§ 5-1.2-10-19 — Pledging of loans or property

(a) The authority may pledge loans or
evidence of other financial assistance and other obligations of
participants evidencing the loans or other financial assistance from the
wastewater SRF fund or drinking water SRF fund to secure:
(1) other loans or financial assistance from the wastewater SRF
fund or drinking water SRF fund to or for the benefit of
participants; or
(2) other loans or financial assistance from the supplemental fund
to or for the benefit of participants;
to the extent allowed by the federal Safe Drinking Water Act or the
federal Clean Water Act.
(b) The authority must approve the terms of a pledge under this
section.
(c) Notwithstanding any other law, a pledge of property made by the
authority under this section is binding from the time the pledge is
made. Revenues, other money, or other property pledged and that is
received after the pledge are immediately subject to the lien of the
pledge without any other act. The lien of a pledge is binding against all
parties having claims of any kind in tort, contract, or otherwise against:
(1) the drinking water SRF fund;
(2) the wastewater SRF fund; or
(3) the authority;
regardless of whether the parties have notice of any lien.
(d) A resolution, an indenture, or another instrument by which a
pledge is created does not have to be filed or recorded, except in the
records of the authority.
(e) Action taken to:
(1) enforce a pledge under this section; and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section does not create a liability or
indebtedness of the state.

Legislative History

As added by P.L.189-2018, SEC.25.