HB 1038

Bill Subjects

Agencies; Department Of Financial Institutions (Dfi) Financial Services; Financial Institutions Financial Services; Investments And Securities Labor And Employment; Collective Bargaining, Benefits, And Wages State Elected Officials; Treasurer State Government; Contracts, Procurements, And Purchases State Government; Generally

Abstract

Requires the treasurer of state (treasurer) to establish and administer a program to assist Indiana companies in obtaining financing from a financial institution for the purchase of company shares by an employee stock ownership plan (ESOP). Allows the treasurer and a financial institution to enter into an agreement under which: (1) the treasurer places a certificate of deposit (CD) with the financial institution at not more than 3% below the comparable Treasury Bill rate; (2) the financial institution makes a loan to a company at a reduced percentage rate of interest that corresponds to the CD's reduced rate of interest; and (3) the rate of interest of both the loan and the certificate of deposit move in tandem for the duration of the loan term.