Sec. 15. (a) A loan made under this chapter is subject to the following restrictions:

(1) The repayment period may not exceed fifteen (15) years.

(2) The interest rate is to be set by the state board of finance at the time the loan is approved.

(3) Interest reverts to the industrial development fund established by this chapter.

(4) The loan must be repaid in installments, including interest on the unpaid balance, according to a repayment schedule approved by the state board of finance for that loan. However, on the approval of the state board of finance, the repayment of principal may be deferred for a period not to exceed two (2) years.

(5) Subject to subsection (b), the repayment of the loan may be limited to a specified revenue source of the qualified entity and, if limited, is not a general obligation of the unit and is payable solely from the specified revenue source.

(6) If the qualified entity levies a tax to repay the loan, the first installment of the loan is due from funds received from the first levy.

(7) If prepayment of the loan is made, a penalty may not be charged.

(b) A qualified entity may borrow money under this chapter only under an ordinance adopted under IC 36-1-3-6 as follows:

(1) If the qualified entity is a city, town, or county, by the qualified entity.

(2) If the qualified entity is an economic development commission, by the city, town, or county that established the economic development commission.

(3) If the qualified entity is a special taxing district established by the city, town, or county, by the city, town, or county that established the special taxing district.

(4) If the qualified entity is a special taxing district that was not established by a city, town, or county, by the county in which the special taxing district is located.

If repayment of the loan is to be from a specified revenue source under subsection (a)(5), the ordinance must state the revenue source and must state that the qualified entity is not obligated to pay the principal or interest on the loan except from the specified revenue source. An ordinance may not provide for repayment from a specified revenue source if the repayment would impair the qualified entity's contract with an owner of outstanding obligations payable from the specified revenue source.

(c) Notwithstanding any other law, the qualified entity may enter into loans under this chapter without obtaining the approval of any other body.

As added by P.L.4-2005, SEC.34.