Sec. 4. The board of trustees of a state educational institution shall apply the proceeds of any grant anticipation notes to those items of cost for which the grant has been allocated by the granting agencies. The purchaser of any notes:

(1) is not liable for any improper use of the proceeds; and

(2) does not have to insure that the amount of the loan stays within the maximum limits specified in section 2 of this chapter as grant funds are received by the state educational institution.

[Pre-2007 Higher Education Recodification Citation: 20-12-6-8.5(d).]

As added by P.L.2-2007, SEC.275.