1. (a) The drinking water revolving loan fund is established to provide money for loans and other financial assistance under this chapter to or for the benefit of participants, including forgiveness of principal if allowed under federal law. The authority shall administer, hold, and manage the fund.

2. (b) The general assembly may appropriate money to the fund. Grants or gifts of money to the fund from the federal government or other sources and the proceeds of the sale of:

   1. (1) gifts to the fund; and

   2. (2) loans and other financial assistance, as provided in sections 10 through 14 of this chapter;

      shall be deposited in the fund.

3. (c) Repayments of loans and other financial assistance, including interest, premiums, and penalties, shall be deposited in the fund.

4. (d) The authority shall invest the money in the fund that is:

   1. (1) not currently needed to meet the obligations of the fund; and

   2. (2) not invested under subsection (e);

      in the same manner as other public money may be invested. Earnings that accrue from these investments shall be deposited in the fund.

5. (e) As an alternative to subsection (d), the authority may invest or cause to be invested all or part of the fund in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, an investment may be made by the trustee in accordance with at least one (1) trust agreement or indenture. A trust agreement or indenture may allow disbursements by the trustee to:

   1. (1) the department;
   2. (2) the budget agency;
   3. (3) a participant;
   4. (4) the Indiana bond bank;
   5. (5) the authority; or
   6. (6) any person to which the authority or a participant is obligated, as provided in the trust agreement or indenture.
6. (f) Except as provided in the Safe Drinking Water Act, the cost of administering the fund and the program may be paid from the fund or from other money.
7. (g) All money accruing to the fund and money allotted to the state under 42 U.S.C. 300j-12 is appropriated continuously for the purposes specified in this chapter.
8. (h) Money in the fund does not revert to the state general fund at the end of a state fiscal year.

As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999, SEC.11; P.L.235-2005, SEC.148.