1. (a) As an alternative to making loans or providing other financial assistance to participants, the authority may use the money in the fund to provide a leveraged loan program and other financial assistance programs allowed by the Safe Drinking Water Act to or for the benefit of participants, including using money in the fund or a supplemental fund, including the supplemental fund established by section 22 of this chapter, 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 IC 13-18-21-2 (e); or
         2. (ii) an account established within a fund described in item (i); 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 Indiana bond bank or the authority if credit market access is improved or interest rates are reduced; or

   3. (3) guaranteeing all or part of:

      1. (A) obligations issued by participants; or
      2. (B) bonds issued by the Indiana bond bank or the authority.
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. A guarantee under subsection (a)(3) does not create a liability or indebtedness of the state.

As added by P.L.126-1997, SEC.30. Amended by P.L.132-1999, SEC.23; P.L.235-2005, SEC.163.