§ 5-1.2-4-31 — Borrowing money from the authority; issuing and selling bonds to the authority

Indiana § 5-1.2-4-31

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.2: INDIANA FINANCE AUTHORITY
• Ch. 4: General Powers and Duties

Text

(a) Notwithstanding any other law, a
participant may borrow money from the authority for any program by
negotiating a loan or other financial assistance directly with the
authority and without complying with requirements for the competitive
sale of bonds, notes, or other obligations or evidence of indebtedness.
A participant shall observe any existing contractual commitments to
bondholders or other persons when entering into a financial assistance
agreement.
(b) Notwithstanding any other law, a participant may issue and sell
notes, the principal and accrued interest on which shall be paid with
proceeds from the issuance of bonds or other available money at the
time the notes are due. The notes must be issued under a resolution or
ordinance and the proceeds must be used to carry out the purposes
allowed by the program.
(c) Notwithstanding any other law, a participant may issue and sell
bonds to the authority without the requirement of an increase to the
user rates and charges of the participant. The bonds must be issued
under a resolution or ordinance and the proceeds must be used to carry
out the purposes allowed by the program.
(d) A participant that issues notes under subsection (b) may renew
or extend the notes periodically on terms agreed to with the authority,
and the authority may purchase and sell the renewed or extended notes.
Accrued interest on the date of renewal or extension may be paid or
added to the principal amount of the note being renewed or extended.
(e) The notes issued by a participant under subsection (b), including
any renewals or extensions, must mature:
(1) in the amounts; and
(2) at the times not exceeding four (4) years from the date of
original issuance;
that are agreed to by the participant and the authority.
(f) Compliance with subsection (b) or (c) constitutes full authority
for a participant to issue notes or bonds and sell the notes or bonds to
the authority, and the participant is not required to pay any fees or
comply with any other law applicable to the authorization, approval,
issuance, and sale of the notes or bonds, including, without limitation,
IC 8-1-2-79. The notes or bonds are:
(1) valid and binding obligations of the participant;
(2) enforceable in accordance with the terms of the notes or
bonds; and
(3) payable solely from the sources specified in the resolution or
ordinance authorizing the issuance of the notes or bonds.
(g) If the participant issues bonds, all or part of the proceeds of
which will be used to pay notes issued under subsection (b), the:
(1) provisions of this section; or
(2) actual issuance by a participant of notes under subsection (b);
do not relieve the participant of the obligation to comply with the
statutory requirements for the issuance of bonds.

Legislative History

As added by P.L.189-2018, SEC.25. Amended by P.L.224-2023, SEC.1; P.L.9-2024, SEC.113.