§ 5-28-29-22 — Effect of zero balances; effect of recovery under the bankruptcy laws

Indiana § 5-28-29-22

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 28: INDIANA ECONOMIC DEVELOPMENT
• Ch. 29: Capital Access Program

Text

(a) If the outstanding balance of an enrolled
loan that is not a line of credit is reduced to zero (0), the loan is no
longer an enrolled loan. If an enrolled loan that is a line of credit has an
outstanding balance of zero (0) for a twelve (12) month period, the line
of credit is no longer an enrolled loan, unless, before the expiration of
the twelve (12) month period, the lender reaffirms in writing to the
borrower that the line of credit will remain open and the borrower
acknowledges the reaffirmation in writing.
(b) Notwithstanding subsection (a), any amount recovered from a
lender by a trustee in bankruptcy (or a similar representative of
creditors) as a preference under 11 U.S.C. 547 remains an enrolled loan
for the purpose of filing a claim against the reserve fund.

Legislative History

As added by P.L.162-2007, SEC.24.