1. (a) As an alternative to making loans or providing other financial assistance to participants, the authority may use the money in the fund or the supplemental fund to provide a leveraged loan program and other financial assistance programs permitted by the Clean Water Act to or for the benefit of participants, including using money in the fund or the supplemental fund to enhance the obligations of participants issued for the purposes of this chapter by:

   1. (1) granting money to:

      1. (A) be deposited in:

         1. (i) a capital or reserve fund established under IC 4-4-11 or another statute or a trust agreement or indenture as contemplated by section 2(e) of this chapter; or
         2. (ii) an account established within such a fund; or
      2. (B) provide interest subsidies;
   2. (2) paying bond insurance premiums, reserve insurance premiums, or credit enhancement, liquidity support, remarketing, or conversion fees, or other similar fees or costs for obligations of a participant or for bonds issued by the authority or the Indiana bond bank, if credit market access is improved or interest rates are reduced; or
   3. (3) guaranteeing all or a part of obligations issued by participants or of bonds issued by the authority or the Indiana bond bank.
2. (b) The authority may enter into any agreements with the Indiana bond bank or participants to carry out the purposes specified in this chapter.

3. (c) A guarantee of obligations or bonds under subsection (a)(3) must be limited to money in the fund and the supplemental fund. A guarantee under subsection (a)(3) does not create a liability or indebtedness of the state.

   [Pre-1996 Recodification Citation: 4-23-21-14.]

As added by P.L.1-1996, SEC.8. Amended by P.L.126-1997, SEC.22; P.L.235-2005, SEC.147.