institution may enter into credit enhancement or liquidity
agreements with payment, security, default, remedy, and other terms
and conditions as determined by the state educational institution. As added by P.L.2-2007, SEC.270.
IC 21-29-3-5 Enforcement of swap agreements.
Sec. 5. (a) This section does not apply in cases of bad faith or
actual knowledge to the contrary by a party.
(b) A party that enters into any swap agreement with a state
educational institution may rely on a representation by that state
educational institution that the state educational institution is
authorized or empowered to enter into the swap agreement, and
notwithstanding the failure by the state educational institution to
comply with the provisions of this chapter, that party may enforce the
swap agreement against the state educational institution, subject to
the terms of the swap agreement and subject to prior claims on
sources from which the swap agreement may be payable. As added by P.L.2-2007, SEC.270.
IC 21-29-3-1 Liberal construction
Sec. 1. This chapter applies notwithstanding any other law. This
chapter shall be liberally construed. As added by P.L.2-2007, SEC.270.
IC 21-29-3-2 Investment powers
Sec. 2. This chapter shall not be construed as limiting or
restricting the investment powers otherwise provided state
educational institutions, including the power to adopt and implement
investment policies under IC 21-29-2-1 and IC 21-29-2-2. As added by P.L.2-2007, SEC.270. Amended by P.L.79-2010, SEC.1.
IC 21-29-3-3 Powers and duties of state educational institutions
Sec. 3. (a) Subject to subsections (b) through (d), any state
educational institution may enter into and modify, amend, or
terminate one (1) or more swap agreements that the state educational
institution determines to be necessary or desirable in connection with
or incidental to the issuance, carrying, or securing of obligations.
Swap agreements entered into by a state educational institution must:
(1) contain the provisions (including payment, term, security,
default, and remedy provisions); and
(2) be with the parties;
that the state educational institution determines are necessary or
desirable after due consideration is given to the creditworthiness of
the parties.
(b) A state educational institution may not:
(1) enter into, modify, amend, or terminate any swap agreement
without the specific approval of the public finance director
appointed under IC 4-4-11-9;
(2) enter into any swap agreement under this section other than
for the purpose of managing an interest rate or similar risk that
arises in connection with or incidental to the issuance, carrying,
or securing of obligations by the state educational institution; or
(3) carry on a business of acting as a dealer in swap agreements.
(c) A swap agreement is considered as being entered into in
connection with or incidental to the issuance, carrying, or securing
of obligations if:
(1) the swap agreement is entered into not more than one
hundred eighty (180) days after the issuance of the obligations
and specifically indicates the agreement's relationship to the
obligations;
(2) the board of trustees of the state educational institution
specifically designates the swap agreement as having a
relationship to the particular obligations;
(3) the swap agreement amends, modifies, or reverses a swap
agreement described in subdivision (1) or (2); or
(4) the terms of the swap agreement bear a reasonable
relationship to the terms of the obligations.
(d) Payments to be made by a state educational institution to any
other party under a swap agreement are payable only from the same
source or sources of funds from which the related obligations are
payable. As added by P.L.2-2007, SEC.270. Amended by P.L.182-2009(ss),
SEC.365.
IC 21-29-3-4 Credit enhancement and liquidity agreements
Sec. 4. With regard to entering into any swap agreement, the state
educational institution may enter into credit enhancement or liquidity
agreements with payment, security, default, remedy, and other terms
and conditions as determined by the state educational institution. As added by P.L.2-2007, SEC.270.
IC 21-29-3-5 Enforcement of swap agreements.
Sec. 5. (a) This section does not apply in cases of bad faith or
actual knowledge to the contrary by a party.
(b) A party that enters into any swap agreement with a state
educational institution may rely on a representation by that state
educational institution that the state educational institution is
authorized or empowered to enter into the swap agreement, and
notwithstanding the failure by the state educational institution to
comply with the provisions of this chapter, that party may enforce the
swap agreement against the state educational institution, subject to
the terms of the swap agreement and subject to prior claims on
sources from which the swap agreement may be payable. As added by P.L.2-2007, SEC.270.
