1. (a) A loan from a fund must:

   1. (1) have a term of not more than twenty (20) years;
   2. (2) be made in conjunction with the adoption of a resolution by a participant that sets forth the participant's commitment of revenues or other money or property to the infrastructure project for which the loan is made;
   3. (3) provide for amortization to begin not later than one (1) year after construction of the project ends;

   4. (4) be accompanied by:

      1. (A) all papers and opinions required by the authority;
      2. (B) an opinion of a bond counsel;
      3. (C) a certification and guarantee of signatures; and
      4. (D) a certification that, as of the date of the loan, no litigation is pending challenging the validity of, or entry into, the loan or any security for the loan;
   5. (5) be repaid; and
   6. (6) have an interest rate established by the authority in accordance with subsection (c).
2. (b) Unless otherwise provided by the procedure established under section 6 of this chapter, a participant that receives financial assistance from the fund shall enter into a financing agreement. A financing agreement is a valid, binding, and enforceable agreement of the participant.

3. (c) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:

   1. (1) Credit risk.
   2. (2) Affordability.

   3. (3) Other fiscal factors the authority considers relevant, including the program's cost of funds.

      Based on the factors set forth in subdivisions (1) through (3), more than one (1) interest rate may be established and used for loans to different participants or for different loans or other financial assistance to the same participants.

As added by P.L.13-1996, SEC.1. Amended by P.L.20-1997, SEC.1; P.L.229-2017, SEC.21.