1. (a) The authority may provide a guaranteed participating loan to a financial institution to finance international exports from within Indiana if the authority determines that:

   1. (1) the financial institution will use the guaranteed participating loan exclusively to provide an eligible export loan;

   2. (2) the guaranteed participating loan is reasonably necessary in order to stimulate or facilitate:

      1. (A) the making of the eligible export loan, including the making of the eligible export loan upon terms that will enable the financing of the international export to be reasonably competitive with similar financing in other states or foreign countries; or
      2. (B) the resale of the eligible export loan to a holder in due course that would not otherwise purchase the eligible export loan;
   3. (3) the guaranteed participating loan will create or maintain employment in Indiana;
   4. (4) at least twenty-five percent (25%) of the value of the international exports to be financed through the guaranteed participating loan consists of goods whose final manufacturing process occurs in Indiana or services that are performed in Indiana; and
   5. (5) the loan is consistent with the purposes of this chapter.
2. (b) A guaranteed participating loan may include a pool of individual international exports if the authority determines that each of the international exports meets the conditions of this section.

3. (c) A financial institution that receives a guaranteed participating loan under this section shall:

   1. (1) provide an eligible export loan to an exporter:

      1. (A) at a fixed interest rate established by the authority; and
      2. (B) for the term and under the conditions established by the authority; and
   2. (2) comply with any other terms and conditions that the authority considers desirable to carry out the purposes of this chapter.

4. (d) A guaranteed participating loan under this section:

   1. (1) may include insurance against loss up to a stated amount;
   2. (2) must specify the maximum amount of any insurance payable under the guaranteed participating loan;
   3. (3) must be executed by the chairman of the authority or the chairman's designee at the time the authority makes the guaranteed participating loan;
   4. (4) may not be terminated, cancelled, or otherwise revoked, except in accordance with the terms of the guaranteed participating loan;
   5. (5) is conclusive evidence that the guaranteed participating loan complies fully with the requirements of this chapter;
   6. (6) is valid and incontestable in the hands of a holder in due course; and
   7. (7) is subject to any other terms and conditions that the authority considers desirable to carry out the purposes of this chapter.

As added by P.L.20-1988, SEC.10.