Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
finance.
(c) Notwithstanding any other law, including sections 7 and 8 of
this chapter, the board for depositories shall guarantee a loan or
loans that total not more than ten million dollars ($10,000,000) for
an industrial development project in a community revitalization
enhancement district that qualifies under this section. The board
for depositories may not make more than one (1) loan guarantee
under this section for a particular community revitalization
enhancement district. The total of all the loan guarantees
outstanding on the total outstanding balance of all loans
guaranteed under this section for all industrial development
projects in all community revitalization districts in all political
subdivisions may not exceed ten million dollars ($10,000,000).
(d) The board for depositories, in making the loan guarantee
for an industrial development project under this section, shall
comply with all the following conditions:
(1) Protection against loss on the loan guarantee must be
secured through collateral evidenced by a valid mortgage,
security agreement, or other agreement or document with
the Indiana political subdivision to which the loan guarantee
is made. In order to obtain the loan guarantee, the Indiana
political subdivision must demonstrate to the board for
depositories that the political subdivision has sufficient
resources to secure the repayment of the loan guarantee in
the event of a valid claim of loss.
(2) The term of a loan guarantee made under this section
may not exceed twenty (20) years.
(3) The board for depositories shall determine the guarantee
premium to be received by the public deposit insurance fund
for the loan guarantee. The guarantee premium shall be
determined in the discretion of the board for depositories at
an amount not greater than the market rate then in effect
for guarantees, mortgage insurance rates, or letters of credit
used for similar purposes.
(e) Members of the board for depositories and any officers or
employees of the board for depositories are not subject to personal
liability or accountability for or by reason of the loan guarantee
made under this section.
(f) This section constitutes all the authority required for the
board for depositories to make a loan guarantee for an industrial
development project under this section. This section is in addition
to and not in limitation of the other powers of the board for
depositories under this chapter.
(g) Any claim, loss, or debt arising out of any guarantee under
this section is the obligation of the board for depositories, payable
out of the public deposit insurance fund, as special funds only and
as provided in this section, and does not constitute a debt, liability,
or obligation of the state or a pledge of the faith and credit of the
state. The document evidencing any guarantee must have on its
face the words, "The obligations created by this guarantee (or
other document as appropriate) do not constitute a debt, liability,
or obligation of the state or a pledge of the faith and credit of the
state, but are obligations of the board for depositories and are
payable solely out of the public deposit insurance fund, as special
funds, and neither the faith and credit nor the taxing power of the
state is pledged to the payment of any obligation under this
guarantee."".
Renumber all SECTIONS consecutively.
(Reference is to ESB 405 as printed February 20, 2004.)