(a) As an alternative to making loans or providing other financial assistance to political subdivisions, the authority may use the money in the fund to provide a leveraged loan program and other financial assistance programs to or for the benefit of political subdivisions, including using money in the fund to enhance a political subdivision’s obligations under this chapter by:
(1) granting money to:
(A) be deposited in:
- (i) a capital or reserve fund established under IC 4-4-11 or another law, including this chapter; or
- (ii) any account established within the fund; or
- (B) provide interest subsidies;
- (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 political subdivision or for bonds or other obligations issued by a trustee that is a financial institution for a grantor trust, the authority, or the Indiana bond bank if credit market access is improved or interest rates are reduced; or
- (3) guaranteeing all or a part of obligations issued by political subdivisions or of bonds or other obligations issued by a trustee that is a financial institution for a grantor trust, the authority, or the Indiana bond bank.
(b) The authority may enter into any agreements with:
- (1) a trustee that is a financial institution for a grantor trust;
- (2) the Indiana bond bank; or
(3) political subdivisions;
to carry out this chapter.
- (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 an indebtedness of the state or of the authority except, in the case of the authority, strictly in accordance with the guarantee terms.
- (d) Notwithstanding any other law, the authority is considered a qualified entity for purposes of IC 5-1.5 .
As added by P.L.59-1997, SEC.13. Amended by P.L.235-2005, SEC.181.