Sec. 5. (a) If the authority uses bond proceeds to loan money to or purchase bonds of a participant, the authority may, by the resolution approving the bonds, provide that subsection (b) is applicable to the participant.
(b) Notwithstanding any other law, to the extent that any department or agency of the state, including the treasurer of state, is the custodian of money payable to the participant (other than for goods or services provided by the participant), at any time after written notice to the department or agency head from the authority that the participant is in default on the payment of principal of or interest on the bonds then held or owned by or arising from an agreement with the authority, the department or agency shall withhold the payment of that money from that participant and pay over the money to the authority for the purpose of paying the principal of and interest on the related bonds. However, the withholding of payment from the participant and payment to the authority under this section must not adversely affect the validity of the bonds in default.
As added by P.L.189-2018, SEC.25.
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