IC 5-28-30
Chapter 30. Industrial Development Loan Guaranty Program
IC 5-28-30-1 "Broadband development project"
Sec. 1. As used in this chapter, "broadband development project"
means a project authorized by the broadband development program
under IC 8-1-33. As added by P.L.162-2007, SEC.25.
IC 5-28-30-1.5 "Developer"
Sec. 1.5. As used in this chapter, "developer" means a person who
proposes to enter, or has entered, into a financing agreement with the
corporation for an industrial development project and who has
entered into a separate agreement with some other persons for the
substantial use of the facilities financed. As added by P.L.162-2007, SEC.25.
IC 5-28-30-2 "Guaranty fund"
Sec. 2. As used in this chapter, "guaranty fund" refers to the
industrial development project guaranty fund created by section 9 of
this chapter. As added by P.L.162-2007, SEC.25.
IC 5-28-30-3 "Guaranty program"
Sec. 3. As used in this chapter, "guaranty program" means the
program described in section 10 of this chapter under which the
corporation guarantees parts of particular mortgages, security
agreements, leases, or loans for working capital with funds available
from the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-4 "High growth company with high skilled jobs"
Sec. 4. As used in this chapter, "high growth company with high
skilled jobs" means a company that satisfies all the following
conditions:
(1) The company:
(A) had at least a fifteen percent (15%) average annual
growth in company earnings during the past three (3) years;
(B) is entering a new product or process area; or
(C) is classified in an industry that had at least a fifteen
percent (15%) average annual growth in earnings during the
past three (3) years.
(2) The company has a substantial number of employees in
jobs:
(A) requiring postsecondary education or its equivalent; or
(B) that are in occupational codes classified as high skill by
the Bureau of Labor Statistics, United States Department of
Labor.
(3) The company has a substantial number of employees that
earn at least one hundred fifty percent (150%) of Indiana per
capita personal income. As added by P.L.162-2007, SEC.25.
IC 5-28-30-5 "Industrial development project"
Sec. 5. As used in this chapter, "industrial development project"
includes the acquisition of land, interests in land, site improvements,
infrastructure improvements (including information and high
technology infrastructure (as defined in IC 5-28-9-4)), buildings, or
structures, rehabilitation, renovation, and enlargement of buildings
and structures, machinery, equipment, furnishings, or facilities (or
any combination of these), comprising or being functionally related
and subordinate to any of the following:
(1) A pollution control facility (as defined in IC 4-4-10.9-24).
(2) A manufacturing enterprise.
(3) A business service enterprise involved in:
(A) computer and data processing services; or
(B) commercial testing services.
(4) A business enterprise the primary purpose of which is the
operation of an education and permanent marketing center for
manufacturers and distributors of robotic and flexible
automation equipment.
(5) Any other business enterprise, if the use of the guaranty
program creates a reasonable probability that the effect on
Indiana employment will be creation or retention of at least fifty
(50) jobs.
(6) An agricultural enterprise in which:
(A) the enterprise operates under a producer or growout
agreement; and
(B) the output of the enterprise is processed predominantly
in Indiana.
(7) A business enterprise that is required by a state, federal, or
local regulatory agency to make capital expenditures to remedy
a violation of a state or federal law or a local ordinance.
(8) A recycling market development project.
(9) A high growth company with high skilled jobs.
(10) A broadband development project. As added by P.L.162-2007, SEC.25.
IC 5-28-30-6 "Maturity date"
Sec. 6. As used in this chapter, "maturity date" means the date on
which the mortgage or security agreement indebtedness, or lease
obligations, would be extinguished if paid in accordance with
periodic payments provided for in the mortgage, security agreement,
or lease. As added by P.L.162-2007, SEC.25.
IC 5-28-30-7 "Mortgage"
Sec. 7. As used in this chapter, "mortgage" means a mortgage on
an industrial development project, mining operation, or agricultural
operation that involves the processing of agricultural products, or the
unpaid purchase price of real estate under the laws of this state,
together with the credit instruments, if any, secured thereby,
including but not limited to a financing agreement as defined in
IC 4-4-10.9-8 or a financing agreement within the meaning of
IC 36-7-12 in connection with real property. As added by P.L.162-2007, SEC.25.
IC 5-28-30-8 "Security agreement"
Sec. 8. As used in this chapter, "security agreement" means an
agreement which creates or provides for a security interest in
equipment, including, but not limited to, an equipment lease under
the guaranty program or within the meaning of IC 36-7-12, and any
successor provisions related to equipment. As added by P.L.162-2007, SEC.25.
IC 5-28-30-8.5 "User"
Sec. 8.5. As used in this chapter, "user" means a person who has
entered into a financing agreement with the corporation or lender or
a contract for use with the developer or lender in contemplation of its
use of an industrial development project. As added by P.L.162-2007, SEC.25.
IC 5-28-30-9 Industrial development project guaranty fund
Sec. 9. There is created an industrial development project
guaranty fund which shall be used by the corporation as a
nonlapsing, revolving fund for carrying out the provisions of the
guaranty program. The corporation may expend money from the
guaranty fund as the authority considers appropriate to carry out the
purposes of this chapter and IC 4-4-11. The guaranty fund consists
of the money, if any, appropriated by the general assembly. To this
sum shall be charged those expenses of the corporation attributable
and allocated by the corporation to the guaranty program, including
interest, principal, and lease payments required by loan or lease
defaults under the guaranty program, and to the sum shall be credited
that income of the corporation attributable and allocated by the
corporation to the guaranty program, including guarantee premiums. As added by P.L.162-2007, SEC.25. IC 5-28-30-10 Power to guarantee loans and leases
Sec. 10. Subject to the conditions set forth in section 11 of this
chapter and the other provisions of this chapter, if the corporation
makes 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 or
for the benefit of any industrial development project, mining
operation, or agricultural operation that involves the processing
of agricultural products would tend to accomplish the purposes
of this chapter, including the creation or retention of
employment in Indiana through the guarantee of the loan or
lease; and
(2) the proposed borrower or lessee cannot obtain the loan or
lease upon reasonable terms;
the corporation may, under the guaranty program, guarantee the loan
or lease upon the terms and conditions prescribed by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-11 Conditions
Sec. 11. The conditions referred to in section 10 of this chapter
are as follows:
(1) A new or additional guarantee of a loan or lease under
section 10, 12, or 17 of this chapter may not be entered into if
the guarantee would cause the outstanding total guarantee
obligations with respect to all loans and leases guaranteed under
sections 10, 12, and17 of this chapter to exceed eight (8) times
the amount of money in the guaranty fund.
(2) The amount of all guarantees by the corporation of loans or
leases to or for the benefit of any single industrial development
project, mining operation, or agricultural operation that involves
the processing of agricultural products may not exceed two
million dollars ($2,000,000), less the outstanding total principal
balance under any loans made and owed to the corporation
under section 17 of this chapter to or for the benefit of the
project or operation.
(3) A guarantee of either a loan secured by real estate or a real
estate lease may not exceed ninety percent (90%) of the unpaid
principal balance of the loan from time to time outstanding or
ninety percent (90%) of the amount of any lease payment, as
applicable, or ninety percent (90%) of the appraised fair market
value of the real estate, whichever is less.
(4) A guarantee of a loan secured by personal property or of a
personal property lease may not exceed seventy-five percent
(75%) of the unpaid principal balance of the loan from time to
time outstanding or seventy-five percent (75%) of the amount
of any lease payment, as applicable, or seventy-five percent
(75%) of the fair market value of the personal property,
whichever is less.
(5) A guarantee involving both real estate and personal property
may not exceed the percentage proportionate to each type of
property.
(6) To be eligible for a guarantee under section 10 of this
chapter, a loan or lease must:
(A) be one that is to be made to and held by a lender or
lessor approved by the corporation as responsible and able
to service the loan or lease properly;
(B) involve a principal obligation or lease payments, as
applicable, which may include initial service charges and
appraisal, inspection, and other fees approved by the
corporation;
(C) have a maturity or term satisfactory to the corporation
but in no case later than twenty (20) years from the date of
the guarantee;
(D) contain payment terms satisfactory to the corporation
requiring periodic payments by the developer or user,
including principal and interest payments, cost of local
property taxes and assessments, land lease rentals, if any,
insurance on the property, as applicable, and any guarantee
premiums required by the corporation; and
(E) contain any terms and provisions with respect to
property insurance, repairs, alterations, payment of taxes and
assessments, default reserves, delinquency charges, default
remedies, anticipation of maturity, additional and secondary
liens, and other matters that the corporation may prescribe. As added by P.L.162-2007, SEC.25.
IC 5-28-30-12 Power to guarantee an unsecured loan
Sec. 12. The corporation may guarantee an unsecured loan for:
(1) working capital purposes, if the corporation determines,
under criteria that it establishes, that the loan for working
capital:
(A) is for an industrial development project, a mining
operation, or an agricultural operation that involves the
processing of agricultural products; and
(B) will lead directly to increased production or job creation
or retention through sales of products or provision of
services to federal, state, or local government, private
businesses, or individuals, or through exports to foreign
markets; or
(2) capital expenditures, if the corporation determines, under
criteria that the corporation establishes, that the loan is for an
industrial development project described in IC 5-28-30-5(7).
The loan guarantee may not exceed five hundred thousand dollars
($500,000) for any single project or operation, and may be in
addition to any other guarantees of the corporation under this
chapter. The guarantee terms must include a time limit for working
capital loan guarantees that may not exceed eighteen (18) months.
However, the guarantees are renewable. A loan guarantee may not
exceed eighty percent (80%) of the unpaid principal balance from
time to time outstanding of the loan being guaranteed. The
corporation may impose any additional terms it considers appropriate
for any particular project or operation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-13 Premiums; fees; charges
Sec. 13. The corporation may establish:
(1) guarantee premiums for a guarantee under section 10 of this
chapter of any loan or lease outstanding at the beginning of
each year or at the time the guarantee is entered into; and
(2) loan application, placement, origination, commitment,
administrative, processing, or other fees or charges in
connection with the corporation's powers under section 17 of
this chapter.
These premiums, fees, or charges are payable in amounts or based
upon formulas established by the corporation and may be payable, at
the election of the corporation, in whole or in part, in the form of
cash, shares of stock, warrants for the purchase of shares of stock, or
other securities, property, or rights acceptable to the corporation.
These premiums, fees, or charges shall be payable by the developer
or user to the corporation in a manner prescribed by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-14 Letters of credit
Sec. 14. Any guarantee made by the corporation under this
chapter may be effected or enhanced, in whole or in part, through the
provision by the corporation of a letter of credit or an equivalent
form of credit enhancement instrument. However, the maximum
principal payment obligations of the corporation under the credit
instrument, as the same may be effective from time to time, is the
amount of the guarantee or portion of the guarantee made under this
chapter, and for purposes of the limitations on the amount of
guarantees under this chapter, and the term of any letter of credit may
not exceed the respective terms established for guarantees or loans
under this chapter. As added by P.L.162-2007, SEC.25.
IC 5-28-30-15 Legal investments
Sec. 15. Notwithstanding any other law, loans or leases
guaranteed or made by the corporation are legal investments for all
insurance companies, trust companies, banks, investment companies,
savings banks, executors, trustees and other fiduciaries, and pension
or retirement funds, as well as the board for depositories. As added by P.L.162-2007, SEC.25. IC 5-28-30-16 Power to allow subordination
Sec. 16. To further the purposes of this chapter, and subject to this
chapter, the corporation may also use any part of the guaranty fund
to guarantee any bonds issued by the Indiana finance authority under
IC 4-4-11 or by any authorized issuer under IC 36-7-12. With regard
to direct obligations of the authority that are guaranteed by the
corporation, the corporation may permit a subordination of any:
(1) security agreement;
(2) mortgage;
(3) combination of security agreements and mortgages; or
(4) other appropriate documents securing the direct obligations;
if the corporation in its discretion determines that the subordination
is reasonably necessary to accomplish the objectives of the industrial
development project undertaken by the authority. As added by P.L.162-2007, SEC.25.
IC 5-28-30-17 Power to make direct loans
Sec. 17. To further the purposes of this chapter, and in addition to
the corporation's other powers under this chapter, the corporation
may, upon a written finding as described in section 10 of this
chapter, make direct loans from money in the guaranty fund to or for
the benefit of any industrial development project, mining operation,
or agricultural operation that involves the processing of agricultural
products, upon the terms and conditions that the corporation
prescribes. Loans made under this section are subject to the
following conditions:
(1) A new or additional loan may not be made if the loan would
cause the then outstanding total guarantee obligations with
respect to all loans and leases guaranteed under this section and
the other provisions of this chapter to exceed eight (8) times the
amount of money then in the guaranty fund, or would cause the
then outstanding total principal balance of all loans made under
this section and then owing to the corporation to exceed twenty
percent (20%) of the amount of money then in the guaranty
fund.
(2) The principal amount of such a loan to or for the benefit of
a project or operation may not exceed one million dollars
($1,000,000), less the then outstanding total guarantee
obligations with respect to any loans or leases guaranteed under
this chapter to or for the benefit of that project or operation.
(3) With respect to any loan made under this section, a loan
agreement with the corporation must contain the following
terms:
(A) A requirement that the loan proceeds be used for
specified purposes consistent with and in furtherance of the
purposes of the corporation under this chapter.
(B) The term of the loan, which may not be later than twenty
(20) years from the date of the loan.
(C) The repayment schedule.
(D) The interest rate or rates of the loan, which may include
variations in the rate, but which may not be less than the
amount necessary to cover all expenses of the corporation in
making the loan.
(E) Any other terms and provisions that the corporation
requires.
(4) A loan agreement under this section may also contain a
requirement that the loan be insured directly or indirectly by a
loan insurer or be guaranteed by a loan guarantor, and a
requirement of any other type or types of security or collateral
that the corporation considers reasonable or necessary.
(5) A loan made under this section may be sold by the
corporation, and the corporation may permit other lenders to
participate in a loan made under this section, at the time or
times and upon the terms and conditions that the corporation
considers reasonable or necessary. A loan sold or in which other
lenders participate may be guaranteed by the corporation, upon
terms and conditions established by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-18 Proceeds of sales
Sec. 18. All proceeds received by the corporation or the Indiana
finance authority from the disposal by sale or in some other manner
of property acquired in connection with the guaranty program or
otherwise under this chapter shall be credited to the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-19 Expense; reimbursement by borrower
Sec. 19. Upon the issuance of a loan or a guarantee of a loan or
lease, any expenses incurred by the corporation in connection with
the loan or guarantee or the projects or operations for which the loan
or guarantee is being made shall be reimbursed to the corporation by
the borrower, in the case of a loan (to the extent not provided for
under section 13 of this chapter), or by the borrower, lender, lessee,
or lessor, in the case of a guarantee of a loan or lease, from the
proceeds of the loan or the payments under the lease or otherwise. As added by P.L.162-2007, SEC.25.
IC 5-28-30-20 Transfer of funds to the capital access account
Sec. 20. To further the purposes of this chapter and IC 4-4-11, and
in addition to the corporation's other powers under this chapter, the
corporation may transfer funds from the guaranty fund to the capital
access account established under IC 5-28-29-35. As added by P.L.162-2007, SEC.25. IC 5-28-30-21 Exemption from securities registration laws
Sec. 21. Any guarantees by the corporation under the guaranty
program are exempt from the registration and other requirements of
IC 23-19 and any other securities registration laws. As added by P.L.162-2007, SEC.25. Amended by P.L.1-2009,
SEC.25.
IC 5-28-30-22 Power to procure insurance
Sec. 22. The corporation may procure insurance or guarantees
from any public or private entities, including any department,
agency, or instrumentality of the United States, for insurance or
reinsurance on amounts paid from the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-23 Powers in the event of default
Sec. 23. The corporation may take assignments of accounts
receivable, loans, guarantees, insurance, notes, mortgages, security
agreements securing notes, and other forms of security, attach, seize,
or take title by foreclosure or conveyance to any industrial
development project when a guaranteed loan on the project is clearly
in default and when in the opinion of the authority such an
acquisition is necessary to safeguard the guaranty fund, and sell, or
on a temporary basis, lease or rent the project for any use. As added by P.L.162-2007, SEC.25.
IC 5-28-30
Chapter 30. Industrial Development Loan Guaranty Program
IC 5-28-30-1 "Broadband development project"
Sec. 1. As used in this chapter, "broadband development project"
means a project authorized by the broadband development program
under IC 8-1-33. As added by P.L.162-2007, SEC.25.
IC 5-28-30-1.5 "Developer"
Sec. 1.5. As used in this chapter, "developer" means a person who
proposes to enter, or has entered, into a financing agreement with the
corporation for an industrial development project and who has
entered into a separate agreement with some other persons for the
substantial use of the facilities financed. As added by P.L.162-2007, SEC.25.
IC 5-28-30-2 "Guaranty fund"
Sec. 2. As used in this chapter, "guaranty fund" refers to the
industrial development project guaranty fund created by section 9 of
this chapter. As added by P.L.162-2007, SEC.25.
IC 5-28-30-3 "Guaranty program"
Sec. 3. As used in this chapter, "guaranty program" means the
program described in section 10 of this chapter under which the
corporation guarantees parts of particular mortgages, security
agreements, leases, or loans for working capital with funds available
from the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-4 "High growth company with high skilled jobs"
Sec. 4. As used in this chapter, "high growth company with high
skilled jobs" means a company that satisfies all the following
conditions:
(1) The company:
(A) had at least a fifteen percent (15%) average annual
growth in company earnings during the past three (3) years;
(B) is entering a new product or process area; or
(C) is classified in an industry that had at least a fifteen
percent (15%) average annual growth in earnings during the
past three (3) years.
(2) The company has a substantial number of employees in
jobs:
(A) requiring postsecondary education or its equivalent; or
(B) that are in occupational codes classified as high skill by
the Bureau of Labor Statistics, United States Department of
Labor.
(3) The company has a substantial number of employees that
earn at least one hundred fifty percent (150%) of Indiana per
capita personal income. As added by P.L.162-2007, SEC.25.
IC 5-28-30-5 "Industrial development project"
Sec. 5. As used in this chapter, "industrial development project"
includes the acquisition of land, interests in land, site improvements,
infrastructure improvements (including information and high
technology infrastructure (as defined in IC 5-28-9-4)), buildings, or
structures, rehabilitation, renovation, and enlargement of buildings
and structures, machinery, equipment, furnishings, or facilities (or
any combination of these), comprising or being functionally related
and subordinate to any of the following:
(1) A pollution control facility (as defined in IC 4-4-10.9-24).
(2) A manufacturing enterprise.
(3) A business service enterprise involved in:
(A) computer and data processing services; or
(B) commercial testing services.
(4) A business enterprise the primary purpose of which is the
operation of an education and permanent marketing center for
manufacturers and distributors of robotic and flexible
automation equipment.
(5) Any other business enterprise, if the use of the guaranty
program creates a reasonable probability that the effect on
Indiana employment will be creation or retention of at least fifty
(50) jobs.
(6) An agricultural enterprise in which:
(A) the enterprise operates under a producer or growout
agreement; and
(B) the output of the enterprise is processed predominantly
in Indiana.
(7) A business enterprise that is required by a state, federal, or
local regulatory agency to make capital expenditures to remedy
a violation of a state or federal law or a local ordinance.
(8) A recycling market development project.
(9) A high growth company with high skilled jobs.
(10) A broadband development project. As added by P.L.162-2007, SEC.25.
IC 5-28-30-6 "Maturity date"
Sec. 6. As used in this chapter, "maturity date" means the date on
which the mortgage or security agreement indebtedness, or lease
obligations, would be extinguished if paid in accordance with
periodic payments provided for in the mortgage, security agreement,
or lease. As added by P.L.162-2007, SEC.25.
IC 5-28-30-7 "Mortgage"
Sec. 7. As used in this chapter, "mortgage" means a mortgage on
an industrial development project, mining operation, or agricultural
operation that involves the processing of agricultural products, or the
unpaid purchase price of real estate under the laws of this state,
together with the credit instruments, if any, secured thereby,
including but not limited to a financing agreement as defined in
IC 4-4-10.9-8 or a financing agreement within the meaning of
IC 36-7-12 in connection with real property. As added by P.L.162-2007, SEC.25.
IC 5-28-30-8 "Security agreement"
Sec. 8. As used in this chapter, "security agreement" means an
agreement which creates or provides for a security interest in
equipment, including, but not limited to, an equipment lease under
the guaranty program or within the meaning of IC 36-7-12, and any
successor provisions related to equipment. As added by P.L.162-2007, SEC.25.
IC 5-28-30-8.5 "User"
Sec. 8.5. As used in this chapter, "user" means a person who has
entered into a financing agreement with the corporation or lender or
a contract for use with the developer or lender in contemplation of its
use of an industrial development project. As added by P.L.162-2007, SEC.25.
IC 5-28-30-9 Industrial development project guaranty fund
Sec. 9. There is created an industrial development project
guaranty fund which shall be used by the corporation as a
nonlapsing, revolving fund for carrying out the provisions of the
guaranty program. The corporation may expend money from the
guaranty fund as the authority considers appropriate to carry out the
purposes of this chapter and IC 4-4-11. The guaranty fund consists
of the money, if any, appropriated by the general assembly. To this
sum shall be charged those expenses of the corporation attributable
and allocated by the corporation to the guaranty program, including
interest, principal, and lease payments required by loan or lease
defaults under the guaranty program, and to the sum shall be credited
that income of the corporation attributable and allocated by the
corporation to the guaranty program, including guarantee premiums. As added by P.L.162-2007, SEC.25. IC 5-28-30-10 Power to guarantee loans and leases
Sec. 10. Subject to the conditions set forth in section 11 of this
chapter and the other provisions of this chapter, if the corporation
makes 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 or
for the benefit of any industrial development project, mining
operation, or agricultural operation that involves the processing
of agricultural products would tend to accomplish the purposes
of this chapter, including the creation or retention of
employment in Indiana through the guarantee of the loan or
lease; and
(2) the proposed borrower or lessee cannot obtain the loan or
lease upon reasonable terms;
the corporation may, under the guaranty program, guarantee the loan
or lease upon the terms and conditions prescribed by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-11 Conditions
Sec. 11. The conditions referred to in section 10 of this chapter
are as follows:
(1) A new or additional guarantee of a loan or lease under
section 10, 12, or 17 of this chapter may not be entered into if
the guarantee would cause the outstanding total guarantee
obligations with respect to all loans and leases guaranteed under
sections 10, 12, and17 of this chapter to exceed eight (8) times
the amount of money in the guaranty fund.
(2) The amount of all guarantees by the corporation of loans or
leases to or for the benefit of any single industrial development
project, mining operation, or agricultural operation that involves
the processing of agricultural products may not exceed two
million dollars ($2,000,000), less the outstanding total principal
balance under any loans made and owed to the corporation
under section 17 of this chapter to or for the benefit of the
project or operation.
(3) A guarantee of either a loan secured by real estate or a real
estate lease may not exceed ninety percent (90%) of the unpaid
principal balance of the loan from time to time outstanding or
ninety percent (90%) of the amount of any lease payment, as
applicable, or ninety percent (90%) of the appraised fair market
value of the real estate, whichever is less.
(4) A guarantee of a loan secured by personal property or of a
personal property lease may not exceed seventy-five percent
(75%) of the unpaid principal balance of the loan from time to
time outstanding or seventy-five percent (75%) of the amount
of any lease payment, as applicable, or seventy-five percent
(75%) of the fair market value of the personal property,
whichever is less.
(5) A guarantee involving both real estate and personal property
may not exceed the percentage proportionate to each type of
property.
(6) To be eligible for a guarantee under section 10 of this
chapter, a loan or lease must:
(A) be one that is to be made to and held by a lender or
lessor approved by the corporation as responsible and able
to service the loan or lease properly;
(B) involve a principal obligation or lease payments, as
applicable, which may include initial service charges and
appraisal, inspection, and other fees approved by the
corporation;
(C) have a maturity or term satisfactory to the corporation
but in no case later than twenty (20) years from the date of
the guarantee;
(D) contain payment terms satisfactory to the corporation
requiring periodic payments by the developer or user,
including principal and interest payments, cost of local
property taxes and assessments, land lease rentals, if any,
insurance on the property, as applicable, and any guarantee
premiums required by the corporation; and
(E) contain any terms and provisions with respect to
property insurance, repairs, alterations, payment of taxes and
assessments, default reserves, delinquency charges, default
remedies, anticipation of maturity, additional and secondary
liens, and other matters that the corporation may prescribe. As added by P.L.162-2007, SEC.25.
IC 5-28-30-12 Power to guarantee an unsecured loan
Sec. 12. The corporation may guarantee an unsecured loan for:
(1) working capital purposes, if the corporation determines,
under criteria that it establishes, that the loan for working
capital:
(A) is for an industrial development project, a mining
operation, or an agricultural operation that involves the
processing of agricultural products; and
(B) will lead directly to increased production or job creation
or retention through sales of products or provision of
services to federal, state, or local government, private
businesses, or individuals, or through exports to foreign
markets; or
(2) capital expenditures, if the corporation determines, under
criteria that the corporation establishes, that the loan is for an
industrial development project described in IC 5-28-30-5(7).
The loan guarantee may not exceed five hundred thousand dollars
($500,000) for any single project or operation, and may be in
addition to any other guarantees of the corporation under this
chapter. The guarantee terms must include a time limit for working
capital loan guarantees that may not exceed eighteen (18) months.
However, the guarantees are renewable. A loan guarantee may not
exceed eighty percent (80%) of the unpaid principal balance from
time to time outstanding of the loan being guaranteed. The
corporation may impose any additional terms it considers appropriate
for any particular project or operation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-13 Premiums; fees; charges
Sec. 13. The corporation may establish:
(1) guarantee premiums for a guarantee under section 10 of this
chapter of any loan or lease outstanding at the beginning of
each year or at the time the guarantee is entered into; and
(2) loan application, placement, origination, commitment,
administrative, processing, or other fees or charges in
connection with the corporation's powers under section 17 of
this chapter.
These premiums, fees, or charges are payable in amounts or based
upon formulas established by the corporation and may be payable, at
the election of the corporation, in whole or in part, in the form of
cash, shares of stock, warrants for the purchase of shares of stock, or
other securities, property, or rights acceptable to the corporation.
These premiums, fees, or charges shall be payable by the developer
or user to the corporation in a manner prescribed by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-14 Letters of credit
Sec. 14. Any guarantee made by the corporation under this
chapter may be effected or enhanced, in whole or in part, through the
provision by the corporation of a letter of credit or an equivalent
form of credit enhancement instrument. However, the maximum
principal payment obligations of the corporation under the credit
instrument, as the same may be effective from time to time, is the
amount of the guarantee or portion of the guarantee made under this
chapter, and for purposes of the limitations on the amount of
guarantees under this chapter, and the term of any letter of credit may
not exceed the respective terms established for guarantees or loans
under this chapter. As added by P.L.162-2007, SEC.25.
IC 5-28-30-15 Legal investments
Sec. 15. Notwithstanding any other law, loans or leases
guaranteed or made by the corporation are legal investments for all
insurance companies, trust companies, banks, investment companies,
savings banks, executors, trustees and other fiduciaries, and pension
or retirement funds, as well as the board for depositories. As added by P.L.162-2007, SEC.25. IC 5-28-30-16 Power to allow subordination
Sec. 16. To further the purposes of this chapter, and subject to this
chapter, the corporation may also use any part of the guaranty fund
to guarantee any bonds issued by the Indiana finance authority under
IC 4-4-11 or by any authorized issuer under IC 36-7-12. With regard
to direct obligations of the authority that are guaranteed by the
corporation, the corporation may permit a subordination of any:
(1) security agreement;
(2) mortgage;
(3) combination of security agreements and mortgages; or
(4) other appropriate documents securing the direct obligations;
if the corporation in its discretion determines that the subordination
is reasonably necessary to accomplish the objectives of the industrial
development project undertaken by the authority. As added by P.L.162-2007, SEC.25.
IC 5-28-30-17 Power to make direct loans
Sec. 17. To further the purposes of this chapter, and in addition to
the corporation's other powers under this chapter, the corporation
may, upon a written finding as described in section 10 of this
chapter, make direct loans from money in the guaranty fund to or for
the benefit of any industrial development project, mining operation,
or agricultural operation that involves the processing of agricultural
products, upon the terms and conditions that the corporation
prescribes. Loans made under this section are subject to the
following conditions:
(1) A new or additional loan may not be made if the loan would
cause the then outstanding total guarantee obligations with
respect to all loans and leases guaranteed under this section and
the other provisions of this chapter to exceed eight (8) times the
amount of money then in the guaranty fund, or would cause the
then outstanding total principal balance of all loans made under
this section and then owing to the corporation to exceed twenty
percent (20%) of the amount of money then in the guaranty
fund.
(2) The principal amount of such a loan to or for the benefit of
a project or operation may not exceed one million dollars
($1,000,000), less the then outstanding total guarantee
obligations with respect to any loans or leases guaranteed under
this chapter to or for the benefit of that project or operation.
(3) With respect to any loan made under this section, a loan
agreement with the corporation must contain the following
terms:
(A) A requirement that the loan proceeds be used for
specified purposes consistent with and in furtherance of the
purposes of the corporation under this chapter.
(B) The term of the loan, which may not be later than twenty
(20) years from the date of the loan.
(C) The repayment schedule.
(D) The interest rate or rates of the loan, which may include
variations in the rate, but which may not be less than the
amount necessary to cover all expenses of the corporation in
making the loan.
(E) Any other terms and provisions that the corporation
requires.
(4) A loan agreement under this section may also contain a
requirement that the loan be insured directly or indirectly by a
loan insurer or be guaranteed by a loan guarantor, and a
requirement of any other type or types of security or collateral
that the corporation considers reasonable or necessary.
(5) A loan made under this section may be sold by the
corporation, and the corporation may permit other lenders to
participate in a loan made under this section, at the time or
times and upon the terms and conditions that the corporation
considers reasonable or necessary. A loan sold or in which other
lenders participate may be guaranteed by the corporation, upon
terms and conditions established by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-18 Proceeds of sales
Sec. 18. All proceeds received by the corporation or the Indiana
finance authority from the disposal by sale or in some other manner
of property acquired in connection with the guaranty program or
otherwise under this chapter shall be credited to the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-19 Expense; reimbursement by borrower
Sec. 19. Upon the issuance of a loan or a guarantee of a loan or
lease, any expenses incurred by the corporation in connection with
the loan or guarantee or the projects or operations for which the loan
or guarantee is being made shall be reimbursed to the corporation by
the borrower, in the case of a loan (to the extent not provided for
under section 13 of this chapter), or by the borrower, lender, lessee,
or lessor, in the case of a guarantee of a loan or lease, from the
proceeds of the loan or the payments under the lease or otherwise. As added by P.L.162-2007, SEC.25.
IC 5-28-30-20 Transfer of funds to the capital access account
Sec. 20. To further the purposes of this chapter and IC 4-4-11, and
in addition to the corporation's other powers under this chapter, the
corporation may transfer funds from the guaranty fund to the capital
access account established under IC 5-28-29-35. As added by P.L.162-2007, SEC.25. IC 5-28-30-21 Exemption from securities registration laws
Sec. 21. Any guarantees by the corporation under the guaranty
program are exempt from the registration and other requirements of
IC 23-19 and any other securities registration laws. As added by P.L.162-2007, SEC.25. Amended by P.L.1-2009,
SEC.25.
IC 5-28-30-22 Power to procure insurance
Sec. 22. The corporation may procure insurance or guarantees
from any public or private entities, including any department,
agency, or instrumentality of the United States, for insurance or
reinsurance on amounts paid from the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-23 Powers in the event of default
Sec. 23. The corporation may take assignments of accounts
receivable, loans, guarantees, insurance, notes, mortgages, security
agreements securing notes, and other forms of security, attach, seize,
or take title by foreclosure or conveyance to any industrial
development project when a guaranteed loan on the project is clearly
in default and when in the opinion of the authority such an
acquisition is necessary to safeguard the guaranty fund, and sell, or
on a temporary basis, lease or rent the project for any use. As added by P.L.162-2007, SEC.25.
IC 5-28-30
Chapter 30. Industrial Development Loan Guaranty Program
IC 5-28-30-1 "Broadband development project"
Sec. 1. As used in this chapter, "broadband development project"
means a project authorized by the broadband development program
under IC 8-1-33. As added by P.L.162-2007, SEC.25.
IC 5-28-30-1.5 "Developer"
Sec. 1.5. As used in this chapter, "developer" means a person who
proposes to enter, or has entered, into a financing agreement with the
corporation for an industrial development project and who has
entered into a separate agreement with some other persons for the
substantial use of the facilities financed. As added by P.L.162-2007, SEC.25.
IC 5-28-30-2 "Guaranty fund"
Sec. 2. As used in this chapter, "guaranty fund" refers to the
industrial development project guaranty fund created by section 9 of
this chapter. As added by P.L.162-2007, SEC.25.
IC 5-28-30-3 "Guaranty program"
Sec. 3. As used in this chapter, "guaranty program" means the
program described in section 10 of this chapter under which the
corporation guarantees parts of particular mortgages, security
agreements, leases, or loans for working capital with funds available
from the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-4 "High growth company with high skilled jobs"
Sec. 4. As used in this chapter, "high growth company with high
skilled jobs" means a company that satisfies all the following
conditions:
(1) The company:
(A) had at least a fifteen percent (15%) average annual
growth in company earnings during the past three (3) years;
(B) is entering a new product or process area; or
(C) is classified in an industry that had at least a fifteen
percent (15%) average annual growth in earnings during the
past three (3) years.
(2) The company has a substantial number of employees in
jobs:
(A) requiring postsecondary education or its equivalent; or
(B) that are in occupational codes classified as high skill by
the Bureau of Labor Statistics, United States Department of
Labor.
(3) The company has a substantial number of employees that
earn at least one hundred fifty percent (150%) of Indiana per
capita personal income. As added by P.L.162-2007, SEC.25.
IC 5-28-30-5 "Industrial development project"
Sec. 5. As used in this chapter, "industrial development project"
includes the acquisition of land, interests in land, site improvements,
infrastructure improvements (including information and high
technology infrastructure (as defined in IC 5-28-9-4)), buildings, or
structures, rehabilitation, renovation, and enlargement of buildings
and structures, machinery, equipment, furnishings, or facilities (or
any combination of these), comprising or being functionally related
and subordinate to any of the following:
(1) A pollution control facility (as defined in IC 4-4-10.9-24).
(2) A manufacturing enterprise.
(3) A business service enterprise involved in:
(A) computer and data processing services; or
(B) commercial testing services.
(4) A business enterprise the primary purpose of which is the
operation of an education and permanent marketing center for
manufacturers and distributors of robotic and flexible
automation equipment.
(5) Any other business enterprise, if the use of the guaranty
program creates a reasonable probability that the effect on
Indiana employment will be creation or retention of at least fifty
(50) jobs.
(6) An agricultural enterprise in which:
(A) the enterprise operates under a producer or growout
agreement; and
(B) the output of the enterprise is processed predominantly
in Indiana.
(7) A business enterprise that is required by a state, federal, or
local regulatory agency to make capital expenditures to remedy
a violation of a state or federal law or a local ordinance.
(8) A recycling market development project.
(9) A high growth company with high skilled jobs.
(10) A broadband development project. As added by P.L.162-2007, SEC.25.
IC 5-28-30-6 "Maturity date"
Sec. 6. As used in this chapter, "maturity date" means the date on
which the mortgage or security agreement indebtedness, or lease
obligations, would be extinguished if paid in accordance with
periodic payments provided for in the mortgage, security agreement,
or lease. As added by P.L.162-2007, SEC.25.
IC 5-28-30-7 "Mortgage"
Sec. 7. As used in this chapter, "mortgage" means a mortgage on
an industrial development project, mining operation, or agricultural
operation that involves the processing of agricultural products, or the
unpaid purchase price of real estate under the laws of this state,
together with the credit instruments, if any, secured thereby,
including but not limited to a financing agreement as defined in
IC 4-4-10.9-8 or a financing agreement within the meaning of
IC 36-7-12 in connection with real property. As added by P.L.162-2007, SEC.25.
IC 5-28-30-8 "Security agreement"
Sec. 8. As used in this chapter, "security agreement" means an
agreement which creates or provides for a security interest in
equipment, including, but not limited to, an equipment lease under
the guaranty program or within the meaning of IC 36-7-12, and any
successor provisions related to equipment. As added by P.L.162-2007, SEC.25.
IC 5-28-30-8.5 "User"
Sec. 8.5. As used in this chapter, "user" means a person who has
entered into a financing agreement with the corporation or lender or
a contract for use with the developer or lender in contemplation of its
use of an industrial development project. As added by P.L.162-2007, SEC.25.
IC 5-28-30-9 Industrial development project guaranty fund
Sec. 9. There is created an industrial development project
guaranty fund which shall be used by the corporation as a
nonlapsing, revolving fund for carrying out the provisions of the
guaranty program. The corporation may expend money from the
guaranty fund as the authority considers appropriate to carry out the
purposes of this chapter and IC 4-4-11. The guaranty fund consists
of the money, if any, appropriated by the general assembly. To this
sum shall be charged those expenses of the corporation attributable
and allocated by the corporation to the guaranty program, including
interest, principal, and lease payments required by loan or lease
defaults under the guaranty program, and to the sum shall be credited
that income of the corporation attributable and allocated by the
corporation to the guaranty program, including guarantee premiums. As added by P.L.162-2007, SEC.25. IC 5-28-30-10 Power to guarantee loans and leases
Sec. 10. Subject to the conditions set forth in section 11 of this
chapter and the other provisions of this chapter, if the corporation
makes 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 or
for the benefit of any industrial development project, mining
operation, or agricultural operation that involves the processing
of agricultural products would tend to accomplish the purposes
of this chapter, including the creation or retention of
employment in Indiana through the guarantee of the loan or
lease; and
(2) the proposed borrower or lessee cannot obtain the loan or
lease upon reasonable terms;
the corporation may, under the guaranty program, guarantee the loan
or lease upon the terms and conditions prescribed by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-11 Conditions
Sec. 11. The conditions referred to in section 10 of this chapter
are as follows:
(1) A new or additional guarantee of a loan or lease under
section 10, 12, or 17 of this chapter may not be entered into if
the guarantee would cause the outstanding total guarantee
obligations with respect to all loans and leases guaranteed under
sections 10, 12, and17 of this chapter to exceed eight (8) times
the amount of money in the guaranty fund.
(2) The amount of all guarantees by the corporation of loans or
leases to or for the benefit of any single industrial development
project, mining operation, or agricultural operation that involves
the processing of agricultural products may not exceed two
million dollars ($2,000,000), less the outstanding total principal
balance under any loans made and owed to the corporation
under section 17 of this chapter to or for the benefit of the
project or operation.
(3) A guarantee of either a loan secured by real estate or a real
estate lease may not exceed ninety percent (90%) of the unpaid
principal balance of the loan from time to time outstanding or
ninety percent (90%) of the amount of any lease payment, as
applicable, or ninety percent (90%) of the appraised fair market
value of the real estate, whichever is less.
(4) A guarantee of a loan secured by personal property or of a
personal property lease may not exceed seventy-five percent
(75%) of the unpaid principal balance of the loan from time to
time outstanding or seventy-five percent (75%) of the amount
of any lease payment, as applicable, or seventy-five percent
(75%) of the fair market value of the personal property,
whichever is less.
(5) A guarantee involving both real estate and personal property
may not exceed the percentage proportionate to each type of
property.
(6) To be eligible for a guarantee under section 10 of this
chapter, a loan or lease must:
(A) be one that is to be made to and held by a lender or
lessor approved by the corporation as responsible and able
to service the loan or lease properly;
(B) involve a principal obligation or lease payments, as
applicable, which may include initial service charges and
appraisal, inspection, and other fees approved by the
corporation;
(C) have a maturity or term satisfactory to the corporation
but in no case later than twenty (20) years from the date of
the guarantee;
(D) contain payment terms satisfactory to the corporation
requiring periodic payments by the developer or user,
including principal and interest payments, cost of local
property taxes and assessments, land lease rentals, if any,
insurance on the property, as applicable, and any guarantee
premiums required by the corporation; and
(E) contain any terms and provisions with respect to
property insurance, repairs, alterations, payment of taxes and
assessments, default reserves, delinquency charges, default
remedies, anticipation of maturity, additional and secondary
liens, and other matters that the corporation may prescribe. As added by P.L.162-2007, SEC.25.
IC 5-28-30-12 Power to guarantee an unsecured loan
Sec. 12. The corporation may guarantee an unsecured loan for:
(1) working capital purposes, if the corporation determines,
under criteria that it establishes, that the loan for working
capital:
(A) is for an industrial development project, a mining
operation, or an agricultural operation that involves the
processing of agricultural products; and
(B) will lead directly to increased production or job creation
or retention through sales of products or provision of
services to federal, state, or local government, private
businesses, or individuals, or through exports to foreign
markets; or
(2) capital expenditures, if the corporation determines, under
criteria that the corporation establishes, that the loan is for an
industrial development project described in IC 5-28-30-5(7).
The loan guarantee may not exceed five hundred thousand dollars
($500,000) for any single project or operation, and may be in
addition to any other guarantees of the corporation under this
chapter. The guarantee terms must include a time limit for working
capital loan guarantees that may not exceed eighteen (18) months.
However, the guarantees are renewable. A loan guarantee may not
exceed eighty percent (80%) of the unpaid principal balance from
time to time outstanding of the loan being guaranteed. The
corporation may impose any additional terms it considers appropriate
for any particular project or operation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-13 Premiums; fees; charges
Sec. 13. The corporation may establish:
(1) guarantee premiums for a guarantee under section 10 of this
chapter of any loan or lease outstanding at the beginning of
each year or at the time the guarantee is entered into; and
(2) loan application, placement, origination, commitment,
administrative, processing, or other fees or charges in
connection with the corporation's powers under section 17 of
this chapter.
These premiums, fees, or charges are payable in amounts or based
upon formulas established by the corporation and may be payable, at
the election of the corporation, in whole or in part, in the form of
cash, shares of stock, warrants for the purchase of shares of stock, or
other securities, property, or rights acceptable to the corporation.
These premiums, fees, or charges shall be payable by the developer
or user to the corporation in a manner prescribed by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-14 Letters of credit
Sec. 14. Any guarantee made by the corporation under this
chapter may be effected or enhanced, in whole or in part, through the
provision by the corporation of a letter of credit or an equivalent
form of credit enhancement instrument. However, the maximum
principal payment obligations of the corporation under the credit
instrument, as the same may be effective from time to time, is the
amount of the guarantee or portion of the guarantee made under this
chapter, and for purposes of the limitations on the amount of
guarantees under this chapter, and the term of any letter of credit may
not exceed the respective terms established for guarantees or loans
under this chapter. As added by P.L.162-2007, SEC.25.
IC 5-28-30-15 Legal investments
Sec. 15. Notwithstanding any other law, loans or leases
guaranteed or made by the corporation are legal investments for all
insurance companies, trust companies, banks, investment companies,
savings banks, executors, trustees and other fiduciaries, and pension
or retirement funds, as well as the board for depositories. As added by P.L.162-2007, SEC.25. IC 5-28-30-16 Power to allow subordination
Sec. 16. To further the purposes of this chapter, and subject to this
chapter, the corporation may also use any part of the guaranty fund
to guarantee any bonds issued by the Indiana finance authority under
IC 4-4-11 or by any authorized issuer under IC 36-7-12. With regard
to direct obligations of the authority that are guaranteed by the
corporation, the corporation may permit a subordination of any:
(1) security agreement;
(2) mortgage;
(3) combination of security agreements and mortgages; or
(4) other appropriate documents securing the direct obligations;
if the corporation in its discretion determines that the subordination
is reasonably necessary to accomplish the objectives of the industrial
development project undertaken by the authority. As added by P.L.162-2007, SEC.25.
IC 5-28-30-17 Power to make direct loans
Sec. 17. To further the purposes of this chapter, and in addition to
the corporation's other powers under this chapter, the corporation
may, upon a written finding as described in section 10 of this
chapter, make direct loans from money in the guaranty fund to or for
the benefit of any industrial development project, mining operation,
or agricultural operation that involves the processing of agricultural
products, upon the terms and conditions that the corporation
prescribes. Loans made under this section are subject to the
following conditions:
(1) A new or additional loan may not be made if the loan would
cause the then outstanding total guarantee obligations with
respect to all loans and leases guaranteed under this section and
the other provisions of this chapter to exceed eight (8) times the
amount of money then in the guaranty fund, or would cause the
then outstanding total principal balance of all loans made under
this section and then owing to the corporation to exceed twenty
percent (20%) of the amount of money then in the guaranty
fund.
(2) The principal amount of such a loan to or for the benefit of
a project or operation may not exceed one million dollars
($1,000,000), less the then outstanding total guarantee
obligations with respect to any loans or leases guaranteed under
this chapter to or for the benefit of that project or operation.
(3) With respect to any loan made under this section, a loan
agreement with the corporation must contain the following
terms:
(A) A requirement that the loan proceeds be used for
specified purposes consistent with and in furtherance of the
purposes of the corporation under this chapter.
(B) The term of the loan, which may not be later than twenty
(20) years from the date of the loan.
(C) The repayment schedule.
(D) The interest rate or rates of the loan, which may include
variations in the rate, but which may not be less than the
amount necessary to cover all expenses of the corporation in
making the loan.
(E) Any other terms and provisions that the corporation
requires.
(4) A loan agreement under this section may also contain a
requirement that the loan be insured directly or indirectly by a
loan insurer or be guaranteed by a loan guarantor, and a
requirement of any other type or types of security or collateral
that the corporation considers reasonable or necessary.
(5) A loan made under this section may be sold by the
corporation, and the corporation may permit other lenders to
participate in a loan made under this section, at the time or
times and upon the terms and conditions that the corporation
considers reasonable or necessary. A loan sold or in which other
lenders participate may be guaranteed by the corporation, upon
terms and conditions established by the corporation. As added by P.L.162-2007, SEC.25.
IC 5-28-30-18 Proceeds of sales
Sec. 18. All proceeds received by the corporation or the Indiana
finance authority from the disposal by sale or in some other manner
of property acquired in connection with the guaranty program or
otherwise under this chapter shall be credited to the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-19 Expense; reimbursement by borrower
Sec. 19. Upon the issuance of a loan or a guarantee of a loan or
lease, any expenses incurred by the corporation in connection with
the loan or guarantee or the projects or operations for which the loan
or guarantee is being made shall be reimbursed to the corporation by
the borrower, in the case of a loan (to the extent not provided for
under section 13 of this chapter), or by the borrower, lender, lessee,
or lessor, in the case of a guarantee of a loan or lease, from the
proceeds of the loan or the payments under the lease or otherwise. As added by P.L.162-2007, SEC.25.
IC 5-28-30-20 Transfer of funds to the capital access account
Sec. 20. To further the purposes of this chapter and IC 4-4-11, and
in addition to the corporation's other powers under this chapter, the
corporation may transfer funds from the guaranty fund to the capital
access account established under IC 5-28-29-35. As added by P.L.162-2007, SEC.25. IC 5-28-30-21 Exemption from securities registration laws
Sec. 21. Any guarantees by the corporation under the guaranty
program are exempt from the registration and other requirements of
IC 23-19 and any other securities registration laws. As added by P.L.162-2007, SEC.25. Amended by P.L.1-2009,
SEC.25.
IC 5-28-30-22 Power to procure insurance
Sec. 22. The corporation may procure insurance or guarantees
from any public or private entities, including any department,
agency, or instrumentality of the United States, for insurance or
reinsurance on amounts paid from the guaranty fund. As added by P.L.162-2007, SEC.25.
IC 5-28-30-23 Powers in the event of default
Sec. 23. The corporation may take assignments of accounts
receivable, loans, guarantees, insurance, notes, mortgages, security
agreements securing notes, and other forms of security, attach, seize,
or take title by foreclosure or conveyance to any industrial
development project when a guaranteed loan on the project is clearly
in default and when in the opinion of the authority such an
acquisition is necessary to safeguard the guaranty fund, and sell, or
on a temporary basis, lease or rent the project for any use. As added by P.L.162-2007, SEC.25.
