{"data":{"id":"us-in/ic-5-1.5-6.5-3","jurisdiction":"us-in","citation":"IC 5-1.5-6.5-3","heading":"Capital principal fund; debt service; agreement; recovery","body":"Sec. 3. (a) The capital principal fund may be used only to guarantee payment of debt service on:\n(1) securities issued by a qualified entity for a purpose specified in section 1(b) of this chapter; or\n(2) bonds or notes issued to purchase securities issued for a purpose specified in section 1(b) of this chapter.\n(b) The bank and the qualified entity must enter into an agreement before a guarantee under subsection (a)(1) is effective. This agreement may contain any provisions the bank considers appropriate and may specify which funds held by a state agency are subject to recovery under subsection (c).\n(c) If debt service on securities of a qualified entity is paid by the bank to a qualified entity or owners of its securities under a guarantee under subsection (a)(1), the amount paid from the capital principal fund may be recovered from funds held by a state agency or department that are payable to the qualified entity as set forth in subsection (b).","path":["TITLE 5. STATE AND LOCAL ADMINISTRATION","ARTICLE 1.5. INDIANA BOND BANK","Chapter 6.5. Capital Funds"],"source_url":"https://iga.in.gov/ic/2026/Title_5.html#5-1.5-6.5-3","current_through":"2026","vintage":"2026","retrieved_at":"2026-09-02T16:11:39Z","sha256":"5d511301fa7100c9652f41930eff4e764edfe28b429dd9b03f65a824b4f99cdf","source_id":"us-in","stale":false,"prev":"us-in/ic-5-1.5-6.5-2","next":"us-in/ic-5-1.5-6.5-4"},"notice":"GroundRules: Original legal text. Not legal advice."}