Sec. 10. (a) The state board of finance may lend money from the fund to entities listed in subsections (e) through (k) for the purposes specified in those subsections.

     (b) An entity must apply for the loan before May 1, 1989, in a form approved by the state board of finance. As part of the application, the entity shall submit a plan for its use of the loan proceeds and for the repayment of the loan. Within sixty (60) days after receipt of each application, the board shall meet to consider the application and to review its accuracy and completeness and to determine the need for the loan. The board shall authorize a loan to an entity that makes an application if the board approves its accuracy and completeness and determines that there is a need for the loan and an adequate method of repayment.

     (c) The state board of finance shall determine the terms of each loan, which must include the following:

(1) The duration of the loan, which must not exceed twelve (12) years.

(2) The repayment schedule of the loan, which must provide that no payments are due during the first two (2) years of the loan.

(3) A variable rate of interest to be determined by the board and adjusted annually. The interest rate must be the greater of:

(A) five percent (5%); or

(B) two-thirds (2/3) of the interest rate for fifty-two (52) week United States Treasury bills on the anniversary date of the loan, but not to exceed ten percent (10%).

(4) The amount of the loan or loans, which may not exceed the maximum amounts established for the entity by this section.

(5) Any other conditions specified by the board.

     (d) An entity may borrow money under this section by adoption of an ordinance or a resolution and, as set forth in IC 5-1-14, may use any source of revenue to repay a loan under this section. This section constitutes complete authority for the entity to borrow from the fund. If an entity described in subsection (i) fails to make any repayments of a loan, the amount payable shall be withheld by the state comptroller from any other money payable to the consolidated city. If any other entity described in this section fails to make any repayments of a loan, the amount payable shall be withheld by the state comptroller from any other money payable to the entity. The amount withheld shall be transferred to the fund to the credit of the entity.

     (e) A loan under this section may be made to a city located in a county having a population of more than twenty-six thousand four hundred seventy (26,470) and less than twenty-seven thousand (27,000) for the city’s waterworks facility. The amount of the loan may not exceed one million six hundred thousand dollars ($1,600,000).

     (f) As used in this subsection, “corridor” means the strip of land in Indiana abutting Lake Michigan and the tributaries of Lake Michigan. A loan under this section may be made to a city the territory of which is included in part within the Lake Michigan corridor for a marina development project. The maximum amount of loans available for all cities that are eligible for a loan under this subsection is eight million six hundred thousand dollars ($8,600,000).

     (g) A loan under this section may be made to a county having a population of more than one hundred eighty thousand (180,000) and less than one hundred eighty-five thousand (185,000) for use by the airport authority in the county for the construction of runways. The amount of the loan may not exceed seven million dollars ($7,000,000). The county may lend the proceeds of its loan to an airport authority for the public purpose of fostering economic growth in the county.

     (h) A loan under this section may be made to a city having a population of more than fifty-eight thousand (58,000) and less than fifty-nine thousand (59,000) for the construction of parking facilities. The amount of the loan may not exceed three million dollars ($3,000,000).

     (i) A loan or loans under this section may be made to a consolidated city, a local public improvement bond bank, or any board, authority, or commission of the consolidated city to fund economic development projects under IC 36-7-15.2-5 or to refund obligations issued to fund economic development projects. The amount of the loan may not exceed thirty million dollars ($30,000,000).

     (j) A loan under this section may be made to a county having a population of more than twelve thousand five hundred (12,500) and less than thirteen thousand (13,000) for extension of airport runways. The amount of the loan may not exceed three hundred thousand dollars ($300,000).

     (k) A loan under this section may be made to Covington Community School Corporation to refund the amount due on a tax anticipation warrant loan. The amount of the loan may not exceed two million seven hundred thousand dollars ($2,700,000), to be paid back from any source of money that is legally available to the school corporation. Notwithstanding subsection (b), the school corporation must apply for the loan before June 30, 2010. Notwithstanding subsection (c), repayment of the loan shall be made in equal installments over five (5) years with the first installment due not more than six (6) months after the date loan proceeds are received by the school corporation.

     (l) IC 6-1.1-20 does not apply to a loan made by an entity under this section.

     (m) As used in this section, “entity” means a governmental entity authorized to obtain a loan under subsections (e) through (k).

As added by P.L.380-1987(ss), SEC.2. Amended by P.L.5-1988, SEC.22; P.L.22-1988, SEC.2; P.L.12-1992, SEC.13; P.L.1-1995, SEC.33; P.L.170-2002, SEC.10; P.L.182-2009(ss), SEC.53; P.L.197-2011, SEC.3; P.L.119-2012, SEC.8; P.L.104-2022, SEC.7; P.L.114-2022, SEC.5; P.L.178-2022(ts), SEC.1; P.L.9-2024, SEC.72.