Indiana Code 5-28-29-17. Eligible loans
(1) Loans for industrial or commercial purposes.
Terms Used In Indiana Code 5-28-29-17
- agreement: means an agreement between a lender and the corporation under which a lender may participate in the program. See Indiana Code 5-28-29-1
- borrower: means the recipient of a loan that is, has been, or will be filed by the lender for enrollment under the program and meets the following requirements:
Indiana Code 5-28-29-3
- 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.
- eligible loan: means a loan made by the lender to a borrower that meets the requirements of sections 17 and 18 of this chapter. See Indiana Code 5-28-29-7
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- lender: means :
Indiana Code 5-28-29-9
- 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:
Indiana Code 5-28-29-10
- program: refers to the capital access program created by this chapter. See Indiana Code 5-28-29-11
(3) Loans for line of credit agreements established between the lender and borrower that are used for the purposes in subdivision (1).
(b) Eligible loans must meet the following criteria:
(1) The lender has not made the loan to enroll in the program prior debt that is not covered under the program and that is or was owed by the borrower to the lender.
(2) The proceeds of the loan will not be used for that part of a project or development devoted to housing.
(3) The proceeds of the loan will not be used to finance passive real estate ownership.
(4) The proceeds of the loan will be used to finance a project or enterprise that is located in Indiana and that will foster economic development in Indiana.
(c) An eligible loan may provide for an interest rate, fees, and other terms and conditions agreed to by the lender and borrower. If the loan amount to be borrowed is determined by a commitment agreement that establishes a line of credit, the amount of the loan is the maximum amount available to the borrower under the agreement.
(d) Notwithstanding any other provision of this chapter, a loan:
(1) originated by an entity:
(A) that is a qualified “eligible intermediary” participating in the federal Small Business Administration Microloan Program pursuant to 15 U.S.C. § 636(m), as amended from time to time; and
(B) that is approved as a lender in accordance with the policy guidelines adopted by the board of the corporation; and
(2) with a principal loan amount that exceeds fifty thousand dollars ($50,000);
is not an eligible loan under the program.
As added by P.L.162-2007, SEC.24. Amended by P.L.146-2018, SEC.18; P.L.10-2019, SEC.35.