1. (a) The authority may sell loans or bonds of participants evidencing the loans periodically at any price and on terms acceptable to the authority. Proceeds of sales under this section shall be deposited in the applicable fund.
2. (b) The authority may pledge loans or bonds of participants to secure other loans from a fund to or for the benefit of participants.
3. (c) The authority must approve the terms of a pledge under this section.

4. (d) Notwithstanding any other law, a pledge of property made by a participant, or a pledge of property made by the authority under this section, is binding from the time the pledge is made. Any pledge of property made by an entity described in section 6(a) of this chapter under this section is binding on the entity and the authority. Revenues, other money, or other property pledged and received is immediately subject to the lien of the pledge without any other act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against:

   1. (1) a participant;
   2. (2) the authority; or

   3. (3) a fund;

      regardless of whether the parties have notice of any lien.

5. (e) 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.

6. (f) 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.

7. (g) A pledge under this section does not create a liability or indebtedness of the state.

As added by P.L.229-2017, SEC.28.