The authority shall establish written policies and procedures to implement this chapter. These policies and procedures shall include the following:

1. (1) The development of an application process for requesting financial assistance under this chapter.
2. (2) The establishment of a procedure for disbursing financial assistance under this chapter.
3. (3) The establishment of a rate of interest for a loan under this chapter.
4. (4) The establishment of loan underwriting criteria to protect the assets of the fund. The authority shall require a lien or other security when appropriate and in the amounts the authority determines appropriate.
5. (5) A requirement that a financial institution holding an obligation that is guaranteed under this chapter must adequately secure the obligation.
6. (6) Standards requiring a local match for any assistance under this chapter and establishing the level of local match required.
7. (7) The establishment of a cap on the amount of financial assistance that any recipient may receive.

8. (8) The establishment of procedures to do the following:

   1. (A) Ensure that an equitable part of all funds are distributed to rural areas of Indiana.
   2. (B) Enable the authority to use the fund to provide matching funds to local housing trust funds in Indiana.
   3. (C) Promote community economic development.

As added by P.L.69-1989, SEC.4. Amended by P.L.27-1993, SEC.23; P.L.1-2006, SEC.120; P.L.181-2006, SEC.38; P.L.1-2007, SEC.38.