1. (a) The authority may pledge loans or evidence of other financial assistance and other obligations of participants evidencing the loans or other financial assistance from the wastewater SRF fund or drinking water SRF fund to secure:

   1. (1) other loans or financial assistance from the wastewater SRF fund or drinking water SRF fund to or for the benefit of participants; or

   2. (2) other loans or financial assistance from the supplemental fund to or for the benefit of participants;

      to the extent allowed by the federal Safe Drinking Water Act or the federal Clean Water Act.

2. (b) The authority must approve the terms of a pledge under this section.

3. (c) Notwithstanding any other law, a pledge of property made by the authority under this section is binding from the time the pledge is made. Revenues, other money, or other property pledged and that is received after the pledge are immediately subject to the lien of the pledge without any other act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against:

   1. (1) the drinking water SRF fund;
   2. (2) the wastewater SRF fund; or

   3. (3) the authority;

      regardless of whether the parties have notice of any lien.

4. (d) A resolution, an indenture, or another instrument by which a pledge is created does not have to be filed or recorded, except in the records of the authority.

5. (e) Action taken to:

   1. (1) enforce a pledge under this section; and

   2. (2) realize the benefits of the pledge;

      is limited to the property pledged.

6. (f) A pledge under this section does not create a liability or indebtedness of the state.

As added by P.L.189-2018, SEC.25.