1. (a) The authority may pledge loans or evidences of other financial assistance and other obligations of participants evidencing the loans or other financial assistance from the fund to secure:

   1. (1) other loans or financial assistance from the fund to or for the benefit of participants; or

   2. (2) other loans or financial assistance from the supplemental fund to or for the benefit of participants;

      to the extent permitted by the Clean Water Act.

2. (b) The authority must approve the terms of a pledge under this section.

3. (c) Notwithstanding any other law, a pledge of property made by the department and the budget agency under this section or IC 4-23-21-8 (e) (before its repeal) or a pledge of property made by the authority under this section is binding from the time the pledge is made. Any pledge of property made by the department and the budget agency under this section or IC 4-23-21-8 (e) (before its repeal) is binding on the authority. Revenues, other money, or other property pledged and thereafter received are immediately subject to the lien of the pledge without any further act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against:

   1. (1) the department;
   2. (2) the budget agency;
   3. (3) the fund; or

   4. (4) the authority;

      regardless of whether the parties have notice of any lien.

4. (d) A resolution, an indenture, or other instrument by which a pledge is created does not have to be filed or recorded, except in the records of the authority.

5. (e) Action taken to:

   1. (1) enforce a pledge under this section or IC 4-23-21-8 (e) (before its repeal); and

   2. (2) realize the benefits of the pledge;

      is limited to the property pledged.

6. (f) A pledge under this section or IC 4-23-21-8 (e) (before its repeal) does not create a liability or indebtedness of the state.

   [Pre-1996 Recodification Citation: 4-23-21-8(e).]

As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.17; P.L.235-2005, SEC.141.