Sec. 13. The treasurer of state may lend any securities acquired under section 7 or 11 of this chapter. However, securities may be lent under this section only if the agreement under which the securities are lent is collateralized by:
(1) cash; or
(2) non-cash collateral if the state is indemnified by the custodian holding the non-cash collateral;
in excess of the total market value of the loaned securities.