§ 5-1.2-14-10 — Pledging of loans

(a) The authority may pledge loans,
evidences of other financial assistance, and other obligations
evidencing the loans or other financial assistance from the water
infrastructure assistance fund to secure other loans or financial
assistance from:
(1) the water infrastructure assistance fund;
(2) the wastewater revolving loan fund established by IC 5-1.2-10;
(3) the drinking water revolving loan fund established by IC 5-1.2-10; or
(4) the supplemental drinking water and wastewater assistance
fund established by IC 5-1.2-11;
for the benefit of participants.
(b) The terms of a pledge under this section must be acceptable to
the authority.
(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 thereafter
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:
(1) the authority;
(2) the budget agency; or
(3) the water infrastructure assistance fund;
regardless of whether the parties have notice of any lien.
(d) A resolution, an indenture, or another instrument by which a
pledge is created under this section does not have to be filed or
recorded, except in the records of the authority.
(e) Action taken to:
(1) enforce a pledge made 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.