§ 4-10-18-10 — Loan of money from fund; application; terms; repayment; eligible entities

Indiana § 4-10-18-10

• Jurisdiction: Indiana
• Art. 10: STATE FUNDS GENERALLY
• Ch. 18: The Counter-Cyclical Revenue and Economic

Text

(a) The state board of finance may lend
money from the fund to entities listed in subsections (e) through (k) for
the purposes specified in those subsections.
(b) An entity must apply for the loan before May 1, 1989, in a form
approved by the state board of finance. As part of the application, the
entity shall submit a plan for its use of the loan proceeds and for the
repayment of the loan. Within sixty (60) days after receipt of each
application, the board shall meet to consider the application and to
review its accuracy and completeness and to determine the need for the
loan. The board shall authorize a loan to an entity that makes an
application if the board approves its accuracy and completeness and
determines that there is a need for the loan and an adequate method of
repayment.
(c) The state board of finance shall determine the terms of each
loan, which must include the following:
(1) The duration of the loan, which must not exceed twelve (12)
years.
(2) The repayment schedule of the loan, which must provide that
no payments are due during the first two (2) years of the loan.
(3) A variable rate of interest to be determined by the board and
adjusted annually. The interest rate must be the greater of:
(A) five percent (5%); or
(B) two-thirds (2/3) of the interest rate for fifty-two (52) week
United States Treasury bills on the anniversary date of the loan,
but not to exceed ten percent (10%).
(4) The amount of the loan or loans, which may not exceed the
maximum amounts established for the entity by this section.
(5) Any other conditions specified by the board.
(d) An entity may borrow money under this section by adoption of
an ordinance or a resolution and, as set forth in IC 5-1-14, may use any
source of revenue to repay a loan under this section. This section
constitutes complete authority for the entity to borrow from the fund.
If an entity described in subsection (i) fails to make any repayments of
a loan, the amount payable shall be withheld by the state comptroller
from any other money payable to the consolidated city. If any other
entity described in this section fails to make any repayments of a loan,
the amount payable shall be withheld by the state comptroller from any
other money payable to the entity. The amount withheld shall be
transferred to the fund to the credit of the entity.
(e) A loan under this section may be made to a city located in a
county having a population of more than twenty-six thousand four
hundred seventy (26,470) and less than twenty-seven thousand
(27,000) for the city's waterworks facility. The amount of the loan may
not exceed one million six hundred thousand dollars ($1,600,000).
(f) As used in this subsection, "corridor" means the strip of land in
Indiana abutting Lake Michigan and the tributaries of Lake Michigan.
A loan under this section may be made to a city the territory of which
is included in part within the Lake Michigan corridor for a marina
development project. The maximum amount of loans available for all
cities that are eligible for a loan under this subsection is eight million
six hundred thousand dollars ($8,600,000).
(g) A loan under this section may be made to a county having a
population of more than one hundred eighty thousand (180,000) and
less than one hundred eighty-five thousand (185,000) for use by the
airport authority in the county for the construction of runways. The
amount of the loan may not exceed seven million dollars ($7,000,000).
The county may lend the proceeds of its loan to an airport authority for
the public purpose of fostering economic growth in the county.
(h) A loan under this section may be made to a city having a
population of more than fifty-eight thousand (58,000) and less than
fifty-nine thousand (59,000) for the construction of parking facilities.
The amount of the loan may not exceed three million dollars
($3,000,000).
(i) A loan or loans under this section may be made to a consolidated
city, a local public improvement bond bank, or any board, authority, or
commission of the consolidated city to fund economic development
projects under IC 36-7-15.2-5 or to refund obligations issued to fund
economic development projects. The amount of the loan may not
exceed thirty million dollars ($30,000,000).
(j) A loan under this section may be made to a county having a
population of more than twelve thousand five hundred (12,500) and
less than thirteen thousand (13,000) for extension of airport runways.
The amount of the loan may not exceed three hundred thousand dollars
($300,000).
(k) A loan under this section may be made to Covington Community
School Corporation to refund the amount due on a tax anticipation
warrant loan. The amount of the loan may not exceed two million seven
hundred thousand dollars ($2,700,000), to be paid back from any
source of money that is legally available to the school corporation.
Notwithstanding subsection (b), the school corporation must apply for
the loan before June 30, 2010. Notwithstanding subsection (c),
repayment of the loan shall be made in equal installments over five (5)
years with the first installment due not more than six (6) months after
the date loan proceeds are received by the school corporation.
(l) IC 6-1.1-20 does not apply to a loan made by an entity under this
section.
(m) As used in this section, "entity" means a governmental entity
authorized to obtain a loan under subsections (e) through (k).

Legislative History

As added by P.L.380-1987(ss), SEC.2. Amended by P.L.5-1988, SEC.22; P.L.22-1988, SEC.2; P.L.12-1992, SEC.13; P.L.1-1995, SEC.33; P.L.170-2002, SEC.10; P.L.182-2009(ss), SEC.53; P.L.197-2011, SEC.3; P.L.119-2012, SEC.8; P.L.104-2022, SEC.7; P.L.114-2022, SEC.5; P.L.178-2022(ts), SEC.1; P.L.9-2024, SEC.72.