§ 18

Ind. Code § 4-4-11-18

Certain loans; investment, purchase, or commitments by authority

  1. (a) The authority may invest in, purchase or make commitments to invest in or purchase, and take assignments or make commitments to take assignments of, loans made for the acquisition, construction, installation, rehabilitation, or purchase of industrial development projects. Prior to investment, purchase, assignment, or commitment, the lender shall certify that the proceeds of the authority's bonds will be used to make loans to provide financing for industrial development projects, or pending the making of such loans, invested in short term obligations complying with the requirements of this chapter. The authority shall purchase loans at a purchase price equal to the outstanding principal balance, but the authority may require a discount from the principal balance or make a payment of a premium to effect a fair rate of return for the lender, as determined by the rate of return on comparable investments under market conditions existing at the time of purchase. In addition to the payment of the outstanding principal balance, the authority shall pay the accrued interest due thereon, on the date the loan is delivered against payment therefor or on another date as may be established by agreement between the authority and the selling lender. The authority shall comply with section 17(b), 17(c), and 17(d) of this chapter in connection with the multiple project program described in this section.

  2. (b) Before exercising any of the powers authorized in this section, the authority shall require the lender to certify and agree that:

    1. (1) the loan is, or, if the same has not been made, will be, at the time of making, in all respects a prudent investment; and
    2. (2) the lender will make the loans and sell the same to the authority within a reasonable period of time.

  3. (c) Before exercising any of the powers conferred by this section, the authority may:

    1. (1) require that the loan involved be insured by a loan insurer or be guaranteed by a loan guarantor;
    2. (2) require any type of security that it deems reasonable and necessary; or

    3. (3) authorize the reservation of funds by lenders in the amount and subject to conditions as the authority considers reasonable and necessary under this chapter.

      As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.25-1987, SEC.7; P.L.11-1990, SEC.35.

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