§ 5-1.2-12-8 — Loans or other financial assistance; uses; interest rates; required submissions; sales; pledges

Indiana § 5-1.2-12-8

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.2: INDIANA FINANCE AUTHORITY
• Ch. 12: Indiana Brownfields Program

Text

(a) A loan or other financial assistance must
be used for at least one (1) of the purposes under section 2 of this
chapter and may be used for any of the following purposes:
(1) To:
(A) establish guaranties, reserves, or sinking funds, including
guaranties, reserves, or sinking funds to secure and pay, in
whole or in part, loans or other financial assistance made from
sources other than the Indiana brownfields fund (including
financial institutions) for a purpose allowed by this chapter; or
(B) provide interest subsidies.
(2) To pay financing charges, including interest on the loan or
other financial assistance during remediation and for a reasonable
period after the completion of remediation.
(3) To pay consultant, advisory, and legal fees, and any other
costs or expenses resulting from:
(A) the assessment, planning, or remediation of a brownfield;
or
(B) the loan or other financial assistance.
(b) The authority shall establish the interest rate or parameters for
establishing the interest rate on each loan made under this chapter,
including parameters for establishing the amount of interest subsidies.
(c) The authority, in setting the interest rate or parameters for
establishing the interest rate on each loan, may take into account the
following:
(1) Credit risk.
(2) Environmental, water quality, and health protection.
(3) Affordability.
(4) Other fiscal factors the authority considers relevant, including
the Indiana brownfields program's cost of funds and whether the
financial assistance provided to or for the benefit of a particular
political subdivision is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (4), more than
one (1) interest rate may be established and used for loans or other
financial assistance to or for the benefit of different political
subdivisions or for different loans or other financial assistance to or for
the benefit of the same political subdivision.
(d) Before a private individual or entity, nonprofit entity, or political
subdivision may receive a loan or other financial assistance, including
grants, from the Indiana brownfields fund, the private individual or
entity, nonprofit entity, or political subdivision must submit the
following:
(1) Documentation of community and neighborhood comment
concerning the use of a brownfield on which remediation
activities will be undertaken after remediation activities are
completed.
(2) A plan for repayment of the loan or other financial assistance,
if applicable.
(3) A summary of the environmental objectives of the proposed
project.
(e) A private individual or entity, nonprofit entity, or political
subdivision that receives a loan or other financial assistance from the
Indiana brownfields fund shall enter into a financial assistance
agreement. A financial assistance agreement related to the Indiana
brownfields program is a valid, binding, and enforceable agreement of
the private individual or entity, nonprofit entity, or political
subdivision.
(f) The authority may sell or assign:
(1) loans or evidence of other financial assistance; and
(2) other obligations of the private individuals or entities,
nonprofit entities, or political subdivisions evidencing the loans
or other financial assistance from the Indiana brownfields fund;
at any price and on terms acceptable to the authority. Proceeds of sales
or assignments under this subsection shall be deposited in the Indiana
brownfields fund. A sale or an assignment under this subsection does
not create a liability or an indebtedness of the state or the authority
except, in the case of the authority, strictly in accordance with the sale
or assignment terms.
(g) The authority may pledge loans or evidence of other financial
assistance and other obligations of private individuals or entities,
nonprofit entities, or political subdivisions evidencing the loans or
other financial assistance from the Indiana brownfields fund to secure
other loans or financial assistance from the Indiana brownfields fund
to or for the benefit of political subdivisions. The terms of a pledge
under this subsection must be approved by the budget agency.
Notwithstanding any other law, a pledge of property made by the
authority and approved by the budget agency under this subsection is
binding from the time the pledge is made. Revenues, other money, or
other property pledged and then received are immediately subject to the
lien of the pledge without any further act. The lien of a pledge is
binding against all parties having claims of any kind in tort, contract,
or otherwise against the authority, a trustee, or the Indiana brownfields
fund, regardless of whether the parties have notice of a lien. A
resolution, an indenture, or other instrument by which a pledge is
created is not required to be filed or recorded, except in the records of
the authority. An action taken to enforce a pledge under this subsection
and to realize the benefits of the pledge is limited to the property
pledged. A pledge under this subsection does not create a liability or an
indebtedness of the state or the authority except, in the case of the
authority, strictly in accordance with the pledge terms.

Legislative History

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