§ 5-1.2-15-5 — Default; withholding of distributions

Indiana § 5-1.2-15-5

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.2: INDIANA FINANCE AUTHORITY
• Ch. 15: Local Transportation Infrastructure Program

Text

(a) If the authority uses bond proceeds to loan
money to or purchase bonds of a participant, the authority may, by the
resolution approving the bonds, provide that subsection (b) is
applicable to the participant.
(b) Notwithstanding any other law, to the extent that any department
or agency of the state, including the treasurer of state, is the custodian
of money payable to the participant (other than for goods or services
provided by the participant), at any time after written notice to the
department or agency head from the authority that the participant is in
default on the payment of principal of or interest on the bonds then held
or owned by or arising from an agreement with the authority, the
department or agency shall withhold the payment of that money from
that participant and pay over the money to the authority for the purpose
of paying the principal of and interest on the related bonds. However,
the withholding of payment from the participant and payment to the
authority under this section must not adversely affect the validity of the
bonds in default.

Legislative History

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