IC 5-1.5-6.5-1 Capital principal fund and capital interest fund; programs for
qualified entities
Sec. 1. (a) The bank shall establish and maintain:
(1) a capital principal fund, to be funded from appropriations
made to the fund by the general assembly and any other money
that the bank transfers to the fund; and
(2) a capital interest fund, to be funded from investment
earnings on the capital principal fund.
(b) The bank may use the funds only for programs for qualified
entities issuing securities for any of the following purposes:
(1) Sewage works.
(2) Waterworks.
(3) Parking facilities.
(4) Redevelopment projects financed with allocated property
tax proceeds under IC 36-7-14-39 or IC 36-7-15.1-26. As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-2 Investments; credit of earnings
Sec. 2. Money in the funds may be invested in the manner
provided in IC 5-1.5-3-3. However, all earnings on the funds shall be
credited to the capital interest fund. As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-3 Capital principal fund; debt service; agreement; recovery
Sec. 3. (a) The capital principal fund may be used only to
guarantee payment of debt service on:
(1) securities issued by a qualified entity for a purpose specified
in section 1(b) of this chapter; or
(2) bonds or notes issued to purchase securities issued for a
purpose specified in section 1(b) of this chapter.
(b) The bank and the qualified entity must enter into an agreement
before a guarantee under subsection (a)(1) is effective. This
agreement may contain any provisions the bank considers
appropriate and may specify which funds held by a state agency are
subject to recovery under subsection (c).
(c) If debt service on securities of a qualified entity is paid by the
bank to a qualified entity or owners of its securities under a
guarantee under subsection (a)(1), the amount paid from the capital
principal fund may be recovered from funds held by a state agency
or department that are payable to the qualified entity as set forth in
subsection (b). As added by P.L.38-1988, SEC.5. IC 5-1.5-6.5-4 Required debt service reserves; budget committee review
Sec. 4. (a) Except as provided in subsection (d), whenever a
reserve fund for an issue of bonds or notes issued to purchase
securities specified in section 1(b) of this chapter does not contain
the required debt service reserve (as defined in IC 5-1.5-5-1(b)), the
chairman of the board shall immediately:
(1) transfer to the reserve fund the amount needed to restore the
required debt service reserve first from the capital interest fund
and, to the extent necessary, from the capital principal fund; and
(2) certify the amounts transferred to the general assembly.
(b) The general assembly may appropriate to the bank for deposit
in the capital principal fund the amount transferred from the fund to
restore required debt service reserves. Nothing in this subsection
creates a debt or a liability of the state to make any appropriation.
(c) Appropriations made to the capital principal fund do not revert
to the state general fund at the end of any fiscal year.
(d) Notwithstanding any other law, and except as provided by
subsection (e), after June 30, 2005, the:
(1) issuance by the bank of any indebtedness that incorporates
the provisions set forth in subsection (a) or otherwise
establishes a procedure for the bank or a person acting on behalf
of the bank to certify to the general assembly the amount
needed to restore a reserve fund or another fund to required
levels; or
(2) execution by the bank of any other agreement that creates a
moral obligation of the state to pay all or part of any
indebtedness issued by the bank;
is subject to review by the budget committee and approval by the
budget director.
(e) If the budget committee does not conduct a review of a
proposed transaction under subsection (d) within twenty-one (21)
days after a request by the bank, the review is considered to have
been conducted. If the budget director does not approve or
disapprove a proposed transaction under subsection (d) within
twenty-one (21) days after a request by the bank, the transaction is
considered to have been approved. As added by P.L.38-1988, SEC.5. Amended by P.L.235-2005,
SEC.78.
IC 5-1.5-6.5-5 Capital interest fund; purposes for use
Sec. 5. With respect to the programs specified in section 1(b) of
this chapter, the capital interest fund may be used for the following
purposes in addition to the purpose specified in section 4 of this
chapter:
(1) To guarantee payment of debt service on bonds or notes.
(2) To pay premiums for bond insurance or debt service reserve
insurance for bonds or notes.
(3) To pay credit enhancement, liquidity support, remarketing,
or conversion fees for bonds or notes.
(4) To pay other costs of issuance of a bank transaction. As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-1 Capital principal fund and capital interest fund; programs for
qualified entities
Sec. 1. (a) The bank shall establish and maintain:
(1) a capital principal fund, to be funded from appropriations
made to the fund by the general assembly and any other money
that the bank transfers to the fund; and
(2) a capital interest fund, to be funded from investment
earnings on the capital principal fund.
(b) The bank may use the funds only for programs for qualified
entities issuing securities for any of the following purposes:
(1) Sewage works.
(2) Waterworks.
(3) Parking facilities.
(4) Redevelopment projects financed with allocated property
tax proceeds under IC 36-7-14-39 or IC 36-7-15.1-26. As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-2 Investments; credit of earnings
Sec. 2. Money in the funds may be invested in the manner
provided in IC 5-1.5-3-3. However, all earnings on the funds shall be
credited to the capital interest fund. As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-3 Capital principal fund; debt service; agreement; recovery
Sec. 3. (a) The capital principal fund may be used only to
guarantee payment of debt service on:
(1) securities issued by a qualified entity for a purpose specified
in section 1(b) of this chapter; or
(2) bonds or notes issued to purchase securities issued for a
purpose specified in section 1(b) of this chapter.
(b) The bank and the qualified entity must enter into an agreement
before a guarantee under subsection (a)(1) is effective. This
agreement may contain any provisions the bank considers
appropriate and may specify which funds held by a state agency are
subject to recovery under subsection (c).
(c) If debt service on securities of a qualified entity is paid by the
bank to a qualified entity or owners of its securities under a
guarantee under subsection (a)(1), the amount paid from the capital
principal fund may be recovered from funds held by a state agency
or department that are payable to the qualified entity as set forth in
subsection (b). As added by P.L.38-1988, SEC.5. IC 5-1.5-6.5-4 Required debt service reserves; budget committee review
Sec. 4. (a) Except as provided in subsection (d), whenever a
reserve fund for an issue of bonds or notes issued to purchase
securities specified in section 1(b) of this chapter does not contain
the required debt service reserve (as defined in IC 5-1.5-5-1(b)), the
chairman of the board shall immediately:
(1) transfer to the reserve fund the amount needed to restore the
required debt service reserve first from the capital interest fund
and, to the extent necessary, from the capital principal fund; and
(2) certify the amounts transferred to the general assembly.
(b) The general assembly may appropriate to the bank for deposit
in the capital principal fund the amount transferred from the fund to
restore required debt service reserves. Nothing in this subsection
creates a debt or a liability of the state to make any appropriation.
(c) Appropriations made to the capital principal fund do not revert
to the state general fund at the end of any fiscal year.
(d) Notwithstanding any other law, and except as provided by
subsection (e), after June 30, 2005, the:
(1) issuance by the bank of any indebtedness that incorporates
the provisions set forth in subsection (a) or otherwise
establishes a procedure for the bank or a person acting on behalf
of the bank to certify to the general assembly the amount
needed to restore a reserve fund or another fund to required
levels; or
(2) execution by the bank of any other agreement that creates a
moral obligation of the state to pay all or part of any
indebtedness issued by the bank;
is subject to review by the budget committee and approval by the
budget director.
(e) If the budget committee does not conduct a review of a
proposed transaction under subsection (d) within twenty-one (21)
days after a request by the bank, the review is considered to have
been conducted. If the budget director does not approve or
disapprove a proposed transaction under subsection (d) within
twenty-one (21) days after a request by the bank, the transaction is
considered to have been approved. As added by P.L.38-1988, SEC.5. Amended by P.L.235-2005,
SEC.78.
IC 5-1.5-6.5-5 Capital interest fund; purposes for use
Sec. 5. With respect to the programs specified in section 1(b) of
this chapter, the capital interest fund may be used for the following
purposes in addition to the purpose specified in section 4 of this
chapter:
(1) To guarantee payment of debt service on bonds or notes.
(2) To pay premiums for bond insurance or debt service reserve
insurance for bonds or notes.
(3) To pay credit enhancement, liquidity support, remarketing,
or conversion fees for bonds or notes.
(4) To pay other costs of issuance of a bank transaction. As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-1 Capital principal fund and capital interest fund; programs for
qualified entities
Sec. 1. (a) The bank shall establish and maintain:
(1) a capital principal fund, to be funded from appropriations
made to the fund by the general assembly and any other money
that the bank transfers to the fund; and
(2) a capital interest fund, to be funded from investment
earnings on the capital principal fund.
(b) The bank may use the funds only for programs for qualified
entities issuing securities for any of the following purposes:
(1) Sewage works.
(2) Waterworks.
(3) Parking facilities.
(4) Redevelopment projects financed with allocated property
tax proceeds under IC 36-7-14-39 or IC 36-7-15.1-26. As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-2 Investments; credit of earnings
Sec. 2. Money in the funds may be invested in the manner
provided in IC 5-1.5-3-3. However, all earnings on the funds shall be
credited to the capital interest fund. As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-3 Capital principal fund; debt service; agreement; recovery
Sec. 3. (a) The capital principal fund may be used only to
guarantee payment of debt service on:
(1) securities issued by a qualified entity for a purpose specified
in section 1(b) of this chapter; or
(2) bonds or notes issued to purchase securities issued for a
purpose specified in section 1(b) of this chapter.
(b) The bank and the qualified entity must enter into an agreement
before a guarantee under subsection (a)(1) is effective. This
agreement may contain any provisions the bank considers
appropriate and may specify which funds held by a state agency are
subject to recovery under subsection (c).
(c) If debt service on securities of a qualified entity is paid by the
bank to a qualified entity or owners of its securities under a
guarantee under subsection (a)(1), the amount paid from the capital
principal fund may be recovered from funds held by a state agency
or department that are payable to the qualified entity as set forth in
subsection (b). As added by P.L.38-1988, SEC.5. IC 5-1.5-6.5-4 Required debt service reserves; budget committee review
Sec. 4. (a) Except as provided in subsection (d), whenever a
reserve fund for an issue of bonds or notes issued to purchase
securities specified in section 1(b) of this chapter does not contain
the required debt service reserve (as defined in IC 5-1.5-5-1(b)), the
chairman of the board shall immediately:
(1) transfer to the reserve fund the amount needed to restore the
required debt service reserve first from the capital interest fund
and, to the extent necessary, from the capital principal fund; and
(2) certify the amounts transferred to the general assembly.
(b) The general assembly may appropriate to the bank for deposit
in the capital principal fund the amount transferred from the fund to
restore required debt service reserves. Nothing in this subsection
creates a debt or a liability of the state to make any appropriation.
(c) Appropriations made to the capital principal fund do not revert
to the state general fund at the end of any fiscal year.
(d) Notwithstanding any other law, and except as provided by
subsection (e), after June 30, 2005, the:
(1) issuance by the bank of any indebtedness that incorporates
the provisions set forth in subsection (a) or otherwise
establishes a procedure for the bank or a person acting on behalf
of the bank to certify to the general assembly the amount
needed to restore a reserve fund or another fund to required
levels; or
(2) execution by the bank of any other agreement that creates a
moral obligation of the state to pay all or part of any
indebtedness issued by the bank;
is subject to review by the budget committee and approval by the
budget director.
(e) If the budget committee does not conduct a review of a
proposed transaction under subsection (d) within twenty-one (21)
days after a request by the bank, the review is considered to have
been conducted. If the budget director does not approve or
disapprove a proposed transaction under subsection (d) within
twenty-one (21) days after a request by the bank, the transaction is
considered to have been approved. As added by P.L.38-1988, SEC.5. Amended by P.L.235-2005,
SEC.78.
IC 5-1.5-6.5-5 Capital interest fund; purposes for use
Sec. 5. With respect to the programs specified in section 1(b) of
this chapter, the capital interest fund may be used for the following
purposes in addition to the purpose specified in section 4 of this
chapter:
(1) To guarantee payment of debt service on bonds or notes.
(2) To pay premiums for bond insurance or debt service reserve
insurance for bonds or notes.
(3) To pay credit enhancement, liquidity support, remarketing,
or conversion fees for bonds or notes.
(4) To pay other costs of issuance of a bank transaction. As added by P.L.38-1988, SEC.5.
