§ 5-1.5-6.5-3 — Capital principal fund; debt service; agreement; recovery

Indiana § 5-1.5-6.5-3

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.5: INDIANA BOND BANK
• Ch. 6.5: Capital Funds

Text

(a) The capital principal fund may be used
only to guarantee payment of debt service on:
(1) securities issued by a qualified entity for a purpose specified
in section 1(b) of this chapter; or
(2) bonds or notes issued to purchase securities issued for a
purpose specified in section 1(b) of this chapter.
(b) The bank and the qualified entity must enter into an agreement
before a guarantee under subsection (a)(1) is effective. This agreement
may contain any provisions the bank considers appropriate and may
specify which funds held by a state agency are subject to recovery
under subsection (c).
(c) If debt service on securities of a qualified entity is paid by the
bank to a qualified entity or owners of its securities under a guarantee
under subsection (a)(1), the amount paid from the capital principal
fund may be recovered from funds held by a state agency or department
that are payable to the qualified entity as set forth in subsection (b).

Legislative History

As added by P.L.38-1988, SEC.5.