Indiana § 21-29-3-3 Powers and duties of state educational institutions

Indiana Statutes

§ 21-29-3-3 — Powers and duties of state educational institutions

Indiana·Title 21 HIGHER EDUCATION·Art. 29 STATE EDUCATIONAL INSTITUTIONS:·Ch. 3 Swap Agreements

(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 ap

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(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 5-1.2-3-6;
(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.
[Pre-2007 Higher Education Recodification Citation:
20-12-1.3-5.]

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