§ 5-28-30-17 — Power to make direct loans

Indiana § 5-28-30-17

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 28: INDIANA ECONOMIC DEVELOPMENT
• Ch. 30: Industrial Development Loan Guaranty Program

Text

To further the purposes of this chapter, and
in addition to the corporation's other powers under this chapter, the
corporation may, upon a written finding as described in section 10 of
this chapter, make direct loans from money in the guaranty fund to or
for the benefit of any industrial development project, mining operation,
or agricultural operation that involves the processing of agricultural
products, upon the terms and conditions that the corporation prescribes.
Loans made under this section are subject to the following conditions:
(1) A new or additional loan may not be made if the loan would
cause the then outstanding total guarantee obligations with
respect to all loans and leases guaranteed under this section and
the other provisions of this chapter to exceed eight (8) times the
amount of money then in the guaranty fund, or would cause the
then outstanding total principal balance of all loans made under
this section and then owing to the corporation to exceed twenty
percent (20%) of the amount of money then in the guaranty fund.
(2) The principal amount of such a loan to or for the benefit of a
project or operation may not exceed one million dollars
($1,000,000), less the then outstanding total guarantee obligations
with respect to any loans or leases guaranteed under this chapter
to or for the benefit of that project or operation.
(3) With respect to any loan made under this section, a loan
agreement with the corporation must contain the following terms:
(A) A requirement that the loan proceeds be used for specified
purposes consistent with and in furtherance of the purposes of
the corporation under this chapter.
(B) The term of the loan, which may not be later than twenty
(20) years from the date of the loan.
(C) The repayment schedule.
(D) The interest rate or rates of the loan, which may include
variations in the rate, but which may not be less than the
amount necessary to cover all expenses of the corporation in
making the loan.
(E) Any other terms and provisions that the corporation
requires.
(4) A loan agreement under this section may also contain a
requirement that the loan be insured directly or indirectly by a
loan insurer or be guaranteed by a loan guarantor, and a
requirement of any other type or types of security or collateral that
the corporation considers reasonable or necessary.
(5) A loan made under this section may be sold by the
corporation, and the corporation may permit other lenders to
participate in a loan made under this section, at the time or times
and upon the terms and conditions that the corporation considers
reasonable or necessary. A loan sold or in which other lenders
participate may be guaranteed by the corporation, upon terms and
conditions established by the corporation.

Legislative History

As added by P.L.162-2007, SEC.25.