Ind. Code ch. 5-28-30

in effect

Ind. Code § 5-28-30-1 Repealed

As added by P.L.162-2007, SEC.25. Repealed by P.L.177-2018, SEC.7 and P.L.189-2018, SEC.49.

Ind. Code § 5-28-30-1.5 "Developer"

Sec. 1.5. As used in this chapter, "developer" means a person who proposes to enter, or has entered, into a financing agreement with the corporation for an industrial development project and who has entered into a separate agreement with some other persons for the substantial use of the facilities financed. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-2 "Guaranty fund"

Sec. 2. As used in this chapter, "guaranty fund" refers to the industrial development project guaranty fund created by section 9 of this chapter. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-3 "Guaranty program"

Sec. 3. As used in this chapter, "guaranty program" means the program described in section 10 of this chapter under which the corporation guarantees parts of particular mortgages, security agreements, leases, or loans for working capital with funds available from the guaranty fund. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-4 "High growth company with high skilled jobs"

Sec. 4. As used in this chapter, "high growth company with high skilled jobs" means a company that satisfies all the following conditions: (1) The company: (A) had at least a fifteen percent (15%) average annual growth in company earnings during the past three (3) years; (B) is entering a new product or process area; or (C) is classified in an industry that had at least a fifteen percent (15%) average annual growth in earnings during the past three (3) years. (2) The company has a substantial number of employees in jobs: (A) requiring postsecondary education or its equivalent; or (B) that are in occupational codes classified as high skill by the Bureau of Labor Statistics, United States Department of Labor. (3) The company has a substantial number of employees that earn at least one hundred fifty percent (150%) of Indiana per capita personal income. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-5 "Industrial development project"

Sec. 5. As used in this chapter, "industrial development project" includes the acquisition of land, interests in land, site improvements, infrastructure improvements (including information and high technology infrastructure (as defined in IC 5-28-9-4)), buildings, or structures, rehabilitation, renovation, and enlargement of buildings and structures, machinery, equipment, furnishings, or facilities (or any combination of these), comprising or being functionally related and subordinate to any of the following: (1) A manufacturing enterprise. (2) A business service enterprise involved in: (A) computer and data processing services; or (B) commercial testing services. (3) A business enterprise the primary purpose of which is the operation of an education and permanent marketing center for manufacturers and distributors of robotic and flexible automation equipment. (4) Any other business enterprise, if the use of the guaranty program creates a reasonable probability that the effect on Indiana employment will be creation or retention of at least fifty (50) jobs. (5) An agricultural enterprise in which: (A) the enterprise operates under a producer or growout agreement; and (B) the output of the enterprise is processed predominantly in Indiana. (6) A business enterprise that is required by a state, federal, or local regulatory agency to make capital expenditures to remedy a violation of a state or federal law or a local ordinance. (7) A recycling market development project. (8) A high growth company with high skilled jobs. As added by P.L.162-2007, SEC.25. Amended by P.L.177-2018, SEC.8; P.L.189-2018, SEC.50; P.L.215-2018(ss), SEC.2.

Ind. Code § 5-28-30-6 "Maturity date"

Sec. 6. 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.25.

Ind. Code § 5-28-30-7 "Mortgage"

Sec. 7. As used in this chapter, "mortgage" means a mortgage on an industrial development project, mining operation, or agricultural operation that involves the processing of agricultural products, or the unpaid purchase price of real estate under the laws of this state, together with the credit instruments, if any, secured thereby, including but not limited to a financing agreement as defined in IC 5-1.2-2 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.25. Amended by P.L.189-2018, SEC.51.

Ind. Code § 5-28-30-8 "Security agreement"

Sec. 8. As used in this chapter, "security agreement" means an agreement which creates or provides for a security interest in equipment, including, but not limited to, an equipment lease under the guaranty program or within the meaning of IC 36-7-12, and any successor provisions related to equipment. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-8.5 "User"

Sec. 8.5. As used in this chapter, "user" means a person who has entered into a financing agreement with the corporation or lender or a contract for use with the developer or lender in contemplation of its use of an industrial development project. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-9 Industrial development project guaranty fund

Sec. 9. There is created an industrial development project guaranty fund which shall be used by the corporation as a nonlapsing, revolving fund for carrying out the provisions of the guaranty program. The corporation may expend money from the guaranty fund as the authority considers appropriate to carry out the purposes of this chapter and IC 5-1.2-9. The guaranty fund consists of the money, if any, appropriated by the general assembly. To this sum shall be charged those expenses of the corporation attributable and allocated by the corporation to the guaranty program, including interest, principal, and lease payments required by loan or lease defaults under the guaranty program, and to the sum shall be credited that income of the corporation attributable and allocated by the corporation to the guaranty program, including guarantee premiums. As added by P.L.162-2007, SEC.25. Amended by P.L.189-2018, SEC.52.

Ind. Code § 5-28-30-10 Power to guarantee loans and leases

Sec. 10. Subject to the conditions set forth in section 11 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 industrial development project, mining operation, or agricultural operation that involves the processing of agricultural products would tend to accomplish the purposes of this chapter, including the creation or retention of employment in Indiana through the guarantee of the loan or lease; and (2) the proposed borrower or lessee cannot obtain the loan or lease upon reasonable terms; the corporation may, under the guaranty program, guarantee the loan or lease upon the terms and conditions prescribed by the corporation. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-11 Conditions

Sec. 11. The conditions referred to in section 10 of this chapter are as follows: (1) A new or additional guarantee of a loan or lease under section 10, 12, or 17 of this chapter may not be entered into if the guarantee would cause the outstanding total guarantee obligations with respect to all loans and leases guaranteed under sections 10, 12, and17 of this chapter to exceed eight (8) times the amount of money in the guaranty fund. (2) The amount of all guarantees by the corporation of loans or leases to or for the benefit of any single industrial development project, mining operation, or agricultural operation that involves the processing of agricultural products may not exceed two million dollars ($2,000,000), less the outstanding total principal balance under any loans made and owed to the corporation under section 17 of this chapter to or for the benefit of the project or operation. (3) A guarantee of either a loan secured by 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, or ninety percent (90%) of the appraised fair market value of the real estate, whichever is less. (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, or seventy-five percent (75%) of the fair market value of the personal property, whichever is less. (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 section 10 of this chapter, 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 from 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 any guarantee premiums required by the corporation; and (E) contain any 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 may prescribe. (7) The proposed guarantee or direct loan has been submitted to the budget agency. The budget agency shall verify whether money is available for the proposal and that the proposal is in compliance with this chapter. The budget agency may submit the proposal, with its comments, to the budget committee for review. The corporation may not approve a guarantee or direct loan until the budget committee has reviewed the guarantee or direct loan. As added by P.L.162-2007, SEC.25. Amended by P.L.189-2018, SEC.53.

Ind. Code § 5-28-30-12 Power to guarantee an unsecured loan

Sec. 12. The corporation may guarantee an unsecured loan for: (1) working capital purposes, if the corporation determines, under criteria that it establishes, that the loan for working capital: (A) is for an industrial development project, a mining operation, or an agricultural operation that involves the processing of agricultural products; and (B) 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, private businesses, or individuals, or through exports to foreign markets; or (2) capital expenditures, if the corporation determines, under criteria that the corporation establishes, that the loan is for an industrial development project described in section 5(6) of this chapter. The loan guarantee may not exceed five hundred thousand dollars ($500,000) for any single project or operation, and may be in addition to any other guarantees of the corporation under this chapter. The guarantee terms must include a time limit for working capital loan guarantees that may not exceed eighteen (18) months. However, the guarantees are renewable. A 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 any additional terms it considers appropriate for any particular project or operation. As added by P.L.162-2007, SEC.25. Amended by P.L.10-2019, SEC.36.

Ind. Code § 5-28-30-13 Premiums; fees; charges

Sec. 13. The corporation may establish: (1) guarantee premiums for a guarantee under section 10 of this chapter of any loan or lease outstanding at the beginning of each year or at the time the guarantee is entered into; and (2) loan application, placement, origination, commitment, administrative, processing, or other fees or charges in connection with the corporation's powers under section 17 of this chapter. These premiums, fees, or charges are 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 shall be payable by the developer or user to the corporation in a manner prescribed by the corporation. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-14 Letters of credit

Sec. 14. Any guarantee made by the corporation under 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 obligations of the corporation under the credit instrument, as the same may be effective from time to time, is the amount of the guarantee or portion of the guarantee made under this chapter, and for purposes of the limitations on the amount of guarantees under this chapter, and the term of any letter of credit may not exceed the respective terms established for guarantees or loans under this chapter. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-15 Legal investments

Sec. 15. Notwithstanding any other law, loans or leases guaranteed or made by the corporation 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.25.

Ind. Code § 5-28-30-16 Power to allow subordination

Sec. 16. To further the purposes of this chapter, and subject to this chapter, the corporation may also use any part of the guaranty fund to guarantee any bonds issued by the Indiana finance authority under IC 5-1.2 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: (1) security agreement; (2) mortgage; (3) combination of security agreements and mortgages; or (4) 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 industrial development project undertaken by the authority. As added by P.L.162-2007, SEC.25. Amended by P.L.189-2018, SEC.54.

Ind. Code § 5-28-30-17 Power to make direct loans

Sec. 17. 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 10 of this chapter, make direct loans from money in the guaranty fund to or for the benefit of any industrial development project, mining operation, or agricultural operation that involves the processing of agricultural products, upon the terms and conditions that the corporation prescribes. Loans made under this section are subject to the following conditions: (1) A new or additional loan may not be made if the loan would cause the then outstanding total guarantee obligations with respect to all loans and leases guaranteed under this section and the other provisions of this chapter to exceed eight (8) times the amount of money then in the guaranty fund, or would cause the then outstanding total 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 guaranty fund. (2) The principal amount of such a loan to or for the benefit of a project or operation may not exceed one million dollars ($1,000,000), less the then outstanding total guarantee obligations with respect to any loans or leases guaranteed under this chapter to or for the benefit of that project or operation. (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 may not be later than twenty (20) years from 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) A 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 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 a 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.25.

Ind. Code § 5-28-30-18 Proceeds of sales

Sec. 18. All proceeds received by the corporation or the Indiana finance authority from the disposal by sale or in some other manner of property acquired in connection with the guaranty program or otherwise under this chapter shall be credited to the guaranty fund. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-19 Expense; reimbursement by borrower

Sec. 19. Upon the issuance of a loan or a guarantee of a loan or lease, any expenses incurred by the corporation in connection with the loan or guarantee or the projects or operations 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 13 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.25.

Ind. Code § 5-28-30-20 Transfer of funds to the capital access account

Sec. 20. To further the purposes of this chapter and IC 5-1.2-9, and in addition to the corporation's other powers under this chapter, the corporation may transfer funds from the guaranty fund to the capital access account established under IC 5-28-29-35. As added by P.L.162-2007, SEC.25. Amended by P.L.189-2018, SEC.55.

Ind. Code § 5-28-30-21 Exemption from securities registration laws

Sec. 21. Any guarantees by the corporation under the guaranty program are exempt from the registration and other requirements of IC 23-19 and any other securities registration laws. As added by P.L.162-2007, SEC.25. Amended by P.L.1-2009, SEC.25.

Ind. Code § 5-28-30-22 Power to procure insurance

Sec. 22. The corporation may procure insurance or guarantees from any public or private entities, including any department, agency, or instrumentality of the United States, for insurance or reinsurance on amounts paid from the guaranty fund. As added by P.L.162-2007, SEC.25.

Ind. Code § 5-28-30-23 Powers in the event of default

Sec. 23. The corporation may take assignments of accounts receivable, loans, guarantees, insurance, notes, mortgages, security agreements securing notes, and other forms of security, attach, seize, or take title by foreclosure or conveyance to any industrial development project when a guaranteed loan on the project is clearly in default and when in the opinion of the authority such an acquisition is necessary to safeguard the guaranty fund, and sell, or on a temporary basis, lease or rent the project for any use. As added by P.L.162-2007, SEC.25.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026