1. (a) The authority may issue bonds and invest in, or loan the proceeds of those bonds to, a participant for the purposes of a local infrastructure program established under subsection (f).
2. (b) If the authority uses bond proceeds to loan money to or purchase bonds of a participant, the authority may, by the resolution approving the bonds, provide that subsection (c) is applicable to the participant.
3. (c) Notwithstanding any other law, to the extent that any department or agency of the state, including the treasurer of state, is the custodian of money payable to the participant (other than for goods or services provided by the participant), at any time after written notice to the department or agency head from the authority that the participant is in default on the payment of principal or interest on the bonds then held or owned by or arising from an agreement with the authority, the department or agency shall withhold the payment of that money from that participant and pay over the money to the authority for the purpose of paying the principal of and interest on the related bonds. However, the withholding of payment from the participant and payment to the authority under this section must not adversely affect the validity of the bonds in default.

4. (d) If the authority finds that the local infrastructure project:

   1. (1) will be of benefit to the health, safety, morals, and general welfare of the area where the local infrastructure project is to be located; and

   2. (2) complies with the purposes and provisions of this chapter;

      the authority may by resolution approve the proposed financing agreement. This resolution may also authorize the issuance of bonds payable solely from revenues and receipts derived from the financing agreement or from payments made under an agreement to guarantee obligations of the participant that is a party to the financing agreement.

5. (e) A financing agreement approved under this section in connection with bonds must provide for payments in an amount sufficient to pay the principal of, premium on, if any, and interest on the bonds issued for the financing of the local infrastructure project. Interest payments for the anticipated construction period, plus a period of not more than one (1) year, may be funded in the bond issue. The term of a financing agreement may not exceed twenty (20) years from the date of any bonds issued under the financing agreement. However, a financing agreement does not terminate after twenty (20) years if a default under that financing agreement remains uncured, unless the termination is authorized by the terms of the financing agreement.

6. (f) In addition to all other powers granted to the authority under this chapter, including the power to borrow money and to issue bonds to finance directly or indirectly the development of local infrastructure projects, the authority may initiate local infrastructure programs for participants through the issuance of bonds under this chapter. In furtherance of this objective, the authority may do any of the following:

   1. (1) Establish eligibility standards for a participant and local infrastructure projects, without complying with IC 4-22-2 . However, these standards have the force of law if the standards are adopted after a public hearing for which notice has been given by publication under IC 5-3-1 .
   2. (2) Contract with any entity securing, in whole or in part, the payment of bonds issued under this chapter and authorizing the entity to approve the participant that can finance or refinance local infrastructure projects with proceeds from the bond issue secured by that entity.

   3. (3) Lend money, upon the terms and conditions as the authority considers proper, to a participant under an installment purchase contract or loan agreement to:

      1. (A) finance, reimburse, or refinance the cost of a local infrastructure project; and
      2. (B) take back secured or unsecured bonds evidencing such a loan or a security interest in the local infrastructure project financed or refinanced with the loan.
   4. (4) Require any type of security that the authority considers reasonable and necessary.
   5. (5) Enter into any agreement, contract, or other instrument with respect to any insurance, guarantee, letter of credit, or other form of credit enhancement, accepting payment in the manner and form as provided in the instrument if a participant defaults, and assign any such insurance, guarantee, letter of credit, or other form of credit enhancement as security for bonds issued by the authority.

   6. (6) Finance for participants in connection with their local infrastructure projects:

      1. (A) the cost of their local infrastructure projects, including costs of planning, designing, feasibility studies, construction, expansion, renovation, or improvement;
      2. (B) capitalized interest for the anticipated construction period plus one (1) year; and

      3. (C) in the case of a program funded from the proceeds of taxable bonds or sources other than tax exempt bonds, working capital associated with the operation of such local infrastructure projects;

         in amounts determined to be appropriate by the authority.

   7. (7) Provide for payments and enter into obligations under bonds and financing agreements owed to the authority from revenues and receipts derived from:

      1. (A) bonds of participants;
      2. (B) financing agreements with the participants or users or developers of the facilities financed by the bonds, or persons; or
      3. (C) payments made under guaranty agreements by developers, users, or persons.
   8. (8) Conduct all other activities that the authority considers necessary.
7. (g) Bonds issued to fund a program under this section are not in any respect a general obligation of the state, nor are they payable in any manner from revenues raised by taxation, other than any local tax revenue securing or used to repay bonds of a participant.
8. (h) The authority may make loans to participants for local infrastructure projects from proceeds of its bonds or from a fund.

9. (i) Any resolution adopted to authorize the issuance of bonds to fund a program under this section may provide that the bonds are payable solely from:

   1. (1) revenues and receipts derived from the various financing agreements; or
   2. (2) the payments made under any other agreements to secure the obligations of the participant, related persons, or the authority.
10. (j) The authority may provide financial assistance to participants in the form of forgiveness of principal of a loan.

As added by P.L.229-2017, SEC.17.