1. (a) The authority may pledge:

   1. (1) loans or evidences of other financial assistance; and

   2. (2) other obligations evidencing the loans or other financial assistance;

      from the supplemental fund to secure other loans or financial assistance from the fund, the wastewater revolving loan fund, or the supplemental fund for the benefit of participants.

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

3. (c) Notwithstanding any other law, a pledge of property made by the authority under this section is binding from the time the pledge is made. 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 authority;
   2. (2) the budget agency; or

   3. (3) the supplemental fund;

      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; and

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

      is limited to the property pledged.

6. (f) A pledge under this section 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.32; P.L.235-2005, SEC.170.