Title 5, STATE AND LOCAL ADMINISTRATION

Sec. 13. The capital access program is established. The purpose of the program is to provide capital to businesses, particularly small and medium-sized businesses, to foster economic development in Indiana. Loans made under the program must be slightly riskier than conventional l…

Sec. 14. The corporation shall do the following: (1) Administer the program. (2) Market the program to businesses and other persons in Indiana in cooperation with financial institutions and statewide associations representing financial institutions. (3) If the reserve funds are n…

Sec. 15. A lender is eligible to participate in the program upon entering into an agreement with the corporation governing the duties of the corporation and the lender under the program. The lender shall provide the corporation with information regarding the lender's participatio…

Sec. 16. Except upon the exercise of the corporation's right of subrogation under section 32 of this chapter, the corporation has no legal or equitable interest in any collateral, security, or other right of recovery in connection with any loan enrolled in the program, and the co…

Sec. 17. (a) The following types of loans are eligible loans under the program: (1) Loans for industrial or commercial purposes. (2) Loans to refinance loans made for the purposes in subdivision (1). (3) Loans for line of credit agreements established between the lender and borro…

Sec. 18. (a) To enroll a loan under the program, the lender must file a completed loan enrollment form with the corporation. The lender must also certify the following to the corporation as part of the filing: (1) The lender has no substantial reason to believe that the loan is b…

Sec. 19. When the corporation receives a loan enrollment form, the corporation shall enroll the loan if the information provided under section 18 of this chapter indicates that the loan is an eligible loan. Within five (5) business days after receipt of a loan enrollment form for…

Sec. 2. As used in this chapter in connection with a loan, "amount" and "proceeds" refer only to the amount covered under an agreement, unless the context clearly requires otherwise. As added by P.L.162-2007, SEC.24.

Sec. 20. When filing a loan enrollment form, the lender may specify an amount to be covered under the program. The amount may be less than the total amount of the loan. As added by P.L.162-2007, SEC.24.

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. (b) If an enrolled loan i…

Sec. 22. (a) If the outstanding balance of an enrolled loan that is not a line of credit is reduced to zero (0), the loan is no longer an enrolled loan. If an enrolled loan that is a line of credit has an outstanding balance of zero (0) for a twelve (12) month period, the line of…

Sec. 23. Upon execution of an agreement between the lender and the corporation, the corporation shall establish a reserve fund account with the lender in the name of the corporation for the purpose of receiving all required premium charges to be paid by the lender and the borrowe…

Sec. 24. The corporation may not accept loans for enrollment in the program if the corporation does not have sufficient funds to make the necessary transfer from the corporation to the reserve fund under section 25 of this chapter. As added by P.L.162-2007, SEC.24.

Sec. 25. The lender shall determine the premium charges payable to the reserve fund by the lender and the borrower in connection with a loan filed for enrollment. The premium paid by the borrower may not be less than one percent (1%) or greater than three and one-half percent (3.…

Sec. 26. (a) All money credited to the reserve fund is under the exclusive control of the corporation. The corporation may not withdraw money from the reserve fund, except as specifically provided in this chapter. (b) If money in the reserve fund is not deposited by the corporati…

Sec. 27. The corporation shall pledge the following to the lender: (1) The money in the reserve fund will be available to pay claims under section 29 of this chapter. (2) The lender will have a first security interest in the money in the reserve fund to pay the claims. (3) The co…

Sec. 28. (a) If the reserve fund is not maintained with the lender, the corporation shall provide to the lender quarterly transaction reports indicating the following: (1) The balance in the reserve fund. (2) Payments and transfers into the reserve fund. (3) Withdrawals from the …

Sec. 29. (a) If the lender charges off all or part of an enrolled loan, the lender may file a claim with the corporation. The claim must be filed contemporaneously with the charge-off. (b) The lender's claim may include, in addition to the amount of principal charged off plus acc…

Sec. 3. As used in this chapter, "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: (1) The borrower is a corporation, limited liability company, partnership, joint vent…

Sec. 30. (a) Upon receipt by the corporation of a claim filed by the lender, the corporation shall, within ten (10) business days, pay or authorize the lender to withdraw from the reserve fund the amount of the claim as submitted, unless the corporation reasonably determines that…

Sec. 31. If, after payment of a claim by the corporation, the lender recovers from a borrower any amount for which payment of the claim was made, the following apply: (1) If the recovered amount, when added to the claim previously paid by the corporation in connection with an enr…

Sec. 32. (a) If the payment of a claim has fully covered the lender's loss on an enrolled loan or if the payment of a claim when combined with any recovery from the borrower has fully covered the lender's loss, the corporation, upon request, is subrogated to the rights of the len…

Sec. 33. (a) Before July 16, October 16, January 16, and April 16 of each year, the lender shall file a quarterly report with the corporation indicating the number and total outstanding balances of all enrolled loans for the period of the three (3) preceding calendar months. A qu…

Sec. 34. The corporation may terminate the obligation to a lender to enroll loans under the program if the corporation determines that the lender is not in substantial compliance with the requirements of the program or the requirements of section 23 of this chapter. The terminati…

Sec. 35. (a) The corporation shall establish a capital access account. The corporation shall use the capital access account to carry out the provisions of the capital access program. The capital access account consists of all money that is: (1) appropriated by the general assembl…

Sec. 4. As used in this chapter, "capital access account" means an account created by the corporation for the purposes of the capital access program. As added by P.L.162-2007, SEC.24.

Sec. 5. As used in this chapter, "claim" means a claim filed by the lender under section 29 of this chapter. As added by P.L.162-2007, SEC.24.

Sec. 6. As used in this chapter, "early loan" means an enrolled loan when at the time of its enrollment the total amount of previously enrolled loans made by the lender under the program was less than five million dollars ($5,000,000). As added by P.L.162-2007, SEC.24.

Sec. 7. As used in this chapter, "eligible loan" means a loan made by the lender to a borrower that meets the requirements of sections 17 and 18 of this chapter. As added by P.L.162-2007, SEC.24.

Sec. 8. As used in this chapter, "enrolled loan" means a loan enrolled by the corporation under the terms of section 19 of this chapter. As added by P.L.162-2007, SEC.24.

Sec. 9. As used in this chapter, "lender" means: (1) a financial institution (as defined in IC 5-13-4-10); or (2) beginning after June 30, 2018: (A) a credit corporation (as defined in IC 23-6-4-1); (B) an entity that: (i) extends more than seventy-five percent (75%) of all eligi…