1. (a) Notwithstanding any other law and if provided in a financial assistance agreement, any state department or state agency, including the treasurer of state:

   1. (1) that is the custodian of money payable to a participant, other than money in payment for goods or services provided by the participant; and

   2. (2) after written notice from the budget director that the participant is in default on the payment of principal or interest on a loan or evidence of other financial assistance;

      may withhold payment of money from that participant and pay over the money to the authority or the Indiana bond bank as directed by the chairman of the authority, for the purpose of curing the default.

2. (b) The withholding of payment from the participant and payment to:

   1. (1) the authority; or

   2. (2) the Indiana bond bank;

      as applicable, may not adversely affect the validity of the loan or other financial assistance.

      [Pre-1996 Recodification Citation: 4-23-21-11.]

As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.20; P.L.235-2005, SEC.144.