CHAPTER 31. AGRICULTURAL LOAN AND RURAL DEVELOPMENT PROJECT GUARANTEE FUND
IC 5-28-31
Chapter 31. Agricultural Loan and Rural Development Project
Guarantee Fund
IC 5-28-31-1
"Agriculture"; "agricultural enterprise"
Sec. 1. As used in this chapter, "agriculture" or "agricultural
enterprise" includes:
(1) the real and personal property constituting farms;
(2) acquiring, enlarging, or improving farms, including farm
buildings, land and water development, use, and conservation;
(3) recreational uses and facilities when incidental to farming;
(4) enterprises incidental to farming needed to supplement farm
income;
(5) purchasing livestock, poultry, and farm equipment;
(6) purchasing feed, seed, fertilizer, insecticides, and farm
supplies and other essential farm operating expenses including
cash rent; and
(7) other farm and home needs, including farm subsistence.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-2
"Authority"
Sec. 2. As used in this chapter, "authority" refers to the Indiana
finance authority created by IC 4-4-11.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-3
"Bonds"
Sec. 3. As used in this chapter, "bonds" has the meaning set forth
in IC 4-4-10.9-2.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-4
"Borrower"
Sec. 4. As used in this chapter, "borrower" means a person who
receives a loan under this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-5
"Contracting party"
Sec. 5. As used in this chapter, "contracting party" means a party
to a lease, sales contract, or loan agreement except the authority.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-6
"Equipment"
Sec. 6. As used in this chapter, "equipment" means a capital item.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-7
"Guarantee fund"
Sec. 7. As used in this chapter, "guarantee fund" refers to the
agricultural loan and rural development project guarantee fund
established by section 32 of this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-8
"Guarantee program"
Sec. 8. As used in this chapter, "guarantee program" means the
program of the corporation described in this chapter under which the
corporation guarantees certain portions of particular mortgages,
security agreements, or leases with funds available from its
agricultural loan and rural development project guarantee fund.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-9
"Lease"
Sec. 9. As used in this chapter, "lease" means a lease containing:
(1) an option to purchase the agricultural enterprise for a
nominal sum upon payment in full or provision for payment in
full of all bonds issued in connection with the agricultural
enterprise or rural development project, all interest on the
bonds, and all other expenses in connection with the
agricultural enterprise or rural development project; and
(2) a lease containing an option to purchase the agricultural
enterprise or rural development project at any time, as provided
in the lease, upon payment of the purchase price sufficient to
pay all bonds issued in connection with the agricultural
enterprise or rural development project, all interest on the
bonds, and all other expenses incurred in connection with the
agricultural enterprise or rural development project but under
which payment may be made in the form of one (1) or more
notes, debentures, or other secured or unsecured debt
obligations of the lessee providing for timely payments,
including interest on the notes, debentures, or debt obligations
sufficient for these purposes and delivered to the authority or to
the trustee under the indenture under which the bonds were
issued.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-10
"Lender"
Sec. 10. As used in this chapter, "lender" means:
(1) a federal or state chartered bank;
(2) the Federal Land Bank;
(3) a production credit association;
(4) bank for cooperatives;
(5) a savings association;
(6) a small business investment company; or
(7) an institution qualified within Indiana to originate and
service loans, including an insurance company, credit union, or
mortgage loan company.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-11
"Loan"
Sec. 11. As used in this chapter, "loan" means a lease, loan
agreement, or sale contract.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-12
"Loan agreement"
Sec. 12. As used in this chapter, "loan agreement" means an
agreement providing for:
(1) the corporation, or a lender with which the corporation has
contracted, to loan the proceeds derived from the issuance of
bonds by the authority to one (1) or more contracting parties to
be used for agriculture or agricultural enterprises or rural
development projects; and
(2) the repayment of the loan by the contracting party or parties.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-13
"Loan insurer"
Sec. 13. As used in this chapter, "loan insurer" means:
(1) an agency, a department, an administration, or an
instrumentality, corporate or otherwise, of or in the United
States Department of Housing and Urban Development;
(2) the Farmers Home Administration of the United States
Department of Agriculture;
(3) the United States Department of Veterans Affairs;
(4) a private mortgage insurance company; or
(5) a public or private agency that insures or guarantees loans.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-14
"Maturity date"
Sec. 14. As used in this chapter, "maturity date" means the date on
which the mortgage or security agreement indebtedness, or lease
obligations, would be extinguished if paid in accordance with
periodic payments provided for in the mortgage, security agreement,
or lease.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-15
"Mortgage"
Sec. 15. As used in this chapter, "mortgage" refers to a mortgage
on an agricultural enterprise or rural development project, or the
unpaid purchase price of real estate under the laws of this state,
together with the credit instruments, if any, that have been secured,
including a financing agreement or a financing agreement within the
meaning of IC 36-7-12 in connection with real property.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-16
"Mortgagee"
Sec. 16. As used in this chapter, "mortgagee" means the original
lender under a mortgage and the original lender's successors and
assigns approved by the corporation, including insurance companies,
trust companies, banks, investment companies, savings banks,
executors, trustees, and other fiduciaries, such as pensions and
retirement funds.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-17
"Mortgage payments"
Sec. 17. As used in this chapter, "mortgage payments" means
periodic payments called for by the mortgage that cover interest,
installments of principal, taxes and assessments, mortgage insurance
premiums, and hazard insurance premiums.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-18
"Mortgagor"
Sec. 18. As used in this chapter, "mortgagor" means the original
borrower under a mortgage and the original borrower's successors
and assigns.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-19
"Person"
Sec. 19. As used in this chapter, "person" means an individual, a
partnership, a firm, an association, a joint venture, a limited liability
company, or a corporation.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-20
"Rural development project"
Sec. 20. As used in this chapter, "rural development project"
includes:
(1) the acquisition of land;
(2) interests in land;
(3) site improvements;
(4) infrastructure improvements;
(5) buildings;
(6) structures;
(7) rehabilitation, renovation, and enlargement of buildings and
structures;
(8) machinery;
(9) equipment;
(10) furnishings; or
(11) facilities;
or any combination of these, comprising or being functionally related
and subordinate to any project (whether manufacturing, commercial,
agricultural, agribusiness, or otherwise) for which the development
is determined by the corporation to promote, further, enhance, or
assist in the growth or maintenance of rural areas in Indiana and to
serve the public purposes of the corporation and the authority set
forth in this chapter and IC 4-4-11.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-21
"Sale contract"
Sec. 21. As used in this chapter, "sale contract" means a contract
providing for the sale of one (1) or more agricultural enterprises
consisting of real or personal property to one (1) or more contracting
parties and includes a contract providing for payment of the purchase
price in one (1) or more installments.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-22
"Security agreement"
Sec. 22. As used in this chapter, "security agreement" means an
agreement which creates or provides for security interest in
equipment, including an equipment lease under that program or
within the meaning of IC 36-7-12, and a successor provision related
to equipment.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-23
"Taxable bonds"
Sec. 23. As used in this chapter, "taxable bonds" means bonds the
interest on which will not be excluded from the gross income of the
owners of the bonds under Section 103 of the Internal Revenue Code.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-24
"Tax exempt bonds"
Sec. 24. As used in this chapter, "tax exempt bonds" means bonds
the interest on which will be excluded from the gross income of the
owners of the bonds under Section 103 of the Internal Revenue Code.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-25
Findings
Sec. 25. It is found and declared that:
(1) There exists in Indiana an inadequate supply of affordable
farm credit and agricultural loan financing at interest rates
which are consistent with the needs of borrowers for farming
and agricultural enterprises, which if not supplemented will
make it difficult for farmers and other agricultural enterprises
to maintain or increase present employment levels and to
maintain or increase crops, livestock, and business productivity,
all of which will have an adverse effect upon the welfare of the
citizens of Indiana and the economy of Indiana.
(2) There exists in particular in Indiana a need for affordable
farm credit and agricultural loan financing for new and young
farmers, for small farmers, for family farm operations, and for
farmers for whom loans in the conventional farm credit markets
are either not available or not affordable at interest rates found
in conventional farm credit markets. Alleviation of the
problems described in this subdivision and subdivision (1) as
they apply to the agricultural enterprises described in this
paragraph is the primary purpose of this chapter.
(3) Such problems cannot be remedied through the operation of
private enterprise alone, but can be alleviated through the
creation of a governmental body to encourage the investment of
private capital in the agricultural sector through the use of
public financing as provided by this chapter for the purpose of
making loans available at interest rates lower than those
available in the conventional farm credit markets, and by
coordinating and cooperating with farmers, other agricultural
enterprises, and local communities, which is essential to
alleviating these conditions and is in the public interest.
(4) Alleviating the conditions and problems by the
encouragement of private investment through a governmental
body is a public purpose and a use for which revenue bonds
may be issued.
(5) The necessity for this chapter to protect the health, safety,
morals, and general welfare of all the people of Indiana is
declared as a matter of legislative determination.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-26
Power to make loans to lenders
Sec. 26. The corporation may make and undertake commitments
to make loans to lenders under terms and conditions requiring the
proceeds thereof to be used by such lenders to make loans for
agricultural enterprises. Loan commitments or actual loans shall
originate through and be serviced by any eligible lender.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-27
Loans may be secured
Sec. 27. A loan agreement under this chapter may provide for the
loans to be secured by or evidenced by one (1) or more notes,
debentures, or other secured or unsecured debt obligations of the
contracting party or parties delivered to the corporation, the
authority, or the trustee under the indenture under which the bonds
were issued.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-28
Sale contract; title
Sec. 28. If a sale contract permits title to the project to pass to the
contracting party or parties before payment in full of the entire
purchase price, it must also provide for the contracting party or
parties to deliver to the corporation, the authority, or the trustee
under the indenture under which the bonds were issued one (1) or
more notes, debentures, or other secured or unsecured debt
obligations of the contracting party or parties providing for timely
payments, including interest on the notes, debentures, or debt
obligations for the balance of the purchase price at or before the
passage of title.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-29
Power to engage in financing activities
Sec. 29. (a) The corporation 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 agriculture or
agricultural enterprises or for refinancing loans made for agriculture
or agricultural enterprises. Before investment, purchase, assignment,
or commitment, the lender shall certify that the proceeds therefrom
or its equivalent will be reinvested in loans or used to make loans to
provide agricultural enterprises or, pending reinvestment in such
loans or the making of such loans, invested in short term obligations
complying with the requirements of this chapter. The corporation
shall purchase loans at a purchase price equal to the outstanding
principal balance, but the corporation 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 outstanding principal
balance, the corporation 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 corporation and
the selling lender.
(b) The corporation may not 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 construction,
rehabilitation, or purchase of real property unless the borrower, in a
written contract separate from the mortgage, promises that for a
period of ten (10) years from the date of the loan the borrower will
not convey the real property without a written release from the
corporation. The corporation shall record the contract in the same
manner as a mortgage on real property, and when recorded the
contract constitutes an absolute bar on the alienation of the property
until ten (10) years after the date of the mortgage or until released in
writing by the corporation. The corporation may not release a
contract under this subsection unless the release is compatible with
section 25 of this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-30
Lender certifications
Sec. 30. Before exercising any of the powers authorized in
sections 26 and 29 of this chapter, the corporation shall require the
lender to certify and agree that:
(1) the loan is or, if the loan has not been made, will at the time
of making be in all respects a prudent investment; and
(2) the lender will use the proceeds of the loan, investment sale,
or assignment within a reasonable period of time to make loans
or purchase loans to provide agricultural enterprises or, if the
lender has made a commitment to make loans to provide
agricultural enterprises on the basis of a commitment from the
corporation to purchase the loans, the lender will make the
loans and sell the loans to the corporation within a reasonable
time.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-31
Additional security provisions
Sec. 31. Before exercising any of the powers conferred by
sections 26 and 29 of this chapter, the corporation may:
(1) require that the loan involved be:
(A) insured by a loan insurer; or
(B) guaranteed by a loan guarantor or the corporation under
sections 32 through 43 of this chapter;
(2) require any type of security that the corporation considers
reasonable and necessary; or
(3) authorize the reservation of funds by lenders in the amount
and subject to conditions that the corporation considers
reasonable and necessary under this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-32
Agricultural loan and rural development project guarantee fund
Sec. 32. The agricultural loan and rural development project
guarantee fund is established. The corporation shall use the
guarantee fund as a nonlapsing, revolving fund for carrying out the
provisions of the guarantee program. The corporation may expend
money from the guarantee fund as the authority considers appropriate
to carry out the purposes of this chapter and IC 4-4-11. The
guarantee fund consists of the money appropriated to the guarantee
fund by the general assembly, and money, property, and other things
of value contributed to the guarantee fund by any other source. To
this sum shall be charged those expenses of the corporation
attributable and allocated by the corporation to the corporation's
guarantee program, including interest, principal, and lease payments
required by loan or lease defaults. To this sum shall be credited that
income of the corporation attributable and allocated by the
corporation to the corporation's guarantee program, including
guarantee premiums.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-33
Guarantees; secured loans
Sec. 33. Subject to the conditions set forth in section 34 of this
chapter and the other provisions of this chapter, if the corporation
makes a written finding that:
(1) the guarantee of a particular loan secured by, or lease of,
real property or tangible or intangible personal property to or
for the benefit of any agricultural enterprise or rural
development project would tend to accomplish the purposes of
this chapter, including the creation or retention of employment
in Indiana through the guarantee of the lease;
(2) the proposed borrower or lessee cannot obtain the loan or
lease upon reasonable terms; and
(3) the proposed borrower, lessee, lender, or lessor has filed an
application on a form prescribed by the corporation;
the corporation may, under its guarantee program, guarantee the loan
or lease upon the terms and conditions that the corporation
prescribes.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-34
Guarantees; conditions
Sec. 34. The conditions referred to in section 33 of this chapter
are as follows:
(1) No new or additional guarantee of a loan or lease under
section 33, 35, or 40 of this chapter may be entered into if the
guarantee would cause the outstanding aggregate guarantee
obligations with respect to all loans and leases guaranteed under
sections 33, 35, and 40 of this chapter to exceed eight (8) times
the amount of money in the guarantee fund.
(2) The amount of all guarantees by the corporation of loans or
leases to or for the benefit of any single agricultural enterprise
or rural development project may not exceed three hundred
thousand dollars ($300,000), less the outstanding aggregate
principal balance under any loans made and owed to the
corporation under section 40 of this chapter to or for the benefit
of the enterprise or rural development project.
(3) A guarantee of a loan secured by either real estate or a real
estate lease may not exceed ninety percent (90%) of the unpaid
principal balance of the loan from time to time outstanding or
ninety percent (90%) of the amount of any lease payment, as
applicable, and the original principal amount of the loan or the
total amount of the lease payments, as applicable, may not
exceed ninety percent (90%) of the appraised fair market value
of the real estate.
(4) A guarantee of a loan secured by personal property or of a
personal property lease may not exceed seventy-five percent
(75%) of the unpaid principal balance of the loan from time to
time outstanding or seventy-five percent (75%) of the amount
of any lease payment, as applicable, and the original principal
amount of the loan or the total amount of the lease payments, as
applicable, may not exceed seventy-five percent (75%) of the
appraised fair market value of the personal property.
(5) A guarantee involving both real estate and personal property
may not exceed the percentage proportionate to each type of
property.
(6) To be eligible for a guarantee under this section, a loan or
lease must:
(A) be one that is to be made to and held by a lender or
lessor approved by the corporation as responsible and able
to service the loan or lease properly;
(B) involve a principal obligation or lease payments, as
applicable, which may include initial service charges and
appraisal, inspection, and other fees approved by the
corporation;
(C) have a maturity or term satisfactory to the corporation
but in no case later than twenty (20) years after the date of
the guarantee;
(D) contain payment terms satisfactory to the corporation
requiring periodic payments by the developer or user,
including principal and interest payments, cost of local
property taxes and assessments, land lease rentals, if any,
insurance on the property, as applicable, and the guarantee
premiums that are fixed by the corporation; and
(E) contain terms and provisions with respect to property
insurance, repairs, alterations, payment of taxes and
assessments, default reserves, delinquency charges, default
remedies, anticipation of maturity, additional and secondary
liens, and other matters that the corporation prescribes.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-35
Guarantees; unsecured loans
Sec. 35. The corporation may guarantee an unsecured loan for
working capital purposes if the corporation determines, under criteria
that the corporation establishes, that:
(1) the loan for working capital is for an agricultural enterprise
or a rural development project; and
(2) the loan for working capital will lead directly to increased
production or job creation or retention through sales of products
or provision of services to federal, state, or local government or
private business or individuals or through exports to foreign
markets.
The working capital loan guarantee may not exceed two hundred
thousand dollars ($200,000) for any single agricultural enterprise or
rural development project and may be in addition to any other
guarantees of the corporation under this section. The guaranteed
terms must include a time limit for working capital loan guarantees
that may not exceed eighteen (18) months. However, the guarantees
are renewable. A working capital loan guarantee may not exceed
eighty percent (80%) of the unpaid principal balance from time to
time outstanding of the loan being guaranteed. The corporation may
impose additional terms that the corporation considers appropriate
for any particular agricultural enterprise or rural development
project.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-36
Guarantee premiums
Sec. 36. The corporation may fix guarantee premiums for the
guarantee under this chapter of any loan or lease outstanding at the
beginning of each year or at the time the guarantee is entered into,
and the corporation may fix loan application, placement, origination,
commitment, administrative, processing, or other fees or charges in
connection with the powers of the corporation under section 40 of
this chapter. These premiums, fees, or charges may be payable in
amounts or based upon formulas established by the corporation and
may be payable, at the election of the corporation, in whole or in
part, in the form of cash, shares of stock, warrants for the purchase
of shares of stock, or other securities, property, or rights acceptable
to the corporation. These premiums, fees, or charges are payable by
the borrower or user to the corporation in a manner prescribed by the
corporation.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-37
Letters of credit
Sec. 37. Any guarantee made by the corporation under section 33,
35, or 40 of this chapter may be effected or enhanced, in whole or in
part, through the provision by the corporation of a letter of credit or
an equivalent form of credit enhancement instrument. However, the
maximum principal payment obligation of the corporation under the
credit instrument, as the credit instrument may be effective from time
to time, is the amount of the guarantee or part of the guarantee made
under section 33, 35, or 40 of this chapter and for purposes of the
limitations on the amount of guarantees under section 33, 35, or 40
of this chapter. The term of any letter of credit may not exceed the
respective terms established for guarantees or loans under sections
34, 35, and 40 of this chapter.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-38
Legal investments
Sec. 38. Notwithstanding any other law, loans or leases
guaranteed or made by the corporation or the authority under this
chapter are legal investments for all insurance companies, trust
companies, banks, investment companies, savings banks, executors,
trustees and other fiduciaries, and pension or retirement funds, as
well as the board for depositories.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-39
Guarantees of bonds issued by the authority; subordination
Sec. 39. To further the purposes of this chapter and subject to this
chapter, the corporation may also use any part of the guarantee fund
to guarantee any bonds issued by the authority under section 46 of
this chapter or by any authorized issuer under IC 36-7-12. With
regard to direct obligations of the authority that are guaranteed by the
corporation, the corporation may permit a subordination of any valid
security agreement, mortgage, combinations thereof, or other
appropriate documents securing the direct obligations if the
corporation in its discretion determines that the subordination is
reasonably necessary to accomplish the objectives of the authority.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-40
Power to make direct loans
Sec. 40. To further the purposes of this chapter, and in addition to
the corporation's other powers under this chapter, the corporation
may, upon a written finding as described in section 33 of this
chapter, also make direct loans from money in the guarantee fund to
or for the benefit of any agricultural enterprise or rural development
project upon the terms and conditions that the corporation prescribes.
Loans made under this section are subject to the following
conditions:
(1) No new or additional loan may be made if the loan would
cause the then outstanding aggregate guarantee obligations with
respect to all loans and leases guaranteed under this section and
sections 33 and 35 of this chapter to exceed eight (8) times the
amount of money then in the guarantee fund or would cause the
then outstanding aggregate principal balance of all loans made
under this section and then owing to the corporation to exceed
twenty percent (20%) of the amount of money then in the
guarantee fund.
(2) The principal amount of a loan under this section to or for
the benefit of an enterprise or rural development project may
not exceed two hundred thousand dollars ($200,000), less the
then outstanding total guarantee obligations with respect to any
loans or leases guaranteed under this section and sections 33
and 35 of this chapter to or for the benefit of that enterprise or
rural development project.
(3) With respect to any loan made under this section, a loan
agreement with the corporation must contain the following
terms:
(A) A requirement that the loan proceeds be used for
specified purposes consistent with and in furtherance of the
purposes of the corporation under this chapter.
(B) The term of the loan, which must be not later than
twenty (20) years after the date of the loan.
(C) The repayment schedule.
(D) The interest rate or rates of the loan, which may include
variations in the rate, but which may not be less than the
amount necessary to cover all expenses of the corporation in
making the loan.
(E) Any other terms and provisions that the corporation
requires.
(4) Any loan agreement under this section may also contain a
requirement that the loan be insured directly or indirectly by a
loan insurer or be guaranteed by a loan guarantor and a
requirement of any other type or types of security or collateral
that the corporation considers to be reasonable or necessary.
(5) A loan made under this section may be sold by the
corporation, and the corporation may permit other lenders to
participate in any loan made under this section, at the time or
times and upon the terms and conditions that the corporation
considers reasonable or necessary. A loan sold or in which other
lenders participate may be guaranteed by the corporation upon
terms and conditions established by the corporation.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-41
Proceeds of sales
Sec. 41. All proceeds received by the corporation or the Indiana
finance authority from the disposal by sale or in some other manner
of property acquired under this chapter and in connection with the
guarantee program or otherwise under this chapter shall be credited
to the guarantee fund.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-42
Guarantee fund nonreverting; exception
Sec. 42. The money in the guarantee fund does not revert to the
state general fund at the end of a fiscal year. However, if the
guarantee fund ceases to exist, the money in the guarantee fund
attributable to transfers from the state general fund reverts to the
state general fund.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-43
Expenses; reimbursement by borrower
Sec. 43. Upon the issuance of a loan or a guarantee of a loan or
lease under this chapter, any expenses incurred by the corporation in
connection with the loan or guarantee or the enterprise or rural
development project for which the loan or guarantee is being made
shall be reimbursed to the corporation by the borrower, in the case of
a loan (to the extent not provided for under section 36 of this
chapter), or by the borrower, lender, lessee, or lessor in the case of
a guarantee of a loan or lease, from the proceeds of the loan or the
payments under the lease or otherwise.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-44
Powers in the event of default
Sec. 44. The corporation may take assignments of notes and
mortgages and security agreements securing notes and other forms
of security, and attach, seize, or take title by foreclosure or
conveyance to any agricultural enterprise or rural development
project when a guaranteed loan to the enterprise or rural development
project is clearly in default and when in the opinion of the
corporation the acquisition is necessary to safeguard the guarantee
fund, and sell, or on a temporary basis, lease or rent the agricultural
enterprise or rural development project for any use.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-45
Authorization to adopt rules
Sec. 45. (a) Before carrying out any of the powers granted under
section 26, section 29, or sections 32 through 43 of this chapter, the
corporation may adopt rules under IC 4-22-2 governing its activities
authorized under this chapter, including rules relating to the
following:
(1) Procedures for the submission of requests or invitations and
proposals for making loans to lenders and the investment in and
purchase, assignment, and sale of loans.
(2) The reinvestment by lenders of the proceeds or an
equivalent amount, from any loan to lenders or the investment
in or purchase by the corporation or the authority or the
assignment or sale of loans to the corporation or the authority,
in loans to provide agricultural enterprises or rural development
projects.
(3) The number of agricultural projects and rural development
projects, location of the projects, and other characteristics of
agricultural enterprises and rural development projects,
including to the extent reasonably possible assurance that the
agricultural enterprises or rural development projects to be
financed by an issue of bonds or series of issues will improve
employment conditions and enhance the welfare of persons in
the agricultural sector, as determined by the corporation, to be
financed directly or indirectly by the corporation and the
authority under section 26, section 29, or sections 32 through 43
of this chapter.
(4) Rates, fees, charges, and other terms and conditions of
originating or servicing loans in order to protect against
realization of an excessive financial return or benefit by the
originator or servicer.
(5) The type and amount of collateral or security to be provided
to assure repayment of loans made or guaranteed by the
corporation and the fees to be charged under sections 32
through 43 of this chapter.
(6) The type of collateral, payment bonds, performance bonds,
or other security to be provided for any loans made by a lender
for construction loans.
(7) The nature and amount of fees to be charged by the
corporation or the authority to provide for expenses and
reserves of the corporation or the authority.
(8) Standards and requirements for the allocation of available
money among lenders and the determination of the maturities,
terms, conditions, and interest rates for loans made, purchased,
sold, assigned, or committed under section 26, section 29, or
sections 32 through 43 of this chapter.
(9) Commitment requirements for agricultural financing by
lenders involving money provided directly or indirectly by the
corporation or the authority.
(10) Any other matters related to the duties or exercise of the
corporation's or the authority's powers or duties under this
chapter.
(b) In adopting rules governing its activities, the corporation shall
consider the following factors relative to eligibility of borrowers for
loans made or guaranteed under this chapter:
(1) The length of time any borrower has been engaged in the
business of agriculture or development.
(2) The net income of any borrower in the preceding year or
years.
(3) The net worth of any borrower.
(4) The availability or feasibility of alternative financing
methods for any borrower.
(c) The following entities may not be borrowers:
(1) A corporation that has more than ten (10) shareholders.
(2) A corporation that has any shareholder that is a corporation,
a subsidiary of a corporation, or a subsidiary of a subsidiary of
a corporation with more than ten (10) shareholders.
(3) A partnership, joint venture, firm, limited liability company,
or association that has any member who is a corporation, a
subsidiary of a corporation, or a subsidiary of a subsidiary of a
corporation with more than ten (10) shareholders.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-46
Power to issue bonds
Sec. 46. For purposes of this chapter, the authority may issue and
secure bonds in accordance with IC 4-4-11. Whether the bonds are
in the form and character of negotiable instruments, the bonds are
hereby made negotiable instruments, subject only to provisions of the
bonds relating to registration.
As added by P.L.162-2007, SEC.26.
IC 5-28-31-47
Powers are cumulative
Sec. 47. This chapter shall not be construed as a restriction or
limitation upon any powers which the corporation or the authority
might otherwise have under any other law of this state, and this
chapter is cumulative to those powers. This chapter shall be
construed to provide a complete, additional, and alternative method
for the doing of the things authorized and shall be regarded as
supplemental and additional to powers conferred by any other laws.
As added by P.L.162-2007, SEC.26.