Sec. 21. (a) In the case of a loan to refinance a loan previously made to the
borrower by the
lender that was not enrolled under the
program, the lender may obtain coverage under the program for an amount not exceeding the amount of additional financing.
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Terms Used In Indiana Code 5-28-29-21
- 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.
- enrolled loan: means a loan enrolled by the corporation under the terms of section 19 of this chapter. See Indiana Code 5-28-29-8
- lender: means :
Indiana Code 5-28-29-9
- program: refers to the capital access program created by this chapter. See Indiana Code 5-28-29-11
- reserve fund: means an account established by the corporation with funds accumulated under this chapter and to cover claims made by the lender under this chapter. See Indiana Code 5-28-29-12
(c) If an enrolled loan is refinanced in an amount exceeding the amount of the loan as previously enrolled, the lender may obtain coverage of the amount of the refinanced loan that exceeds the amount covered when the loan was previously enrolled by refiling the loan for enrollment under section 18 of this chapter.
(d) Fluctuations in the outstanding balance of a line of credit, without increasing the enrolled amount under the program, are not a refinancing of the loan.
As added by P.L.162-2007, SEC.24.
