§ 5-1.2-9-23 — Power to engage in financing activities; purchase of a loan

Indiana § 5-1.2-9-23

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.2: INDIANA FINANCE AUTHORITY
• Ch. 9: Economic Development Projects

Text

(a) The authority may invest in, purchase or
make commitments to invest in or purchase, and take assignments or
make commitments to take assignments of, loans made for the
acquisition, construction, installation, rehabilitation, or purchase of
economic development projects.
(b) Before investment, purchase, assignment, or commitment, the
lender shall certify that the proceeds of the authority's bonds will be
used to make loans to provide financing for economic development
projects, or pending the making of the loan, invested in short term
obligations complying with the requirements of this article.
(c) The authority shall purchase a loan at a purchase price equal to
the outstanding principal balance, but the authority may require a
discount from the principal balance or make a payment of a premium
to effect a fair rate of return for the lender, as determined by the rate of
return on comparable investments under market conditions existing at
the time of purchase.
(d) In addition to the payment of the outstanding principal balance,
the authority shall pay the accrued interest due on the loan, on the date
the loan is delivered against payment for the loan or on another date as
may be established by agreement between the authority and the selling
lender.

Legislative History

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