§ 5-28-9-15 — Loans; restrictions; ordinance requirement

Indiana § 5-28-9-15

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 28: INDIANA ECONOMIC DEVELOPMENT
• Ch. 9: Industrial Development Program and Fund

Text

(a) A loan made under this chapter is subject
to the following restrictions:
(1) The repayment period may not exceed fifteen (15) years.
(2) The interest rate is to be set by the state board of finance at the
time the loan is approved.
(3) Interest reverts to the industrial development fund established
by this chapter.
(4) The loan must be repaid in installments, including interest on
the unpaid balance, according to a repayment schedule approved
by the state board of finance for that loan. However, on the
approval of the state board of finance, the repayment of principal
may be deferred for a period not to exceed two (2) years.
(5) Subject to subsection (b), the repayment of the loan may be
limited to a specified revenue source of the qualified entity and,
if limited, is not a general obligation of the unit and is payable
solely from the specified revenue source.
(6) If the qualified entity levies a tax to repay the loan, the first
installment of the loan is due from funds received from the first
levy.
(7) If prepayment of the loan is made, a penalty may not be
charged.
(b) A qualified entity may borrow money under this chapter only
under an ordinance adopted under IC 36-1-3-6 as follows:
(1) If the qualified entity is a city, town, or county, by the
qualified entity.
(2) If the qualified entity is an economic development
commission, by the city, town, or county that established the
economic development commission.
(3) If the qualified entity is a special taxing district established by
the city, town, or county, by the city, town, or county that
established the special taxing district.
(4) If the qualified entity is a special taxing district that was not
established by a city, town, or county, by the county in which the
special taxing district is located.
If repayment of the loan is to be from a specified revenue source under
subsection (a)(5), the ordinance must state the revenue source and must
state that the qualified entity is not obligated to pay the principal or
interest on the loan except from the specified revenue source. An
ordinance may not provide for repayment from a specified revenue
source if the repayment would impair the qualified entity's contract
with an owner of outstanding obligations payable from the specified
revenue source.
(c) Notwithstanding any other law, the qualified entity may enter
into loans under this chapter without obtaining the approval of any
other body.

Legislative History

As added by P.L.4-2005, SEC.34.