§ 5-1.2-8-23 — Promissory notes

Indiana § 5-1.2-8-23

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.2: INDIANA FINANCE AUTHORITY
• Ch. 8: Educational Facility Financing

Text

(a) Any promissory notes received under
section 22 of this chapter:
(1) must have the same principal amounts, maturities, and interest
rates as the bonds being issued;
(2) may be secured by a first mortgage lien on the educational
facility being financed or by a first mortgage lien on or security
interest in other real or personal property or funds acceptable to
the authority subject to any exceptions that the authority may
approve and created by a mortgage instrument or security
agreement satisfactory to the authority; and
(3) may be insured or guaranteed by others.
(b) Any bonds described in section 22 of this chapter must be
payable solely out of the payments to be made on the promissory notes
and under the corresponding agreement. Any bonds described in
section 22 of this chapter may not exceed in principal amount the cost
of the educational facility, as determined by the nonprofit college or
university, or the necessary amount of these liability or other loss
insurance reserves, and approved by the authority.

Legislative History

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