Indiana Code 4-4-28-16. Account withdrawal; purposes; approval
(1) To pay for costs (including tuition, laboratory costs, books, computer costs, and other costs) at an accredited postsecondary educational institution or a vocational school that is not a postsecondary educational institution for the individual or for a dependent of the individual.
Terms Used In Indiana Code 4-4-28-16
- account: refers to an individual development account. See Indiana Code 4-4-28-1
- community based organization: means a private, nonprofit corporation whose board of directors is comprised of business, civic, and community leaders, and whose principal purpose includes the provision of low income housing. See Indiana Code 4-4-28-1.7
- community development corporation: means a private, nonprofit corporation:
Indiana Code 4-4-28-2
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Dependent: A person dependent for support upon another.
- financial institution: means a bank, savings association, credit union, or any other institution regulated under IC 28 or federal law. See Indiana Code 4-4-28-3
- individual development account: means an account in a financial institution administered by a community development corporation or community based organization that allows a qualifying individual to deposit money:
Indiana Code 4-4-28-5
- motor vehicle: has the meaning set forth in IC 9-13-2-105(a). See Indiana Code 4-4-28-5.5
(3) To purchase a primary residence located in Indiana for the individual or for a dependent of the individual or to reduce the principal amount owed on a primary residence located in Indiana that was purchased by the individual or a dependent of the individual with money from an individual development account.
(4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of the individual’s primary residence located in Indiana.
(5) To begin or to purchase part or all of a business based in Indiana or to expand an existing small business based in Indiana.
(6) Subject to section 8(b) of this chapter, to purchase a motor vehicle.
(b) At the time of requesting authorization under section 15 of this chapter to withdraw money from an individual’s account under subsection (a)(5), the individual must provide the community development corporation or community based organization with a business plan that:
(1) has been approved by a financial institution or is approved by the community development corporation or community based organization;
(2) includes a description of services or goods to be sold, a marketing plan, and projected financial statements; and
(3) may require the individual to obtain the assistance of an experienced business advisor.
As added by P.L.15-1997, SEC.1. Amended by P.L.289-2001, SEC.9; P.L.135-2002, SEC.1; P.L.2-2007, SEC.25; P.L.150-2007, SEC.5; P.L.50-2016, SEC.9; P.L.124-2024, SEC.12.