1. (a) The board may apply to the federal Farmers Home Administration, the United States Department of Housing and Urban Development, or any other federal agency authorized to make loans for works of improvement for a long term or short term loan to cover the following:

   1. (1) Expenses of establishing the district.
   2. (2) General, legal, and administrative expenses.
   3. (3) Costs of engineering or other costs of preparing the district plan.
   4. (4) Costs of putting the district plan into effect by the necessary construction, maintenance, and operation of the works of improvement that have been authorized by the approval of the district plan.
   5. (5) Refinancing a loan whose proceeds have been used for any of the purposes described in this subsection.

2. (b) A loan under this section:

   1. (1) may be evidenced by one (1) installment note or by a series of notes; and

   2. (2) may be secured by:

      1. (A) revenues; or

      2. (B) the collection of the special benefits tax levied on the real property in the district.

         If a loan is secured by a pledge of collection of the tax, the loan may be paid in whole or in part by revenues or the collection of assessments.

3. (c) If the board decides not to evidence the financing with a federal agency by an installment note or series of notes and instead prepares a bond issue, the bond issue may, in whole or in part, be offered for sale to the federal agency without:

   1. (1) a public offering; or
   2. (2) the securing of competitive bids on the bond offering.

4. (d) Repayment of a loan begins at the time upon which the board and the federal agency agree. The:

   1. (1) amount of interest;
   2. (2) time of making payments of interest; and

   3. (3) interval at which interest must be paid;

      are subject to the agreement of the parties.

      [Pre-1995 Recodification Citation: 13-3-3-68(a), (c), (d).]

As added by P.L.1-1995, SEC.26.