Note: This version of section effective until 7-1-2017. See also following version of this section, effective 7-1-2017.

1. (1) the wastewater revolving loan program established by IC 13-18-13-1 ;
2. (2) the drinking water revolving loan program established by IC 13-18-21-1 ; and
3. (3) the local infrastructure revolving loan funds established under IC 4-10-19-3 .
4. (b) If the authority loans money to or purchases debt securities of a political subdivision (as defined in IC 13-11-2-164 (a) and IC 13-11-2-164 (b)), the authority may, by the resolution approving the bonds or notes, provide that subsection (c) is applicable to the political subdivision.
5. (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 political subdivision (other than for goods or services provided by the political subdivision), at any time after written notice to the department or agency head from the authority that the political subdivision is in default on the payment of principal or interest on the obligations 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 political subdivision and pay over the money to the authority for the purpose of paying principal of and interest on bonds or notes of the authority. However, the withholding of payment from the political subdivision and payment to the authority under this section must not adversely affect the validity of the obligation in default.

6. (d) This subsection applies to securities of a political subdivision acquired by the authority, or arising from an agreement entered into with the authority, after June 30, 2017. Upon receiving notice from the authority that the political subdivision has failed to pay when due the principal or interest on the obligations of the political subdivision then held or owned by or arising from an agreement with the authority, the fiscal officer (as defined in IC 36-1-2-7 ) of the county, for any county in which the political subdivision is wholly or partially located, shall do the following:

   1. (1) Reduce the amount of any revenues or other money or property that:

      1. (A) is held, possessed, maintained, controlled, or otherwise in the custody of the county or a department, an agency, or an instrumentality of the county; and

      2. (B) would otherwise be available for distribution to the political subdivision under any other law;

         by an amount equal to the amount of the political subdivision's unpaid obligations.

   2. (2) Pay the amount by which the revenues or other money or property is reduced under subdivision (1) to the authority to pay the principal of and interest on bonds or other obligations of the authority.
   3. (3) Notify the political subdivision that the revenues or other money or property, which would otherwise be available for distribution to the political subdivision, has been reduced by an amount necessary to satisfy all or part of the political subdivision's unpaid obligations to the authority.

7. (e) This subsection applies to securities of a political subdivision acquired by the authority, or arising from an agreement with the authority, that is covered by subsection (d). A reduction under subsection (d) must be made as follows:

   1. (1) First, from local income tax distributions under IC 6-3.6-9 that would otherwise be distributed to the political subdivision under the schedules in IC 6-3.6-9-12 and IC 6-3.6-9-16 .

   2. (2) Second, from any other revenues or other money or property that:

      1. (A) is held, possessed, maintained, or controlled by, or otherwise in the custody of, the county or a department, an agency, or an instrumentality of the county; and
      2. (B) would otherwise be available for distribution to the political subdivision under any other law.

Sec. 15.4. (a) The authority may issue bonds or notes and invest or loan the proceeds of those bonds or notes to a participant (as defined in IC 13-11-2-151.1 or IC 4-10-19-1.8 , as applicable) for the purposes of:

As added by P.L.235-2005, SEC.22. Amended by P.L.229-2017, SEC.4.