5-28-29-1. “Agreement”
Sec. 1. As used in this chapter, “agreement” means an agreement between a lender and the corporation under which a lender may participate in the program. As added by P.L.162-2007, SEC.24.
5-28-29-10. “Passive Real Estate Ownership”
Sec. 10. As used in this chapter, “passive real estate ownership” means ownership of real estate for the purpose of deriving income from speculation, trade, or rentals, except that the term does not include the following: (1) Ownership of that part of real estate being used or intended to be used for the operation of […]
5-28-29-11. “Program”
Sec. 11. As used in this chapter, “program” refers to the capital access program created by this chapter. As added by P.L.162-2007, SEC.24.
5-28-29-12. “Reserve Fund”
Sec. 12. As used in this chapter, “reserve fund” means an account established by the corporation with funds accumulated under this chapter and to cover claims made by the lender under this chapter. As added by P.L.162-2007, SEC.24.
5-28-29-13. Establishment; Purpose
Sec. 13. The capital access program is established. The purpose of the program is to provide capital to businesses, particularly small and medium-sized businesses, to foster economic development in Indiana. Loans made under the program must be slightly riskier than conventional loans, but still offer a high degree of soundness in connection with the program. […]
5-28-29-14. Duties
Sec. 14. The corporation shall do the following: (1) Administer the program. (2) Market the program to businesses and other persons in Indiana in cooperation with financial institutions and statewide associations representing financial institutions. (3) If the reserve funds are not maintained in an account with the lender, upon execution of an agreement between the […]
5-28-29-15. Lender Eligibility
Sec. 15. A lender is eligible to participate in the program upon entering into an agreement with the corporation governing the duties of the corporation and the lender under the program. The lender shall provide the corporation with information regarding the lender’s participation in the program that the corporation reasonably requires. Upon notice to the […]
5-28-29-16. Corporation Has No Legal or Equitable Interest; Consent of Corporation Unnecessary to Amend Documents
Sec. 16. Except upon the exercise of the corporation’s right of subrogation under section 32 of this chapter, the corporation has no legal or equitable interest in any collateral, security, or other right of recovery in connection with any loan enrolled in the program, and the corporation’s consent is not necessary for any amendment to […]
5-28-29-17. Eligible Loans
Sec. 17. (a) The following types of loans are eligible loans under the program: (1) Loans for industrial or commercial purposes. (2) Loans to refinance loans made for the purposes in subdivision (1). (3) Loans for line of credit agreements established between the lender and borrower that are used for the purposes in subdivision (1). […]
5-28-29-18. Loan Enrollment; Lender Actions
Sec. 18. (a) To enroll a loan under the program, the lender must file a completed loan enrollment form with the corporation. The lender must also certify the following to the corporation as part of the filing: (1) The lender has no substantial reason to believe that the loan is being made to a borrower […]
5-28-29-19. Loan Enrollment; Corporation Actions
Sec. 19. When the corporation receives a loan enrollment form, the corporation shall enroll the loan if the information provided under section 18 of this chapter indicates that the loan is an eligible loan. Within five (5) business days after receipt of a loan enrollment form for an eligible loan, the corporation shall deliver to […]
5-28-29-2. “Amount”; “Proceeds”
Sec. 2. As used in this chapter in connection with a loan, “amount” and “proceeds” refer only to the amount covered under an agreement, unless the context clearly requires otherwise. As added by P.L.162-2007, SEC.24.
5-28-29-20. Loan Enrollment; Partial Coverage Under the Program
Sec. 20. When filing a loan enrollment form, the lender may specify an amount to be covered under the program. The amount may be less than the total amount of the loan. As added by P.L.162-2007, SEC.24.
5-28-29-21. Refinancing
Sec. 21. (a) In the case of a loan to refinance a loan previously made to the borrower by the lender that was not enrolled under the program, the lender may obtain coverage under the program for an amount not exceeding the amount of additional financing. (b) If an enrolled loan is refinanced and the […]
5-28-29-22. Effect of Zero Balances; Effect of Recovery Under the Bankruptcy Laws
Sec. 22. (a) If the outstanding balance of an enrolled loan that is not a line of credit is reduced to zero (0), the loan is no longer an enrolled loan. If an enrolled loan that is a line of credit has an outstanding balance of zero (0) for a twelve (12) month period, the […]
5-28-29-23. Creation of Reserve Fund Accounts
Sec. 23. Upon execution of an agreement between the lender and the corporation, the corporation shall establish a reserve fund account with the lender in the name of the corporation for the purpose of receiving all required premium charges to be paid by the lender and the borrower and transfers made by the corporation under […]
5-28-29-24. Sufficient Funds Required
Sec. 24. The corporation may not accept loans for enrollment in the program if the corporation does not have sufficient funds to make the necessary transfer from the corporation to the reserve fund under section 25 of this chapter. As added by P.L.162-2007, SEC.24.
5-28-29-25. Premium Charges
Sec. 25. The lender shall determine the premium charges payable to the reserve fund by the lender and the borrower in connection with a loan filed for enrollment. The premium paid by the borrower may not be less than one percent (1%) or greater than three and one-half percent (3.5%) of the amount of the […]
5-28-29-26. Reserve Fund; Corporation Control
Sec. 26. (a) All money credited to the reserve fund is under the exclusive control of the corporation. The corporation may not withdraw money from the reserve fund, except as specifically provided in this chapter. (b) If money in the reserve fund is not deposited by the corporation in an account with the lender, the […]
5-28-29-27. Reserve Fund; Corporation Pledges
Sec. 27. The corporation shall pledge the following to the lender: (1) The money in the reserve fund will be available to pay claims under section 29 of this chapter. (2) The lender will have a first security interest in the money in the reserve fund to pay the claims. (3) The corporation will not […]