IC 5TITLE 5. STATE AND LOCAL ADMINISTRATION
           Art. 1.BONDS AND OTHER OBLIGATIONS
           Art. 1.4.LOCAL PUBLIC IMPROVEMENT BOND BANKS
           Art. 1.5.INDIANA BOND BANK
           Art. 2.LAW ENFORCEMENT
           Art. 3.PUBLICATION OF NOTICES
           Art. 4.OFFICERS' BONDS AND OATHS
           Art. 5.REPEALED
           Art. 6.OFFICERS' DEPUTIES
           Art. 7.OFFICERS' FEES AND SALARIES
           Art. 8.OFFICERS' IMPEACHMENT, REMOVAL, RESIGNATION, AND DISQUALIFICATION
           Art. 9.LEAVES OF ABSENCE AND APPOINTMENT PREFERENCES FOR MILITARY SERVICE
           Art. 10.PUBLIC EMPLOYEE BENEFITS
           Art. 10.1.SOCIAL SECURITY COVERAGE FOR PUBLIC EMPLOYEES
           Art. 10.2.PUBLIC RETIREMENT AND DISABILITY BENEFITS
           Art. 10.3.THE PUBLIC EMPLOYEES' RETIREMENT FUND
           Art. 10.4.STATE TEACHERS' RETIREMENT FUND
           Art. 10.5.INDIANA PUBLIC PENSION MODERNIZATION ACT
           Art. 11.ACCOUNTING FOR PUBLIC FUNDS
           Art. 12.REPEALED
           Art. 13.INVESTMENT OF PUBLIC FUNDS
           Art. 14.PUBLIC RECORDS AND PUBLIC MEETINGS
           Art. 15.PRESERVATION OF PUBLIC RECORDS
           Art. 16.PUBLIC WORKS
           Art. 17.PUBLIC PURCHASES
           Art. 18.REPEALED
           Art. 19.FEDERAL AID
           Art. 20.HOUSING
           Art. 21.REPEALED
           Art. 22.PUBLIC PURCHASING
           Art. 22.REPEALED
           Art. 23.PUBLIC-PRIVATE AGREEMENTS
           Art. 24.ELECTRONIC DIGITAL SIGNATURE ACT
           Art. 25.INTERSTATE JOBS PROTECTION COMPACT
           Art. 26.PUBLIC SAFETY COMMUNICATIONS
           Art. 26.5.ADDRESS CONFIDENTIALITY PROGRAM
           Art. 27.ELECTRONIC PAYMENTS TO GOVERNMENTAL BODIES
           Art. 28.INDIANA ECONOMIC DEVELOPMENT CORPORATION
           Art. 29.OFFICE OF TOURISM DEVELOPMENT
           Art. 30.DESIGN-BUILD PUBLIC WORKS PROJECTS
           Art. 31.REPEALED
           Art. 32.EMPLOYMENT OF CONSTRUCTION MANAGERS AS CONSTRUCTORS FOR PROJECTS

 

IC 5-1ARTICLE 1. BONDS AND OTHER OBLIGATIONS
           Ch. 1.Bonds and Other Obligations Legalized
           Ch. 2.Nonreverting Appropriations
           Ch. 3.Facsimile Signatures on Obligations
           Ch. 4.Hospital Bonding Authorities
           Ch. 5.Refunding Bonds Generally
           Ch. 6.Revenue Bond Refinancing
           Ch. 7.Redemption Bonds of Counties and Townships
           Ch. 8.Judgment Funding Bonds of Counties
           Ch. 9.Refunding Bonds of Cities and Towns
           Ch. 10.Funding and Refunding Bonds of Townships
           Ch. 11.Procedures for Selling Bonds
           Ch. 11.5.Additional Requirements for the Issuance of Bonds
           Ch. 12.Payment of Bond Premiums
           Ch. 13.Disposition of Surplus Bond Proceeds
           Ch. 14.Miscellaneous Provisions
           Ch. 15.Fully Registered and Book Entry Obligations
           Ch. 16.Indiana Finance Authority Financing of Health Facilities
           Ch. 16.5.Indiana Health and Educational Facilities Financing Authority; Additional Provisions; Financing Projects for Private Colleges and Universities; Participation in Risk Retention Group
           Ch. 17.Indiana Stadium and Convention Building Authority
           Ch. 17.5.Motorsports Investment District
           Ch. 18.Reports Concerning Bonds and Leases of Political Subdivisions

 

IC 5-1-1Chapter 1. Bonds and Other Obligations Legalized
           5-1-1-1Validation
           5-1-1-2Repealed

 

IC 5-1-1-1Validation

     Sec. 1. (a) The following definitions apply throughout this section:

(1) "Agreement" means any agreement that includes terms, representations, or provisions relating to:

(A) credit enhancement of, or rate covenants supporting, any bonds, notes, evidences of indebtedness, leases, swap agreements, or other written obligations described in subsection (b);

(B) any indenture or provision regarding any indenture relating to any bonds, notes, evidences of indebtedness, leases, swap agreements, or other written obligations described in subsection (b);

(C) payment of any bonds, notes, evidences of indebtedness, leases, swap agreements, or other written obligations described in subsection (b) in the event of a termination of the agreement; or

(D) public works, capital improvements, or economic development projects.

(2) "Leasing body" means a not-for-profit corporation, limited purpose corporation, or authority that has leased land and a building or buildings to an entity named in subsection (b) other than another leasing body.

(3) "Swap agreement" has the meaning set forth in IC 8-9.5-9-4.

     (b) All bonds, notes, evidences of indebtedness, swap agreements, agreements, leases, or other written obligations issued or executed by or in the name of any:

(1) state agency, county, township, city, incorporated town, school corporation, state educational institution, political subdivision, joint agency created under IC 8-1-2.2, leasing body, separate body corporate and politic, or any other political, municipal, public or quasi-public corporation;

(2) special assessment or taxing district; or

(3) board, commission, authority, or authorized body of any such entity; and

any pledge, dedication or designation of revenues, conveyance, or mortgage securing these bonds, notes, evidences of indebtedness, leases, swap agreements, agreements, or other written obligations are hereby legalized and declared valid if these bonds, notes, evidences of indebtedness, leases, swap agreements, agreements, or other written obligations have been executed before March 15, 2006. All governance, organizational, or other proceedings had and actions taken under which the bonds, notes, evidences of indebtedness, leases, swap agreements, agreements, or other written obligations were issued or executed or the pledge, dedication or designation of revenues, conveyance, or mortgage was granted, are hereby fully legalized and declared valid.

     (c) All contracts for the purchase of electric power and energy or utility capacity or service:

(1) entered into by a joint agency created under IC 8-1-2.2; and

(2) used by the members of the joint agency for the purpose of securing payment of principal and interest on bonds, notes, evidences of indebtedness, leases, or other written obligations issued by or in the name of such joint agency;

are hereby legalized and declared valid if entered into before March 15, 2006. All proceedings held and actions taken under which contracts for the purchase of electric power and energy or utility capacity or service were executed or entered into are hereby fully legalized and declared valid.

     (d) All interlocal cooperation agreements entered into by political subdivisions or governmental entities under IC 36-1-7 are hereby legalized and declared valid if entered into before March 15, 2006. All proceedings held and actions taken under which interlocal cooperation agreements were executed or entered into are hereby fully legalized and validated.

Formerly: Acts 1967, c.90, s.1. As amended by P.L.44-1983, SEC.1; P.L.17-1987, SEC.4; P.L.2-1989, SEC.2; P.L.19-1994, SEC.1; P.L.34-1997, SEC.1; P.L.47-1998, SEC.1; P.L.89-2000, SEC.1; P.L.184-2006, SEC.1; P.L.2-2007, SEC.64; P.L.3-2008, SEC.16.

 

IC 5-1-1-2Repealed

Formerly: Acts 1967, c.90, s.2. As amended by P.L.25-1986, SEC.1. Repealed by P.L.1-1989, SEC.75.

 

IC 5-1-2Chapter 2. Nonreverting Appropriations
           5-1-2-1Specific projects; lapse

 

IC 5-1-2-1Specific projects; lapse

     Sec. 1. Appropriations of money from the capital projects fund and proceeds of bonds, notes, and other written obligations issued by or in the name of any:

(1) county, township, city, incorporated town;

(2) school corporation or state educational institution; or

(3) other political, municipal, public or quasi-public corporation, special assessment or taxing district, or any authorized body of that corporation or district;

for a specific project shall not lapse at the end of the year in which the appropriation was made, but shall remain in full force and effect without reappropriation until the purpose for which the appropriation was made has been accomplished or abandoned.

Formerly: Acts 1967, c.150, s.1. As amended by P.L.47-1989, SEC.1; P.L.41-1993, SEC.2; P.L.2-2007, SEC.65.

 

IC 5-1-3Chapter 3. Facsimile Signatures on Obligations
           5-1-3-1Definitions
           5-1-3-2Facsimile signature
           5-1-3-3Interest coupons; signatures

 

IC 5-1-3-1Definitions

     Sec. 1. For the purposes of this chapter:

     (a) "Public entity" shall include any political subdivision as defined by IC 36-1-2, state commission, state authority, and all other public bodies corporate and politic.

     (b) "Obligations" shall include any bond, note, warrant, or other obligation.

Formerly: Acts 1971, P.L.40, SEC.1. As amended by Acts 1981, P.L.11, SEC.13.

 

IC 5-1-3-2Facsimile signature

     Sec. 2. (a) Whenever any existing statute requires the manual execution, attesting or authentication of any obligation issued by any public entity named in IC 5-1-1-1 by one (1) or more officials or persons, facsimile signatures of such officials or persons may be used instead of and with the same force and effect as manually executing such obligations. One (1) signature on the obligation shall be manual and may be either the signature of one (1) of the officials or persons or of any trustee, paying agent, registrar, co-registrar, transfer agent, or other fiduciary charged with authenticating the obligations.

     (b) Any obligation executed by the facsimile signature of officials or persons is valid and binding, if the officials or persons satisfied the provisions of the statute under which the obligation is issued on the date that the signature was printed on the obligation, even if the obligation is delivered after the official or person whose facsimile signature appears thereon no longer satisfies the provisions of the statute.

Formerly: Acts 1971, P.L.40, SEC.1. As amended by P.L.44-1983, SEC.2.

 

IC 5-1-3-3Interest coupons; signatures

     Sec. 3. These provisions shall not be construed to require manual signing of any interest coupons and signatures on interest coupons may all be facsimile signatures.

Formerly: Acts 1971, P.L.40, SEC.1.

 

IC 5-1-4Chapter 4. Hospital Bonding Authorities
           5-1-4-1Declaration of policy
           5-1-4-2Short title
           5-1-4-3Definitions
           5-1-4-4Creation of authority
           5-1-4-5Organization of authority; directors
           5-1-4-6Oath of office
           5-1-4-7Removal from office
           5-1-4-8Meetings; selection of officers; bylaws
           5-1-4-9Pecuniary interest of directors; transaction void
           5-1-4-10Powers of authority
           5-1-4-11Payment of expenses
           5-1-4-12Acquisition of property
           5-1-4-13Bonds
           5-1-4-14Bond resolutions
           5-1-4-15Trust agreement to secure bonds
           5-1-4-15.5Loans to participating hospitals
           5-1-4-16Refunding bonds
           5-1-4-17Payment of bonds
           5-1-4-18Rents and charges
           5-1-4-19Bond proceeds and revenues
           5-1-4-20Enforcement of rights and duties
           5-1-4-21Repealed
           5-1-4-22Interest in contracts
           5-1-4-23Liberal construction
           5-1-4-24Legal investments
           5-1-4-25Repealed
           5-1-4-26Tax exemption
           5-1-4-27Pledge by state to bondholders and contractors
           5-1-4-28Supplemental effect
           5-1-4-29Conflicting laws

 

IC 5-1-4-1Declaration of policy

     Sec. 1. Declaration of Policy. It is declared that for the benefit of the people of the state, the increase of their commerce, welfare and prosperity and the improvement of their health and living conditions it is essential that hospitals within the state be provided with appropriate additional means to expand, enlarge and establish health care, hospital and other related facilities; and that it is the purpose of this chapter to provide a measure of assistance and alternative methods to enable hospitals within this state to refund or refinance outstanding indebtedness incurred for the facilities and to provide additional facilities and structures which are required to accomplish the purposes of this chapter, all to the public benefit and good, to the extent and manner provided herein.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1; Acts 1975, P.L.35, SEC.1.

 

IC 5-1-4-2Short title

     Sec. 2. Short title. This chapter may be referred to and cited as the "Indiana Hospital Authority Act."

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-3Definitions

     Sec. 3. As used in this chapter, the following words and terms shall have the following meanings unless the context indicates another or different meaning or intent:

     (a) "Authority" means a hospital authority created by IC 5-1-4-4 or any board, body, commission, department, or officer succeeding to the principal functions thereof or to whom the powers conferred upon such authority by this chapter shall be given by law.

     (b) "Project" means a structure or addition to an existing structure which is suitable for use as a hospital, clinic, laboratory, laundry, nurses' or interns' residence, administration building, research facility, or maintenance, storage, or utility facility, and other structures or facilities related thereto or required or useful for the operation of the project, including the site thereof; parking and other facilities or structures essential or convenient for the orderly operation of such project, or equipment, machinery, and other similar items necessary or convenient for the operation of the project in the manner for which its use is intended, but not such items as fuel, supplies, or other items which customarily result in a current operating charge. "Project" also means:

(1) the construction of a part or portion of a building;

(2) the acquisition and remodeling of an existing building; or

(3) the acquisition of existing facilities of a participating hospital in connection with the refunding or refinancing of outstanding obligations, mortgages, or advances issued, made, or given by such participating hospital whenever the authority finds that such refunding or refinancing is in the public interest and either:

(A) alleviates a financial hardship upon the participating hospital;

(B) results in a lesser cost of patient care and a saving to third parties and others who must pay for such care; or

(C) enables the participating hospital to offer greater security for the financing of a new project or projects or to effect savings in interest costs or more favorable amortization terms.

     (c) "Cost" as applied to a project or any portion thereof financed under this chapter means all or any part of the cost of construction and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and interests acquired or used for a project; the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which such buildings or structures may be moved; the cost of all machinery and equipment, financing charges, interest prior to, during, and for a period after completion of such construction; provisions for working capital; reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements; cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues; administrative expenses; expenses necessary or incident to determining the feasibility or practicability of constructing the project; and such other expenses as may be necessary or incident to the construction and acquisition of the project, the financing of such construction and acquisition, and the placing of the project in operation.

     (d) "Bonds" means bonds of the authority issued under this chapter, including refunding bonds, notwithstanding that the same may be secured by the full faith and credit of a participating hospital or any other lawfully pledged security of a participating hospital.

     (e) "Participating hospital" means a:

(1) nonprofit corporation which is organized under the laws of this state or which is admitted to transact business in this state as a foreign corporation; or

(2) hospital organized and existing under IC 16-24-1;

which either operates or proposes to operate a project or undertakes the refunding of all or part of its outstanding indebtedness as authorized by this chapter, or both.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1; Acts 1975, P.L.35, SEC.2. As amended by Acts 1980, P.L.23, SEC.1; P.L.26-1986, SEC.1; P.L.2-1993, SEC.39.

 

IC 5-1-4-4Creation of authority

     Sec. 4. (a) The legislative body of any county, second or third class city, or town in which is located one (1) or more participating hospitals, upon request in writing by the board of trustees or other governing board of any such participating hospital, may adopt a resolution for the creation of an authority under this chapter.

     (b) Upon the adoption of the resolution, there is created an authority which shall be a body corporate and politic for the purpose of financing, acquiring, constructing, equipping, and leasing a project or projects to participating hospitals located in the county, city, or town or refunding outstanding indebtedness of participating hospitals located in the county, city, or town as authorized by this chapter, or both.

     (c) If the authority is created by a resolution of the legislative body of a county, it shall be known as the "Hospital Authority of __________ County" (include the name of the county).

     (d) If the authority is created by resolution of the legislative body of a second or third class city or town, it shall be known as the "Hospital Authority of __________" (include the name of the city or town).

     (e) The county auditor, the city clerk, or the town clerk-treasurer, as the case may be, shall file a certified copy of the resolution with the executive of the county, city, or town, as the case may be, in which the authority is created.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1; Acts 1975, P.L.35, SEC.3. As amended by Acts 1980, P.L.23, SEC.2; Acts 1981, P.L.44, SEC.1; Acts 1982, P.L.30, SEC.1; P.L.40-1985, SEC.1; P.L.8-1989, SEC.14.

 

IC 5-1-4-5Organization of authority; directors

     Sec. 5. (a) Within sixty (60) days from the filing of the certified copy of the resolution in accordance with section 4 of this chapter, the board of commissioners of the county or the executive of the city or town shall appoint five (5) residents of the county, city, or town, as the case may be, as directors of the authority.

     (b) Each appointment shall be evidenced by a written certificate of appointment signed by the appointing authority who shall cause a written notice to be sent to each appointee. One (1) director shall be appointed for a term of one (1) year, one (1) director for a term of two (2) years, one (1) director for a term of three (3) years, and two (2) directors for a term of four (4) years. At the expiration of the respective terms of the directors, the appointing authority shall appoint successors for four (4) year terms.

     (c) Each director shall serve as such until the director's successor is appointed and qualified. In the event that any director shall die, resign, cease to be a resident of the county, city, or town, as the case may be, or be removed, the appointing authority shall appoint another person as director for the remainder of such term. If any person appointed as a director shall fail to qualify within ten (10) days after the mailing to the appointee of notice of the appointment, the appointing authority shall appoint another person as director for the term.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by Acts 1982, P.L.30, SEC.2; P.L.7-1983, SEC.6; P.L.40-1985, SEC.2; P.L.8-1989, SEC.15; P.L.4-1991, SEC.134.

 

IC 5-1-4-6Oath of office

     Sec. 6. Oath of Office. Each director, before entering upon his duties shall take and subscribe an oath of office in usual form to be endorsed upon his certificate of appointment, which shall be filed with the clerk of the circuit court.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-7Removal from office

     Sec. 7. Any director may be removed from office for neglect of duty, incompetency, disability to perform the director's duties, or any other good cause, by an order of the circuit court, superior court, or probate court in the county in which such authority is located, subject to the following procedure: a complaint may be filed by any person against such director, setting forth the charges preferred; the cause shall be placed on the advanced calendar and be tried as other civil causes are tried by the court without the intervention of a jury. If such charges be sustained, the court shall declare such office vacant. A change of venue from the judge shall be granted upon motion but no change of venue from the county may be taken.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by P.L.84-2016, SEC.18.

 

IC 5-1-4-8Meetings; selection of officers; bylaws

     Sec. 8. The directors originally appointed shall meet within thirty (30) days after their appointment, at a time and place designated by the board of county commissioners, for the purpose of organization. The directors shall elect the following officers from among their members: president, vice president, secretary, and treasurer, who shall perform the duties usually pertaining to those offices. Such officers shall serve until the expiration of the first term to expire and the directors shall meet annually to reorganize within thirty (30) days after the appointment of each successor director for a full term. The directors are authorized to adopt such bylaws, rules and regulations as they may deem necessary to the proper conduct of their proceedings, the carrying out of their duties, and the safeguarding of the funds and property of the authority. In addition to such meetings as above provided, other regular and special meetings shall be held at such times as they may determine and upon such notice as they may fix, either by resolution or in accordance with the provisions of the bylaws, rules and regulations adopted. A majority of the directors shall constitute a quorum and the concurrence of a majority shall be necessary to authorize any action. Directors shall serve without pay but shall be entitled to reimbursement for any expenses necessarily incurred in the performance of their duties.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by P.L.7-1983, SEC.7.

 

IC 5-1-4-9Pecuniary interest of directors; transaction void

     Sec. 9. Pecuniary Interest of Director - Transaction Void. No director shall have any pecuniary interest in any contract, employment, purchase or sale made under the provisions of this chapter, and any transaction made in which any director has a pecuniary interest shall be void.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-10Powers of authority

     Sec. 10. Powers of Authority. The purpose of each authority shall be to assist participating hospitals in the constructing, financing and refinancing of projects, and for this purpose each authority is authorized and empowered:

     (a) to have perpetual succession as a body politic and corporate and to adopt by-laws for the regulation of its affairs and the conduct of its business;

     (b) to adopt an official seal and alter the same at its pleasure;

     (c) to maintain an office at such place or places as it may designate;

     (d) to sue and be sued in its own name, and plead and be impleaded;

     (e) to determine the location and character of any project to be financed under the provisions of this chapter, and to construct, reconstruct, renovate, replace, maintain, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into contracts for any or all of such purposes, to enter into contracts for the management and operation of a project, and to designate a participating hospital as its agent to determine the location and character of a project undertaken by such participating hospital under the provisions of this chapter and as the agent of the authority, to construct, reconstruct, renovate, replace, maintain, repair, operate, lease, as lessee or lessor, and regulate the same, and as the agent of the authority, to enter into contracts for any or all of such purposes, including contracts for the management and operation of such project;

     (f) to issue bonds and other obligations of the authority for any of its corporate purposes, and to fund or refund the same, all as provided in this chapter;

     (g) generally, to fix and revise from time to time and charge and collect rates, rents, fees and charges for the use of and for the services furnished or to be furnished by a project or any portion thereof and to contract with any person, partnership, association, limited liability company, or corporation or other body public or private in respect thereof, including a contract with or the granting of an option to the lessee to purchase the project for such price and on such conditions as the authority in its sole discretion determines to be appropriate, after retirement or redemption, or provision therefor, of all the bonds issued to provide funds for the project;

     (h) to establish rules and regulations for the use of a project or any portion thereof and to designate a participating hospital as its agent to establish rules and regulations for the use of a project undertaken by such participating hospital;

     (i) to employ consulting engineers, architects, attorneys, accountants, construction and financial experts, superintendents, managers, and such other employees and agents as may be necessary in its judgment, and to fix their compensation;

     (j) to receive and accept from any public agency loans or grants for or in aid of the construction of a project or any portion thereof, and to receive and accept loans, grants, aid or contributions from any source of either money, property, labor or other things of value, to be held, used and applied only for the purposes for which such loans, grants, aid and contributions are made;

     (k) to mortgage all or any portion of any project and any other facilities conveyed to the authority for such purpose and the site or sites thereof, whether presently owned or subsequently acquired, for the benefit of the holders of the bonds of the authority issued to finance such project or any portion thereof or issued to refund or refinance outstanding indebtedness of a participating hospital as permitted by this chapter;

     (l) to make loans to any participating hospital for the cost of any project in accordance with an agreement between the authority and such participating hospital provided that no such loan shall exceed the total cost of such project as determined by such participating hospital and approved by the authority;

     (m) to make loans to a participating hospital to refund outstanding obligations, mortgages, or advances issued, made, or given by such participating hospital for the cost of its facility or facilities, including the power to issue bonds and make loans to a participating hospital to refinance indebtedness incurred for facilities undertaken and prior thereto whenever the authority finds that such financing is in the public interest, and either: (1) alleviates a financial hardship upon the participating hospital; (2) results in a lesser cost of patient care and a saving to third parties, including state or federal governments, and to others who must pay for such care; or (3) enables the participating hospital to offer greater security for a loan or loans to finance a new project or projects or to effect savings in interest costs or more favorable amortization terms;

     (n) to charge to and equitably apportion among participating hospitals its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter; and

     (o) to do all things necessary or convenient to carry out the purposes of this chapter.

     In carrying out the purposes of this chapter, the authority may undertake a project for two or more participating hospitals jointly, or for any combination thereof, and thereupon, all other provisions of this chapter shall apply to and for the benefit of the authority and such joint participants.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1; Acts 1975, P.L.35, SEC.4. As amended by P.L.8-1993, SEC.44.

 

IC 5-1-4-11Payment of expenses

     Sec. 11. Payment of Expenses. All expenses incurred in carrying out the provisions of this chapter shall be payable solely from funds provided under the provisions of this chapter and no liability or obligation shall be incurred by an Authority hereunder beyond the extent to which moneys shall have been provided under the provisions of this chapter, or otherwise appropriated by law to such Authority.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-12Acquisition of property

     Sec. 12. Acquisition of Property by Authority. Any authority is authorized and empowered, directly or by and through a participating hospital, as its agent, to acquire by purchase or by gift or devise such lands, structures, property, real or personal, rights, rights-of-way, franchises, easements and other interests in lands, including lands lying under water and riparian rights, and including existing facilities of a participating hospital as it may deem necessary or convenient for the construction, acquisition or operation of a project, upon such terms and at such prices as may be considered by it to be reasonable and can be agreed upon between it and the owner thereof, and to take title thereto in the name of such Authority or in the name of a participating hospital as its agent.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1; Acts 1975, P.L.35, SEC.5.

 

IC 5-1-4-13Bonds

     Sec. 13. (a) Each authority is hereby authorized to provide by resolution, at one time or from time to time, for the issuance of bonds for the purpose of paying all or any part of the cost of a project.

     (b) The principal of and the interest on such bond shall be payable solely out of the revenues of such authority derived from the project to which they relate.

     (c) The bonds of each issue shall be dated, shall bear interest at such rate or rates, shall mature at such time or times not exceeding fifty (50) years from the date thereof, all as may be determined by the authority, and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority in the authorizing resolution.

     (d) The authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest which may be at any bank or trust company within or without the state.

     (e) The bonds shall be signed in the name of the authority, by the president or vice president, or by the facsimile signature of such president or vice president, and the official seal of the authority, or facsimile thereof, shall be affixed thereto and attested by the secretary of the authority; and any coupons attached thereto shall bear the facsimile signature of the treasurer of the authority.

     (f) In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall, nevertheless, be valid and sufficient for all purposes the same as if he had remained in office until such delivery.

     (g) All bonds issued under the provisions of this chapter shall have and are hereby declared to have all the qualities and incidents of negotiable instruments under the law of the state of Indiana.

     (h) The bonds may be issued in coupon or in registered form, or both, as the authority may determine; and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest.

     (i) The bonds may be sold in such manner, either at public or private sale as the authority may determine; and neither the provisions of IC 5-1-11 nor IC 21-32-3 shall be applicable to such sale.

     (j) The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the project for which such bonds shall have been issued, and shall be disbursed in such manner and under such restrictions, if any, as the authority may provide in the resolution authorizing the issuance of such bonds or in the trust agreement mentioned in this chapter securing the same.

     (k) If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than such cost, additional bonds may in like manner be issued to provide the amount of such deficit, and, unless otherwise provided in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued.

     (l) If the proceeds of the bonds of any issue shall exceed the cost of the project for which the same shall have been issued, the surplus shall be deposited to the credit of the sinking fund for such bonds.

     (m) Prior to the preparation of definitive bonds, an authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery.

     (n) An authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost.

     (o) Bonds may be issued under the provisions of this chapter without obtaining the consent of any officer, department, division, commission, board, bureau or agency of the state, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by this chapter.

     (p) An authority shall have power out of any funds available therefor to purchase its bonds.

     (q) An authority may hold, pledge, cancel or resell such bonds, subject to and in accordance with agreements, if any, with bondholders.

     (r) Neither the members of an authority nor any person executing the bonds or notes shall be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by Acts 1981, P.L.11, SEC.14; P.L.2-2007, SEC.66.

 

IC 5-1-4-14Bond resolutions

     Sec. 14. Bonds Resolution. Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions, which shall be a part of the contract with the holders of the bonds to be authorized, as to: (1) pledging or assigning the revenues of the project with respect to which such bonds are to be issued; (2) the rentals, fees and other amounts to be charged, and the amounts to be raised in each year thereby, and the use and disposition of such amounts; (3) the setting aside of reserves or sinking funds, and the regulation, investment and disposition thereof; (4) limitations on the use of the project; (5) limitations on the purpose to which or the investments in which the proceeds of sale of any issue of bonds then or thereafter to be issued may be applied and pledging such proceeds to secure the payment of the bonds or any issue of the bonds; (6) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured and the refunding of outstanding bonds; (7) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given; (8) limitations on the amount of moneys derived from the project to be expended for operating, administrative or other expenses of an Authority; (9) defining the acts or omissions to act which shall constitute a default in the duties of an Authority to holders of its obligations and providing the rights and remedies of such holders in the event of a default; (10) the mortgaging of a project and the site thereof for the purpose of securing the bondholders; and (11) any other matters relating to the bonds which an Authority deems desirable.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-15Trust agreement to secure bonds

     Sec. 15. Trust Agreement to Secure Bonds. In the discretion of any Authority any bonds issued under the provisions of this chapter may be secured by a trust agreement by and between such Authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received or proceeds of any contract or contracts pledged and may convey or mortgage the project or any portion thereof. Any pledge or assignment made by an Authority pursuant hereto shall be valid and binding from the time that the pledge or assignment is made, and the revenues so pledged and thereafter received by such Authority shall immediately be subject to the lien of such pledge or assignment without physical delivery thereof or further act. The lien of such pledge or assignment shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Authority irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created or assignment made need be filed or recorded in any public records in order to perfect lien thereof as against third parties except that a copy thereof shall be filed in the records of the Authority. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including particularly such provisions as have hereinabove been specifically authorized to be included in any resolution or resolutions of an Authority authorizing bonds thereof. Any bank or trust company incorporated under the laws of this state which may act as depository of the proceeds of bonds or of revenues or other moneys may furnish such indemnifying bonds or pledge such securities as may be required by an Authority. Any such trust agreement may set forth the rights and remedies of the bondholders and of the trustee or trustees, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the operation of a project.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-15.5Loans to participating hospitals

     Sec. 15.5. Loans to Participating Hospitals. Notwithstanding any other provision of this chapter to the contrary, the authority may finance the cost of a project or refund outstanding indebtedness of a participating hospital as authorized by section 10(m) of this chapter by issuing its bonds for the purpose of purchasing the securities of a participating hospital. Any such securities shall have the same principal amounts, maturities and interest rates as the bonds so being issued, may be secured by a first mortgage lien, subject to such exceptions as the authority may approve and created by a mortgage instrument satisfactory to the authority, and may be insured or guaranteed by others. Any such bonds shall be secured by a pledge of such securities under the trust agreement or indenture creating such bonds, shall be payable solely out of the payments to be made on such securities and shall not exceed in principal amount the cost of such project or the refunding of such indebtedness as determined by the participating hospital and approved by the authority. In other respects any such bonds shall be subject to the provisions of this chapter including sections 13 and 14 and the trust agreement or indenture creating such bonds may contain such of the provisions set forth in section 15 hereof as the authority may consider appropriate.

     In the event that a project is financed pursuant to this section, the title to such project shall remain in the participating hospital owning the same, subject to the lien of the mortgage securing the securities then being purchased, and there shall be no lease of such facility between the authority and such participating hospital.

Formerly: Acts 1975, P.L.35, SEC.6.

 

IC 5-1-4-16Refunding bonds

     Sec. 16. An Authority is hereby authorized to provide by resolution for the issuance of refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued by it under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and, if deemed advisable by such Authority, for the additional purpose of constructing improvements, extensions or enlargements of the project in connection with which the bonds to be refunded shall have been issued. Such refunding bonds shall be payable solely out of the revenues of the project (including any such improvements, extensions or enlargements thereto) to which the bonds being refunded relate. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof and the rights, duties and obligations of the Authority in respect of the same, shall be governed by the provisions of this chapter insofar as the same may be applicable.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-17Payment of bonds

     Sec. 17. Payment of Bonds. Bonds issued under the provisions of this chapter shall not be deemed to constitute a debt of the state or of any political subdivision thereof or a pledge of the faith and credit of the state or of any such political subdivision, but such bonds shall be payable solely from the funds pledged for their payment as authorized herein, unless such bonds are refunded by refunding bonds, issued under the provisions of this chapter, which refunding bonds shall be payable solely from funds pledged for their payment as authorized herein. All such revenue bonds shall contain on the face thereof a statement to the effect that the bonds, as to both principal and interest, are not an obligation of the State of Indiana, or of any political subdivision thereof, but are payable solely from revenues pledged for their payment. All expenses incurred in carrying out the provisions of this chapter shall be payable solely from funds provided under the authority of this chapter, and nothing in this chapter contained shall be construed to authorize any Authority to incur indebtedness or liability on behalf of or payable by the state or any political subdivision thereof.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-18Rents and charges

     Sec. 18. Rents and Charges. Each Authority shall fix, revise, charge and collect rents for the use of each project and contract with any participating hospital, in respect thereof. Each lease entered into by an Authority with a participating hospital shall provide that the rents payable by the participating hospital shall be sufficient at all times (a) to pay its share of the administrative costs and expenses of such Authority, (b) to pay the cost of maintaining, repairing and operating the project and each and every portion thereof, (c) to pay the principal of, the premium, if any, and the interest on outstanding bonds of the Authority issued in respect of such project as the same shall become due and payable, and (d) to create and maintain reserves which may but need not be required or provided for in the bond resolution or trust agreement relating to such bonds of the Authority.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-19Bond proceeds and revenues

     Sec. 19. (a) All money received by an authority or held by a trustee under section 15 of this chapter, whether as proceeds from the sale of bonds, from revenues, or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this chapter, but prior to the time when needed for use may be invested to the extent and in the manner determined by the authority. Such funds shall be deposited, held, and secured in accordance with the general laws of the state relating to the handling of public funds.

     (b) The resolution authorizing the issuance of bonds or the trust agreement securing such bonds shall provide that any officer to whom, or any bank or trust company to which, such money shall be entrusted shall act as trustee of such money and shall hold and apply the same for the purposes of this chapter, subject to the provisions of this chapter and of the authorizing resolution or trust agreement.

     (c) The handling and expenditure of funds coming into the possession of an authority shall be subject to audit and supervision by the state board of accounts. The cost of such audit may be treated as an expense of operation.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by P.L.43-1987, SEC.1.

 

IC 5-1-4-20Enforcement of rights and duties

     Sec. 20. Enforcement of Rights and Duties. Any holder of bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent the rights herein given may be restricted by the authorizing resolution or trust agreement, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the state or granted hereunder or under such trust agreement, or the resolution authorizing the issuance of such bonds, and may enforce and compel the performance of all duties required by this chapter or by such trust agreement or resolution to be performed by an Authority or by any officer, employee or agent thereof, including the fixing, charging and collecting of rates, rents, fees and charges herein authorized and required by the provisions of such resolution or trust agreement to be fixed, established and collected.

     Such rights include the right to compel the performance of all duties of an Authority required by this chapter or the bond resolution or trust agreement; to enjoin unlawful activities; and in the event of default with respect to the payment of any principal of, premium, if any, and interest on any bond or in the performance of any convenant or agreement on the part of an Authority in the bond resolution, to apply to a court having jurisdiction of the cause to appoint a receiver to administer and operate the project, the revenues of which are pledged to the payment of principal of, premium, if any, and interest on such bonds, (with full power to pay and to provide for payment of, principal of, premium, if any, and interest on such bonds), and with such powers, subject to the direction of the court, as are permitted by law and are accorded receivers in general equity cases, excluding any power to pledge additional revenues of an Authority to the payment of such principal, premium and interest; and to foreclose the mortgage on the project in the same manner as for real estate of private corporations.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-21Repealed

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. Repealed by P.L.4-1988, SEC.5.

 

IC 5-1-4-22Interest in contracts

     Sec. 22. A member, agent, or employee of an Authority who knowingly is interested in any contract with the Authority or in the sale of any property to the Authority commits a Class A misdemeanor. Such contracts are void. This section does not apply to contracts for purchases of property between an Authority and other departments, municipalities, or subdivisions of state government.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by Acts 1978, P.L.2, SEC.501.

 

IC 5-1-4-23Liberal construction

     Sec. 23. Liberal Construction. This chapter being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes thereof.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-4-24Legal investments

     Sec. 24. Legal Investments. Revenue bonds issued by an Authority under the provisions of this chapter shall constitute legal investments for any private trust funds, and the funds of any banks, trust companies, insurance companies, building and loan associations, credit unions, banks of discount and deposit, savings banks, loan and trust and safe deposit companies, rural loan and savings associations, guaranty loan and savings associations, mortgage guaranty companies, small loan companies and industrial loan and investment companies, and any other financial institutions organized under the laws of the state of Indiana. Such bonds are hereby made securities in which all public officers and public agencies of the state and its political subdivisions may legally and properly invest funds and such bonds may be properly and legally deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or other obligations of the state is now or may hereafter be authorized by law.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by P.L.42-1993, SEC.1.

 

IC 5-1-4-25Repealed

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. Repealed by P.L.4-1988, SEC.5.

 

IC 5-1-4-26Tax exemption

     Sec. 26. The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of a project by an authority or its agent will constitute the performance of essential governmental functions, such authority shall not be required to pay any taxes or assessments upon or in respect of a project or any property acquired or used by such authority under the provisions of this chapter, or upon the income therefrom, and the bonds issued under the provisions of this chapter, the interest thereon, the proceeds received by a holder from the sale of such bonds to the extent of the holder's cost of acquisition, or proceeds received upon redemption prior to maturity or proceeds received at maturity, and the receipt of such interest and proceeds shall be exempt from taxation in the state of Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by P.L.21-1990, SEC.3; P.L.254-1997(ss), SEC.4; P.L.79-2017, SEC.5.

 

IC 5-1-4-27Pledge by state to bondholders and contractors

     Sec. 27. Pledge by State to Bondholders and Contractors. The State of Indiana does hereby pledge to and agree with the holders of any obligations issued under this chapter, and with those parties who may enter into contracts with an Authority pursuant to the provisions of this chapter, that the state will not limit or alter the rights hereby vested in such Authority until such obligations, together with the interest thereon, are fully met and discharged and such contracts are fully performed on the part of such Authority, provided nothing herein contained shall preclude such limitation or alteration if and when adequate provisions shall be made by law for the protection of the holders of such obligations of such Authority or those entering into such contracts with such Authority. An Authority as agent for the state is authorized to include this pledge and undertaking for the state in such obligations or contracts.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by P.L.2-1995, SEC.12.

 

IC 5-1-4-28Supplemental effect

     Sec. 28. (a) This chapter provides a complete, additional, and alternative method for the doing of the things authorized in this chapter and is supplemental and additional to powers conferred by other laws.

     (b) The issuance of bonds and refunding bonds under this chapter need not comply with the requirements of any other law applicable to the issuance of bonds. In the construction and acquisition of a project under this chapter, an authority need not comply with:

(1) IC 5-17-1; or

(2) any competitive bidding law or other restrictions imposed on the procedure for award of contracts for the construction and equipment of a project or the lease, sale, or disposition of property of an authority.

     (c) If the prospective lessee requests in writing, an authority shall call for construction bids in the manner as determined by the authority with the approval of the lessee.

     (d) Except as otherwise expressly provided in this chapter, none of the powers granted to an authority under this chapter shall be subject to the supervision or regulation or require the approval or consent of any political subdivision, commission, board, body, bureau, official, or agency of a political subdivision or the state.

     (e) This subsection applies if the authority disposes of real property or awards a contract for the procurement of property by acceptance of bids, proposals, or quotations. A bid, proposal, or quotation submitted by a trust (as defined in IC 30-4-1-1(a)) must identify each:

(1) beneficiary of the trust; and

(2) settlor empowered to revoke or modify the trust.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1. As amended by P.L.3-1989, SEC.26; P.L.336-1989(ss), SEC.13.

 

IC 5-1-4-29Conflicting laws

     Sec. 29. Act Controlling Over Inconsistent Law. To the extent that the provisions of this chapter are inconsistent with the provisions of any general statute or special act or parts thereof, the provisions of this chapter shall be deemed controlling.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.

 

IC 5-1-5Chapter 5. Refunding Bonds Generally
           5-1-5-1Definitions
           5-1-5-2Issuance of bonds to refund outstanding bonds
           5-1-5-2.5Refunding bonds; eligible school corporations; procedures
           5-1-5-2.5Refunding bonds; eligible school corporations; procedures
           5-1-5-3Exchange for outstanding bonds
           5-1-5-4Refunding procedure
           5-1-5-5Principal amount; reserves to secure bonds
           5-1-5-6Proceeds of refunding bonds; disposition
           5-1-5-7Safekeeping and application of bond proceeds
           5-1-5-8Trust indenture to secure bonds
           5-1-5-9Payment of bonds; sources of revenue
           5-1-5-10Irrevocable pledge to general obligation bond; effect
           5-1-5-11Issuance; separate or in combination
           5-1-5-12Law governing issuance
           5-1-5-13Sale of bonds
           5-1-5-14Cumulative effect of chapter
           5-1-5-15Lease modifications
           5-1-5-16Advance refunding bonds; issuance
           5-1-5-17Last date for payment of certain refunding bonds
           5-1-5-18Use of savings from refunding of bonds

 

IC 5-1-5-1Definitions

     Sec. 1. The following terms as used in this chapter have the following meanings:

     (a) "Governing body" means the council, commission, board of commissioners, board of directors, board of trustees, or other legislative body in which the legislative powers of the issuing body are vested.

     (b) "Issuing body" means the state of Indiana, its agencies, commissions, universities, colleges, institutions, political subdivisions, counties, school corporations, hospital associations, municipal and quasi-municipal corporations, special taxing districts, and any corporation which has issued bonds payable directly or indirectly from lease rentals payable by any of the foregoing issuing bodies, now or hereafter existing under the laws of the state.

     (c) "Bond" means any revenue bond, general obligation bond, or advance refunding bond.

     (d) "Revenue bond" means any bond note, warrant, certificate of indebtedness, or other obligation, including a certificate or other evidence of participation in the lessor's interest in and rights under a lease, for the payment of money issued by an issuing body or any predecessor of any issuing body which is payable from designated revenues, rental payments, special benefits, taxes, or a special fund but excluding any obligation constituting an indebtedness within the meaning of the constitutional debt limitation and any obligation payable solely from special assessments or special assessments and a guaranty fund.

     (e) "General obligation bond" means any bond, note, warrant, certificate of indebtedness, or other obligation of an issuing body which constitutes an indebtedness within the meaning of the constitutional debt limitation.

     (f) "Advance refunding bonds" means bonds issued for the purpose of refunding bonds first subject to redemption or maturing after the date of the advance refunding bonds.

     (g) "Ordinance" means an ordinance of a city or town or resolution or other instrument by which the governing body of the issuing body exercising any power hereunder takes formal action and adopts legislative provisions and matters of some permanency.

     (h) "Corporation which has issued bonds" means a corporation organized under IC 20-47-2 or IC 20-47-3, the laws of any state of the United States of America or of the United States of America, including any bank, trust company, or national association serving as a trustee under an indenture providing for issuance of bonds.

     (i) "Local issuing body" means an issuing body that is:

(1) a political subdivision (as defined in IC 36-1-2-13);

(2) a district (as defined in IC 6-1.1-21.2-5); or

(3) a corporation or other entity that:

(A) is not a body corporate and politic established as an instrumentality of the state; and

(B) has issued bonds that are payable directly or indirectly from lease rentals payable by a political subdivision or district described in subdivision (1) or (2).

     (j) "Special benefit taxes" means a special tax levied and collected on an ad valorem basis on property for the purpose of financing local public improvements that:

(1) are not political or governmental in nature; and

(2) are of special benefit to the residents and property of the area.

     (k) "Tax increment revenues" means an allocation of:

(1) ad valorem property taxes;

(2) state or local adjusted gross income taxes; or

(3) state or local gross retail and use taxes;

to a redevelopment district that is based on an increase in the assessed value, wages, sales, or other economic activity occurring in a designated area. The term includes allocations described in IC 5-28-26-9, IC 6-1.1-21.2-10, IC 36-7-26-10, IC 36-7-27-8, IC 36-7-31-6, and IC 36-7-31.3-4.

     (l) "Redevelopment district" refers to the following:

(1) An airport development zone under IC 8-22-3.5.

(2) A redevelopment district established under:

(A) IC 36-7-14; or

(B) IC 36-7-15.1.

(3) A special taxing district described in:

(A) IC 36-7-14.5-12.5(d); or

(B) IC 36-7-30-3(b).

(4) Another public entity to which tax increment revenues are allocated.

     (m) Words used in this chapter importing singular or plural number may be construed so that one (1) number includes both.

Formerly: Acts 1973, P.L.28, SEC.1; Acts 1975, P.L.36, SEC.1. As amended by P.L.2-2006, SEC.8; P.L.146-2008, SEC.23.

 

IC 5-1-5-2Issuance of bonds to refund outstanding bonds

     Sec. 2. (a) The governing body of any issuing body may by ordinance provide for the issuance of bonds to refund outstanding bonds issued at any time by such issuing body or its predecessor, and to pay redemption premiums and costs of refunding to effect a saving to the issuing body. Issuance of bonds to refund outstanding bonds may also be made in order to pay or discharge all or any part of such outstanding series or issue of bond, including any interest thereon, in arrears or about to become due and for which sufficient funds are not available or to modify restrictive covenants in outstanding bonds impeding additional financing. To determine whether or not a savings will be effected, consideration shall be given to the estimated or known interest payable to the fixed maturities of the refunding bonds, the interest payable on the bonds to be refunded, the costs of issuance of the refunding bonds, including any sale discount, the redemption premiums, if any, to be paid, and the probable earned income from the investment of the refunding bond proceeds pending redemption of the bonds to be refunded.

     (b) The provisions of subsection (a) requiring a savings to be effected do not apply to:

(1) the issuance of bonds to refund previously issued refunding bonds, if the statute under which the refunding bonds are issued expressly exempts such an issue from this savings requirement; or

(2) the issuance of refunding bonds by a school corporation that is an eligible school corporation under section 2.5 of this chapter.

Formerly: Acts 1973, P.L.28, SEC.1. As amended by Acts 1982, P.L.28, SEC.2; P.L.23-1984, SEC.1; P.L.229-2011, SEC.62.

 

IC 5-1-5-2.5Refunding bonds; eligible school corporations; procedures

     Note: This version of section effective until 1-1-2019. See also following version of this section, effective 1-1-2019.

     Sec. 2.5. (a) As used in this section, "eligible school corporation" means a school corporation (as defined in IC 36-1-2-17) that satisfies all the conditions required by this section.

     (b) As used in this section, "increment" means the annual difference between:

(1) the annual debt service payment for the bonds proposed to be retired or refunded; and

(2) the annual debt service payment for the proposed refunding bonds;

for each year that the bonds that are being retired or refunded would have been outstanding.

     (c) In order for a school corporation to be an eligible school corporation under this section, the school corporation must determine that the percentage computed under this subsection for the school corporation is at least twenty percent (20%), regarding the year for which the latest certified levies have been determined. A school corporation shall compute its percentage as follows:

(1) Compute the amount of credits granted under IC 6-1.1-20.6 against the school corporation's combined levy for the school corporation's:

(A) debt service fund, as described in IC 20-46-7-15;

(B) capital projects fund;

(C) transportation fund;

(D) school bus replacement fund; and

(E) racial balance fund.

(2) Compute the school corporation's combined levy for the school corporation's:

(A) capital projects fund;

(B) transportation fund;

(C) school bus replacement fund; and

(D) racial balance fund.

(3) Divide the amount computed under subdivision (1) by the amount computed under subdivision (2) and express it as a percentage.

A school corporation that desires to be an eligible school corporation under this section must submit a written request for a certification by the department of local government finance that the computation of the school corporation's percentage computed under this subsection is correct. The department of local government finance shall, not later than ten (10) working days after the date the department receives the school corporation's request, certify the percentage computed under this subsection for the school corporation.

     (d) A school corporation that desires to be an eligible school corporation under this section shall conduct a public hearing and provide notice of the purpose of the hearing and the time, date, and place of the hearing, published as required by IC 5-3-1, before the school corporation may adopt a resolution under this section. At the public hearing, the governing body must provide the following information:

(1) The annual debt service payments, applicable debt service tax rate, and total debt service payments for the bonds proposed to be retired or refunded.

(2) The annual debt service payments, applicable debt service fund tax rate, and total debt service payments for the proposed refunding bonds.

(3) The annual increment for each year that the bonds that are being retired or refunded would have been outstanding and any other benefits to be derived from issuing the refunding bonds.

     (e) If at least one (1) taxpayer appearing at the public hearing under subsection (d) objects to the proposed resolution and files a written objection with the governing body of the school corporation and the county auditor not more than ten (10) days after the public hearing, a petition requesting the application of a petition and remonstrance process may be filed not more than thirty (30) days after the public hearing by one hundred (100) persons who are either owners of property within the school corporation or registered voters residing within the school corporation. Except as provided in this subsection, the provisions of IC 6-1.1-20-3.1(b) governing the initiation of a petition and remonstrance process for a controlled project (including the provisions governing verification of petitions) apply to a petition under this subsection requesting the application of a petition and remonstrance process. The following apply if a sufficient petition requesting the application of a petition and remonstrance process has been filed as set forth in this subsection:

(1) The petition and remonstrance process prescribed by IC 6-1.1-20-3.2(b) for controlled projects shall be used to determine whether the governing body of the school corporation may adopt a resolution under subsection (g) and issue refunding bonds as provided in subsection (g).

(2) The governing body of the school corporation may not adopt a resolution under subsection (g) and may not issue refunding bonds as provided in subsection (g) unless more individuals sign the petition for the bond refunding under this subsection than the number of individuals signing a remonstrance against the bond refunding under this subsection.

Except as provided in this subsection, the provisions of IC 6-1.1-20-3.2(b) governing the petition and remonstrance process for a controlled project apply to a petition and remonstrance process under this subsection.

     (f) Except as provided in subsection (e), IC 6-1.1-20 does not apply to bonds issued under this section.

     (g) A school corporation that desires to be an eligible school corporation under this section must, before January 1, 2019, and notwithstanding any other law, adopt a resolution that sets forth the following:

(1) The determinations made under subsection (c), including the department of local government finance's certification of the percentage computed under subsection (c).

(2) A determination providing for the:

(A) issuance of bonds to refund not more than fifty percent (50%) of outstanding bonds or leases issued by or on behalf of the school corporation before January 1, 2009; and

(B) payment of redemption premiums and the costs of the refunding.

(3) With respect to the refunding bonds, the following:

(A) The maximum principal amount.

(B) The maximum interest rate.

(C) The annual lease or debt service payment.

(D) The final maturity date.

(E) The estimated amount of the increment that will occur for each year that the bonds that are being retired or refunded by the issuance of refunding bonds would have been outstanding.

(F) A finding that the annual debt service or lease payment on the refunding bonds will not increase the annual debt service or lease payment above the annual debt service or lease payment approved by the school corporation for the original project.

If the governing body adopts a resolution under this section, the governing body must publish notice of the adoption of the resolution as required by IC 5-3-1.

     (h) An eligible school corporation may issue refunding bonds as permitted by this section. In addition, an eligible school corporation may extend the repayment period beyond the repayment period for the bonds that are being retired or refunded by the issuance of refunding bonds. However, the repayment period may be extended only once for a particular bond, and the extension may not exceed ten (10) years after the latest maturity date for any of the bonds being retired or refunded by the eligible school corporation under this section.

     (i) Property taxes imposed by an eligible school corporation to pay debt service for bonds permitted by this section shall be considered for purposes of calculating the limits to property tax liability under Article 10, Section 1 of the Constitution of the State of Indiana and for calculating a person's credit under IC 6-1.1-20.6-7.5. However, property taxes imposed by an eligible school corporation through December 31, 2019, to pay debt service for bonds permitted by this section may not be considered in an eligible county, as used in Article 10, Section 1(h) of the Constitution of the State of Indiana, for purposes of calculating the limits to property tax liability under Article 10, Section 1 of the Constitution of the State of Indiana or for calculating a person's credit under IC 6-1.1-20.6-7.5.

As added by P.L.229-2011, SEC.63. Amended by P.L.145-2012, SEC.1; P.L.257-2013, SEC.1; P.L.120-2014, SEC.1.

 

IC 5-1-5-2.5Refunding bonds; eligible school corporations; procedures

     Note: This version of section effective 1-1-2019. See also preceding version of this section, effective until 1-1-2019.

     Sec. 2.5. (a) As used in this section, "eligible school corporation" means a school corporation (as defined in IC 36-1-2-17) that satisfies all the conditions required by this section.

     (b) As used in this section, "increment" means the annual difference between:

(1) the annual debt service payment for the bonds proposed to be retired or refunded; and

(2) the annual debt service payment for the proposed refunding bonds;

for each year that the bonds that are being retired or refunded would have been outstanding.

     (c) In order for a school corporation to be an eligible school corporation under this section, the school corporation must determine that the percentage computed under this subsection for the school corporation is at least twenty percent (20%), regarding the year for which the latest certified levies have been determined. A school corporation shall compute its percentage as follows:

(1) Compute the amount of credits granted under IC 6-1.1-20.6 against the school corporation's combined levy for the school corporation's:

(A) debt service fund, as described in IC 20-46-7-15;

(B) operations fund (IC 20-46-8); and

(C) racial balance fund (IC 20-46-3).

(2) Compute the school corporation's levy for the school corporation's:

(A) operations fund; and

(B) racial balance fund.

(3) Divide the amount computed under subdivision (1) by the amount computed under subdivision (2) and express it as a percentage.

A school corporation that desires to be an eligible school corporation under this section must submit a written request for a certification by the department of local government finance that the computation of the school corporation's percentage computed under this subsection is correct. The department of local government finance shall, not later than ten (10) working days after the date the department receives the school corporation's request, certify the percentage computed under this subsection for the school corporation.

     (d) A school corporation that desires to be an eligible school corporation under this section shall conduct a public hearing and provide notice of the purpose of the hearing and the time, date, and place of the hearing, published as required by IC 5-3-1, before the school corporation may adopt a resolution under this section. At the public hearing, the governing body must provide the following information:

(1) The annual debt service payments, applicable debt service tax rate, and total debt service payments for the bonds proposed to be retired or refunded.

(2) The annual debt service payments, applicable debt service fund tax rate, and total debt service payments for the proposed refunding bonds.

(3) The annual increment for each year that the bonds that are being retired or refunded would have been outstanding and any other benefits to be derived from issuing the refunding bonds.

     (e) If at least one (1) taxpayer appearing at the public hearing under subsection (d) objects to the proposed resolution and files a written objection with the governing body of the school corporation and the county auditor not more than ten (10) days after the public hearing, a petition requesting the application of a petition and remonstrance process may be filed not more than thirty (30) days after the public hearing by one hundred (100) persons who are either owners of property within the school corporation or registered voters residing within the school corporation. Except as provided in this subsection, the provisions of IC 6-1.1-20-3.1(b) governing the initiation of a petition and remonstrance process for a controlled project (including the provisions governing verification of petitions) apply to a petition under this subsection requesting the application of a petition and remonstrance process. The following apply if a sufficient petition requesting the application of a petition and remonstrance process has been filed as set forth in this subsection:

(1) The petition and remonstrance process prescribed by IC 6-1.1-20-3.2(b) for controlled projects shall be used to determine whether the governing body of the school corporation may adopt a resolution under subsection (g) and issue refunding bonds as provided in subsection (g).

(2) The governing body of the school corporation may not adopt a resolution under subsection (g) and may not issue refunding bonds as provided in subsection (g) unless more individuals sign the petition for the bond refunding under this subsection than the number of individuals signing a remonstrance against the bond refunding under this subsection.

Except as provided in this subsection, the provisions of IC 6-1.1-20-3.2(b) governing the petition and remonstrance process for a controlled project apply to a petition and remonstrance process under this subsection.

     (f) Except as provided in subsection (e), IC 6-1.1-20 does not apply to bonds issued under this section.

     (g) A school corporation that desires to be an eligible school corporation under this section must, before January 1, 2019, and notwithstanding any other law, adopt a resolution that sets forth the following:

(1) The determinations made under subsection (c), including the department of local government finance's certification of the percentage computed under subsection (c).

(2) A determination providing for the:

(A) issuance of bonds to refund not more than fifty percent (50%) of outstanding bonds or leases issued by or on behalf of the school corporation before January 1, 2009; and

(B) payment of redemption premiums and the costs of the refunding.

(3) With respect to the refunding bonds, the following:

(A) The maximum principal amount.

(B) The maximum interest rate.

(C) The annual lease or debt service payment.

(D) The final maturity date.

(E) The estimated amount of the increment that will occur for each year that the bonds that are being retired or refunded by the issuance of refunding bonds would have been outstanding.

(F) A finding that the annual debt service or lease payment on the refunding bonds will not increase the annual debt service or lease payment above the annual debt service or lease payment approved by the school corporation for the original project.

If the governing body adopts a resolution under this section, the governing body must publish notice of the adoption of the resolution as required by IC 5-3-1.

     (h) An eligible school corporation may issue refunding bonds as permitted by this section. In addition, an eligible school corporation may extend the repayment period beyond the repayment period for the bonds that are being retired or refunded by the issuance of refunding bonds. However, the repayment period may be extended only once for a particular bond, and the extension may not exceed ten (10) years after the latest maturity date for any of the bonds being retired or refunded by the eligible school corporation under this section.

     (i) Property taxes imposed by an eligible school corporation to pay debt service for bonds permitted by this section shall be considered for purposes of calculating the limits to property tax liability under Article 10, Section 1 of the Constitution of the State of Indiana and for calculating a person's credit under IC 6-1.1-20.6-7.5. However, property taxes imposed by an eligible school corporation through December 31, 2019, to pay debt service for bonds permitted by this section may not be considered in an eligible county, as used in Article 10, Section 1(h) of the Constitution of the State of Indiana, for purposes of calculating the limits to property tax liability under Article 10, Section 1 of the Constitution of the State of Indiana or for calculating a person's credit under IC 6-1.1-20.6-7.5.

As added by P.L.229-2011, SEC.63. Amended by P.L.145-2012, SEC.1; P.L.257-2013, SEC.1; P.L.120-2014, SEC.1; P.L.244-2017, SEC.1.

 

IC 5-1-5-3Exchange for outstanding bonds

     Sec. 3. Any bonds issued for refunding purposes may be delivered in exchange for the outstanding bonds being refunded or may be sold in the manner hereinafter provided.

Formerly: Acts 1973, P.L.28, SEC.1.

 

IC 5-1-5-4Refunding procedure

     Sec. 4. (a) Bonds may be refunded under this chapter when the holders thereof voluntarily surrender them for exchange or payment, or, if they mature, or are subject to redemption prior to maturity within twenty (20) years from the date of the refunding bonds. In any advance refunding plan under this chapter the governing body shall provide in the ordinance authorizing the issuance of the advance refunding bonds for the redemption of the bonds to be refunded on any redemption date prior to maturity or at maturity.

     (b) The ordinance authorizing the issuance of advance refunding bonds pursuant to this chapter may provide for a maximum interest rate, payable annually or at shorter intervals, and shall provide for the maturities at such time or times as may be determined by the ordinance. The bonds may be made redeemable before maturity at the option of the issuing body at such times and with such premiums, and under such terms and conditions as may be fixed in the ordinance.

     (c) The principal and interest of the bonds may be made payable in any lawful medium. The ordinance shall determine the form of the bonds, including the interest coupons if any to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest thereof, which may be at any bank or trust company within or without the state.

     (d) Subject to registration provisions, all such bonds shall have all the qualities and the incidents of negotiable instruments under the negotiable instruments law of the state. The bonds shall be exempt from all taxation, state, county, and municipal, as provided in IC 6-8-5. Provision may be made for the registration of any of the bonds in the name of the owner as to principal alone, or as to both principal and interest, but fully registered bonds shall be made convertible to coupon bonds at the option of the registered owner. The bonds shall be executed in the same manner as other bonds issued by the issuing body are executed.

Formerly: Acts 1973, P.L.28, SEC.1. As amended by P.L.23-1984, SEC.2.

 

IC 5-1-5-5Principal amount; reserves to secure bonds

     Sec. 5. Refunding bonds may be issued in a principal amount in excess of the principal amount of the bonds to be refunded. The principal amount of the refunding bonds may be less than or the same as the principal amount of the bonds being refunded so long as provision is duly and sufficiently made for the retirement or redemption of such bonds to be refunded. Any reserves held to secure the bonds to be refunded may be applied at the time the bonds to be refunded are paid to the redemption or retirement of such bonds, or if other available funds are sufficient and are used to retire and redeem such bonds, such reserves may be pledged as security for the refunding bonds.

Formerly: Acts 1973, P.L.28, SEC.1.

 

IC 5-1-5-6Proceeds of refunding bonds; disposition

     Sec. 6. The proceeds of the refunding bonds issued pursuant to this chapter shall be placed in escrow and applied, with any other available funds, to the payment on the date selected for redemption of the principal, accrued interest and any redemption premiums of the bonds being refunded, and, if so provided or permitted in the ordinance authorizing the issuance of such refunding bonds or in the trust indenture securing the same, may also be applied to the payment of any interest on such refunding bonds, and any costs of refunding. Pending such application, such escrowed proceeds may be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by the United States of America, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder, not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended. In lieu of such investments, all or part of such proceeds may be placed in interest bearing time certificates of deposits with such eligible financial institutions in the state of Indiana as the governing body shall determine or other similar arrangements may be made with such eligible financial institutions with regard thereto which will assure that such proceeds, together with the interest accruing thereon, will be available when required for the purposes intended, provided that, if required by the governing body, such time certificates of deposits or other similar arrangements shall be secured to the full amount thereof by direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America of the type permitted for direct investment of the escrow fund. All interest or other income earned on such investments shall first be used to pay the interest on the refunding bonds as it becomes due. Any excess shall become a part of and held in the escrow fund. Any balance remaining in the escrow fund after redemption of all the bonds being refunded shall be deposited in the sinking fund established for the payment of the principal and interest on the refunding bonds.

Formerly: Acts 1973, P.L.28, SEC.1; Acts 1974, P.L.12, SEC.1. As amended by P.L.27-2012, SEC.1.

 

IC 5-1-5-7Safekeeping and application of bond proceeds

     Sec. 7. The governing body may contract with respect to the safekeeping and application of the advance refunding bond proceeds and other funds included therewith and the income therefrom. The governing body may provide in the refunding plan that until such moneys are required to redeem or retire revenue bonds to be refunded, the refunding bond proceeds and other available funds, and the income therefrom shall be used to pay and secure the payment of the principal of and interest on the advance refunding bonds. The governing body may additionally pledge for the payment of such refunding bonds any revenues which might legally be pledged for the payment of revenue bonds of the issuer of the type being refunded. Provisions must be made by the governing body for moneys sufficient in amount to accomplish the refunding as scheduled.

Formerly: Acts 1973, P.L.28, SEC.1.

 

IC 5-1-5-8Trust indenture to secure bonds

     Sec. 8. (a) The governing body may secure the bonds by a trust indenture by and between the issuing body and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside of the state of Indiana, and may convey or mortgage property to the same extent as is authorized by statutes applicable to:

(1) the bonds being refunded; or

(2) the bonds that the bonds being refunded had previously refunded.

     (b) The ordinance authorizing the bonds and fixing the details thereof may provide that the trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper, not in violation of law, including covenants setting forth the duties of the issuing body.

     (c) The trust indenture may set forth the rights and remedies of the bondholders or trustee, restricting the individual right of action of bondholders as is customary in trust indenture securing bonds and debentures of corporations. Except as is in this chapter otherwise provided, the governing body may provide by ordinance or in the trust indenture for any other terms or conditions pertaining to the refunding bonds as is authorized by statutes applicable to:

(1) the bonds being refunded; or

(2) the bonds that the bonds being refunded had previously refunded.

Formerly: Acts 1973, P.L.28, SEC.1. As amended by Acts 1982, P.L.28, SEC.3.

 

IC 5-1-5-9Payment of bonds; sources of revenue

     Sec. 9. When an issuing body has irrevocably set aside for and pledged to the payment of revenue bonds to be refunded, advance refunding bond proceeds and other moneys in amounts which together with known earned income from the investment thereof are sufficient in amount to pay the principal of and interest and any redemption premiums on such revenue bonds as the same become due and to accomplish the refunding as scheduled, the governing body may provide that the advance refunding revenue bonds shall be payable from any source which, either at the time of the issuance of the advance refunding bonds or the revenue bonds to be refunded, might legally be or have been pledged for the payment of the revenue bonds refunded to the extent it may legally do so, notwithstanding the pledge of such revenues for the payment of the outstanding revenue bonds being refunded.

Formerly: Acts 1973, P.L.28, SEC.1.

 

IC 5-1-5-10Irrevocable pledge to general obligation bond; effect

     Sec. 10. When funds and investments and the known earned income therefrom in amounts sufficient to pay the principal of and interest and any premium on bonds to be refunded as they become due at their respective maturities or at the date fixed for redemption have been irrevocably pledged to the bonds to be refunded, such bonds shall not constitute an indebtedness of the issuing body within the meaning of any constitutional or statutory debt limitation.

Formerly: Acts 1973, P.L.28, SEC.1. As amended by P.L.44-1987, SEC.1.

 

IC 5-1-5-11Issuance; separate or in combination

     Sec. 11. Bonds for refunding and bonds for any other purpose or purposes authorized may be issued separately or issued in combination in one (1) or more series or issues by the same issuer.

Formerly: Acts 1973, P.L.28, SEC.1.

 

IC 5-1-5-12Law governing issuance

     Sec. 12. Except as specifically provided in this chapter, refunding bonds issued under this chapter shall be issued in accordance with the provisions of law applicable, either at the time of the issuance of the refunding bonds or at the time of issuance of the bonds to be refunded, to:

(1) the type of bonds being refunded; or

(2) the type of bonds that the bonds being refunded had previously refunded.

Formerly: Acts 1973, P.L.28, SEC.1. As amended by Acts 1982, P.L.28, SEC.4.

 

IC 5-1-5-13Sale of bonds

     Sec. 13. Refunding bonds issued under the provisions of this chapter may be sold in such manner and upon such terms and conditions as the issuer of such refunding bonds shall deem to be in the best interests of the issuing body, notwithstanding the provisions of IC 21-32-3, nor the provisions of IC 5-1-11, nor the provisions of any other law to the contrary. However, if such refunding bonds are sold to any person, limited liability company, firm, or corporation that has been rendering financial advisory services to the issuing body in connection with the proceedings and necessary fiscal arrangements related to such refunding bonds, then and in that event the issuing body shall not pay to such purchaser of the refunding bonds any fee or compensation for services rendered or as reimbursement for expenses incurred in connection therewith.

Formerly: Acts 1973, P.L.28, SEC.1. As amended by Acts 1981, P.L.11, SEC.15; P.L.8-1993, SEC.45; P.L.2-2007, SEC.67.

 

IC 5-1-5-14Cumulative effect of chapter

     Sec. 14. The authority of an issuing body to issue refunding bonds pursuant to this chapter is additional to any existing authority to issue such bonds and nothing in this chapter shall prevent the issuance of such bonds pursuant to any other law, and this chapter shall not be construed to amend any existing law authorizing the issuance of refunding bonds by an issuing body.

Formerly: Acts 1973, P.L.28, SEC.1.

 

IC 5-1-5-15Lease modifications

     Sec. 15. In connection with the issuance of refunding bonds, an issuing body and the lessee, or lessees, of any building, or buildings, financed from the proceeds of the bonds being refunded may enter into an amendment to the lease modifying or amending the provisions of such lease in any one (1) or more of the following respects:

     (a) to provide for a reduction in the amount of lease rental payable by the lessee, or lessees, to be effective upon the redemption of the bonds being refunded; or the happening of the events set forth in section 9 of this chapter if permitted by law and the covenants on the bonds to be refunded;

     (b) to provide for extensions or reductions of the times set forth in the lease before the options of the lessee or lessees to purchase may be exercised to such times as may be agreed upon between the issuing body and the lessee or lessees;

     (c) to provide that the lease rental payable by the lessee or lessees, after the redemption of all the bonds being refunded may be payable to the trustee under a trust indenture securing such refunding bonds.

     The refunding herein authorized shall in no way affect the obligation of the lessee or lessees to pay the lease rental under the lease of the building or buildings, except to the extent such lease rental may be reduced by any amendment as hereinbefore authorized.

Formerly: Acts 1973, P.L.28, SEC.1.

 

IC 5-1-5-16Advance refunding bonds; issuance

     Sec. 16. Notwithstanding any other law, advance refunding bonds may be issued by an issuing body without obtaining the approval of the utility regulatory commission whether such advance refunding bonds are issued under this chapter or any other law.

As added by P.L.44-1987, SEC.2. Amended by P.L.23-1988, SEC.3.

 

IC 5-1-5-17Last date for payment of certain refunding bonds

     Sec. 17. (a) This section applies to bonds that are:

(1) issued after June 30, 2008, by a local issuing body; and

(2) payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes;

including bonds that are issued under a statute that permits the bonds to be issued without complying with any other law or otherwise expressly exempts the bonds from the requirements of this section.

     (b) Except as provided by section 2.5 of this chapter, the last date permitted under an agreement for the payment of principal and interest on bonds that are issued to retire or otherwise refund other revenue bonds or general obligation bonds may not extend beyond the maximum term of the bonds being refunded.

As added by P.L.146-2008, SEC.24. Amended by P.L.229-2011, SEC.64.

 

IC 5-1-5-18Use of savings from refunding of bonds

     Sec. 18. (a) This section applies to bonds that are:

(1) issued after June 30, 2008, by a local issuing body; and

(2) payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes;

including bonds that are issued under a statute that permits the bonds to be issued without complying with any other law or otherwise expressly exempts the bonds from the requirements of this section.

     (b) Savings (as computed under section 2 of this chapter) that accrue from the issuance of bonds to retire or otherwise refund other bonds may be used only for the following purposes:

(1) To maintain a debt service reserve fund for the refunding bonds at the level required under the terms of the refunding bonds, if the local issuing body adopts an ordinance, resolution, or order authorizing that use of the proceeds or earnings.

(2) To pay the principal or interest, or both, on:

(A) the refunding bonds; or

(B) other bonds, if the issuing body approves an ordinance authorizing the use of the savings to pay principal or interest on other bonds.

(3) To reduce the rate or amount of ad valorem property taxes, special benefit taxes on property, or tax increment revenues imposed by or allocated to the local issuing body.

     (c) An increment as computed under section 2.5 of this chapter that occurs from the issuance of bonds by an eligible school corporation to retire or otherwise refund other bonds as provided in section 2.5 of this chapter may be used only to make transfers permitted by IC 20-46-7-15 for the eligible school corporation.

As added by P.L.146-2008, SEC.25. Amended by P.L.229-2011, SEC.65.

 

IC 5-1-6Chapter 6. Revenue Bond Refinancing
           5-1-6-1Short title
           5-1-6-2Definitions
           5-1-6-3Issuance of refunding bonds to refinance and improve enterprise
           5-1-6-4Authorization by ordinance or resolution; municipally owned public utility; any enterprise
           5-1-6-5Terms and covenants of refunding bonds; negotiability
           5-1-6-6Validity of authorization; issuance and obligations; recitals in bond
           5-1-6-7Sale and exchange of refunding bonds
           5-1-6-8Lien on revenues of enterprise to secure bonds; additional security; priority; restrictions
           5-1-6-9Liability of issuing body
           5-1-6-10Exemption from taxation; exception
           5-1-6-11Fiscal agent
           5-1-6-12Duties of issuing body and others to secure payment of bonds and interest
           5-1-6-13Additional powers of governing body; restrictions
           5-1-6-14Default in payment of principal or interest of bonds; receiver; rights and powers; subsequent defaults; supervision of courts
           5-1-6-15Remedy; nature
           5-1-6-16Powers conferred by chapter

 

IC 5-1-6-1Short title

     Sec. 1. This chapter may be cited as "The Revenue Bond Refinancing Law of 1937."

[Pre-Local Government Recodification Citation: 19-8-7-1.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-2Definitions

     Sec. 2. The following terms wherever used or referred to in this chapter shall have the following meanings, unless a different meaning appears from the context:

     (a) The term "issuing body" shall mean counties, cities, towns, townships, school cities, school towns, districts, political or civil subdivisions, or other public corporate bodies of this state.

     (b) The term "governing body" shall mean the council, commission, board, or other body, officer, or officers which constitutes the governing body of an issuing body.

     (c) The term "law" shall mean any law, act, or statute, general, special, or local, of this state.

     (d) The term "enterprise" shall mean any work or works, undertaking, utility, or project which the issuing body is authorized to construct and from which the municipality derives revenues for the refinancing, or the refinancing and improving of which enterprise, refunding bonds are issued under this chapter, and such enterprise shall include all improvements, betterments, extensions and replacements thereto, and all appurtenances, facilities, lands, rights in land, water rights, franchises, and structures in connection therewith or incidental thereto.

     (e) The term "federal agency" shall include the United States of America, the President of the United States of America, or any agency, instrumentality or corporation of the United States of America, designated or created by or pursuant to any act or acts or joint resolution or joint resolutions of the Congress of the United States of America, or which may be owned or controlled, directly or indirectly, by the United States of America.

     (f) The term "improving" shall mean reconstructing, replacing, extending, repairing, bettering, equipping, developing, embellishing or improving or any one (1) or more or all of the foregoing.

     (g) The term "refunding bonds" shall mean notes, bonds, or other obligations of an issuing body issued pursuant to this chapter, or pursuant to any other law, as supplemented by, or in conjunction with this chapter.

     (h) The term "refinancing" shall mean funding, refunding, paying, or discharging, by means of refunding bonds or the proceeds received from the sale thereof, all or any part of any notes, bonds, or other obligations issued to finance or to aid in financing the acquisition, construction or improving of an enterprise and payable solely from all or any part of the revenues thereof, including interest thereon in arrears or about to become due, whether or not represented by coupons or interest certificates.

     (i) The term "revenues" shall mean all fees, tolls, rates, rentals and charges to be levied and collected in connection with and all other income and receipts of whatever kind or character derived by the issuing body from the operation of any enterprise or arising from any enterprise.

     (j) The term "holder of bonds" or "bondholders" or any similar term shall mean any person who shall be the bearer of any outstanding refunding bond or refunding bonds registered to bearer or not registered, or the registered owner of any such outstanding bond or bonds which shall at the time be registered other than to bearer.

     (k) Words importing the singular number shall include the plural number in each case and vice versa, and words importing persons shall include firms, limited liability companies, and corporations.

[Pre-Local Government Recodification Citation: 19-8-7-2.]

As added by Acts 1980, P.L.8, SEC.10. Amended by P.L.8-1993, SEC.46; P.L.233-2015, SEC.5.

 

IC 5-1-6-3Issuance of refunding bonds to refinance and improve enterprise

     Sec. 3. Any issuing body shall have power and is hereby authorized to refinance, or to refinance and improve, any enterprise, and for such purpose or purposes to borrow money and issue refunding bonds from time to time.

[Pre-Local Government Recodification Citation: 19-8-7-3.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-4Authorization by ordinance or resolution; municipally owned public utility; any enterprise

     Sec. 4. (a) The refunding bonds shall be authorized by ordinance or resolution of the governing body. Such ordinance or resolution may be adopted at a regular or special meeting, and at the same meeting at which they are introduced in the manner now provided by law.

     (b) Whenever refunding bonds are to be authorized and issued under this chapter for the purpose of refinancing and improving any municipally owned public utility (other than a sewage treatment works or a municipally owned public utility originally constructed pursuant to IC 8-1-2) the issuing body desiring to issue such refunding bonds shall file its petition in the office of the utility regulatory commission setting forth the facts showing the necessity for refinancing and improving such municipally owned utility and praying for the approval thereof by said commission. The petitioner shall give notice of the filing of such petition and hearing thereon to the citizens and taxpayers of said issuing body by publication once each week for two (2) weeks prior to such hearing in a newspaper published in such issuing body, or in case no newspaper is there published, then in a newspaper published in the county in which such issuing body is situated, and if there be no newspaper published in such county, notice shall be posted for fifteen (15) days in three (3) public places therein. On the hearing of such petition, if it appears that a necessity exists for the relief prayed for, the utility regulatory commission shall approve the issuance of the refunding bonds, either as prayed for or with such modifications or on such conditions as may be deemed just and proper. Such approval shall contain a certification that the income and revenues of said utility, in addition to providing for operation and maintenance, and depreciation, are sufficient to pay the principal and interest of said bonds, together with a margin of ten percent (10%) in excess thereof. All such bonds so issued under the order of such commission shall be incontestable except for fraud, forgery, or violation of constitutional limitations. If on such hearing it shall appear that such relief should not be granted, the utility regulatory commission shall so declare and such bonds shall not be issued; however, in case any petition for the approval of the issuance of such bonds has been denied by the commission, the governing body affected by such denial may within ten (10) days from the date of such denial, file a petition with the commission praying for submission of the question of whether such bonds shall be issued, to the legal voters of such issuing body affected thereby. If such commission be satisfied that said last mentioned petition is in due form, it shall grant the prayer thereof within ten (10) days from the filing of such petition and order such election at a time to be fixed in such order. The county auditor shall give notice for such election and all proceedings for the holding of such election shall be governed by the law regulating general elections in such issuing body. The county auditor shall certify the result of such election to the utility regulatory commission, and if such result be in favor of the issuance of such bonds, said commission within ten (10) days after the filing of such certificate of result shall enter an order approving the issuance of said bonds. All cost and expenses for the holding of such election shall be paid by the issuing body proposing to issue such bonds.

     (c) Whenever refunding bonds are to be authorized and issued, under this chapter, for the purpose of refinancing any enterprise, or for the purpose of refinancing and improving any enterprise except those mentioned in subsection (b), no proceedings or procedure of any character whatever, other than the adoption of the ordinance or resolution authorizing the issuance of such refunding bonds, shall be required for the issuance of such refunding bonds by the issuing body.

     (d) Notwithstanding subsection (b) or any other law, refunding bonds may be issued under this chapter by an issuing body without approval of the utility regulatory commission if the governing body of the issuing body finds that the refunding will either provide a savings to the issuing body or will not, by itself, result in a rate increase.

[Pre-Local Government Recodification Citation: 19-8-7-4.]

As added by Acts 1980, P.L.8, SEC.10. Amended by P.L.44-1987, SEC.3; P.L.23-1988, SEC.4.

 

IC 5-1-6-5Terms and covenants of refunding bonds; negotiability

     Sec. 5. The refunding bonds may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times not exceeding forty (40) years from their respective dates, may bear interest at any rate, payable annually or at shorter intervals, may be in such denomination or denominations, may be in such form, either coupon or registered, may carry such registration and conversion privileges, may be executed in such manner, may be payable in such medium of payment, at such place or places, may be subject to such terms of redemption, with or without a premium, may be declared or become due before the maturity date, may provide for the replacement of mutilated, destroyed, stolen, or lost bonds, may be authenticated in such manner and upon compliance with such conditions, and may contain such other terms and covenants, as may be provided by ordinance or resolution of the governing body. Notwithstanding the form or tenor, and in the absence of an express recital on the face thereof that the bond is nonnegotiable, all refunding bonds shall at all times be, and shall be treated as, and have all the qualities and incidents of negotiable instruments for all purposes.

[Pre-Local Government Recodification Citation: 19-8-7-5.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-6Validity of authorization; issuance and obligations; recitals in bond

     Sec. 6. Refunding bonds bearing the signatures of officers of the issuing body in office on the date of the signing shall be valid and binding obligations of the issuing body for all purposes, notwithstanding that before the delivery thereof any or all of the persons whose signatures appear thereon shall have ceased to be officers of the issuing body, the same as if such persons had continued to be officers of the issuing body until after delivery. The validity of the authorization and issuance of the refunding bonds shall not be dependent on or affected in any way by proceedings taken for the improving of any enterprise for the refinancing and improving of which the refunding bonds are to be issued, or by contracts made in connection with the improving of any such enterprise. Any resolution or ordinance authorizing refunding bonds may provide that any such refunding bond may contain a recital that such refunding bond is issued pursuant to this chapter, and any refunding bond containing such recital under authority of any such resolution shall be conclusively deemed to be valid and to have been issued in conformity with the provisions of this chapter.

[Pre-Local Government Recodification Citation: 19-8-7-6.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-7Sale and exchange of refunding bonds

     Sec. 7. (a) The refunding bonds may be sold or exchanged in installments at different times, or an entire issue or series may be sold or exchanged at one (1) time. Any issue or series of refunding bonds may be exchanged in part or sold in part in installments at different times or at one (1) time. The refunding bonds may be sold or exchanged at any time, on, before, or after the maturity of any of the outstanding notes, bonds, or other obligations to be refinanced thereby.

     (b) If the governing body determines to exchange any refunding bonds, such refunding bonds may be exchanged privately for and in payment and discharge of any of the outstanding notes, bonds or other obligations of the issuing body issued to finance or to aid in financing the acquisition, the construction, the improving, the refinancing, or the improving and refinancing, of an enterprise. The refunding bonds may be exchanged for a like or greater principal amount of such notes, bonds or other obligations of the issuing body, except that the principal amount of the refunding bonds may exceed the principal amount of such outstanding notes, bonds, or other obligations to the extent necessary or advisable, in the discretion of the governing body, to fund interest in arrears or about to become due. The holder or holders of such outstanding notes, bonds, or other obligations need not pay accrued interest on the refunding bonds to be delivered in exchange therefor if and to the extent that interest is due or accrued and unpaid on such outstanding notes, bonds, or other obligations to be surrendered.

     (c) If the governing body determines to sell any refunding bonds, such refunding bonds shall be sold at not less than par at public sale in such manner and upon such terms as the governing body shall deem best for the interests of the issuing body.

[Pre-Local Government Recodification Citation: 19-8-7-7.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-8Lien on revenues of enterprise to secure bonds; additional security; priority; restrictions

     Sec. 8. (a) The refunding bonds shall be special obligations of the issuing body and shall be payable from and secured by a lien upon the revenues of the enterprise, as shall be more fully described in the ordinance or resolution of the governing body authorizing the issuance of the refunding bonds, and, subject to the constitution and to the prior or superior rights of any person, any issuing body shall have power by ordinance or resolution of its governing body to pledge and assign for the security of the refunding bonds all or any part of the gross or the net revenues of such enterprise.

     (b) As additional security for any issue of refunding bonds hereunder, or any part thereof, any issuing body shall have power, and is hereby authorized, by ordinance or resolution of its governing body to confer upon the holders of the refunding bonds all rights, powers and remedies which said holders would be entitled to if they were the owners and had possession of the notes, bonds or other obligations for the refinancing of which such refunding bonds shall have been issued including, but not limited to, the preservation of the lien of such notes, bonds or other obligations without extinguishment, impairment or diminution thereof. In the event any issuing body exercises the power conferred by this subsection:

(1) each refunding bond shall contain a recital to the effect that the holder thereof has been granted the additional security provided by this subsection; and

(2) each note, bond or other obligation of the issuing body to be refinanced by any such refunding bonds, shall be kept intact and shall not be cancelled or destroyed until the refunding bonds, and interest thereon, have been finally paid and discharged but shall be stamped with a legend to the effect that such note, bond, or other obligation has been refunded pursuant to this chapter.

     (c) All refunding bonds of the same issue shall be equally and ratably secured, without priority by reason of number, date of bonds, of sale, of execution or of delivery, by a lien upon the revenues of the enterprise in accordance with the provisions of this section and the ordinance or resolution authorizing the issuance of such refunding bonds.

     (d) Nothing in this section or in any other section of this chapter shall be deemed in any way to alter the terms of any agreements made with the holders of any outstanding notes, bonds, or other obligations of the issuing body or to authorize the issuing body to alter the terms of any such agreements, or to impair, or to authorize the issuing body to impair the rights and remedies of any creditors of the issuing body.

     (e) Nothing in this section or any other section of this chapter shall be deemed in any way to authorize any issuing body to do anything in any manner or for any purpose which would result in the creation or incurring of a debt or indebtedness or the issuance of any instrument which would constitute a bond or debt within the meaning of any provision, limitation, or restriction of the constitution relating to the creation or incurring of a debt or indebtedness or the issuance of an instrument constituting a bond or debt.

[Pre-Local Government Recodification Citation: 19-8-7-8.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-9Liability of issuing body

     Sec. 9. (a) No recourse shall be had for the payment of the refunding bonds, or interest thereon, or any part thereof, against the general fund of any issuing body, nor shall the credit or taxing power of any issuing body be deemed to be pledged thereto.

     (b) The refunding bonds, and interest thereon, shall not be a debt of the issuing body, nor a charge, lien, or encumbrance, legal or equitable, upon any property of the issuing body, or upon any income, receipts, or revenues of the issuing body other than such of the revenues of the enterprise as shall have been pledged to the payment thereof, and every refunding bond shall recite in substance that said bond, including interest thereon, is payable solely from the revenues pledged to the payment thereof and that the issuing body is under no obligation to pay the same, except from said revenues.

[Pre-Local Government Recodification Citation: 19-8-7-9.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-10Exemption from taxation; exception

     Sec. 10. The refunding bonds and the income therefrom shall be exempt from taxation, except the financial institutions tax and inheritance, estate and transfer taxes.

[Pre-Local Government Recodification Citation: 19-8-7-10.]

As added by Acts 1980, P.L.8, SEC.10. Amended by P.L.21-1990, SEC.4.

 

IC 5-1-6-11Fiscal agent

     Sec. 11. Any issuing body shall have power in connection with the issuance of refunding bonds to appoint a fiscal agent, to provide for the powers, duties and functions and compensations of such fiscal agent, to limit the liabilities of such fiscal agent, to prescribe a method for the resignation, removal, merger or consolidation of such fiscal agent and the appointment of a successor fiscal agent and the transfer of rights and properties to such successor fiscal agent.

[Pre-Local Government Recodification Citation: 19-8-7-11.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-12Duties of issuing body and others to secure payment of bonds and interest

     Sec. 12. (a) In order that the payment of the refunding bonds, and interest thereon, shall be adequately secured, any issuing body issuing refunding bonds pursuant to this chapter and the proper officers, agents and employees thereof, are hereby directed, and it shall be the mandatory duty of such issuing body and such officers, agents and employees under this chapter, and it shall further be of the essence of the contract of such issuing body with the bondholders, at all times:

(1) to pay or cause to be paid punctually the principal of every refunding bond, and the interest thereon, on the date or dates and at the place or places and in the manner and out of the funds mentioned in such refunding bonds and in the coupons thereto appertaining and in accordance with the resolution authorizing their issuance;

(2) to operate the enterprise in an efficient and economical manner and to establish, levy, maintain, and collect such fees, tolls, rentals, rates and other charges in connection therewith as may be necessary or proper, which said fees, tolls, rates, rentals, and other charges shall be at least sufficient after making due and reasonable allowances for contingencies and for a margin of error in the estimates:

(i) to pay all current expenses of operation, maintenance and repair of such enterprise;

(ii) to pay the interest on and principal of the refunding bonds as the same shall become due and payable;

(iii) to comply in all respects with the terms of the ordinance or resolution authorizing the issuance of refunding bonds or any other contract or agreement with the holders of the refunding bonds; and

(iv) to meet any other obligations of the issuing body which are charges, liens, or encumbrances upon the revenues of such enterprise;

provided, however, that nothing in this section shall be construed as curtailing any authority of the utility regulatory commission to approve rates or charges;

(3) to operate, maintain, preserve, and keep, or cause to be operated, maintained, preserved, and kept, the enterprise and every part and parcel thereof, in good repair, working order and condition;

(4) to preserve and protect the security of the refunding bonds and the rights of the holders thereof, and to warrant and defend such rights against all claims and demands of all persons whomsoever;

(5) to pay and discharge, or cause to be paid or discharged any and all lawful claims for labor, materials, and supplies, which, if unpaid, might by law become a lien or charge upon the revenues or any part thereof, prior or superior to the lien of the refunding bonds, or which might impair the security of the refunding bonds, to the end that the priority and security of the refunding bonds shall be fully preserved and protected;

(6) to hold in trust the revenues pledged to the payment of the refunding bonds for the benefit of the holders of the refunding bonds and to apply such revenues only as provided by the resolution or resolutions authorizing the issuance of the refunding bonds or, if such resolution or resolutions shall thereafter be modified in the manner provided therein or herein, only as provided in such resolution or resolutions as modified; and

(7) to keep proper books of record and accounts of the enterprise (separate from all other records and accounts) in which complete and correct entries shall be made of all transactions relating to the enterprise or any part thereof, and which, together with all other books and papers of the issuing body, shall at all times be subject to the inspection of the holder or holders of not less than ten percent (10%) of the refunding bonds then outstanding or his or their representatives duly authorized in writing.

     (b) None of the foregoing duties shall be construed to require the expenditure in any manner or for any purpose by the issuing body of any funds other than revenues received or receivable from the enterprise.

[Pre-Local Government Recodification Citation: 19-8-7-12.]

As added by Acts 1980, P.L.8, SEC.10. Amended by P.L.23-1988, SEC.5.

 

IC 5-1-6-13Additional powers of governing body; restrictions

     Sec. 13. (a) The governing body shall have power, in addition to the other powers conferred by this chapter, to insert provisions in any ordinance or resolution authorizing the issuance of refunding bonds, which shall be a part of the contract with the holders of the refunding bonds, as to:

(1) limitations on the purpose to which the proceeds of sale of any issue of refunding bonds, or any notes, bonds, or other obligations then or thereafter to be issued to finance the improving of the enterprise, may be applied;

(2) limitations on the issuance of additional refunding bonds, or additional notes, bonds, or other obligations to finance the improving of the enterprise, and on the lien thereof;

(3) limitations on the right of the issuing body or its governing body to restrict and regulate the use of the enterprise;

(4) the amount and kind of insurance to be maintained on the enterprise, and the use and disposition of insurance monies;

(5) pledging all or any part of the revenues of the enterprise to which its right then exists or the right to which may thereafter come into existence;

(6) covenanting against pledging all or any part of the revenues of the enterprise to which its right then exists or the right to which may thereafter come into existence;

(7) events of default and terms and conditions upon which any or all of the refunding bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;

(8) the rights, liabilities, powers, and duties arising upon the breach by it of any covenants, conditions or obligations;

(9) the vesting in a trust or trustees the right to enforce any covenants made to secure, to pay, or in relation to the refunding bonds, as to the powers and duties of such trustee or trustees, and the limitation of liabilities thereof, and as to the terms and conditions upon which the holders of the refunding bonds or any proportion or percentage of them may enforce any covenants made under this chapter or duties imposed hereby;

(10) a procedure by which the terms of any resolution or ordinance authorizing refunding bonds, or any other contract with bondholders, including but not limited to an indenture of trust or similar instrument, may be amended or abrogated as to the amount of refunding bonds, the holders of which must consent thereto, and the manner in which such consent may be given;

(11) the execution of all instruments necessary or convenient in the exercise of the powers granted by this chapter or in the performance of the duties of the issuing body and the officers, agents, and employees thereof;

(12) refraining from pledging or in any manner whatever claiming or taking the benefit or advantage of any stay or extension law whenever enacted, which may affect the duties or covenants of the issuing body in relation to the refunding bonds, or the performance thereof, or the lien of such refunding bonds;

(13) the purchase out of any funds available therefor, including but not limited to the proceeds of refunding bonds, of any outstanding notes, bonds, or obligations, including but not limited to refunding bonds, and the price or prices at which and the manner in which such purchases may be made; and

(14) any other acts and things as may be necessary or convenient or desirable in order to secure the refunding bonds, or as may tend to make the refunding bonds more marketable.

     (b) Nothing in this section shall be construed to authorize any issuing body to make any covenants, to perform any act or to do anything which shall require the expenditure in any manner or for any purpose by the issuing body of any funds other than revenues received or receivable from the enterprise.

[Pre-Local Government Recodification Citation: 19-8-7-13.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-14Default in payment of principal or interest of bonds; receiver; rights and powers; subsequent defaults; supervision of courts

     Sec. 14. (a) In the event that the issuing body shall default in the payment of the principal or interest on any of the refunding bonds after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty (30) days, or in the event that the issuing body or the governing body or officers, agents, or employees thereof shall fail or refuse to comply with the provisions of this chapter or shall default in any agreement made with the holders of the refunding bonds, any holder or holders of refunding bonds, or trustee therefor, shall have the right to apply in an appropriate judicial proceeding in the circuit or superior court of the county in which the issuing body or the greater territorial portion thereof is situated, or in which the enterprise is located, or any court of competent jurisdiction, for the appointment of a receiver of the enterprise, whether or not all refunding bonds have been declared due and payable and whether or not such holder or holders, or trustee therefor, is seeking or has sought to enforce any other right, or exercise any remedy in connection with such refunding bonds. Upon such application the circuit or superior court may appoint, and if the application is made by the holders of twenty-five percent (25%) in principal amount of such refunding bonds then outstanding, or any trustee for holders of such refunding bonds in such principal amount, shall appoint a receiver of the enterprise.

     (b) The receiver so appointed shall forthwith, directly or by his agents and attorneys, enter into and upon and take possession of the enterprise and each and every part thereof and may exclude the issuing body, its governing body, officers, agents, and employees and all persons claiming under them wholly therefrom and shall have, hold, use, operate, manage, and control the same and each and every part thereof, and, in the name of the issuing body or otherwise, as the receiver may deem best, and shall exercise all rights and powers of the issuing body with respect to the enterprise as the issuing body itself might do. Such receiver shall maintain, restore, insure and keep insured, the enterprise, and from time to time shall make all such necessary or proper repairs as to such receiver may seem expedient and shall establish, levy, maintain and collect such fees, tolls, rentals, and other charges in connection with the enterprise as such receiver may deem necessary or proper and reasonable, and shall collect and receive all revenues and shall deposit the same in a separate account and apply such revenues so collected and received in such manner as the court shall direct.

     (c) Whenever all that is due upon the refunding bonds, and interest thereon, and upon any other notes, bonds or other obligations, and interest thereon, having a charge, lien, or encumbrance on the revenues of the enterprise and under any of the terms of any covenants or agreements with bondholders shall have been paid or deposited as provided therein, and all defaults shall have been cured and made good, the court may in its discretion, and after such notice and hearing as it deems reasonable and proper, direct the receiver to surrender possession of the enterprise to the issuing body, the same right of the holders of the refunding bonds to secure the appointment of a receiver to exist upon any subsequent default as hereinabove provided.

     (d) Such receiver shall in the performance of the powers hereinabove conferred upon him, act under the direction and supervision of the court making such appointment and shall at all times be subject to the orders and decrees of such court and may be removed thereby. Nothing herein contained shall limit or restrict the jurisdiction of such court to enter such other and further orders and decrees as such court may deem necessary or appropriate for the exercise by the receiver of any functions specifically set forth herein.

[Pre-Local Government Recodification Citation: 19-8-7-14.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-15Remedy; nature

     Sec. 15. (a) Subject to any contractual limitations binding upon the holders of any issue of refunding bonds, or trustee therefor, including but not limited to the restrictions of the exercise of any remedy to a specified proportion or percentage of such holders, any holder of refunding bonds, or trustee therefor, shall have the right and power, for the equal benefit and protection of all holders of refunding bonds similarly situated:

(1) by mandamus or other suit, action or proceeding at law or in equity to enforce his rights against the issuing body and its governing body and any of its officers, agents and employees and to require and compel such issuing body or such governing body or any such officers, agents, or employees to perform and carry out its and their duties and obligations under this chapter and its and their covenants and agreements with bondholders;

(2) by action or suit in equity to require the issuing body and the governing body thereof to account as if they were the trustee of an express trust;

(3) by action or suit in equity to enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders; and

(4) to bring suit upon the refunding bonds.

     (b) No remedy conferred by this chapter upon any holder of refunding bonds, or any trustee therefor, is intended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by this chapter or by any other law. No waiver of any default or breach of duty or contract, whether by any holder of refunding bonds, or any trustee therefor, shall extend to or shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any bondholder or any trustee therefor to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein. Every substantive right and every remedy, conferred upon the holders of refunding bonds, may be enforced and exercised from time to time and as often as may be deemed expedient. In case any suit, action, or proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued or abandoned, or shall be determined adversely to the holder of the refunding bonds, or any trustee therefor, then and in every such case the issuing body and such holder, or such trustee, shall be restored to their former positions and rights and remedies as if no such suit, action or proceeding had been brought or taken.

[Pre-Local Government Recodification Citation: 19-8-7-15.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-6-16Powers conferred by chapter

     Sec. 16. This chapter constitutes full and complete authority for the issuance of refunding bonds. No procedure or proceedings, publications, notices, consents, approvals, orders, acts or things by any governing body, or any board, officer, commission, department, agency, or instrumentality of the state or any issuing body shall be required to issue any refunding bonds or to do any act or perform any thing under this chapter, except as may be prescribed in this chapter. The powers conferred by this chapter shall be in addition and supplemental to, and not in substitution for, and the limitations imposed by this chapter shall not affect, the powers conferred by any other law. This chapter is remedial in nature and shall be liberally construed.

[Pre-Local Government Recodification Citation: 19-8-7-16.]

As added by Acts 1980, P.L.8, SEC.10.

 

IC 5-1-7Chapter 7. Redemption Bonds of Counties and Townships
           5-1-7-1Contract with bond owner to pay matured bond by issuing redemption bond
           5-1-7-2Partial payments of principal with interest accrued; form of contract; cancellation of matured bond
           5-1-7-3Execution of contract; procedure
           5-1-7-4Calculation of tax levy necessary to make payments on principal and interest on redemption bonds; submission to county council
           5-1-7-5"Bond owner" or "bondholder" defined
           5-1-7-6Validity or priority of lien of bond against taxable property
           5-1-7-7"Bond" and "bond fund" defined

 

IC 5-1-7-1Contract with bond owner to pay matured bond by issuing redemption bond

     Sec. 1. Whenever the bond fund of any county or of any township in this state is, for any reason, insufficient to pay the bonds of such county or township or any of them, at the date of the maturity thereof, together with the interest which shall have accrued thereon, the board of commissioners of such county is hereby authorized to represent and as representing the taxing district liable for the payment of any such bond to enter into a contract with the owner of any such bond to pay such matured bond by the issuance of a redemption bond, in the same amount and at any rate of interest and to pay such redemption bond and the accrued interest thereon, in not more than ten (10) annual installments, in the manner and subject to the conditions prescribed in this chapter.

[Pre-Local Government Recodification Citation: 17-3-82-1.]

As added by Acts 1980, P.L.8, SEC.12.

 

IC 5-1-7-2Partial payments of principal with interest accrued; form of contract; cancellation of matured bond

     Sec. 2. The contract entered into by the board of commissioners of any county and any such bondholder shall be signed by the parties to such contract, shall be attested on behalf of the county by the county auditor, and shall stipulate and agree that the board of commissioners of the county will pay all interest on such matured bond to the date of the maturity thereof, and that a new bond (referred to in this chapter as a redemption bond) in the same amount as the matured bond, will be issued to pay and retire such matured bond, and that such redemption bond will be and continue to be a valid and binding obligation of the county and that during the period fixed in the contract not exceeding ten (10) years the board of commissioners will pay annually to the owner of such redemption bond, one-tenth (1/10) of the principal amount of such redemption bond and, in addition thereto, will pay semiannually all interest which shall have accrued thereon to the date when such payment is to be made. The date on which such partial payments of the principal of such bond will be made shall be fixed and prescribed in such contract and may be on June 1 or December 1 of the year next succeeding the year in which such contract is executed and signed and June 1 or December 1 of each and every year thereafter until paid. The interest accrued on such bond shall be paid semiannually on June 1 and December 1, beginning on the same date as the first partial payment on such bond. The board of commissioners shall further agree to levy a tax on the taxable property of such county in an amount sufficient to make the payments on such redemption bonds as they fall due, together with all interest which shall have accrued thereon. Any bondholder who elects to avail himself or herself of the provisions of this chapter shall agree that in consideration of the privilege hereby afforded the bondholder will not maintain or attempt to maintain a suit for the collection or the enforcement of the lien of any such bond, other than in accordance with the remedies afforded by the provisions of this chapter. The form of the contract herein contemplated shall be prescribed by the state board of accounts with the approval of the attorney general. At the time when the contract is executed and the redemption bond is issued, the matured bond shall be surrendered to the county auditor and shall be canceled by writing across the face of the matured bond the words "Canceled by issuing to ______ a redemption bond in the same principal sum as this bond, due and payable on the ______ day of ______, 20____.".

[Pre-Local Government Recodification Citation: 17-3-82-2.]

As added by Acts 1980, P.L.8, SEC.12. Amended by P.L.2-2005, SEC.11.

 

IC 5-1-7-3Execution of contract; procedure

     Sec. 3. All contracts so entered into shall be executed in duplicate and one (1) copy thereof shall be kept by the county auditor and one (1) copy shall be delivered to the owner of such bond. At the time of the execution of such contract, the county auditor shall register all such matured bonds as may be presented for redemption, and all such redemption bonds which are issued to redeem such matured bonds and which are merged in any contract entered into in accordance with the provisions of this chapter, in a record kept in the county auditor's office for that purpose, showing the name and address of the owner of the matured and redemption bond, the amount thereof, the rate of interest, the number of the bond or other identification mark and the amount of the annual payment, including both the partial payment on the principal sum of the redemption bond and the interest which will fall due and be payable on each of the ten (10) dates, respectively, when the county has obligated itself to make such payment, and appropriate entries shall be made in such record as the payments on such redemption bond, principal and interest, are made.

[Pre-Local Government Recodification Citation: 17-3-82-3.]

As added by Acts 1980, P.L.8, SEC.12.

 

IC 5-1-7-4Calculation of tax levy necessary to make payments on principal and interest on redemption bonds; submission to county council

     Sec. 4. At the time when the annual estimates are made for the county budget, the county auditor shall calculate the amount of the tax levy which will be necessary to make the payments on the principal and interest on such redemption bonds during the ensuing fiscal year of the county and shall submit his calculation, together with a detailed statement of all bonds outstanding and payable under the provisions of this chapter, to the county council at its annual meeting, and the county council shall levy the amount found to be necessary to make such payments as they fall due during the ensuing fiscal year.

[Pre-Local Government Recodification Citation: 17-3-82-4.]

As added by Acts 1980, P.L.8, SEC.12.

 

IC 5-1-7-5"Bond owner" or "bondholder" defined

     Sec. 5. The term "bond owner" or "bondholder" shall be construed to mean the person who owns the bond at the time of the execution of such contract and the provisions of such contract shall inure to and be binding upon any subsequent grantee, executor, administrator, heir, devisee, trustee, receiver or assign of such matured and/or redemption bond owner or bondholder.

[Pre-Local Government Recodification Citation: 17-3-82-5.]

As added by Acts 1980, P.L.8, SEC.12.

 

IC 5-1-7-6Validity or priority of lien of bond against taxable property

     Sec. 6. Neither the provisions of this chapter nor any contract executed under this chapter shall release, waive, or destroy the validity or priority of any lien of any such bond against the taxable property of such county or any taxing district coterminous with such county, or any taxing district coterminous with any civil township of such county.

[Pre-Local Government Recodification Citation: 17-3-82-6.]

As added by Acts 1980, P.L.8, SEC.12.

 

IC 5-1-7-7"Bond" and "bond fund" defined

     Sec. 7. The term "bond" as used in this chapter shall mean and include any bond issued by and which is an obligation of the county in its civil capacity; and any so-called county unit road bond which has been issued by the board of commissioners and is an obligation of the taxing district which is coterminous with the county; and any so-called gravel road bond which has been issued by the board of commissioners and is an obligation of the taxing district which is coterminous with any civil township. The term "bond fund" means any fund from which any of such bonds so issued or the interest thereon is paid.

[Pre-Local Government Recodification Citation: 17-3-82-7.]

As added by Acts 1980, P.L.8, SEC.12.

 

IC 5-1-8Chapter 8. Judgment Funding Bonds of Counties
           5-1-8-1Issuance and sale of judgment funding bonds; purpose; authority; restrictions

 

IC 5-1-8-1Issuance and sale of judgment funding bonds; purpose; authority; restrictions

     Sec. 1. The county council may, in its discretion, authorize the issuance and sale of judgment funding bonds of the county for the purpose of procuring funds to pay any judgment taken against the county. Such bonds shall be authorized, issued and sold pursuant to statutes governing the issuance of refunding bonds of the county, and the amount thereof shall not exceed the face of the judgment or judgments being funded, plus the accrued interest thereon, together with the costs taxed by the court.

[Pre-Local Government Recodification Citation: 17-1-24-27 part.]

As added by Acts 1980, P.L.8, SEC.14.

 

IC 5-1-9Chapter 9. Refunding Bonds of Cities and Towns
           5-1-9-1Issuance; purpose; restrictions

 

IC 5-1-9-1Issuance; purpose; restrictions

     Sec. 1. Any city or town whose indebtedness is evidenced by bonds, notes, judgments, or other obligations issued, rendered, or negotiated by the city or town, may, for the purpose of funding or refunding the indebtedness, or any part thereof, reducing the rate of interest thereon, extending the time of payment and cancelling so much thereof as may be or become due, by the vote of two-thirds (2/3) of the members of the fiscal body of the city or town, issue its bonds, for an amount not exceeding in the aggregate the whole amount of the indebtedness of the city or town.

[Pre-Local Government Recodification Citation: 18-1-19-1 part.]

As added by Acts 1980, P.L.8, SEC.15. Amended by P.L.8-1989, SEC.16.

 

IC 5-1-10Chapter 10. Funding and Refunding Bonds of Townships
           5-1-10-1Issuance; purpose; restrictions

 

IC 5-1-10-1Issuance; purpose; restrictions

     Sec. 1. Any civil township in the state whose indebtedness is evidenced by bonds, notes, judgments, or other obligations issued or negotiated by such township, or rendered against such township, may for the purpose of funding or refunding such indebtedness, or any part thereof, reducing the rate of interest thereon, extending the time of payment and canceling so much thereof as may be or become due, by the vote of two-thirds (2/3) of the members of the township board, and with the approval of the township trustee, issue its bonds, with interest coupons attached, for an amount not exceeding in the aggregate the whole amount of the indebtedness of such township.

[Pre-Local Government Recodification Citation: 17-4-30-1 part.]

As added by Acts 1980, P.L.8, SEC.17. Amended by P.L.8-1987, SEC.6; P.L.233-2015, SEC.6.

 

IC 5-1-11Chapter 11. Procedures for Selling Bonds
           5-1-11-1Public sale; "bonds" defined; sale to federal government
           5-1-11-2Publication of notice of sale; publication of notice of intent to sell
           5-1-11-3Maximum interest rate to be fixed; notice of intent to sell; bidding awards; continuation of sale; price of bonds; action to contest validity
           5-1-11-4Prohibitions; advantage in bidding; payment before delivery; technical services
           5-1-11-5Transcript of proceedings relative to issuance of bonds to be furnished to purchaser
           5-1-11-6Other statutory authorization to issue and exchange bonds for refunding or redeeming outstanding bonds
           5-1-11-7Restrictions on powers

 

IC 5-1-11-1Public sale; "bonds" defined; sale to federal government

     Sec. 1. (a) Except as otherwise provided in this chapter or in the statute authorizing their issuance, all bonds issued by or in the name of counties, townships, cities, towns, school corporations, and special taxing districts, agencies or instrumentalities thereof, or by entities required to sell bonds pursuant to IC 5-1-11, whether the same be general obligations or issued in anticipation of the collection of special taxes or be payable out of revenues, shall be sold at public sale.

     (b) The word "bonds" as used in this chapter means any obligations issued by or in the name of any of the political subdivisions or bodies referred to in subsection (a), except obligations payable in the year in which they are issued, obligations issued in anticipation of the collection of delinquent taxes, and obligations issued in anticipation of the collection of frozen bank deposits.

     (c) Notwithstanding any of the provisions of subsection (a) or any of the provisions of section 2 of this chapter, any bonds may be sold to the federal government or any agency thereof, at private sale and without a public offering.

[Pre-Local Government Recodification Citation: 19-8-5-1.]

As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.44-1983, SEC.3; P.L.23-1984, SEC.3.

 

IC 5-1-11-2Publication of notice of sale; publication of notice of intent to sell

     Sec. 2. (a) Notice of sale of bonds required to be sold at public sale under section 1 of this chapter shall be published in accordance with the provisions of this chapter and either IC 5-3-1 or subsection (b).

     (b) If a political subdivision or body referred to in section 1 of this chapter determines to sell bonds under this subsection, notice of intent to sell such bonds shall be published once each week for two (2) weeks in accordance with IC 5-3-1-4 and in a newspaper of general circulation published in the state capital. The notice must state that any person interested in submitting a bid for the bonds may furnish in writing to the official of the political subdivision or body responsible for their sale, at the address set forth in the notice, the person's name, address, and telephone number. The person may also furnish a telex number. The notice of intent to sell bonds must state:

(1) the amount of the bonds to be offered;

(2) the denominations;

(3) the dates of maturity;

(4) the maximum rate or rates of interest;

(5) the place of sale; and

(6) the time within which the name, address, and telephone number must be furnished, which must not be less than seven (7) days after the last publication of the notice of intent to sell.

The official of the political subdivision or body responsible for the bond sale shall notify each person so registered of the date and time bids will be received not less than twenty-four (24) hours before the date and time of sale. The notification shall be made by telephone at the number furnished by the person, and also by telex if the person furnishes a telex number. Bids may not be received more than ninety (90) days after the first publication of the notice of intent to sell.

     (c) This chapter does not prevent the sale of bonds under the provisions of any statute inconsistent with this chapter so long as the procedures required for the sale in that statute are complied with, but if notice of that sale must be published, the notice shall be published in accordance with IC 5-3-1.

[Pre-Local Government Recodification Citation: 19-8-5-2 part.]

As added by Acts 1980, P.L.8, SEC.19. Amended by Acts 1981, P.L.45, SEC.4; P.L.44-1983, SEC.4; P.L.23-1984, SEC.4.

 

IC 5-1-11-3Maximum interest rate to be fixed; notice of intent to sell; bidding awards; continuation of sale; price of bonds; action to contest validity

     Sec. 3. (a) In authorizing and advertising such bonds for sale only a maximum interest rate shall be fixed, not exceeding the maximum rate provided for in the governing statute or bond ordinance or resolution of the issuing political subdivision or body. Bidders for such bonds shall be required to bid on the interest rate or rates which the bonds shall bear.

     (b) The notice of intent to sell the bonds required under section 2 of this chapter must:

(1) specify the principal amount of bonds maturing on each maturity date or mandatory sinking fund redemption date; or

(2) state that the principal maturity schedule or mandatory sinking fund redemption schedule will be provided at least twenty-four (24) hours before the scheduled time of sale upon request by bidders.

     (c) The bonds shall be awarded to the bidder offering the lowest interest cost to be determined by computing the total interest on all bonds from the date thereof to the date of maturity and deducting therefrom the premium bid, if any, or adding thereto the amount of any discount, if any. If no acceptable bid is received at the time fixed for sale of the bonds, then the sale may be continued from day to day for a period not to exceed thirty (30) days without readvertising. During the continuation of the sale, no bid shall be accepted which offers an interest cost which is equal to or higher than the best bid received at the time fixed for the sale in the bond sale notice. The acceptability of a bid is within the sole discretion of the political subdivision or body referred to in section 1(a) that is issuing the bonds.

     (d) Any bonds sold at public sale under this chapter may be sold, notwithstanding the provisions of any other law, at a price or prices determined by the officer or body authorized by law to issue or sell bonds, but not for less than ninety-seven percent (97%) of their par value.

     (e) An action to contest the validity of any bonds sold under this chapter may not be brought after the fifteenth day following the first publication of notice of the sale of the bonds. An action to contest the validity of any bond sale under this chapter may not be brought after the fifth day following the bond sale.

[Pre-Local Government Recodification Citation: 19-8-5-3 part.]

As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.44-1983, SEC.5; P.L.23-1984, SEC.5; P.L.35-1990, SEC.1.

 

IC 5-1-11-4Prohibitions; advantage in bidding; payment before delivery; technical services

     Sec. 4. (a) It shall be unlawful for any officer or body authorized by law to issue or sell bonds to enter into a contract or agreement prior to the award of such bonds with any person, limited liability company, firm, or corporation, directly or indirectly interested in bidding on or purchasing such bonds, for the furnishing of legal, engineering, or other technical services, or for the furnishing of printed bond forms or any other contract or agreement which will give to any person, firm, limited liability company, or corporation an advantage in bidding on or purchasing such bonds or controlling the sale thereof. Any funds expended on account of any such contract or agreement shall be chargeable to the officer or officers authorizing or making such expenditure.

     (b) It shall be unlawful for any officer or body authorized to issue or sell bonds to require the successful bidder therefor to pay for such bonds prior to the time that such bonds are delivered, or prior to the time that the successful bidder shall have had reasonable opportunity to examine such bonds and the proceedings had relative to the authorization, issuance and sale of the same. Nothing in this chapter, however, shall prevent any county, township, city, town, school corporation or special taxing district from employing or contracting for legal, engineering or other technical services, prior to the sale of any such bonds, provided that such services are not to be supplied by or through a person, firm, limited liability company, or corporation directly or indirectly interested in bidding on or purchasing such bonds.

[Pre-Local Government Recodification Citation: 19-8-5-4 part.]

As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.8-1993, SEC.47.

 

IC 5-1-11-5Transcript of proceedings relative to issuance of bonds to be furnished to purchaser

     Sec. 5. Whenever any bonds are sold, there shall be furnished to the purchaser thereof a transcript of the proceedings had and actions taken relative to the authorization, issuance, and sale of such bonds, certified by the person or persons charged with recording the minutes or keeping the records of the body or bodies having to do with the authorization and issuance of such bonds. In cases where such transcripts relate to the issuance of general obligation bonds, or bonds payable in anticipation of the collection of special taxes, such transcripts shall also have attached thereto the certificate of the proper officers showing the assessed valuation of taxable property in and outstanding indebtedness of the issuing unit and other pertinent details bearing on the validity of said bonds. Such transcripts and the certificates attached thereto shall import verity and shall be accepted in evidence in any legal proceedings relating to or affecting said bonds.

[Pre-Local Government Recodification Citation: 19-8-5-5.]

As added by Acts 1980, P.L.8, SEC.19.

 

IC 5-1-11-6Other statutory authorization to issue and exchange bonds for refunding or redeeming outstanding bonds

     Sec. 6. (a) In cases where other statutes authorize the issuance and exchange of new bonds for the purpose of refunding or redeeming outstanding bonds for the payment of which no funds are available, it shall be the duty of the officers charged with issuance and exchange of such new bonds to cause the same to be offered at public sale as provided in this chapter.

     (b) In cases where it is necessary to provide for the refunding of bonds or interest coupons maturing at various times over a period not exceeding six (6) months, the bodies and officials charged with the duty of issuing and selling such refunding bonds may, for the purpose of reducing the cost of issuance thereof, issue and sell one (1) issue of bonds in an amount sufficient to provide for the refunding of all of the bonds and interest coupons required to be refunded during said six (6) months period.

[Pre-Local Government Recodification Citation: 19-8-5-6 part.]

As added by Acts 1980, P.L.8, SEC.19.

 

IC 5-1-11-7Restrictions on powers

     Sec. 7. Nothing in this chapter contained shall be so construed as to enlarge the powers of counties, townships, cities, towns, school corporations, and special taxing districts, or agencies or instrumentalities thereof to issue bonds.

[Pre-Local Government Recodification Citation: 19-8-5-7.]

As added by Acts 1980, P.L.8, SEC.19.

 

IC 5-1-11.5Chapter 11.5. Additional Requirements for the Issuance of Bonds
           5-1-11.5-1"ADM"
           5-1-11.5-2"Bonds"
           5-1-11.5-3Application to certain school corporations
           5-1-11.5-4Application to certain counties and municipalities

 

IC 5-1-11.5-1"ADM"

     Sec. 1. As used in this chapter, "ADM" has the meaning set forth in IC 20-18-2-2.

As added by P.L.244-2017, SEC.2.

 

IC 5-1-11.5-2"Bonds"

     Sec. 2. As used in this chapter, "bonds" means any bonds, notes, or other evidences of indebtedness, whether payable from property taxes, other taxes, revenues, fees, or any other source. However, the term does not include notes, warrants, or other evidences of indebtedness that have a maturity of not more than five (5) years and that are made in anticipation of and to be paid from revenues of the school corporation, county, or municipality.

As added by P.L.244-2017, SEC.2.

 

IC 5-1-11.5-3Application to certain school corporations

     Sec. 3. This section applies only to a school corporation that has an ADM of more than fifteen thousand (15,000) for the school corporation's most recent fall count. Notwithstanding any other law, a school corporation subject to this section may not issue bonds after August 15, 2020, unless the school corporation has for its preceding budget year prepared an annual financial report using the modified accrual basis of accounting in accordance with generally accepted accounting principles. However, upon request of a school corporation to the state examiner, the state examiner may waive the requirement under this section if the state examiner determines that a waiver is in the best interest of the school corporation.

As added by P.L.244-2017, SEC.2.

 

IC 5-1-11.5-4Application to certain counties and municipalities

     Sec. 4. This section applies only to the following:

(1) A county that has a population of more than one hundred thousand (100,000).

(2) A municipality that has a population of more than seventy-five thousand (75,000).

Notwithstanding any other law, a county or municipality subject to this section may not issue bonds after June 30, 2020, unless the county or municipality has for its preceding budget year prepared an annual financial report using the modified accrual basis of accounting in accordance with generally accepted accounting principles. However, upon request of a county or municipality to the state examiner, the state examiner may waive the requirement under this section if the state examiner determines that a waiver is in the best interest of the county or municipality.

As added by P.L.244-2017, SEC.2.

 

IC 5-1-12Chapter 12. Payment of Bond Premiums
           5-1-12-1"Municipal corporation" defined
           5-1-12-2Premiums on bid prices to constitute part of fund to retire bond and pay interest thereon

 

IC 5-1-12-1"Municipal corporation" defined

     Sec. 1. The term "municipal corporation" means a county, township, city, town, or school corporation.

[Pre-Local Government Recodification Citation: 19-8-8-2.]

As added by Acts 1980, P.L.8, SEC.21.

 

IC 5-1-12-2Premiums on bid prices to constitute part of fund to retire bond and pay interest thereon

     Sec. 2. Whenever any bonds are sold by any municipal corporation and when the successful bidder agrees to pay and does pay any premium as a part of the bid price of such bonds, any and all premiums so received shall be paid into and shall constitute a part of the fund which is created to retire such bonds and to pay the interest thereon.

[Pre-Local Government Recodification Citation: 19-8-8-1.]

As added by Acts 1980, P.L.8, SEC.21.

 

IC 5-1-13Chapter 13. Disposition of Surplus Bond Proceeds
           5-1-13-1Definitions
           5-1-13-2Use of surplus proceeds
           5-1-13-3Income from investment of proceeds of sale of bonds; application

 

IC 5-1-13-1Definitions

     Sec. 1. The definitions in this section apply throughout this chapter:

(1) "Bonds" has the same definition that the term is given in IC 5-1-11-1.

(2) "Local issuing body" has the meaning set forth in IC 5-1-5-1.

(3) "Political subdivision" has the same definition that the term is given in IC 36-1-2-13.

(4) "Special benefit taxes" has the meaning set forth in IC 5-1-5-1.

(5) "Tax increment revenues" has the meaning set forth in IC 5-1-5-1.

[Pre-Local Government Recodification Citation: 19-8-6-2.]

As added by Acts 1980, P.L.8, SEC.23. Amended by P.L.24-1984, SEC.1; P.L.146-2008, SEC.26.

 

IC 5-1-13-2Use of surplus proceeds

     Sec. 2. (a) Notwithstanding any other law, whenever:

(1) bonds are issued by any local issuing body in the state of Indiana for any lawful purpose or project;

(2) the purpose or project for which the bonds were issued has been accomplished or abandoned; and

(3) a surplus remains from the proceeds of the bonds or investment earnings derived from the proceeds of those bonds;

the local issuing body may use the surplus only in the manner prescribed by subsection (b), (c), or (d).

     (b) The legislative body or other governing body of any such local issuing body may by an order, ordinance, or resolution entered of record direct the disbursing officer of such local issuing body to transfer the surplus bond proceeds or investment earnings to the fund of the local issuing body pledged to the payment of principal and interest on those bonds, and upon such order, ordinance, or resolution being made, the disbursing officer shall make such transfer. Thereafter such funds transferred shall be used for the payment of the bonds to which the surplus bond proceeds or investment earnings are attributable or interest due for such bonds.

     (c) Surplus bond proceeds or investment earnings may be used by a local issuing body for the following purposes:

(1) To maintain a debt service reserve fund for the bonds to which the surplus bond proceeds or investment earnings are attributable, at the level required under the terms of the bonds, if the local issuing body adopts an ordinance, resolution, or order authorizing that use of the proceeds or earnings.

(2) To pay the principal or interest, or both, on any other bonds of the local issuing body, if the local issuing body adopts an ordinance, a resolution, or an order authorizing the use of the surplus proceeds to pay principal or interest on the bonds.

(3) To reduce the rate or amount of ad valorem property taxes, special benefit taxes on property, or tax increment revenues imposed by or allocated to the local issuing body.

     (d) This section applies to bonds that are not payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes. Surplus bond proceeds or investment earnings may be used by a local issuing body for the same purpose or type of project for which the bonds were originally issued, if:

(1) the fiscal officer of the local issuing body certifies before or at the time of that use that the surplus was not anticipated at the time of issuance of the bonds; and

(2) the board or legislative body responsible for issuing the bonds takes action approving the use of surplus bond proceeds or investment earnings for the same purpose or type of project for which the bonds were originally issued.

[Pre-Local Government Recodification Citation: 19-8-6-1.]

As added by Acts 1980, P.L.8, SEC.23. Amended by P.L.24-1984, SEC.2; P.L.37-1988, SEC.1; P.L.2-1989, SEC.3; P.L.146-2008, SEC.27.

 

IC 5-1-13-3Income from investment of proceeds of sale of bonds; application

     Sec. 3. Notwithstanding any other law, income from the investment of proceeds of the sale of bonds issued by any political subdivision that are payable from property taxes shall be applied to the improvement or the public purpose for which the bonds were issued or shall be used to pay interest on the bonds and in no event may such income be used for any other purpose except as provided in section 2 of this chapter.

As added by P.L.24-1984, SEC.3.

 

IC 5-1-14Chapter 14. Miscellaneous Provisions
           5-1-14-1Bonds, notes, or warrants not subject to maximum interest rate limitations
           5-1-14-1.2Issuer defined
           5-1-14-1.3Definitions
           5-1-14-1.5Obligations defined
           5-1-14-2Provisions for payment of bonds, notes, or warrants before maturity date
           5-1-14-3Maintenance of federal tax exclusion from gross income for interest on bonds
           5-1-14-4Pledge made by issuer binding; lien
           5-1-14-5Bond anticipation notes; issuance
           5-1-14-6Use of proceeds for costs of issuance of obligation, funding debt services reserves, or payment of interest; reimbursements
           5-1-14-7Application of section; stadium; lease rental tax
           5-1-14-8Money withheld by auditor as not creating debt for constitutional purposes
           5-1-14-9Rights of owners of obligations not to be impaired
           5-1-14-10Maximum term or repayment period of obligations; continuation of payments
           5-1-14-11Payment of fees and charges authorized
           5-1-14-12Refunding obligations
           5-1-14-12.5Purchase and issuance of obligations on terms reasonable to issuer
           5-1-14-13Contesting validity of obligations
           5-1-14-14Loans, expenditures, and issuance of bonds for economic development
           5-1-14-15Bonds and obligations to fund pension benefits
           5-1-14-16Payment of principal and interest on obligations in nearly equal payment amounts and at regular designated intervals; exceptions
           5-1-14-17.2Bond financing; swap agreement restrictions

 

IC 5-1-14-1Bonds, notes, or warrants not subject to maximum interest rate limitations

     Sec. 1. (a) Any bonds, notes, or warrants, whether payable from property taxes, revenues, or any other source, are not subject to the maximum interest rate limitations contained in any law enacted before December 31, 1982, if they are issued by or in the name of any entity named in IC 5-1-1-1.

     (b) After July 1, 1979, any bond, coupon, certificate of indebtedness, or installment payment payable by a city, town, or property holder for public improvements under the Barrett Law is not subject to any maximum interest rate limitation. This subsection does not apply to interest rates or penalties on delinquencies provided under the Barrett Law.

     (c) This section does not limit an interest rate review conducted by the department of local government finance under IC 6-1.1-20-7.

[Pre-Local Government Recodification Citation: 6-1.1-20-8.]

As added by Acts 1980, P.L.8, SEC.25. Amended by P.L.44-1983, SEC.6; P.L.90-2002, SEC.12.

 

IC 5-1-14-1.2Issuer defined

     Sec. 1.2. As used in this chapter, "issuer" means any issuer of obligations that is referred to in IC 5-1-1-1(b).

As added by P.L.37-1988, SEC.2.

 

IC 5-1-14-1.3Definitions

     Sec. 1.3. The following definitions apply throughout this chapter:

(1) "Local issuing body" has the meaning set forth in IC 5-1-5-1.

(2) "Special benefit taxes" has the meaning set forth in IC 5-1-5-1.

(3) "Swap agreement" has the meaning set forth in IC 8-9.5-9-4, except that the term includes a swap agreement entered into by an issuing body (as defined in section 17.2(b) of this chapter) only if any part of the payments owed by the issuing body under the agreement, including any termination or settlement payments, is payable out of:

(A) tax revenues; or

(B) a special assessment.

(4) "Tax increment revenues" has the meaning set forth in IC 5-1-5-1.

As added by P.L.146-2008, SEC.28. Amended by P.L.218-2011, SEC.1.

 

IC 5-1-14-1.5Obligations defined

     Sec. 1.5. As used in this chapter, "obligations" has the meaning set forth in IC 5-1-3-1(b).

As added by P.L.37-1988, SEC.3.

 

IC 5-1-14-2Provisions for payment of bonds, notes, or warrants before maturity date

     Sec. 2. Any bonds, notes, or warrants, whether payable from property taxes, revenues, or any other source, issued by an entity enumerated in section 1(a) of this chapter may provide that the bonds, notes, or warrants may be payable before maturity from available funds and with such premiums as are set forth in the bonds, notes, or warrants. In addition, the bonds, notes, or warrants may provide that they may be registered as to principal or interest, or both, at the option of the holder, and upon such terms and conditions as are set forth in the bonds, notes, or warrants.

[Pre-Local Government Recodification Citation: 6-1.1-20-8.5.]

As added by Acts 1980, P.L.8, SEC.25.

 

IC 5-1-14-3Maintenance of federal tax exclusion from gross income for interest on bonds

     Sec. 3. Notwithstanding any other law, any issuer may take any reasonable and necessary action to establish or maintain the exclusion from gross income for interest on obligations of the issuer under federal law. These actions may include, without limitation:

(1) filing information reports with the federal government;

(2) rebating money derived from bond proceeds or money treated as bond proceeds under federal law, or earnings thereon, to the federal government;

(3) restricting the yield on money or earnings described in subdivision (2) to the yield on bonds of the issuer;

(4) investing money or earnings described in subdivision (2) in obligations of issuers that bear interest that is excludable from gross income under federal law;

(5) issuing obligations in an amount sufficient to serve the public purpose of the financing without considering earnings thereon;

(6) qualifying obligations under any volume cap or electing any carryforward of unused volume cap;

(7) designating, through its legislative body or any board responsible for issuing obligations as long as the obligations are executed by the executive of the issuer, obligations to qualify for any exemption from the loss of any deduction for interest incurred by any financial institution to carry tax exempt obligations or for any exemption from federal arbitrage rebate requirements; and

(8) complying with limitations imposed by federal law on the issuance of tax exempt bonds under IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, or IC 36-7-15.3, including, without limitation:

(A) designation of redevelopment project areas by a legislative body (as defined in IC 36-1-2-9) having jurisdiction over the area;

(B) considering any factors required by federal law in determining whether an area meets the criteria for designation as a redevelopment project area; and

(C) limiting the use of property in a redevelopment project area.

As added by P.L.27-1986, SEC.1. Amended by P.L.37-1988, SEC.4; P.L.2-1989, SEC.4; P.L.185-2005, SEC.1.

 

IC 5-1-14-4Pledge made by issuer binding; lien

     Sec. 4. (a) Notwithstanding any other law, a pledge of revenues or other money, or property made by any issuer is binding from the time the pledge is made. Revenues or other money, or property pledged and thereafter received by the issuer are immediately subject to the lien of the pledge without any further act, and the lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the issuer, regardless of whether the parties have notice of any lien. No resolution, ordinance, indenture, or any other instrument by which a pledge is created needs to be filed or recorded except in the records of the issuer.

     (b) Notwithstanding any other law, an issuer may pledge any revenues or other money or pledge or mortgage property to pay debt service on or secure any obligations or any lease rental or contractual payments, if:

(1) the issuer has the necessary statutory authority to issue obligations, pay lease rentals, or make contractual payments for any project or purpose for which the pledge or mortgage is made;

(2) the revenues, money, or property is legally available, under federal, state, and local laws, to pay or secure debt service, lease rentals, or contractual payments; and

(3) the pledge or mortgage does not purport to create an obligation in violation of any statutory or constitutional limitation to which the issuer is subject.

As added by P.L.27-1986, SEC.2. Amended by P.L.37-1988, SEC.5.

 

IC 5-1-14-5Bond anticipation notes; issuance

     Sec. 5. Notwithstanding any other law, any city, town, county, school corporation, or regional district organized under IC 13-26 or IC 13-3-2 (before its repeal) that has complied with all statutory requirements for the issuance of its bonds, other than IC 5-1-11 or any public sale statute, may, in lieu of issuing bonds at that time and without the need for complying with any other law applicable to the issuance of bonds, notes, or other evidences of indebtedness, issue its notes in anticipation of the issuance of bonds to a financial institution. However, if the amount of the notes is at least one million dollars ($1,000,000), the notes may be issued to any purchaser. The bond anticipation notes may be issued on terms set forth in a resolution or ordinance authorizing their issuance and in any amount equal to or less than the amount of bonds authorized to be issued. The city, town, county, school corporation, or district may renew or extend the bond anticipation notes from time to time on terms agreed to with the financial institution or other purchaser. The amount of the accrued interest on the date of renewal or extension of the bond anticipation notes may be paid or added to the principal amount of the bond anticipation notes being renewed or extended as long as the aggregate principal amount of bond anticipation notes outstanding at any time does not exceed the maximum principal amount permitted by this section. The bond anticipation notes, including any renewals or extensions, must mature in the amounts and at the times (not exceeding five (5) years from the date of the original issuance of the bond anticipation notes) agreed to by the city, town, county, school corporation, or district and the financial institution or other purchaser. The bond anticipation notes must be finally paid, and interest on the bond anticipation notes may be finally paid, with the proceeds of the bonds issued by the city, town, county, school corporation, or district. In connection with the issuance of bonds, part or all of the proceeds of which will be used to retire the bond anticipation notes, it is not necessary for the city, town, county, school corporation, or district to repeat the procedures for the issuance of bonds, as the procedures followed before the issuance of the bond anticipation notes are for all purposes sufficient to authorize the issuance of the bonds.

As added by P.L.44-1987, SEC.4. Amended by P.L.2-1989, SEC.5; P.L.35-1990, SEC.2; P.L.1-1996, SEC.34.

 

IC 5-1-14-6Use of proceeds for costs of issuance of obligation, funding debt services reserves, or payment of interest; reimbursements

     Sec. 6. (a) Notwithstanding any other law, an issuer may use proceeds of its obligations to pay the reasonable cost of issuance of the obligations or to fund reasonably required debt service reserves to secure the payment of the obligations.

     (b) Notwithstanding any other law, an issuer may use proceeds of the issuer's obligations to pay interest on the obligations for:

(1) a period not to exceed two (2) years from the date of issuance of the obligations; or

(2) any longer period that is permitted by any other statute.

     (c) Notwithstanding any other law, an issuer may reimburse itself for preliminary costs incurred in financing any project or purpose from proceeds of the obligations when issued.

As added by P.L.37-1988, SEC.6. Amended by P.L.35-1990, SEC.3; P.L.24-1995, SEC.22.

 

IC 5-1-14-7Application of section; stadium; lease rental tax

     Sec. 7. (a) This section applies to:

(1) each county having a population of more than one hundred seventy-five thousand (175,000) but less than one hundred eighty-five thousand (185,000); and

(2) each second class city located in a county described in subdivision (1).

     (b) As used in this section, "stadium" means a structure used for athletic, recreational, cultural, and community events.

     (c) Notwithstanding any other law, a stadium constitutes a:

(1) government building under IC 36-9-13;

(2) structure under IC 36-1-10;

(3) park purpose under IC 36-10-1;

(4) park improvement under IC 36-10-4; and

(5) redevelopment project or purpose under IC 36-7-14.

     (d) Notwithstanding any other law, a legislative body of a city may levy a tax in the park district established under IC 36-10-4 to pay lease rentals to a lessor of a stadium under IC 36-1-10 or IC 36-9-13.

As added by P.L.38-1988, SEC.1. Amended by P.L.12-1992, SEC.14; P.L.170-2002, SEC.12; P.L.119-2012, SEC.11.

 

IC 5-1-14-8Money withheld by auditor as not creating debt for constitutional purposes

     Sec. 8. If a statute provides that amounts due under a loan to a political subdivision (as defined in IC 36-1-2) or a local public improvement bond bank shall or may be withheld by the auditor of state from other money payable to the political subdivision or bond bank upon failure to make repayment of the loan, the requirement or permission to withhold amounts due under the loan does not create a debt of the political subdivision for purposes of the Constitution of the State of Indiana.

As added by P.L.2-1989, SEC.6.

 

IC 5-1-14-9Rights of owners of obligations not to be impaired

     Sec. 9. (a) The general assembly covenants that it will not adopt, amend, or repeal a statute in a way that impairs the rights and remedies of the owners of obligations, until the obligations, interest on the obligations, interest on an unpaid installment of interest, and all costs and expenses in connection with an action or proceedings by or on behalf of the owners are fully paid and discharged.

     (b) An agency (as defined in IC 4-22-2-3) may not adopt, amend, or repeal a rule under IC 4-22-2 in a way that impairs the rights and remedies of the owners of obligations, until the obligations, interest on the obligations, interest on an unpaid installment of interest, and all costs and expenses in connection with an action or proceedings by or on behalf of the owners are fully paid and discharged.

As added by P.L.2-1989, SEC.7.

 

IC 5-1-14-10Maximum term or repayment period of obligations; continuation of payments

     Sec. 10. (a) If an issuer has issued obligations under a statute that establishes a maximum term or repayment period for the obligations, notwithstanding that statute, the issuer may continue to make payments of principal, interest, or both, on the obligations after the expiration of the term or period if principal or interest owed to owners of the obligations remains unpaid.

     (b) This section does not authorize the use of revenues or funds to make payments of principal and interest other than those revenues or funds that were pledged for the payments before the expiration of the term or period.

     (c) Except as otherwise provided by this section, IC 5-1-5-2.5, IC 16-22-8-43, IC 36-7-12-27, IC 36-7-14-25.1, or IC 36-9-13-30 (but only with respect to any bonds issued under IC 36-9-13-30 that are secured by a lease entered into by a political subdivision organized and existing under IC 16-22-8), the maximum term or repayment period for obligations issued after June 30, 2008, that are wholly or partially payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes may not exceed:

(1) the maximum applicable period under federal law, for obligations that are issued to evidence loans made or guaranteed by the federal government or a federal agency;

(2) twenty-five (25) years, for obligations that are wholly or partially payable from tax increment revenues derived from property taxes; or

(3) twenty (20) years, for obligations that are not described in subdivision (1) or (2), and are wholly or partially payable from ad valorem property taxes or special benefit taxes on property.

As added by P.L.2-1989, SEC.8. Amended by P.L.146-2008, SEC.29; P.L.182-2009(ss), SEC.63; P.L.229-2011, SEC.66.

 

IC 5-1-14-11Payment of fees and charges authorized

     Sec. 11. If an issuer is authorized by statute to issue obligations and to make payments of principal and interest to owners of those obligations from any source, the issuer is authorized to pay fees and charges associated with the issuance of the obligations from that source, including the payment of fees and charges associated with obtaining and enforcing credit enhancement for the obligations.

As added by P.L.2-1989, SEC.9.

 

IC 5-1-14-12Refunding obligations

     Sec. 12. Notwithstanding any other law, if an agency, an authority, a board, a department, or a commission of a unit (as defined in IC 36-1-2) is authorized to issue obligations in the name of the unit for any purpose for which any other agency, authority, board, department, or commission of the unit may issue its obligations, the agency, the authority, the board, the department, or the commission may issue obligations to refund obligations issued in the name of the unit by the other agency, authority, board, department, or commission of the unit.

As added by P.L.2-1989, SEC.10.

 

IC 5-1-14-12.5Purchase and issuance of obligations on terms reasonable to issuer

     Sec. 12.5. Notwithstanding any other law, an issuer may purchase any obligations on terms the issuer finds reasonable and may issue its obligations to effectuate that purpose on terms that the issuer finds reasonable.

As added by P.L.224-2003, SEC.265.

 

IC 5-1-14-13Contesting validity of obligations

     Sec. 13. The following provisions apply when an issuer negotiates a sale of obligations and a statute does not specify a time within which to contest the validity of the obligations or the sale of the obligations:

(1) No action to contest the validity of the obligations may be brought after the fifteenth day following the adoption of the resolution authorizing the sale of the obligations.

(2) No action to contest the validity of the sale of the obligations may be brought after the fifth day following the sale.

As added by P.L.2-1989, SEC.11.

 

IC 5-1-14-14Loans, expenditures, and issuance of bonds for economic development

     Sec. 14. (a) Notwithstanding any other law, a municipality may sell the municipality's interest in any notes payable to the municipality at a negotiated sale.

     (b) A county or municipality may establish a revolving fund from grants, the revenue received by the county or municipality under IC 6-3.6-9 and allocated for economic development purposes under IC 6-3.6-6-9, the proceeds of the sale of notes, or the proceeds of bonds issued under this section and IC 36-9-32. The county or municipality may loan the money in the revolving fund to any borrower if the county or municipal fiscal body finds that the loan will be used by the borrower for one (1) or more of the following economic development purposes:

(1) Promoting significant opportunities for the gainful employment of the county's or municipality's residents.

(2) Attracting a major new business enterprise to the county or municipality.

(3) Retaining or expanding a significant business enterprise in the county or municipality.

     (c) Activities that may be undertaken by the borrower in carrying out an economic development purpose include expenditures for any of the following:

(1) Acquisition of land.

(2) Acquisition of property interests.

(3) Site improvements.

(4) Infrastructure improvements.

(5) Buildings.

(6) Structures.

(7) Rehabilitation, renovation, or enlargement of buildings or structures.

(8) Machinery.

(9) Equipment.

(10) Furnishings.

     (d) Local governmental entities may borrow under subsection (b) if the local governmental entity's jurisdiction includes the geographic area within the boundaries of the county or municipality that established the revolving fund. Notwithstanding any other law, the following provisions apply to the borrowing:

(1) The county or municipality that established the revolving fund and the local governmental entity borrower may each authorize the loan from the revolving fund and the issuance of notes evidencing the loan by resolution. In each case, the resolution shall be adopted by the body with control over fiscal matters.

(2) A resolution adopted under subdivision (1) must approve:

(A) the term of the loan;

(B) the interest rate;

(C) the form of the note or notes;

(D) the medium of payment;

(E) the place and manner of payment;

(F) the manner of execution of the note or notes;

(G) the terms of redemption;

(H) the funds or sources of funds from which the note or notes are payable, which may be any funds and sources of funds available to the borrower; and

(I) any other provisions not inconsistent with this section.

(3) The notes and the authorization, issuance, sale, and delivery of the notes are not subject to any general statute concerning obligations issued by the local governmental entity borrower. This section contains full and complete authority for the making of the loan, the authorization, issuance, sale, and delivery of the notes, and the repayment of the loan by the borrower, and no law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by any officer, department, agency, or instrument of the state or of any political subdivision is required to make the loan, issue the notes, or repay the loan except as prescribed in this section.

(4) The notes issued by a local governmental entity borrower are exempt from taxation for all purposes and are exempt from any security registration requirements provided for in Indiana statutes.

(5) Notes issued by a local governmental entity borrower under this section are obligations for all purposes of this chapter.

     (e) A municipality may issue bonds under IC 36-9-32-7(b) through IC 36-9-32-7(j) for the economic development purposes listed in subsection (c) and may repay the indebtedness solely from revenues derived from the repayment of any notes, including notes evidencing loans made under subsection (b).

     (f) To the extent a revolving fund under subsection (b) is funded from:

(1) revenues received by the county under IC 6-3.6-9 and allocated for economic development purposes under IC 6-3.6-6-9; or

(2) repayments of principal and interest on loans from the revolving fund that were funded with revenues described in subdivision (1);

money in the revolving fund may at any time be transferred in whole or in part to the unit's economic development income tax fund, as determined by ordinance of the unit's fiscal body.

     (g) The general assembly finds that counties and municipalities in Indiana have a need to foster economic development and industrial and commercial growth. The general assembly finds that it is necessary and proper to provide an alternative method for municipalities to foster the following:

(1) Economic development.

(2) Industrial and commercial growth.

(3) Employment opportunities.

(4) Diversification of industry and commerce.

It is declared that the fostering of economic development under this section for the benefit of the general public, including industrial and commercial enterprises, is a public purpose.

As added by P.L.35-1990, SEC.4. Amended by P.L.27-1995, SEC.5; P.L.197-2016, SEC.1.

 

IC 5-1-14-15Bonds and obligations to fund pension benefits

     Sec. 15. (a) Before July 1, 2008, a county or municipality may issue bonds, notes, or other obligations for the purpose of providing funds to pay pension benefits under IC 36-8-6, IC 36-8-7, or IC 36-8-7.5.

     (b) Notwithstanding any other law:

(1) bonds, notes, or other obligations issued for the purpose described in this section may have a final maturity date up to, but not exceeding, forty (40) years from the date of original issuance;

(2) the amount of bonds, notes, or other obligations that may be issued for the purpose described in this section may not exceed two percent (2%) of the true tax value of property located within the county or municipality; and

(3) the proceeds of bonds, notes, or other obligations issued for the purpose described in this section may be deposited to the issuing county's or municipality's separate account described in IC 5-10.3-11-6.

     (c) This section is supplemental to all other laws but does not relieve a county or municipality from complying with other procedural requirements for the issuance of bonds, notes, or other obligations.

As added by P.L.234-2007, SEC.37. Amended by P.L.146-2008, SEC.30.

 

IC 5-1-14-16Payment of principal and interest on obligations in nearly equal payment amounts and at regular designated intervals; exceptions

     Sec. 16. (a) This section applies to obligations that are:

(1) issued after June 30, 2008, by a local issuing body; and

(2) payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes;

including obligations that are issued under a statute that permits the bonds to be issued without complying with any other law or otherwise expressly exempts the bonds from the requirements of this section.

     (b) An agreement for the issuance of obligations must provide for the payment of principal and interest on the obligations in nearly equal payment amounts and at regular designated intervals over the maximum term of the obligations except to the extent that:

(1) interest for a particular repayment period has been paid from the proceeds of the obligations under section 6 of this chapter; or

(2) the local issuing body authorizes a different payment schedule to:

(A) maintain substantially equal payments, in the aggregate, in any period in which the local issuing body pays the interest and principal on outstanding obligations;

(B) provide for the payment of principal on the obligations in amounts and at intervals that will produce an aggregate amount of principal payments greater than or equal to the aggregate amount that would otherwise be paid as of the same date;

(C) provide for level principal payments over the term of the obligations, in order to reduce total interest costs;

(D) with respect to obligations wholly or partially payable from tax increment revenues derived from property taxes, provide for the payment of principal and interest in varying amounts over the term of the obligations as necessary due to the variation in the amount of tax increment revenues available for those payments; or

(E) provide for a repayment schedule that will result in the same or a lower amount of interest being paid on obligations that would be issued using nearly equal payment amounts.

As added by P.L.146-2008, SEC.31. Amended by P.L.182-2009(ss), SEC.64.

 

IC 5-1-14-17.2Bond financing; swap agreement restrictions

     Sec. 17.2. (a) This section does not apply to a political subdivision or other local entity when the political subdivision or other local entity participates in a program sponsored by the Indiana bond bank in which the actions of the Indiana bond bank are subject to this section.

     (b) As used in this section, "issuing body" includes:

(1) the state of Indiana and its agencies, commissions, and authorities;

(2) the Indiana bond bank established under IC 5-1.5-2;

(3) a political subdivision, school corporation, hospital association, municipal corporation, and special taxing district;

(4) a local public improvement bond bank established under IC 5-1.4-2; and

(5) any entity that has issued bonds payable directly or indirectly from taxes or lease rentals payable by any of the entities listed in subdivisions (1) through (4).

     (c) This section provides restrictions on any issuing body entering into a swap agreement and does not authorize an issuing body to enter into a swap agreement separate from any other authority the issuing body has for entering into a swap agreement.

     (d) For an issuing body that is authorized by another law to enter into swap agreements, the issuing body:

(1) may enter into a swap agreement only in connection with the financing activities of the issuing body as provided in this section; and

(2) may not enter into a swap agreement as an investment.

     (e) An issuing body may enter into one (1) or more swap agreements in connection with the financing activities of the issuing body only under the following conditions:

(1) If in connection with or in anticipation of the issuance of an obligation, entering into the swap agreement would not cause the percentage determined in STEP FOUR of the following STEPS to exceed twenty percent (20%):

STEP ONE: Determine the aggregate amount of the outstanding notional amounts of the issuing body's outstanding swap agreements.

STEP TWO: Determine the difference between:

(i) the aggregate amount of all the outstanding obligations of the issuing body; minus

(ii) the aggregate amount of the outstanding obligations of the issuing body for which no tax revenues nor special assessments were pledged as a means to repay the obligations.

STEP THREE: Determine the sum of:

(i) the STEP TWO result; plus

(ii) the amount of obligations not yet issued but for which one (1) or more swap agreements have been entered into by the issuing body.

STEP FOUR: Determine the quotient of:

(i) the STEP ONE result; divided by

(ii) the STEP THREE result.

Multiply the quotient by one hundred (100) to convert the quotient to a percentage.

For purposes of the calculation, if more than one (1) swap agreement has been entered into in connection with or in anticipation of specified principal amounts and maturities of the same obligations, only the swap agreement with the highest outstanding notional amount is to be included in the calculation of the aggregate outstanding notional amounts of outstanding swap agreements. However, if the issuing body, except the Indiana finance authority, receives prior approval for entering into a particular swap agreement from the Indiana finance authority, an issuing body may enter into the swap agreement in excess of the threshold. In the case of the Indiana finance authority, the authority may enter into a swap agreement in excess of the threshold only after review by the budget committee.

(2) The issuing body, except the Indiana finance authority, has adopted a comprehensive swap agreement policy at a public meeting that:

(A) includes provisions governing the adoption of swap agreements;

(B) is not less restrictive than the swap agreement policy governing the adoption of swap agreements that is in place for the Indiana finance authority at the time the issuing body adopts the comprehensive swap agreement policy; and

(C) is submitted to the Indiana finance authority for a determination that it complies with this subdivision.

(3) Each swap agreement is approved by a resolution of the governing board of the issuing body at a public meeting and the resolution includes a thorough analysis of the risk the issuing body is assuming by entering into the swap agreement.

     (f) On an annual basis, an issuing body shall report to the governing board of the issuing body the status and terms and conditions of all outstanding swap agreements. The issuing body shall provide a final report to the governing board of the issuing body upon termination or expiration of each swap agreement.

     (g) A swap agreement shall be considered as being entered into in connection with the financing activities of an issuing body if:

(1) the swap agreement is entered into not later than one hundred eighty (180) days after the issuance of the obligation and specifically indicates the swap agreement's relationship to the obligation;

(2) the issuing body designates the swap agreement as having a relationship to the obligation;

(3) the swap agreement amends, modifies, or reverses a swap agreement described in subdivision (1) or (2); or

(4) the terms of the swap agreement bear a reasonable relationship to the terms of the obligation.

As added by P.L.218-2011, SEC.2.

 

IC 5-1-15Chapter 15. Fully Registered and Book Entry Obligations
           5-1-15-1Application of chapter
           5-1-15-2Form of obligations; interchangeable nature
           5-1-15-3Delivery; registrar or paying agent; deposit; certificates
           5-1-15-4Employment of bank or trust company
           5-1-15-5Confidentiality of books and records
           5-1-15-6Register

 

IC 5-1-15-1Application of chapter

     Sec. 1. This chapter applies to any entities issuing bonds that are named in IC 5-1-1-1.

As added by P.L.44-1983, SEC.7.

 

IC 5-1-15-2Form of obligations; interchangeable nature

     Sec. 2. Notwithstanding any other provision of law, bonds, notes, evidences of indebtedness, or other written obligations may be issued in fully registered or book entry form, and may be interchangeable in any manner provided for by the issuing entity.

As added by P.L.44-1983, SEC.7.

 

IC 5-1-15-3Delivery; registrar or paying agent; deposit; certificates

     Sec. 3. (a) Bonds, notes, evidences of indebtedness, or other written obligations issued in book entry form shall:

(1) not be delivered to the owners thereof; and

(2) have a registrar or paying agent that may be:

(A) the issuing entity;

(B) a bank or trust company; or

(C) a securities depository corporation.

     (b) In connection with issuance in book entry form, the following may be done:

(1) A written instrument may be deposited with the registrar or paying agent.

(2) Participation certificates or certificates of beneficial interest may be issued to the owner by the issuing entity, registrar, or paying agent.

As added by P.L.44-1983, SEC.7.

 

IC 5-1-15-4Employment of bank or trust company

     Sec. 4. The entity may employ any bank or trust company as paying agent or registrar, co-registrar, or depository institution. The bank or trust company need not be a depository bank under IC 5-13, and need not be located within the state of Indiana.

As added by P.L.44-1983, SEC.7. Amended by P.L.3-1990, SEC.19.

 

IC 5-1-15-5Confidentiality of books and records

     Sec. 5. Notwithstanding any other provision of law, registers or registration books or transfer records for bonds, notes, evidences of indebtedness, or other written obligations of any entity are not public records, but are only for the use of the entity, any trustee, fiduciary, paying agent, registrar, co-registrar, or transfer agent. A trust department of a bank having possession of these records shall not disclose them to a bond department, commercial department, subsidiary of the bank, or a subsidiary of the parent corporation of the bank.

As added by P.L.44-1983, SEC.7.

 

IC 5-1-15-6Register

     Sec. 6. Registrars of bond issues shall keep a register of ownership of bonds.

As added by P.L.44-1983, SEC.7.

 

IC 5-1-16Chapter 16. Indiana Finance Authority Financing of Health Facilities
           5-1-16-1Definitions
           5-1-16-1.1Applicability of provisions to the authority
           5-1-16-1.5Appropriation and expenditure of county tax money; leases binding upon county
           5-1-16-2Repealed
           5-1-16-3Repealed
           5-1-16-4Repealed
           5-1-16-5Repealed
           5-1-16-6Repealed
           5-1-16-7Repealed
           5-1-16-8Repealed
           5-1-16-9Repealed
           5-1-16-10Repealed
           5-1-16-10.5Repealed
           5-1-16-11Repealed
           5-1-16-12Repealed
           5-1-16-13Powers of authority
           5-1-16-13.1Repealed
           5-1-16-14Competitive bidding requirement
           5-1-16-15Health facility property; participating providers
           5-1-16-16Authority management; agreements
           5-1-16-17Security; transactions with participating providers
           5-1-16-18Power to issue bonds
           5-1-16-19Bonds; requisites
           5-1-16-20Bond proceeds; use; disbursement
           5-1-16-21Trust indenture to secure bonds; operating expenses
           5-1-16-22Bond resolutions or related instruments; provisions and additional security authorized
           5-1-16-23Payment of bonds
           5-1-16-24Bonds not indebtedness or obligation of state
           5-1-16-25Pledge by authority
           5-1-16-26Repurchase of authority bonds
           5-1-16-27Negotiability of bonds
           5-1-16-28Personal liability of bond issuers
           5-1-16-29Establishment of funds and accounts
           5-1-16-30Deposit of funds in accounts
           5-1-16-31Enforcement of rights and duties concerning bonds
           5-1-16-32Payment of expenses
           5-1-16-33Public property; tax exemption
           5-1-16-34Bonds as legal investments
           5-1-16-35Repealed
           5-1-16-36Construction of chapter
           5-1-16-37Repealed
           5-1-16-38Leases by county with the authority
           5-1-16-39Leases before construction, erection, or renovation of buildings
           5-1-16-40Payment of lease rental
           5-1-16-41Payment of lease rental from cumulative building fund
           5-1-16-42Notice of public hearing; notice of execution of lease; action to contest validity of lease; taxpayer objections to lease
           5-1-16-43Options to renew and to purchase; obligations of county; general obligation bonds
           5-1-16-44Approval of plans, specifications, and cost estimates
           5-1-16-45Sale of county land to the authority
           5-1-16-46Party wall agreements

 

IC 5-1-16-1Definitions

     Sec. 1. As used in this chapter:

     "Authority" refers to the Indiana finance authority.

     "Bonds" includes bonds, refunding bonds, notes, interim certificates, bond anticipation notes, and other evidences of indebtedness of the authority, issued under this chapter.

     "Building" or "buildings" or similar words mean any building or part of a building or addition to a building for health care purposes. The term includes the site for the building (if a site is to be acquired), equipment, heating facilities, sewage disposal facilities, landscaping, walks, drives, parking facilities, and other structures, facilities, appurtenances, materials, and supplies that may be considered necessary to render a building suitable for use and occupancy for health care purposes.

     "Cost" includes the following:

(1) The cost and the incidental and related costs of the acquisition, repair, restoration, reconditioning, refinancing, or installation of health facility property.

(2) The cost of any property interest in health facility property, including an option to purchase a leasehold interest.

(3) The cost of constructing health facility property, or an addition to health facility property, acquiring health facility property, or remodeling health facility property.

(4) The cost of architectural, engineering, legal, trustee, underwriting, and related services; the cost of the preparation of plans, specifications, studies, surveys, and estimates of cost and of revenue; and all other expenses necessary or incident to planning, providing, or determining the need for or the feasibility and practicability of health facility property.

(5) The cost of financing charges, including premiums or prepayment penalties and interest accrued during the construction of health facility property or before the acquisition and installation or refinancing of such health facility property for up to two (2) years after such construction, acquisition, and installation or refinancing and startup costs related to health facility property for up to two (2) years after such construction, acquisition, and installation or refinancing.

(6) The costs paid or incurred in connection with the financing of health facility property, including out-of-pocket expenses, the cost of any policy of insurance; the cost of printing, engraving, and reproduction services; and the cost of the initial or acceptance fee of any trustee or paying agent.

(7) The costs of the authority, incurred in connection with providing health facility property, including reasonable sums to reimburse the authority for time spent by its agents or employees in providing and financing health facility property.

(8) The cost paid or incurred for the administration of any program for the purchase or lease of or the making of loans for health facility property, by the authority and any program for the sale or lease of or making of loans for health facility property to any participating provider.

     "County" means any county in the state that owns and operates a county hospital.

     "Health facility property" means any tangible or intangible property or asset owned or used by a participating provider and which:

(1) is determined by the authority to be necessary or helpful, directly or indirectly, to provide:

(A) health care;

(B) medical research;

(C) training or teaching of health care personnel;

(D) habilitation, rehabilitation, or therapeutic services; or

(E) any related supporting services;

regardless of whether such property is in existence at the time of, or is to be provided after the making of, such finding;

(2) is a residential facility for:

(A) individuals with a physical, mental, or emotional disability;

(B) individuals with a physical or mental illness; or

(C) the elderly; or

(3) is a licensed child caring institution providing residential care described in IC 12-7-2-29(1) or corresponding provisions of the laws of the state in which the property is located.

     "Health facility" means any facility or building that is:

(1) owned or used by a participating provider;

(2) located:

(A) in Indiana; or

(B) outside Indiana, if the participating provider that operates the facility or building, or an affiliate of the participating provider, also operates a substantial health facility or facilities, as determined by the authority, in Indiana; and

(3) utilized, directly or indirectly:

(A) in:

(i) health care;

(ii) habilitation, rehabilitation, or therapeutic services;

(iii) medical research;

(iv) the training or teaching of health care personnel; or

(v) any related supporting services;

(B) to provide a residential facility for:

(i) individuals with a physical, mental, or emotional disability;

(ii) individuals with a physical or mental illness; or

(iii) the elderly; or

(C) as a child caring institution and provides residential care described in IC 12-7-2-29(1) or corresponding provisions of the laws of the state in which the facility or building is located.

     "Net revenues" means the revenues of a hospital remaining after provision for proper and reasonable expenses of operation, repair, replacement, and maintenance of the hospital.

     "Participating provider" means a person, corporation, municipal corporation, political subdivision, or other entity, public or private, which:

(1) is located in Indiana or outside Indiana;

(2) contracts with the authority for the financing or refinancing of, or the lease or other acquisition of, health facility property that is located:

(A) in Indiana; or

(B) outside Indiana, if the financing, refinancing, lease, or other acquisition also includes a substantial component, as determined by the authority, for the benefit of a health facility or facilities located in Indiana;

(3) is:

(A) licensed under IC 12-25, IC 16-21, IC 16-28, or corresponding laws of the state in which the property is located;

(B) a regional blood center;

(C) a community mental health center or community intellectual disability and other developmental disabilities center (as defined in IC 12-7-2-38 and IC 12-7-2-39 or corresponding provisions of laws of the state in which the property is located);

(D) an entity that:

(i) contracts with the division of disability and rehabilitative services or the division of mental health and addiction to provide the program described in IC 12-11-1.1-1(e) or IC 12-22-2; or

(ii) provides a similar program under the laws of the state in which the entity is located;

(E) a vocational rehabilitation center established under IC 12-12-1-4.1(a)(1) or corresponding provisions of the laws of the state in which the property is located;

(F) the owner or operator of a facility that is utilized, directly or indirectly, to provide health care, habilitation, rehabilitation, therapeutic services, medical research, the training or teaching of health care personnel, or any related supporting services, or of a residential facility for individuals with a physical, mental, or emotional disability, individuals with a physical or mental illness, or the elderly;

(G) a licensed child caring institution providing residential care described in IC 12-7-2-29(1) or corresponding provisions of the laws of the state in which the property is located;

(H) an integrated health care system between or among providers, a health care purchasing alliance, a health insurer or third party administrator that is a participant in an integrated health care system, a health maintenance or preferred provider organization, or a foundation that supports a health care provider; or

(I) an individual, a business entity, or a governmental entity that owns an equity or membership interest in any of the organizations described in clauses (A) through (H); and

(4) in the case of a person, corporation, municipal corporation, political subdivision, or other entity located outside Indiana, is owned or controlled by, under common control with, affiliated with, or part of an obligated group that includes an entity that provides one (1) or more of the following services or facilities in Indiana:

(A) A facility that provides:

(i) health care;

(ii) habilitation, rehabilitation, or therapeutic services;

(iii) medical research;

(iv) training or teaching of health care personnel; or

(v) any related supporting services.

(B) A residential facility for:

(i) individuals with a physical, mental, or emotional disability;

(ii) individuals with a physical or mental illness; or

(iii) the elderly.

(C) A child caring institution providing residential care described in IC 12-7-2-29(1).

     "Regional blood center" means a nonprofit corporation or corporation created under 36 U.S.C. 1 that:

(1) is:

(A) accredited by the American Association of Blood Banks; or

(B) registered or licensed by the Food and Drug Administration of the Department of Health and Human Services; and

(2) owns and operates a health facility that is primarily engaged in:

(A) drawing, testing, processing, and storing human blood and providing blood units or components to hospitals; or

(B) harvesting, testing, typing, processing, and storing human body tissue and providing this tissue to hospitals.

As added by P.L.45-1983, SEC.1. Amended by P.L.41-1985, SEC.1; P.L.28-1986, SEC.1; P.L.45-1987, SEC.1; P.L.39-1988, SEC.1; P.L.11-1990, SEC.104; P.L.2-1992, SEC.44; P.L.27-1992, SEC.1; P.L.2-1993, SEC.40; P.L.43-1993, SEC.1; P.L.56-1995, SEC.1; P.L.272-1999, SEC.3; P.L.5-2001, SEC.1; P.L.215-2001, SEC.7; P.L.64-2002, SEC.1; P.L.235-2005, SEC.62; P.L.141-2006, SEC.7; P.L.162-2007, SEC.15; P.L.99-2007, SEC.11; P.L.117-2015, SEC.1.

 

IC 5-1-16-1.1Applicability of provisions to the authority

     Sec. 1.1. This chapter:

(1) applies to the Indiana finance authority only when acting as the authority for the purposes set forth in this chapter; and

(2) does not apply to the Indiana finance authority when acting under any other statute for any other purpose.

As added by P.L.235-2005, SEC.63. Amended by P.L.162-2007, SEC.16.

 

IC 5-1-16-1.5Appropriation and expenditure of county tax money; leases binding upon county

     Sec. 1.5. (a) For purposes of this chapter, county commissioner action or approval for the appropriation and expenditure of county tax money shall presuppose and include approval by the county council.

     (b) A lease entered into by the board of county commissioners with the authority is valid or binding upon the county only if the lease is approved by a majority vote of the county council.

As added by P.L.43-1993, SEC.2.

 

IC 5-1-16-2Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.2; P.L.235-2005, SEC.64. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-3Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.235-2005, SEC.74. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-4Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.235-2005, SEC.66. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-5Repealed

As added by P.L.45-1983, SEC.1. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-6Repealed

As added by P.L.45-1983, SEC.1. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-7Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.235-2005, SEC.67. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-8Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.235-2005, SEC.68. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-9Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.235-2005, SEC.69. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-10Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.3; P.L.8-1993, SEC.48. Repealed by P.L.235-2005, SEC.212.

 

IC 5-1-16-10.5Repealed

As added by P.L.235-2005, SEC.70. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-11Repealed

As added by P.L.45-1983, SEC.1. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-12Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.235-2005, SEC.71. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-13Powers of authority

     Sec. 13. (a) The authority has all powers necessary to carry out and effectuate its public and corporate purposes, including but not limited to the following:

(1) To make and execute contracts and all other instruments necessary or convenient for the performance of its duties and the exercise of its powers and functions under this chapter.

(2) To employ architects, engineers, independent legal counsel, inspectors, accountants, and health care and financial experts, and such other advisors, consultants, and agents as may be necessary in its judgment without the approval of or consent by any other state official, and to fix their compensation.

(3) To procure insurance against any loss in connection with its property and other assets, in such amounts and from such insurers as it considers advisable, including the power to pay premiums on any such insurance.

(4) To procure insurance or guarantees from any public or private entities, including any department, agency, or instrumentality of the United States of America, to secure payment:

(A) on a loan, lease, or purchase payment owed by a participating provider to the authority; and

(B) of any bonds issued by the authority, including the power to pay premiums on any such insurance or guarantee.

(5) To procure letters of credit or other credit facilities or agreements from any national or state banking association or other entity authorized to issue a letter of credit or other credit facilities or agreements to secure the payment of any bonds issued by the authority or to secure the payment of any loan, lease, or purchase payment owed by a participating provider to the authority, including the power to pay the cost of obtaining such letter of credit or other credit facilities or agreements.

(6) To receive and accept from any source any money, property, or thing of value to be held, used, and applied to carry out the purposes of this chapter subject to the conditions upon which the grants or contributions are made, including gifts or grants from any department, agency, or instrumentality of the United States of America for any purpose consistent with this chapter.

(7) To provide, or cause to be provided by a participating provider, by acquisition, lease, construction, fabrication, repair, restoration, reconditioning, refinancing, or installation, health facility property to be located within a health facility.

(8) To lease as lessor any item of health facility property for such rentals and upon such terms and conditions as the authority considers advisable and are not in conflict with this chapter.

(9) To sell by installment or otherwise to sell by option or contract for sale, and to convey all or any part of any item of health facility property for such price and upon such terms and conditions as the authority considers advisable and as are not in conflict with this chapter.

(10) To make contracts and incur liabilities, borrow money at such rates of interest as the authority determines, issue its bonds in accordance with this chapter, and secure any of its bonds or obligations by a mortgage or pledge of all or any of its property, franchises, and income or as otherwise provided in this chapter.

(11) To make secured or unsecured loans for the purpose of providing temporary or permanent financing or refinancing for the cost of any item of health facility property, including the retiring of any outstanding obligations issued by a participating provider, and the reimbursement to a participating provider of advances, for the cost of any health facility property purchased in anticipation of procuring such financing or refinancing from the authority or other sources, and to charge and collect interest on such loans for such loan payments and upon such terms and conditions as the authority considers advisable and as are not in conflict with this chapter.

(12) To invest and reinvest its funds and to take and hold property as security for the investment of such funds as provided in this chapter.

(13) To purchase, receive, lease (as lessee or lessor), or otherwise acquire, own, hold, improve, use, or otherwise deal in and with, health facility property, or any interest therein, wherever situated.

(14) To sell, convey, mortgage, pledge, assign, lease, exchange, transfer, and otherwise dispose of all or any part of its property and assets.

(15) To the extent permitted under its contract with the holders of bonds of the authority, consent to any modification with respect to the rate of interest, time, and payment of any installment of principal or interest, or any other term of any contract, loan, loan note, loan note commitment, contract, lease, or agreement of any kind to which the authority is a party.

(16) To charge to and apportion among participating providers its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.

(17) Except as otherwise provided in a trust agreement or bond resolution securing bonds of the authority, and notwithstanding IC 5-13, to invest:

(A) the authority's money, funds, and accounts;

(B) any money, funds, and accounts in the authority's custody; and

(C) proceeds of bonds or notes;

in the manner provided by an investment policy established by resolution of the authority.

(18) To collect fees and charges, as the authority determines to be reasonable, in connection with its loans, leases, sales, advances, insurance, commitments, and servicing.

(19) To cooperate with and exchange services, personnel, and information with any federal, state, or local governmental agency.

(20) To sell, at public or private sale, with or without public bidding, any loan or other obligation held by the authority.

(21) To assist, coordinate, and participate with other issuers of tax exempt bonds and public officials in other states in connection with financings or refinancings on behalf of multiple state health facilities. Assistance, coordination, and participation provided under this subdivision may include conducting any hearings required by state or federal law in order for bonds to be issued by public officials in other states if part of the proceeds of the bonds will be used by participating providers in Indiana. Neither the state of Indiana nor the authority, nor any officers, agents, or employees of the state or the authority, are subject to any liability resulting from assistance to or coordination or participation with other issuers of tax exempt bonds under this subsection. Any assistance, coordination, or participation provided under this subsection is given with the understanding that the issuers of tax exempt bonds or borrowers will agree to indemnify and hold harmless the state of Indiana and the authority and their officers, agents, and employees from all claims and liability arising from any action against the state of Indiana or the authority relating to the bonds.

(22) Subject to the authority's investment policy, to enter into swap agreements (as defined in IC 8-9.5-9-4) in accordance with IC 8-9.5-9-5 and IC 8-9.5-9-7.

The omission of a power from the list in this subsection does not imply that the authority lacks that power. The authority may exercise any power that is not listed in this subsection but is consistent with the powers listed in this subsection to the extent that the power is not expressly denied by the Constitution of the State of Indiana or by another statute.

     (b) No part of the revenues or assets of the authority may inure to the benefit of or be distributable to its members or officers or other private persons. Any net earnings of the authority beyond that necessary for retirement of authority indebtedness or to implement the public purposes of this chapter inure to the benefit of the state. Upon termination or dissolution, all rights and properties of the authority pass to and are vested in the state, subject to the rights of lienholders and other creditors.

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.4; P.L.5-2001, SEC.2; P.L.235-2005, SEC.72; P.L.162-2007, SEC.17.

 

IC 5-1-16-13.1Repealed

As added by P.L.5-1996, SEC.4. Amended by P.L.235-2005, SEC.73. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-14Competitive bidding requirement

     Sec. 14. Health facility property financed under this chapter is not subject to any statutory requirement of competitive bidding or other restriction imposed on the procedure for award of contracts or the lease, sale, or other disposition of health facility property with regard to any action taken under authority of this chapter. However, if the prospective lessee or purchaser requests in writing, the authority shall call for the construction bids in a manner determined by the authority with the approval of such lessee or purchaser.

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.5.

 

IC 5-1-16-15Health facility property; participating providers

     Sec. 15. The authority may initiate a program of providing health facility property to be operated by participating providers in health facilities. In furtherance of this objective, the authority may also:

(1) establish eligibility standards for participating providers, without complying with IC 4-22-2; however, these standards have the force of law if the standards are adopted after a public hearing for which notice has been published in a newspaper published in the city of Indianapolis, at least ten (10) days in advance of the hearing;

(2) contract with any entity securing the payment of bonds under section 13(a)(4) and 13(a)(5) of this chapter, authorizing the entity to approve the participating providers that can finance or refinance health facility property with proceeds from the bond issue secured by that entity;

(3) lease to a participating provider specific items of health facility property upon terms and conditions that the authority considers proper, to charge and collect rents therefor, to terminate any such lease upon the failure of the lessee to comply with any of its obligations under the lease or otherwise as the lease provides, to include in any such lease provisions that the lessee has the options to renew the term of the lease for such periods and at such rents as may be determined by the authority or to purchase any or all of the health facility property to which the lease applies;

(4) loan to a participating provider under an installment purchase contract or loan agreement money to finance, reimburse, or refinance the cost of specific items of health facility property and to take back a secured or unsecured promissory note evidencing such a loan and a security interest in the health facility property financed or refinanced with such loan, upon such terms and conditions as the authority considers proper;

(5) sell or otherwise dispose of any unneeded or obsolete health facility property under terms and conditions as determined by the authority;

(6) maintain, repair, replace, and otherwise improve or cause to be maintained, repaired, replaced, and otherwise improved any health facility property owned by the authority;

(7) obtain or aid in obtaining property insurance on all health facility property owned or financed, or to accept payment if any health facility property is damaged or destroyed; and

(8) enter into any agreement, contract, or other instrument with respect to any insurance, guarantee, or letter of credit, accepting payment in such manner and form as provided therein if a participating provider defaults, and to assign any such insurance, guarantee, or letter of credit as security for bonds issued by the authority.

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.6; P.L.5-2001, SEC.3; P.L.162-2007, SEC.18.

 

IC 5-1-16-16Authority management; agreements

     Sec. 16. The authority may employ and may enter into agreements with, and delegate to any person as it sees fit, the power to manage the routine affairs of the authority, including the originating and processing of any applications from participating providers for the lease or purchase from the authority, or financing, reimbursing, or refinancing by the authority, of health facility property and to service the leases, installment purchase contracts, and loan agreements between the authority and the participating providers.

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.7.

 

IC 5-1-16-17Security; transactions with participating providers

     Sec. 17. Before exercising any of the powers conferred by section 15 of this chapter, the authority may:

(1) require that the lease, installment purchase contract, or loan agreement involved be insured by a loan insurer, be guaranteed by a loan guarantor, or be secured by a letter of credit; and

(2) require any other type of security from the participating providers that it considers reasonable and necessary.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-18Power to issue bonds

     Sec. 18. The authority may issue, sell, and deliver its bonds, in accordance with this chapter, for the purpose of paying for or making loans to participating providers for the financing, reimbursing, or refinancing of all or any part of the cost of health facility property, to finance the acquisition of health facility property for lease or sale to participating providers, and any other purposes authorized by this chapter.

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.8.

 

IC 5-1-16-19Bonds; requisites

     Sec. 19. (a) The bonds must be dated, must bear interest at such rates (fixed or variable), must mature at such times not exceeding forty (40) years from their date, and may be made redeemable before maturity at such prices and upon terms and conditions determined by the authority. The bonds, including any interest coupons to be initially attached thereto, must be in the forms and denominations and payable at such places, as the authority determines. The bonds shall be executed by the manual or facsimile signature of the chairman or vice chairman of the authority, and the seal of the authority, or facsimile seal, shall be affixed or imprinted on the bonds. The seal shall be attested by the manual or facsimile signature of the public finance director. However, one (1) of the signatures must be manual, unless the bonds are authenticated by the manual signature of an authorized officer of a trustee for the bondholders. Any coupons attached must bear the facsimile signature of the chairman or vice chairman of the authority. If an officer's signature or a facsimile of whose signature appears on any bonds or coupons, and the officer ceases to be an officer before the delivery of and payment for such bonds, such signature or such facsimile is nevertheless valid and sufficient for all purposes, the same as if such officer had remained in office until such delivery and payment. The bonds may be issued in coupon or in fully registered form, or both, or may be payable to a specific person, as the authority determines, and provision may be made for the registration of any coupon bonds as to principal alone or as to both principal and interest, for the conversion of coupon bonds into fully registered bonds without coupons, and for the conversion into coupon bonds of any fully registered bonds without coupons. The duty of conversion may be imposed upon a trustee in a trust agreement.

     (b) The principal of, redemption premium, if any, and interest on such bonds shall be payable solely from and may be secured by a pledge of all or any part of the proceeds of bonds, revenues derived from the lease or sale of health facility property or realized from a loan made by the authority to finance or refinance in whole or in part health facility property, revenues derived from operating health facility property, including insurance proceeds, or any other revenues provided by a participating provider.

     (c) The authority shall sell the bonds at prices it determines, at public or private sale.

     (d) The authority may provide for the issuance of bonds of the authority for the purpose of refunding any bonds of the authority then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity of such bonds, and, if considered advisable by the authority, for the additional purpose of paying all or any part of the cost of health facility property.

     (e) The proceeds of any bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the authority. Subject to the provisions of any trust indenture to the contrary, any such escrowed proceeds, pending such use, may be invested and reinvested in such obligations as are determined by the authority in order to assure the prompt payment of the principal and interest and redemption premium, if any, on the outstanding bonds to be so refunded. The interest, income, and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds to be so refunded. Only after the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income, and profits, if any, earned or realized on the investments thereof shall be returned to the authority or the participating providers for use by them in any lawful manner. All such bonds are subject to this chapter in the same manner and to the same extent as other bonds issued under this chapter.

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.9; P.L.1-2009, SEC.12.

 

IC 5-1-16-20Bond proceeds; use; disbursement

     Sec. 20. The proceeds of the bonds (other than refunding bonds) of each issue shall be used for the payment of all or part of the cost of, or for the making of a loan in the amount of all or part of the cost of, the health facility property for which such bonds have been authorized and, at the option of the authority, for the deposit to a reserve fund or reserve funds for the bonds. However, the authority may be paid, out of money from the proceeds of the sale and delivery of its bonds issued in accordance with this chapter, all of the authority's out-of-pocket expenses and costs in connection with the issuance, sale, and delivery of such bonds, and the costs of obtaining insurance, guarantees, and letters of credit securing payment of the bonds and the lease and the loan and installment purchase payments, plus an amount equal to the compensation paid to any employees of the authority for the time those employees have spent on activities relating to the issuance, sale, and delivery of the bonds. Bond proceeds shall be disbursed in the manner and under the restrictions determined by the authority.

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.10.

 

IC 5-1-16-21Trust indenture to secure bonds; operating expenses

     Sec. 21. (a) The bonds may be secured by a trust indenture by and between the authority and a corporate trustee which may be any bank having the power of a trust company or any trust company in Indiana. The trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the holders of the bonds as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the exercise of its powers and the custody, investing, safekeeping, and application of all money. The authority may provide by the trust indenture for the payment of the proceeds of the bonds and the revenue to the trustee under the trust indenture or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as the authority may determine. All expenses incurred in carrying out the trust indenture may be treated as a part of the operating expenses of the authority. If the bonds are secured by a trust indenture, the holders of the bonds have no authority to appoint a separate trustee to represent them.

     (b) All expenses incurred in carrying out this chapter shall be payable solely from funds provided under the authority of this chapter and no liability may be incurred by the authority or the state beyond the extent to which money has been provided under this chapter.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-22Bond resolutions or related instruments; provisions and additional security authorized

     Sec. 22. Any bond resolution or related trust indenture, indenture of mortgage, or deed of trust may contain provisions, which must be a part of the contract with the holders of the bonds to be authorized, as to:

(1) pledging or assigning the revenues generated by the health facility property, pledging or assigning the notes and mortgage, lease, or other security given by the participating providers whose health facility property has been financed with the proceeds of such bonds or other specified revenues or property of the authority;

(2) the rentals, fees, interest, and other amounts to be charged by the authority, the schedule of principal payments, and the sums to be raised in each year thereby, and the use, investment, and disposition of such sums;

(3) setting aside any reserves or sinking funds, and the regulation, investment, and disposition thereof;

(4) limitation on the use of the health facility property;

(5) limitations on the purpose to which or the investments in which the proceeds of sale of any issue of bonds then or thereafter may be applied;

(6) limitations on the issuance of additional bonds, terms upon which additional bonds may be issued and secured, and the terms upon which additional bonds may rank on a parity with, or be subordinate or superior to, other bonds;

(7) the refunding of outstanding bonds;

(8) the procedure, if any, by which the terms of any contract with holders of the bonds may be amended or abrogated, the amounts of bonds the holders of which must consent thereto, the manner in which such consent may be given, and restrictions on the individual rights of action by holders of the bonds;

(9) acts or omissions that constitute a default in the duties of the authority to holders of its bonds and providing the rights and remedies of such holders in the event of default; and

(10) any other matters relating to the bonds that the authority considers desirable.

Bonds of the authority may also be secured by and payable from a pooling of leases or of notes and mortgages or other security instruments whereby the authority may assign its rights, as lessor, and pledge rents under two (2) or more leases of health facility property with two (2) or more participating providers, as lessees, or assign its rights as payee or secured party and pledge the revenues under two (2) or more notes and loan agreements from two (2) or more participating providers, upon such terms as may be provided for in bond resolutions or other instruments under which such bonds are issued.

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.11.

 

IC 5-1-16-23Payment of bonds

     Sec. 23. Every issue of bonds is payable solely out of revenues, assets, or money of the authority as the authority determines, subject only to any agreements with the holders of particular bonds pledging any particular money or revenue. The bonds may be additionally secured by a pledge of any grant, contribution, or guarantee from the federal government or any corporation, limited liability company, association, institution, or person or a pledge of any money, income, or revenue of the authority from any source.

As added by P.L.45-1983, SEC.1. Amended by P.L.8-1993, SEC.49.

 

IC 5-1-16-24Bonds not indebtedness or obligation of state

     Sec. 24. (a) Bonds issued under this chapter do not, and shall state upon the face of each bond that they do not, represent or constitute a debt of the authority or of the state within the meaning of the provisions of the Constitution or statutes of Indiana or a pledge of the faith and credit of the authority or the state or grant to the owners or holders thereof any right to have the authority or the state levy any taxes or appropriate any funds for the payment of the principal thereof or interest thereon. Such bonds are payable and shall state that they are payable solely from the funds pledged for their payment in accordance with the bond resolution or trust agreement securing the same.

     (b) This chapter does not authorize the authority or any department, board, commission, or other agency to create an obligation of the state within the meaning of the Constitution or statutes of Indiana.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-25Pledge by authority

     Sec. 25. Any pledge made by the authority is valid and binding from the time when the pledge is made. The revenue, money, or properties so pledged and thereafter received by the authority are immediately subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice of the lien. Neither the resolution nor any other instrument by which a pledge is created need be recorded.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-26Repurchase of authority bonds

     Sec. 26. The authority, subject to such agreements with holders of the bonds as then exist, may purchase bonds of the authority out of any available funds, which shall thereupon be cancelled, at any reasonable price which, if the bonds are then redeemable, does not exceed the redemption price then applicable plus accrued interest to the next interest payment date thereon.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-27Negotiability of bonds

     Sec. 27. Regardless of whether the bonds are in the form and character of negotiable instruments, the bonds are negotiable instruments, subject only to provisions of the bonds relating to registration.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-28Personal liability of bond issuers

     Sec. 28. Neither the members of the authority nor any other person executing the bonds issued under this chapter is subject to personal liability by reason of the issuance of the bonds.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-29Establishment of funds and accounts

     Sec. 29. The authority may establish funds and accounts necessary for its purposes.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-30Deposit of funds in accounts

     Sec. 30. All money of the authority, except as otherwise provided in this chapter, shall be deposited as soon as practical in a separate account in banks or trust companies organized under the laws of Indiana or in national banking associations. The money in these accounts shall be paid by checks signed by the public finance director or other officers or employees of the authority as the authority authorizes. All deposits of money shall, if required by the authority, be secured in such a manner as the authority determines to be prudent, and all banks or trust companies are authorized to give security for the deposits.

As added by P.L.45-1983, SEC.1. Amended by P.L.1-2009, SEC.13.

 

IC 5-1-16-31Enforcement of rights and duties concerning bonds

     Sec. 31. (a) Any holder of bonds or any coupons appertaining thereto, and the trustee under any trust agreement or resolution authorizing the issuance of such bonds, except to the extent the rights given in this chapter may be restricted by such trust agreement or resolution, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of Indiana, or under such trust agreement or resolution, or under any other contract executed by the authority under this chapter, and may enforce and compel the performance of all duties required by this chapter or by such trust agreement or resolution to be performed by the authority or by any officer thereof.

     (b) The state does hereby pledge to and agree with the holders of any bonds issued under this chapter that the state will not limit or alter the rights vested in the authority to fulfill the terms of any agreements made with the holders of bonds, or in any way impair the rights or remedies of the holders until the bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of the holders, are fully met and discharged. The authority may include this subsection in any agreement with the holders of the bonds.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-32Payment of expenses

     Sec. 32. All expenses incurred by the authority in carrying out this chapter are payable solely from funds provided under this chapter, except to the extent payable from grants or advances from participating providers or any other entity, which grants or advances may be reimbursed from bond proceeds, and this chapter does not authorize the authority to incur indebtedness or liability on behalf of or payable by the state or any political subdivision of it.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-33Public property; tax exemption

     Sec. 33. All property acquired or held by the authority under this chapter is declared to be public property used for public and governmental purposes, and all property, income therefrom and bonds issued under this chapter, interest payable thereon and income derived therefrom, are exempt from all taxes, direct or indirect, imposed by the state, any county, any city, or any political subdivision of the state.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-34Bonds as legal investments

     Sec. 34. The bonds issued under this chapter by the authority are legal investments in which all public officers or public bodies of this state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies, associations, and other persons carrying on insurance business, all banks, bankers, banking associations, trust companies, savings associations, including savings and loan associations, building and loan associations, investment companies, and other persons carrying on a banking business, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons who are authorized to invest in bonds or in other obligations of this state, may invest funds, including capital, in their control or belonging to them. Such bonds are securities which may be deposited with and received by all public officers and bodies of the state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of bonds or other obligations of the state is authorized by law.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-35Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.28-2004, SEC.54; P.L.235-2005, SEC.74. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16-36Construction of chapter

     Sec. 36. Nothing in this chapter may be construed as a restriction or limitation upon any powers which the authority might otherwise have under any other law of this state, and this chapter is cumulative to such powers. This chapter shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized, and shall be construed as supplemental to powers conferred by any other laws. The adoption by the authority of bylaws and rules, and the issuance of bonds by the authority under this chapter need not comply with the requirements of any other state laws applicable to the adoption of bylaws and rules and the issuance of bonds, notes, and other obligations. No proceedings, notice, or approval is required for the issuance of any bonds or any instrument or the security therefor, or for the proper conduct of the authority's business, affairs, or operations, except as provided in this chapter.

As added by P.L.45-1983, SEC.1.

 

IC 5-1-16-37Repealed

As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.12; P.L.11-1987, SEC.8; P.L.3-1990, SEC.20; P.L.2-1992, SEC.45; P.L.2-1993, SEC.41. Repealed by P.L.1-2010, SEC.156.

 

IC 5-1-16-38Leases by county with the authority

     Sec. 38. (a) A county may lease land and buildings, including the necessary equipment and appurtenances, from the authority for hospital purposes. No contract of lease on a particular building shall be entered into for a period of more than forty (40) years. However, a contract of lease is renewable for less than forty (40) years.

     (b) A lease entered into by a county may require the funding of a reserve fund for the benefit of the authority or the authority's assigns. In order to assure the maintenance of the required reserve amount in any reserve fund, the county council may appropriate for deposit in the reserve fund the sum certified by the county fiscal officer to the county council that is necessary to restore the reserve fund to an amount equal to the required reserve amount. The county fiscal officer shall annually before December 1 prepare and deliver a certificate to the county council stating the sum required to restore the reserve fund to the appropriate reserve amount. Nothing in this subsection creates a debt or liability of the county to make an appropriation.

     (c) All amounts received because of money appropriated by the county to a reserve fund must be held by the authority under the lease and applied in accordance with the lease.

As added by P.L.43-1993, SEC.3.

 

IC 5-1-16-39Leases before construction, erection, or renovation of buildings

     Sec. 39. A county may, in anticipation of the construction, erection, or renovation of a building (including the necessary equipment and appurtenances), make and enter into a contract of lease with the authority prior to the actual acquisition of a site and the construction, erection, or renovation of the building. The contract of lease shall not provide for the payment of any lease rental by the lessee until the building is ready for occupancy. However, if a building is to be acquired and renovated under this chapter, a county may, in anticipation of the acquisition and renovation, make and enter into a contract of lease upon terms and conditions that are agreed upon by the county and the authority, including:

(1) terms and conditions upon which the county may continue to operate the building until completion of the renovation; and

(2) the payment of a lease rental by the lessee during the period of renovation.

As added by P.L.43-1993, SEC.4.

 

IC 5-1-16-40Payment of lease rental

     Sec. 40. (a) Any lease executed under section 38 or 39 of this chapter may provide for the payment of the lease rental in any one (1) of the following ways as established in the lease:

(1) Entirely from the levy of taxes.

(2) Entirely from the net revenues of the hospital of which the leased building is a part.

(3) In part from the levy of taxes and in part from the net revenues described in subdivision (2).

     (b) If any lease provides for the payment of lease rental in whole or in part from net revenues of the hospital, the lease may further provide that the county and the board of trustees or board of managers of the hospital set aside and hold as a reserve for such purpose excess net revenues over and above the amount required to pay lease rental payable from net revenues. The reserve fund may not exceed an amount equal to the amount of lease rental payable from net revenues for two (2) years. The reserve fund shall be held and used only for the purpose of paying lease rental payable from net revenues, if such net revenues at any time are insufficient to pay lease rentals. The amount in the reserve fund may be invested in the manner and to the extent provided in the lease. All interest or other income from the investment shall become part of the reserve fund unless the reserve fund contains the maximum amount required to be in the reserve fund. The following occur if the reserve fund contains the maximum amount required to be in the reserve fund:

(1) If any of the lease rental is payable from taxes, the interest or other income shall be transferred to the fund to be used for the payment of the lease rental provided to be paid from taxes.

(2) If none of the lease rental is payable from taxes, the interest or other income shall become a part of the reserve fund.

As added by P.L.43-1993, SEC.5.

 

IC 5-1-16-41Payment of lease rental from cumulative building fund

     Sec. 41. In addition to the ways specified in section 40 of this chapter for the payment of lease rental, any lease executed under this chapter may provide for the payment of lease rental from a cumulative building fund established by the lessee under IC 16-22-5-3 (or IC 16-12.1-4-4 before its repeal on July 1, 1993). Part or all of a cumulative building fund and the tax levied for that cumulative building fund may be committed and pledged to the payment of the lease rental. To the extent that the amount committed and pledged is insufficient to pay the lease rental, the lease shall provide that any remaining lease rental shall be paid entirely from the net revenues of the hospital of which the leased building is a part. So long as the lease remains in effect:

(1) any amount of cumulative building fund so committed and pledged may not be expended by lessee for any other purpose; and

(2) the tax levy committed and pledged for the cumulative building fund may not be reduced or rescinded by the county council.

Notwithstanding any other provision of this chapter, if a lease provides for payment of lease rental under this section, no approval of the county council is required for the lease, the terms and conditions of the lease, or the sale of the land by the county to the authority under this chapter.

As added by P.L.43-1993, SEC.6.

 

IC 5-1-16-42Notice of public hearing; notice of execution of lease; action to contest validity of lease; taxpayer objections to lease

     Sec. 42. (a) When the authority, the board of trustees or board of managers of the hospital, the board of commissioners of the county, and a majority of the county council have agreed upon the terms and conditions of any lease proposed to be entered into under section 38 or 39 of this chapter, and before the final execution of the lease, the county auditor shall give notice by publication of a public hearing to be held in the county by the board of commissioners. The hearing shall take place on a day not earlier than ten (10) days after the publication of the notice. The notice of the hearing shall be published one (1) time in a newspaper of general circulation printed in the English language and published in the county. The notice shall do the following:

(1) Name the day, place, and hour of the hearing.

(2) Set forth a brief summary of the principal terms of the lease agreed upon, including the character and location of the property to be leased, the lease rental to be paid, and the number of years the contract is to be in effect.

(3) State a location where the proposed lease, drawings, plans, specifications, and estimates may be examined.

The proposed lease and the drawings, plans, specifications, and estimates of construction cost for the building shall be open to inspection by the public during the ten (10) day period and at the hearing. All interested persons shall have a right to be heard at the hearing on the necessity for the execution of the lease and whether the lease rental under the lease is fair and reasonable. The hearing may be adjourned to a later date with the place of the hearing fixed prior to adjournment. Following the hearing, the board of commissioners may either authorize the execution of the lease as originally agreed upon or may make modifications that are agreed upon by the authority, the board of trustees or board of managers of the hospital, and the county council. The authorization shall be by an order that is entered in the official records of the board of commissioners. The lease contract shall be executed on behalf of the county by the board of commissioners.

     (b) If the execution of the lease as originally agreed upon or as modified by agreement is authorized, notice of the signing of the lease shall be given on behalf of the county by publication one (1) time in a newspaper of general circulation printed in the English language and published in the county. Except as provided in subsection (d), ten (10) or more taxpayers in the county whose tax rate will be affected by the proposed lease and who may be of the opinion that no necessity exists for the execution of the lease or that the lease rental under the lease is not fair and reasonable may file a petition in the office of the county auditor within thirty (30) days after publication of notice of the execution of the lease that sets forth the taxpayers' objections and facts supporting those objections. Upon the filing of a petition, the county auditor shall immediately certify a copy of the petition together with such other data as may be necessary in order to present the questions involved to the department of local government finance. Upon receipt of the certified petition and information, the department of local government finance shall fix a time and place in the affected county for the hearing of the matter that is not less than five (5) or more than fifteen (15) days after receipt. Notice of the hearing shall be given by the department of local government finance to the board of county commissioners and to the first ten (10) taxpayer petitioners upon the petition by certified mail sent to the addresses listed on the petition at least five (5) days before the date of the hearing.

     (c) No action to contest the validity of the lease or to enjoin the performance of any of the terms and conditions of the lease shall be instituted at any time later than thirty (30) days after publication of notice of the execution of the lease, or if an appeal has been taken to the department of local government finance, then within thirty (30) days after the decision of the department.

     (d) The authority for taxpayers to object to a proposed lease under subsection (b) does not apply if the authority complies with the procedures for the issuance of bonds and other evidences of indebtedness described in IC 6-1.1-20.

As added by P.L.43-1993, SEC.7. Amended by P.L.35-1997, SEC.1; P.L.90-2002, SEC.13; P.L.146-2008, SEC.32.

 

IC 5-1-16-43Options to renew and to purchase; obligations of county; general obligation bonds

     Sec. 43. (a) A lease under this chapter may provide that the lessee has an option to renew the lease for a like or lesser term, on the conditions that are provided in the lease. A lease shall contain an option to purchase:

(1) at any time after ten (10) years from the execution of the lease and prior to the expiration of the term of lease on the date fixed in the lease; and

(2) at a price equal to:

(A) the amount required to enable the authority to redeem all outstanding securities payable out of the rentals provided for in the lease, all premiums payable on the redemption, and accrued and unpaid interest; and

(B) all other expenses, indebtedness, and obligations of the authority attributable to the acquisition, construction, renovation, and leasing of the building.

     (b) No lease shall provide or be construed to provide that the county is under any obligation to purchase the leased building or under any obligation with respect to any creditor or bondholder of the authority.

     (c) A county exercising an option to purchase may issue general obligation bonds for the purpose of procuring funds with which to pay the purchase price of the building. The general obligation bonds shall be authorized, issued, and sold in the manner provided by law for the authorization, issuance, and sale of general obligation bonds of the county for other purposes.

As added by P.L.43-1993, SEC.8.

 

IC 5-1-16-44Approval of plans, specifications, and cost estimates

     Sec. 44. On behalf of the authority, the board of directors or board of managers of the hospital shall, prior to the execution of a contract of lease, submit to and receive the approval of the board of commissioners of the county of the plans, specifications, and estimates of cost for the building or renovation. The plans and specifications shall be submitted to and approved by the state board of health, the division of fire and building safety, and other state agencies that are required by law to pass on plans and specifications for public buildings.

As added by P.L.43-1993, SEC.9. Amended by P.L.1-2006, SEC.86.

 

IC 5-1-16-45Sale of county land to the authority

     Sec. 45. A county desiring to have a building erected or renovated on land owned or to be acquired by the county may sell that land or building to the authority. Before the sale may take place, the county commissioners shall file a petition with the circuit court, superior court, or probate court of the county requesting the appointment of:

(1) one (1) disinterested freeholder of the county as an appraiser; and

(2) two (2) disinterested appraisers licensed under IC 25-34.1;

who are residents of Indiana to determine the fair market value of the land or building. One (1) of the appraisers described under subdivision (2) must reside not more than fifty (50) miles from the land or building. Upon appointment, the appraisers shall fix the fair market value of the land or building and shall report that value within two (2) weeks from the date of their appointment. The county may then sell the land or building to the authority for an amount not less than the amount fixed by the appraisers as the fair market value. The amount shall be paid in cash upon delivery of the deed by the county to the authority. If a cumulative building fund exists at the time of the sale, the proceeds from the sale shall be placed in that fund. If a cumulative building fund does not exist at the time of the sale, the proceeds from the sale shall be paid into the county hospital fund with the principal and interest on the fund to be used solely by the county hospital for the purposes set forth in IC 16-22-5-3 (or IC 16-12.1-4-4 before its repeal on July 1, 1993). A sale of land or a building by a county to the authority shall be authorized by the board of commissioners by an order that shall be entered in the official records of the board. The deed shall be executed on behalf of the county by the board of county commissioners.

As added by P.L.43-1993, SEC.10. Amended by P.L.113-2006, SEC.1; P.L.252-2015, SEC.6; P.L.84-2016, SEC.19.

 

IC 5-1-16-46Party wall agreements

     Sec. 46. A county and an authority that have entered into, or propose to enter into, a lease under this chapter may enter into party wall agreements or other agreements concerning the attaching of an addition to a hospital building, if the agreement is:

(1) approved by the board of trustees or board of managers of the hospital; and

(2) recorded in the office of the recorder of the county in which the hospital is located.

An agreement may provide for an easement or license to construct a part of an addition over or above the existing hospital building.

As added by P.L.43-1993, SEC.11.

 

IC 5-1-16.5Chapter 16.5. Indiana Health and Educational Facilities Financing Authority; Additional Provisions; Financing Projects for Private Colleges and Universities; Participation in Risk Retention Group
           5-1-16.5-1Declaration; purpose
           5-1-16.5-2Powers
           5-1-16.5-3Liberal construction
           5-1-16.5-4Supplemental effect
           5-1-16.5-5Applicability of authority
           5-1-16.5-6Bond issues; authorized actions
           5-1-16.5-7"Authority"
           5-1-16.5-8"Bonds"
           5-1-16.5-9"Bond resolution"
           5-1-16.5-10"Cost"
           5-1-16.5-11"Educational facility"
           5-1-16.5-12"Eligible member"
           5-1-16.5-13"Liability"
           5-1-16.5-14"Liability or loss insurance reserves"
           5-1-16.5-15"Nonprofit"
           5-1-16.5-16"Project"
           5-1-16.5-17"Property"
           5-1-16.5-18"Revenues"
           5-1-16.5-19"Risk retention group"
           5-1-16.5-20"State educational institution"
           5-1-16.5-21Powers of authority
           5-1-16.5-22Bonds; issuance; funding and refunding
           5-1-16.5-23Rents and charges
           5-1-16.5-24Rules for projects
           5-1-16.5-25Employees
           5-1-16.5-26Receipt and use of funds
           5-1-16.5-27Loans
           5-1-16.5-28Loans and bonds
           5-1-16.5-29Costs
           5-1-16.5-30Financing
           5-1-16.5-31Mortgages
           5-1-16.5-32Risk retention
           5-1-16.5-33Authority
           5-1-16.5-34Payment of expenses
           5-1-16.5-35Acquisitions
           5-1-16.5-36Conveyance of title
           5-1-16.5-37Issuance of bonds
           5-1-16.5-38Bonds of issue
           5-1-16.5-39Bonds; serial and term
           5-1-16.5-40Bond resolutions
           5-1-16.5-41Immunity for executing bonds
           5-1-16.5-42Bonds; purchasing
           5-1-16.5-43Bonds; trust agreements
           5-1-16.5-44Bonds; restrictions
           5-1-16.5-45Leases
           5-1-16.5-46Bond proceeds
           5-1-16.5-47Rights of bond holders and trustees
           5-1-16.5-48Refunding bonds generally
           5-1-16.5-49Issuance of bonds to refund outstanding bonds
           5-1-16.5-50Proceeds of refunding bonds; disposition
           5-1-16.5-51Bonds; authority to refund
           5-1-16.5-52Power to invest bonds
           5-1-16.5-53Authority to invest bonds
           5-1-16.5-54Repealed
           5-1-16.5-55Competitive bidding requirement
           5-1-16.5-56Powers of authority; financing
           5-1-16.5-57Promissory notes
           5-1-16.5-58Mortgages
           5-1-16.5-59Power of authority; restrictions
           5-1-16.5-60Power of authority; operation and maintenance of projects
           5-1-16.5-61Bonds; tax exemption

 

IC 5-1-16.5-1Declaration; purpose

     Sec. 1. It is declared:

(1) that for the benefit of the people of the state, the conduct and increase of their commerce, the protection and enhancement of their welfare, the development of continued prosperity and the improvement of their health and living conditions, it is essential that this and future generations of youth be given the fullest opportunity to learn and to develop their intellectual and mental capacities and skills;

(2) that to achieve the ends in subdivision (1), it is of the utmost importance that nonprofit colleges or universities within Indiana be provided with appropriate additional means to assist youth in achieving the required levels of learning and development of their intellectual and mental capacities and skills; and

(3) that it is the purpose of this chapter to provide a measure of assistance and an alternative method to enable nonprofit colleges or universities in Indiana to refund or refinance outstanding indebtedness incurred by nonprofit colleges or universities in Indiana for the renovation, construction, acquisition, or equipping of educational facilities, to establish liability or other loss insurance reserves or to contribute those insurance reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses, and to provide the needed additional educational facilities for the public benefit and good, and in execution of the public policy set forth in this section.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-1.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-2Powers

     Sec. 2. The exercise of the powers granted by this chapter must be in all respects for the benefit of the people of Indiana, for the increase of their commerce, welfare, and prosperity, and for the improvement of their health and living conditions.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-27 part.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-3Liberal construction

     Sec. 3. This chapter, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes of this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-29.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-4Supplemental effect

     Sec. 4. This chapter provides a complete, an additional, and an alternative method for doing the things authorized under this chapter and is supplemental and additional to powers conferred by other laws. The adoption of rules and the issuance of bonds under this chapter need not comply with the requirements of any other law that would otherwise be applicable to the rules or issuance of bonds. Except as otherwise expressly provided in this chapter, none of the powers granted to the authority under this chapter are subject to the supervision or regulation or require the approval or consent of:

(1) any municipality or political subdivision;

(2) any department, division, commission, board, body, bureau, official, or agency of any municipality or political subdivision; or

(3) the state.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-28.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-5Applicability of authority

     Sec. 5. This chapter:

(1) applies to the authority only when acting for the purposes set forth in this chapter; and

(2) does not apply to the authority when acting under any other statute for any other purpose.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-1.5.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-6Bond issues; authorized actions

     Sec. 6. Bonds issued and other actions taken under IC 20-12-63 before its repeal shall be treated as an action taken under this chapter.

[2007 Higher Education Recodification Citation: New.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-7"Authority"

     Sec. 7. As used in this chapter, "authority" refers to the Indiana finance authority established by IC 4-4-11-4.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(1).]

As added by P.L.2-2007, SEC.69. Amended by P.L.162-2007, SEC.19.

 

IC 5-1-16.5-8"Bonds"

     Sec. 8. As used in this chapter, "bonds" means revenue bonds, notes, bond anticipation notes, or other obligations of the authority issued under this chapter, including refunding bonds, notes, bond anticipation notes, or other obligations.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(4).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-9"Bond resolution"

     Sec. 9. As used in this chapter, "bond resolution" means the resolution or resolutions and the trust agreement, if any, authorizing or providing for the terms and conditions applicable to bonds issued under this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(5).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-10"Cost"

     Sec. 10. As used in this chapter, "cost" means all costs necessary or incident to the acquisition, construction, or funding of a project, including the costs of refunding or refinancing outstanding indebtedness incurred for the financing of the project, reserves for principal and interest, engineering, legal, architectural, and all other necessary and incidental expenses, together with interest on bonds issued to finance the project to a date six (6) months after the estimated date of completion.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(3).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-11"Educational facility"

     Sec. 11. As used in this chapter, "educational facility" means any property located within Indiana that:

(1) is suitable for:

(A) the instruction, feeding, recreation, or housing of students;

(B) the conduct of research or other work of a nonprofit college or university; or

(C) use by a nonprofit college or university in connection with any educational, research, or related or incidental activity conducted by the nonprofit college or university;

(2) is suitable for use as or in connection with:

(A) an academic facility;

(B) an administrative facility;

(C) an agricultural facility;

(D) an assembly hall;

(E) an athletic facility;

(F) an auditorium;

(G) a boating facility;

(H) a campus;

(I) a communication facility;

(J) a computer facility;

(K) a continuing education facility;

(L) a classroom;

(M) a dining hall;

(N) a dormitory;

(O) an exhibition hall;

(P) a firefighting facility;

(Q) a fire prevention facility;

(R) a food service and preparation facility;

(S) a gymnasium;

(T) a greenhouse;

(U) a health care facility;

(V) a hospital;

(W) housing;

(X) an instructional facility;

(Y) a laboratory;

(Z) a library;

(AA) a maintenance facility;

(BB) a medical facility;

(CC) a museum;

(DD) offices;

(EE) a parking area;

(FF) a physical education facility;

(GG) a recreational facility;

(HH) a research facility;

(II) a stadium;

(JJ) a storage facility;

(KK) a student union;

(LL) a study facility;

(MM) a theater; or

(NN) a utility;

(3) is not used or to be used for sectarian instruction or study or as a place for devotional activities or workshop; and

(4) is not used or to be used primarily in connection with any part of the program of a school or department of divinity for any religious denomination.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(6).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-12"Eligible member"

     Sec. 12. As used in this chapter, "eligible member" means a state educational institution or any nonprofit college or university.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(7).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-13"Liability"

     Sec. 13. As used in this chapter, "liability" means legal liability for damages (including costs of defense, legal costs and fees, and other claims for expenses) because of injuries to other persons or entities, damage to the property or business of other persons or entities, or other damage or loss to such other persons or entities resulting from or arising out of any activity of an eligible member.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(9).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-14"Liability or loss insurance reserves"

     Sec. 14. As used in this chapter, "liability or loss insurance reserves" means a fund or funds set aside as a reserve to cover risk retained by an eligible member in connection with liability claims or other losses.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(8).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-15"Nonprofit"

     Sec. 15. As used in this chapter, "nonprofit college or university" has the meaning set forth in IC 21-7-13-23(a).

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(10).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-16"Project"

     Sec. 16. As used in this chapter, "project" means:

(1) the acquisition, construction, enlarging, remodeling, renovation, improvement, furnishing, or equipping of an educational facility by the authority for a nonprofit college or university; or

(2) the funding of any liability, other loss, or insurance reserves or the funding and contribution of such insurance reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(2).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-17"Property"

     Sec. 17. As used in this chapter, "property" means any real, personal, or mixed property, or any interest in real property or mixed property, including:

(1) any real estate, appurtenances, buildings, easements, equipment, furnishings, furniture, improvements, machinery, or rights-of-way and structures; or

(2) any interest in real estate, appurtenances, buildings, easements, equipment, furnishings, furniture, improvements, machinery, or rights-of-way and structures.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(11).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-18"Revenues"

     Sec. 18. As used in this chapter, "revenues" means with respect to any project the rents, fees, charges, and other income or profit derived from the project.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(12).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-19"Risk retention group"

     Sec. 19. As used in this chapter, "risk retention group" means a trust, pool, corporation, limited liability company, partnership, or joint venture funded by and owned and operated for the benefit of more than one (1) eligible member.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-3(13).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-20"State educational institution"

     Sec. 20. As used in this chapter, "state educational institution" has the meaning set forth in IC 21-7-13-32.

[2007 Higher Education Recodification Citation: New.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-21Powers of authority

     Sec. 21. (a) The authority may determine the location and character of any project to be financed under this chapter.

     (b) The authority may construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease as lessee or lessor, regulate any project, or enter into contracts for any purpose stated in this section.

     (c) The authority may designate a nonprofit college or university as the authority's agent to carry out the authority of this section.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(1).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-22Bonds; issuance; funding and refunding

     Sec. 22. The authority may issue bonds or fund and refund bonds as provided in this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(2).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-23Rents and charges

     Sec. 23. The authority:

(1) may require that the rates, rents, fees, or charges established by a nonprofit college or university are sufficient to discharge the institution's obligations to the authority; but

(2) has no other jurisdiction over the rates, rents, fees, or charges.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(3).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-24Rules for projects

     Sec. 24. The authority may:

(1) establish rules for the use of a project or any part of a project; and

(2) designate a nonprofit college or university as the authority's agent to establish rules for the use of a project undertaken for that nonprofit college or university.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(4).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-25Employees

     Sec. 25. The authority may employ consulting engineers, architects, attorneys, accountants, trustees, construction and financial experts, superintendents, managers, and other employees and agents the authority believes are necessary, and fix their compensation.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(5).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-26Receipt and use of funds

     Sec. 26. The authority may:

(1) receive and accept from any source loans, contributions, or grants for or in aid of the construction or funding of a project or any part of a project in either money, property, labor, or other things of value; and

(2) when required, use the funds, property, or labor only for the purposes for which the money, property, or labor was loaned, contributed, or granted.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(6).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-27Loans

     Sec. 27. (a) The authority may make loans to any nonprofit college or university for the cost of a project, including the establishment of liability or other loss insurance reserves or the contribution of those reserves to a risk retention group for the purpose of providing insurance coverage against liability claims or other losses in accordance with an agreement between the authority and the nonprofit college or university.

     (b) A loan authorized under this section may not exceed the total cost of the project as determined by the nonprofit college or university and approved by the authority.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(7).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-28Loans and bonds

     Sec. 28. (a) The authority may make loans to a nonprofit college or university to refund outstanding obligations or advances issued, made, or given by the nonprofit college or university for the cost of a project, including the establishment of liability or other loss insurance reserves or the contribution of those reserves to a risk retention group to provide insurance coverage against liability claims or other losses.

     (b) The authority may issue bonds and make loans to a nonprofit college or university to refinance indebtedness incurred or to reimburse advances made for projects undertaken before the date of the bond issue whenever the authority finds that the financing is in the public interest and either:

(1) alleviates a financial hardship upon the nonprofit college or university;

(2) results in a lesser cost of education; or

(3) enables the nonprofit college or university to offer greater security for a loan or loans to finance a new project or projects or to effect savings in interest costs or more favorable amortization terms.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(8).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-29Costs

     Sec. 29. The authority may charge to and apportion among nonprofit colleges or universities the authority's administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(9).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-30Financing

     Sec. 30. (a) The authority may, for financing purposes, combine a project or projects and some or all future projects of any nonprofit college or university or nonprofit colleges or universities provided that:

(1) the authority obtains the consent of all of the nonprofit colleges or universities that are involved, or when financing loans for the funding of liability or other loss insurance reserves or for the providing of those reserves or other capital to be contributed to a risk retention group, the authority obtains the consent of all of the eligible members that are involved; and

(2) the money set aside in any fund or funds pledged for any series of bonds or issue of bonds is held for the sole benefit of a series or issue separate and apart from the money pledged for any other series or issue of bonds of the authority.

     (b) To facilitate the combining of projects, bonds may be issued in series under one (1) or more resolutions or trust agreements and be:

(1) fully open end, thus providing for unlimited issuance of additional series; or

(2) partially open end, limited as to additional series;

all in the discretion of the authority.

     (c) Notwithstanding any provision of this chapter, the authority may permit a nonprofit college or university to substitute one (1) or more educational facilities of similar value (as determined by an independent appraiser satisfactory to the authority) as security for any educational facility financed under this chapter on the terms and conditions that the authority may prescribe.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(10).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-31Mortgages

     Sec. 31. The authority may mortgage all or any part of:

(1) any project and any other educational facilities conveyed to the authority for an educational purpose; and

(2) the site or sites of the facilities, whether presently owned or subsequently acquired;

for the benefit of the holders of the bonds of the authority issued to finance a project or any portion of a project or issued to refund or refinance outstanding indebtedness of a nonprofit college or university as permitted by this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(11).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-32Risk retention

     Sec. 32. The authority may join in a risk retention group with state educational institutions or any nonprofit college or university.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(12).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-33Authority

     Sec. 33. The authority may do all things necessary to carry out the purposes of this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-11(13).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-34Payment of expenses

     Sec. 34. All expenses incurred in carrying out this chapter are payable solely from funds provided under the authority of this chapter. No liability may be incurred by the authority beyond the extent to which money has been provided under this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-12.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-35Acquisitions

     Sec. 35. The authority may acquire:

(1) directly;

(2) by and through a nonprofit college or university as the private institution's agent;

(3) by purchase solely from funds provided under this chapter; or

(4) by gift or devise;

lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in lands, including lands lying under water and riparian rights that are located in Indiana, as the authority finds necessary or convenient, for the construction or operation of a project, upon the terms and at the prices as are agreed upon between the authority and the owner of a property interest. The authority may take title to property in the authority's own name or in the name of a nonprofit college or university as the authority's agent.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-13.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-36Conveyance of title

     Sec. 36. The authority shall promptly take any action and execute any deeds and conveyances necessary and required to convey the title to a project or projects to the appropriate nonprofit college or university whenever:

(1) the principal of and interest on bonds of the authority issued to finance the cost of a project or projects for a nonprofit college or university, including any refunding bonds issued to refund and refinance the bonds, have been fully paid and retired; or

(2) adequate provision has been made to fully pay and retire bonds of the authority issued to finance the cost of a project or projects for a nonprofit college or university, all other conditions of the bond resolution have been satisfied, and the lien created by the bond resolution has been released in accord with the provisions of the bond resolution.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-14.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-37Issuance of bonds

     Sec. 37. The authority may periodically issue bonds for any corporate purpose. All bonds or other obligations of the authority issued under this chapter are negotiable for all purposes notwithstanding their payment from a limited source and without regard to any other.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-15(a).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-38Bonds of issue

     Sec. 38. The bonds of every issue are payable solely out of revenues of the authority, including accumulated reserves or sinking funds. Any income received from the investment of reserves or sinking funds must be applied in reduction of the rentals or other amounts paid by the nonprofit college or university or nonprofit colleges or universities for whose project or projects the reserves or sinking funds were created. Funds held as reserves or sinking funds when invested must be allocated to a specific project or projects of the institution for which the fund was created, and the income from the investment must be used to reduce the bonded indebtedness attributable to the project or projects.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-15(b).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-39Bonds; serial and term

     Sec. 39. (a) The bonds issued by the authority may be issued as serial bonds or term bonds, or both. The bonds:

(1) must be authorized by a bond resolution of the authority; and

(2) must:

(A) bear the date or dates;

(B) mature at the time or times not exceeding forty (40) years from their respective dates of issue;

(C) bear interest at the rate or rates, without regard to any limit contained in any other statute or law of Indiana;

(D) be payable at the time or times;

(E) be in the denominations;

(F) be in the form, either coupon or fully registered;

(G) carry the registration and conversion privileges;

(H) be payable in lawful money of the United States of America at the places; and

(I) be subject to the terms of redemption;

as are in current or customary usage in municipal bond markets and as the bond resolution may provide.

     (b) The bond resolution for bonds of the authority may set the maximum interest rate or rates that the bonds may bear and delegate to an officer or agent of the authority power to set an interest rate or rates that the bonds may bear at the time of sale of the bonds. However, the rate or rates may not exceed the maximum rate established by the authority in the bond resolution.

     (c) The bonds of the authority must be executed by the manual or facsimile signatures of the officers or agents of the authority designated by the authority. In the case of bonds having a maturity of one (1) year or less, the bond resolution that authorizes the bonds may concurrently provide for the issuance, delivery, and sale of refunding bonds subject to the terms and conditions prescribed in the bond resolution and this chapter. The bonds must be sold in the manner that the authority determines. Pending preparation of the definitive bonds, the authority may issue interim receipts or certificates, which must be exchanged for the definitive bonds.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-15(c).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-40Bond resolutions

     Sec. 40. Any bond resolution of the authority may contain provisions that become part of the contract with the holders of the bonds to be authorized, as to:

(1) pledging or assigning the revenues of the project or projects with respect to which the bonds are to be issued;

(2) the rentals, fees, and other amounts to be charged, and the sums to be raised in each year, and the use, investment, and disposition of the sums;

(3) the setting aside of reserves or sinking funds, and the regulation, investment, and disposition of reserves or sinking funds;

(4) limitations on the use of the project;

(5) limitations on the purpose to which or the investments in which the proceeds of sale of any issue of bonds may be applied;

(6) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, the terms upon which additional bonds may rank on a parity with, or be subordinate or superior to, other bonds;

(7) the refunding of outstanding bonds;

(8) the procedure, if any, by which the terms of any contract with bond holders may be amended or abrogated, the amount of bonds the holders of which must give consent and the manner in which the consent may be given;

(9) defining the acts or omissions to act that constitute a default in the duties of the authority to holders of the authority's obligations and providing the rights and remedies of the holders in the event of a default;

(10) mortgaging the project or projects with respect to which any bonds are to be issued and other educational facilities conveyed to the authority for a purpose for the benefit of the holders of the bonds;

(11) the establishment of liability or other loss insurance reserves or the contribution of those reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses; and

(12) any other matters relating to the bonds which the authority considers desirable.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-15(d).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-41Immunity for executing bonds

     Sec. 41. Neither the members of the authority nor any person executing the bonds of the authority may be held liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance of the bonds.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-15(e).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-42Bonds; purchasing

     Sec. 42. The authority may purchase bonds issued by the authority using any funds available for the purpose. The authority may hold, pledge, cancel, or resell bonds issued by the authority subject to and in accordance with agreements with bond holders.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-15(f).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-43Bonds; trust agreements

     Sec. 43. (a) The authority may secure any bonds issued under this chapter by a trust agreement by and between the authority and a corporate trustee or trustees, which may be any trust company or bank in Indiana having the powers of a trust company.

     (b) The bond resolution providing for the issuance of bonds secured by a trust agreement:

(1) must pledge the revenues to be received by the authority from the project or projects;

(2) may contain provisions for protecting and enforcing the rights and remedies of the bondholders as are reasonable and proper and not in violation of law, including provisions specifically authorized to be included in any bond resolution of the authority; and

(3) may restrict the individual right of action by bondholders.

     (c) Any bond resolution may contain any other provisions that the authority determines reasonable and proper for the security of the bondholders.

     (d) All expenses incurred in carrying out the provisions of the bond resolution may be treated as a part of the cost of the operation of a project.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-16.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-44Bonds; restrictions

     Sec. 44. (a) Bonds issued under this chapter do not, and must state upon the face of each bond that the bonds do not:

(1) represent or constitute:

(A) a debt of the authority or of the state within the meaning of the provisions of the Constitution or statutes of the state of Indiana; or

(B) a pledge of the faith and credit of the authority or the state; or

(2) grant to the owners or holders of the bonds any right to have the authority or the general assembly levy any taxes or appropriate any funds for the payment of the principal of or interest due on the bonds.

     (b) Bonds issued under this chapter are payable and must state that the bonds are payable solely from the funds pledged for payment of the bonds in accordance with the bond resolution.

     (c) This chapter may not be construed to authorize the authority or any department, board, commission or other agency to create an obligation of the state of Indiana within the meaning of the Constitution of the State of Indiana or the statutes of Indiana.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-17.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-45Leases

     Sec. 45. (a) In connection with any lease entered into between the authority and any nonprofit college or university, the authority shall fix, revise, charge, and collect rents for the use of each project and contract with any person, partnership, association, limited liability company, or corporation, or other body, public or private, in respect thereof.

     (b) Each lease entered into by the authority with a nonprofit college or university must provide that the rents or other money payable by the nonprofit college or university is sufficient at all times:

(1) to pay the private institution's share of the administrative costs and expenses of the authority;

(2) to pay the principal of the premium, if any, and the interest on outstanding bonds of the authority issued in respect of the project as the bonds become due and payable; and

(3) to create and maintain reserves that may be required or provided for in the bond resolution relating to the bonds of the authority.

     (c) The authority shall pledge the revenues derived and to be derived from a project for the purposes specified in subsection (b).

     (d) Additional bonds may be issued that rank on a parity with other bonds relating to the project to the extent and on the terms and conditions provided in the bond resolution.

     (e) A pledge is valid and binding from the time the pledge is made. The revenues pledged by the authority are immediately subject to the lien of a pledge without any physical delivery of the pledge document or further act. The lien of a pledge is valid and binding against all parties having claims of any kind in tort or contract or otherwise against the authority, irrespective of whether the parties have notice of the lien.

     (f) Neither the bond resolution nor any financing statement, continuation statement, or other instrument by which a pledge is created or by which the authority's interest in revenues is assigned need be filed or recorded in public records to perfect the lien created by a pledge of revenues by the authority as against third parties, except that a copy of the pledge document must be filed in the records of the authority and with the treasurer of state.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-18.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-46Bond proceeds

     Sec. 46. All money received under this chapter, whether as proceeds from the sale of bonds or as revenues, are trust funds to be held and applied solely as provided in this chapter. Any officer with whom, or any bank or trust company with which, money received under this chapter is deposited shall act as trustee of the moneys and shall hold and apply the money for the purposes described in this chapter, subject to any provisions set forth in this chapter and the bond resolution authorizing the bonds of any issue.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-19.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-47Rights of bond holders and trustees

     Sec. 47. Any holder of bonds issued under this chapter or a trustee under a trust agreement entered into under this chapter, except to the extent that the rights of a holder or a trustee are restricted by any bond resolution, may, by any suitable form of legal proceedings, protect and enforce any rights under the laws of Indiana or granted by the bond resolution. These rights include the right:

(1) to compel the performance of all duties of the authority required by this chapter or the bond resolution;

(2) to enjoin unlawful activities; and

(3) in the event of default with respect to the payment of any principal of, premium, if any, and interest on any bond or in the performance of any covenant or agreement on the part of the authority in the bond resolution, to apply to the circuit court, superior court, or probate court to appoint a receiver:

(A) to administer and operate the project or projects, the revenues of which are pledged to the payment of principal of, premium, if any, and interest on the bonds;

(B) with full power to pay, and to provide for payment of, principal of premium, if any, and interest on the bonds; and

(C) with the powers, subject to the direction of the court, as are permitted by law and are accorded receivers, excluding any power to pledge additional revenues of the authority to the payment of the principal, premium and interest.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-20.]

As added by P.L.2-2007, SEC.69. Amended by P.L.84-2016, SEC.20.

 

IC 5-1-16.5-48Refunding bonds generally

     Sec. 48. The authority may provide for the issuance of bonds of the authority:

(1) to refund any bonds of the authority then outstanding, including the payment of any redemption premium on the bonds and any interest accrued or to accrue to the earlier or any subsequent date of redemption, purchase, or maturity of the bonds; and

(2) if determined advisable by the authority, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project or any part of an addition, improvement, extension, or enlargement of a project.

However, no refunding bonds may be issued unless the authority provides for the payment of rentals adequate to satisfy the requirements of section 34 of this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-21(a).]

As added by P.L.2-2007, SEC.69. Amended by P.L.3-2008, SEC.17.

 

IC 5-1-16.5-49Issuance of bonds to refund outstanding bonds

     Sec. 49. The proceeds of any bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority:

(1) be applied to the purchase or retirement at maturity or redemption of the outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity of the outstanding bonds; and

(2) pending the application of the proceeds, be placed in escrow to be applied to the purchase or retirement at maturity or redemption of the outstanding bonds on a date determined by the authority.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-21(b).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-50Proceeds of refunding bonds; disposition

     Sec. 50. Any escrowed proceeds, pending use for the refunding of outstanding bonds, may be invested and reinvested in:

(1) direct obligations of the United States of America; or

(2) obligations having the timely payment of principal and interest unconditionally guaranteed by the United States of America;

maturing at a time or times that are appropriate to assure the prompt payment of the principal and interest and redemption premium, if any, on the outstanding bonds to be refunded. Any interest, income, and profits earned or realized on any investment may also be applied to the payment of the outstanding bonds to be refunded. Only after the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and any interest, income and profits earned or realized on the investments described in this section must be returned to the nonprofit college or university for use by the nonprofit college or university in any lawful manner.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-21(c).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-51Bonds; authority to refund

     Sec. 51. All bonds issued to refund outstanding bonds of the authority are subject to this chapter in the same manner and to the same extent as other bonds issued under this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-21(d).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-52Power to invest bonds

     Sec. 52. Except as otherwise provided in section 50 of this chapter or in any trust indenture providing for the issuance of bonds, the authority may invest:

(1) the authority's money, funds, and accounts;

(2) any money, funds, and accounts in the authority's custody; and

(3) proceeds of bonds or notes;

in the manner provided by an investment policy established by resolution of the authority.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-22.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-53Authority to invest bonds

     Sec. 53. All:

(1) banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and insurance companies and associations; and

(2) executors, administrators, guardians, trustees, and other fiduciaries;

may legally invest any sinking funds, moneys or other funds belonging to them or within their control in any bonds issued by the authority under this chapter.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-23.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-54Repealed

[Pre-2007 Higher Education Recodification Citation: 20-12-63-24.]

As added by P.L.2-2007, SEC.69. Repealed by P.L.162-2007, SEC.42.

 

IC 5-1-16.5-55Competitive bidding requirement

     Sec. 55. Except as provided in IC 21-36-2, a project is not subject to any statutory requirement of competitive bidding or other restriction imposed on the procedure for award of contracts or the lease, sale, or other disposition of property with regard to any action taken under authority of this chapter. If, however, the prospective lessee so requests in writing, the authority shall call for the construction bids in the manner determined by the authority with the approval of the lessee.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-25.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-56Powers of authority; financing

     Sec. 56. Notwithstanding any other provision of this chapter, the authority may:

(1) finance the cost of an educational facility or refund outstanding indebtedness of a nonprofit college or university, as authorized under section 28 of this chapter; or

(2) finance the establishment of liability or other loss insurance reserves or the contribution of reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses;

by issuing the authority's bonds for the purpose of loaning the proceeds to a nonprofit college or university for the cost of a project or to refund or refinance outstanding indebtedness or reimburse advances made in connection with a project in accordance with an agreement between the authority and the institution and in exchange for the institution's promissory note or notes.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-26(a) part.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-57Promissory notes

     Sec. 57. (a) Any promissory notes received under section 56 of this chapter:

(1) must have the same principal amounts, maturities, and interest rates as the bonds being issued;

(2) may be secured by a first mortgage lien on the educational facility being financed or by a first mortgage lien or security interest in other real or personal property or funds acceptable to the authority subject to any exceptions that the authority may approve and created by a mortgage instrument or security agreement satisfactory to the authority; and

(3) may be insured or guaranteed by others.

     (b) Any bonds described in section 56 of this chapter must be payable solely out of the payments to be made on the promissory notes and under the corresponding agreement. Any bonds described in section 56 of this chapter may not exceed in principal amount the cost of the educational facility, as determined by the nonprofit college or university, or the necessary amount of these liability or other loss insurance reserves, and approved by the authority. In other respects:

(1) the bonds are subject to the provisions of section 39 of this chapter; and

(2) the trust agreement or indenture creating the bonds may contain any of the provisions set forth in section 40 of this chapter that the authority determines appropriate.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-26(a) part.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-58Mortgages

     Sec. 58. If an educational facility is financed and mortgaged under sections 56 and 57 of this chapter:

(1) the title to the facility must remain in the nonprofit college or university owning the facility, subject to the lien of the mortgage securing the promissory notes then being purchased; and

(2) there may not be a lease of the facility between the authority and the institution.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-26(b).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-59Power of authority; restrictions

     Sec. 59. Section 36 of this chapter does not apply to any educational facility or any liability or other loss insurance reserves financed under sections 56 through 58 of this chapter and this section. However, the authority shall return the promissory notes purchased through the issuance of bonds under this chapter to the nonprofit college or university issuing the promissory notes when:

(1) the bonds have been fully paid and retired or adequate provision has been made to pay and retire the bonds fully;

(2) all other conditions of the trust agreement or indenture creating the bonds have been satisfied; and

(3) the lien has been released in accordance with the provisions of the instrument creating the lien.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-26(c).]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-60Power of authority; operation and maintenance of projects

     Sec. 60. Because the operation and maintenance of a project by the authority or the authority's agent constitutes the performance of an essential public function, neither the authority nor the authority's agent are required to pay any taxes or assessments, including mortgage recording taxes, upon or in respect of:

(1) a project or any property acquired or used by the authority or the authority's agent under this chapter or upon the income from the project or property;

(2) the bonds issued under this chapter or the interest on those bonds; and

(3) the proceeds received from bonds issued under this chapter:

(A) by a holder from the sale of such bonds, to the extent of the holder's cost of acquisition;

(B) upon redemption before maturity; or

(C) at maturity.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-27 part.]

As added by P.L.2-2007, SEC.69.

 

IC 5-1-16.5-61Bonds; tax exemption

     Sec. 61. All bonds and the interest on bonds issued under this chapter are exempt from taxation in Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5.

[Pre-2007 Higher Education Recodification Citation: 20-12-63-27 part.]

As added by P.L.2-2007, SEC.69. Amended by P.L.79-2017, SEC.6.

 

IC 5-1-17Chapter 17. Indiana Stadium and Convention Building Authority
           5-1-17-0.3General assembly findings
           5-1-17-1"Authority"
           5-1-17-2"Board"
           5-1-17-3"Bonds"
           5-1-17-4"Capital improvement board"
           5-1-17-5"State agency"
           5-1-17-6Establishment
           5-1-17-7Membership
           5-1-17-8Meetings; officers; quorum
           5-1-17-9Bylaws; rules; code of ethics
           5-1-17-9.5Personal liability of members or employees
           5-1-17-10Purpose
           5-1-17-11Powers
           5-1-17-12Bonds; refunding; leases; property
           5-1-17-13Lease; findings; term; conditions
           5-1-17-14Complete authority
           5-1-17-15Capital improvement plans and specifications; approval
           5-1-17-16Agreements; common wall; easements; licenses
           5-1-17-17Capital improvement; land; sale; lease
           5-1-17-18Bond issues
           5-1-17-18.5Negotiating with a single bidder for a project
           5-1-17-19Bonds; complete authority
           5-1-17-20Bonds; legal investments
           5-1-17-21Bonds; security
           5-1-17-22Bond issue for leased property purchase
           5-1-17-23Tax exemption
           5-1-17-24Bonds; contesting validity
           5-1-17-25Bonds; maximum amount; conditions
           5-1-17-26Leases between authority and state agency
           5-1-17-27Real property conveyance without bid or advertisement
           5-1-17-28Lease payments from taxes; budget director designee

 

IC 5-1-17-0.3General assembly findings

     Sec. 0.3. The general assembly finds the following:

(1) Marion, Boone, Johnson, Hamilton, Hancock, Hendricks, Morgan, and Shelby counties, and certain municipalities located in those counties, face unique and distinct challenges and opportunities related to the economic development issues associated with the construction and maintenance of a world-class convention center and stadium facility in Indianapolis.

(2) A unique approach is required to ensure that these counties have sufficient revenue sources to allow them to meet these challenges and opportunities.

(3) The powers and responsibilities provided to these counties and to the Indiana stadium and convention building authority created by this chapter are appropriate and necessary to carry out the public purposes of encouraging and fostering economic development in central Indiana and constructing a world-class convention center and stadium facility in Indianapolis.

(4) The retention of a National Football League franchised professional football team in Indianapolis poses unique challenges due to the need for development of a world class football stadium and related infrastructure that would not be needed apart from the needs related to the retention of a National Football League franchised professional football team in Indianapolis.

(5) The retention of a National Football League franchised professional football team in Indianapolis is critical to successful economic development in Indianapolis and is a public purpose.

(6) Encouragement of economic development in Indianapolis will:

(A) generate significant economic activity, a substantial portion of which results from persons residing outside Indiana, which may attract new businesses and encourage existing businesses to remain or expand in Indianapolis;

(B) promote the consolidated city to residents outside Indiana, which may attract residents outside Indiana and new businesses to relocate to the Indianapolis area;

(C) protect and increase state and local tax revenues; and

(D) encourage overall economic growth in Indianapolis and in Indiana.

(7) Indianapolis faces unique challenges in the development of infrastructure and other facilities necessary to promote economic development as a result of its need to rely on sources of revenue other than property taxes, due to the large number of tax exempt properties located in Indianapolis because Indianapolis is the seat of government, the home to multiple institutions of higher education, and the site of numerous state and regional nonprofit corporations.

(8) Economic development benefits the health and welfare of the people of Indiana, is a public use and purpose for which public money may be spent, and is of public utility and benefit.

As added by P.L.220-2011, SEC.58.

 

IC 5-1-17-1"Authority"

     Sec. 1. As used in this chapter, "authority" refers to the Indiana stadium and convention building authority created by this chapter.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-2"Board"

     Sec. 2. As used in this chapter, "board" refers to the board of directors of the authority.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-3"Bonds"

     Sec. 3. As used in this chapter, "bonds" means bonds, notes, commercial paper, or other evidences of indebtedness. The term includes obligations (as defined in IC 8-9.5-9-3) and swap agreements (as defined in IC 8-9.5-9-4).

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-4"Capital improvement board"

     Sec. 4. As used in this chapter, "capital improvement board" refers to a capital improvement board of managers created by IC 36-10-8 or IC 36-10-9.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-5"State agency"

     Sec. 5. As used in this chapter, "state agency" has the meaning set forth in IC 4-13.5-1-1.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-6Establishment

     Sec. 6. An Indiana stadium and convention building authority is created in Indiana as a separate body corporate and politic as an instrumentality of the state to acquire, construct, equip, own, lease, and finance facilities for lease to or for the benefit of a capital improvement board.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-7Membership

     Sec. 7. (a) The board is composed of the following seven (7) members, who must be residents of Indiana:

(1) Four (4) members appointed by the governor. The president pro tempore of the senate and the speaker of the house of representatives may each make one (1) recommendation to the governor concerning the appointment of a member under this subdivision.

(2) Two (2) members appointed by the executive of a county having a consolidated city.

(3) One (1) member appointed by the governor, who has been nominated by the county fiscal body of a county that is contiguous to a county having a consolidated city, determined as follows:

(A) The member nominated for the initial term shall be nominated by the contiguous county that has the largest population of all the contiguous counties that have adopted an ordinance to impose a food and beverage tax under IC 6-9-35.

(B) The member nominated for each successive term shall be nominated by the contiguous county that:

(i) contributed the most revenues from the tax imposed by IC 6-9-35 to the capital improvement board of managers created by IC 36-10-9-3 in the immediately previous calendar year; and

(ii) has not previously made a nomination to the governor or, if all the contributing counties have previously made such a nomination, is the one whose then most recent nomination occurred before those of all the other contributing counties.

     (b) A member appointed under subsection (a)(1) through (a)(2) is entitled to serve a three (3) year term. A member appointed under subsection (a)(3) is entitled to serve a one (1) year term. A member may be reappointed to subsequent terms.

     (c) If a vacancy occurs on the board, the governor shall fill the vacancy by appointing a new member for the remainder of the vacated term. If the vacated member was appointed under subsection (a)(2) or (a)(3), the governor shall appoint a new member who has been nominated by the person or body who made the nomination of the vacated member.

     (d) A member may be removed for cause by the appointing authority.

     (e) Each member, before entering upon the duties of office, must take and subscribe an oath of office under IC 5-4-1, which shall be endorsed upon the certificate of appointment and filed with the records of the board.

     (f) The governor shall nominate an executive director for the authority, subject to the veto authority of the executive of a county having a consolidated city.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-8Meetings; officers; quorum

     Sec. 8. (a) The board shall hold an initial organizational meeting on or before June 30, 2005. Immediately after January 15 of each year, the board shall hold its annual organizational meeting.

     (b) The governor shall appoint a member of the board to serve as chair of the board.

     (c) The board shall elect one (1) of the members vice chair and another secretary-treasurer to perform the duties of those offices. These officers serve from the date of their election and until their successors are elected and qualified. The board may elect an assistant secretary-treasurer.

     (d) Special meetings may be called by the chair of the board or any three (3) members of the board.

     (e) A majority of the members constitutes a quorum, and the concurrence of a majority of the members is necessary to authorize any action.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-9Bylaws; rules; code of ethics

     Sec. 9. (a) The board may adopt the bylaws and rules it considers necessary for the proper conduct of its duties and the safeguarding of the funds and property entrusted to its care.

     (b) The board shall, without complying with IC 4-22-2, adopt the code of ethics in executive order 05-12 for its members and employees.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-9.5Personal liability of members or employees

     Sec. 9.5. The:

(1) members of the authority;

(2) officers and employees of the authority; and

(3) executive director;

executing bonds, leases, obligations, or other agreements under this chapter are not subject to personal liability or accountability by reason of any act authorized by this chapter.

As added by P.L.120-2006, SEC.1.

 

IC 5-1-17-10Purpose

     Sec. 10. The authority is organized for the following purposes:

(1) Acquiring, financing, constructing, and leasing land and capital improvements to or for the benefit of a capital improvement board.

(2) Financing and constructing additional improvements to capital improvements owned by the authority and leasing them to or for the benefit of a capital improvement board.

(3) Acquiring land or all or a portion of one (1) or more capital improvements from a capital improvement board by purchase or lease and leasing the land or these capital improvements back to the capital improvement board, with any additional improvements that may be made to them.

(4) Acquiring all or a portion of one (1) or more capital improvements from a capital improvement board by purchase or lease to fund or refund indebtedness incurred on account of those capital improvements to enable the capital improvement board to make a savings in debt service obligations or lease rental obligations or to obtain relief from covenants that the capital improvement board considers to be unduly burdensome.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-11Powers

     Sec. 11. (a) The authority may also:

(1) finance, improve, construct, reconstruct, renovate, purchase, lease, acquire, and equip land and capital improvements;

(2) lease the land or those capital improvements to a capital improvement board;

(3) sue, be sued, plead, and be impleaded;

(4) condemn, appropriate, lease, rent, purchase, and hold any real or personal property needed or considered useful in connection with capital improvements;

(5) acquire real or personal property by gift, devise, or bequest and hold, use, or dispose of that property for the purposes authorized by this chapter;

(6) after giving notice, enter upon any lots or lands for the purpose of surveying or examining them to determine the location of a capital improvement;

(7) design, order, contract for, and construct, reconstruct, and renovate any capital improvements or improvements thereto;

(8) employ managers, superintendents, architects, engineers, attorneys, auditors, clerks, construction managers, and other employees;

(9) make and enter into all contracts and agreements, including agreements to arbitrate, that are necessary or incidental to the performance of its duties and the execution of its powers under this chapter;

(10) acquire in the name of the authority by the exercise of the right of condemnation, in the manner provided in subsection (c), public or private lands, or rights in lands, rights-of-way, property, rights, easements, and interests, as it considers necessary for carrying out this chapter; and

(11) take any other action necessary to implement its purposes as set forth in section 10 of this chapter.

     (b) The authority is subject to the provisions of 25 IAC 5 concerning equal opportunities for minority business enterprises and women's business enterprises to participate in procurement and contracting processes. In addition, the authority shall set a goal for participation by minority business enterprises of fifteen percent (15%) and women's business enterprises of five percent (5%), consistent with the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services. In fulfilling the goal, the authority shall take into account historical precedents in the same market.

     (c) If the authority is unable to agree with the owners, lessees, or occupants of any real property selected for the purposes of this chapter, the authority may proceed to procure the condemnation of the property under IC 32-24-1. The authority may not institute a proceeding until the authority has adopted a resolution that:

(1) describes the real property sought to be acquired and the purpose for which the real property is to be used;

(2) declares that the public interest and necessity require the acquisition by the authority of the property involved; and

(3) sets out any other facts that the authority considers necessary or pertinent.

The resolution is conclusive evidence of the public necessity of the proposed acquisition and shall be referred to the attorney general for action, in the name of the authority, in the circuit or superior court of the county in which the real property is located.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-12Bonds; refunding; leases; property

     Sec. 12. (a) Bonds issued under IC 36-10-8 or IC 36-10-9 or prior law may be refunded as provided in this section.

     (b) A capital improvement board may:

(1) lease all or a portion of land or a capital improvement or improvements to the authority, which may be at a nominal lease rental with a lease back to the capital improvement board, conditioned upon the authority assuming bonds issued under IC 36-10-8 or IC 36-10-9 or prior law and issuing its bonds to refund those bonds; and

(2) sell all or a portion of land or a capital improvement or improvements to the authority for a price sufficient to provide for the refunding of those bonds and lease back the land or capital improvement or improvements from the authority.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-13Lease; findings; term; conditions

     Sec. 13. (a) Before a lease may be entered into by a capital improvement board under this chapter, the capital improvement board must find that the lease rental provided for is fair and reasonable.

     (b) A lease or sublease of land or capital improvements from the authority, or from a state agency under section 26 of this chapter, to a capital improvement board:

(1) may not have a term exceeding forty (40) years;

(2) may not require payment of lease rentals for a newly constructed capital improvement or for improvements to an existing capital improvement until the capital improvement or improvements thereto have been completed and are ready for occupancy;

(3) may contain provisions:

(A) allowing the capital improvement board to continue to operate an existing capital improvement until completion of the improvements, reconstruction, or renovation of that capital improvement or any other capital improvement; and

(B) requiring payment of lease rentals for land, for an existing capital improvement being used, reconstructed, or renovated, or for any other existing capital improvement;

(4) may contain an option to renew the lease for the same or shorter term on the conditions provided in the lease;

(5) must contain an option for the capital improvement board to purchase the capital improvement upon the terms stated in the lease:

(A) during the term of the lease for a price equal to the amount required to pay all indebtedness incurred on account of the capital improvement, including indebtedness incurred for the refunding of that indebtedness; or

(B) for one dollar ($1) after the term of the lease, if all indebtedness incurred on account of the capital improvement, including indebtedness incurred for the refunding of that indebtedness, is no longer outstanding;

(6) may be entered into before acquisition or construction of a capital improvement;

(7) may provide that the capital improvement board shall agree to:

(A) pay all taxes and assessments thereon;

(B) maintain insurance thereon for the benefit of the authority;

(C) assume responsibility for utilities, repairs, alterations, and any costs of operation; and

(D) pay a deposit or series of deposits to the authority from any funds legally available to the capital improvement board before the commencement of the lease to secure the performance of the capital improvement board's obligations under the lease;

(8) subject to IC 36-10-8-13 and IC 36-10-9-11, may provide that the lease rental payments by the capital improvement board shall be made from:

(A) proceeds of one (1) or more of the excise taxes as defined in IC 36-10-8 or IC 36-10-9;

(B) proceeds of the county supplemental auto rental excise tax imposed under IC 6-6-9.7;

(C) that part of the proceeds of the county food and beverage tax imposed under IC 6-9-35, which the capital improvement board or its designee receives pursuant thereto;

(D) revenue captured under IC 36-7-31;

(E) net revenues of the capital improvement;

(F) any other funds available to the capital improvement board; or

(G) any combination of the sources described in clauses (A) through (F);

(9) subject to subdivision (10), must provide that the capital improvement board is solely responsible for the operation and maintenance of the capital improvement upon completion of construction, including the negotiation and maintenance of agreements with tenants or users of the capital improvement;

(10) must provide that, during the term of the lease, the authority retains the right to approve any lease agreements and amendments to any lease agreements between the capital improvement board and any National Football League franchised professional football team that will use the capital improvement;

(11) must provide that:

(A) subject to the terms of the lease, the capital improvement board will retain all revenues from operation of the capital improvement; and

(B) the authority has no responsibility to fund the ongoing maintenance and operations of the capital improvement; and

(12) with respect to a capital improvement that is subject to the county admissions tax imposed by IC 6-9-13, must provide that upon request of the authority the capital improvement board will impose a fee:

(A) not to exceed three dollars ($3), as determined by the authority, for each admission to a professional sporting event described in IC 6-9-13-1; and

(B) not to exceed one dollar ($1), as determined by the authority, for each admission to any other event described in IC 6-9-13-1;

and, so long as there are any current or future obligations owed by the capital improvement board to the authority or any state agency pursuant to a lease or other agreement entered into between the capital improvement board and the authority or any state agency under section 26 of this chapter, the capital improvement board or its designee shall deposit the revenues received from the fee imposed under this subdivision in a special fund, which may be used only for the payment of the obligations described in this subdivision.

     (c) A capital improvement board may designate the authority as its agent to receive on behalf of the capital improvement board any of the revenues identified in subsection (b)(8).

     (d) All information prepared by the capital improvement board or a political subdivision served by the capital improvement board with respect to a capital improvement proposed to be financed under this chapter, including a construction budget and timeline, must be provided to the budget director. Any information described in this subsection that was prepared before May 15, 2005, must be provided to the budget director not later than May 15, 2005.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-14Complete authority

     Sec. 14. This chapter contains full and complete authority for leases between the authority and a capital improvement board. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the board or the capital improvement board or any other officer, department, agency, or instrumentality of the state or any political subdivision is required to enter into any lease, except as prescribed in this chapter.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-15Capital improvement plans and specifications; approval

     Sec. 15. If the lease provides for a capital improvement or improvements thereto to be constructed by the authority, the plans and specifications shall be submitted to and approved by all agencies designated by law to pass on plans and specifications for public buildings.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-16Agreements; common wall; easements; licenses

     Sec. 16. The authority and a capital improvement board may enter into common wall (party wall) agreements or other agreements concerning easements or licenses. These agreements shall be recorded with the recorder of the county in which the capital improvement is located.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-17Capital improvement; land; sale; lease

     Sec. 17. (a) A capital improvement board may lease for a nominal lease rental, or sell to the authority, one (1) or more capital improvements or portions thereof or land upon which a capital improvement is located or is to be constructed.

     (b) Any lease of all or a portion of a capital improvement by a capital improvement board to the authority must be for a term equal to the term of the lease of that capital improvement back to the capital improvement board.

     (c) A capital improvement board may sell property to the authority.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-18Bond issues

     Sec. 18. (a) Subject to subsection (h), the authority may issue bonds for the purpose of obtaining money to pay the cost of:

(1) acquiring real or personal property, including existing capital improvements;

(2) constructing, improving, reconstructing, or renovating one (1) or more capital improvements; or

(3) funding or refunding bonds issued under IC 36-10-8 or IC 36-10-9 or prior law.

     (b) The bonds are payable from the lease rentals from the lease of the capital improvements for which the bonds were issued, insurance proceeds, and any other funds pledged or available.

     (c) The bonds shall be authorized by a resolution of the board.

     (d) The terms and form of the bonds shall either be set out in the resolution or in a form of trust indenture approved by the resolution.

     (e) The bonds shall mature within forty (40) years.

     (f) The board shall sell the bonds at public or private sale upon the terms determined by the board.

     (g) All money received from any bonds issued under this chapter shall be applied to the payment of the cost of the acquisition or construction, or both, of capital improvements, or the cost of refunding or refinancing outstanding bonds, for which the bonds are issued. The cost may include:

(1) planning and development of the facility and all buildings, facilities, structures, and improvements related to it;

(2) acquisition of a site and clearing and preparing the site for construction;

(3) equipment, facilities, structures, and improvements that are necessary or desirable to make the capital improvement suitable for use and operations;

(4) architectural, engineering, consultant, and attorney's fees;

(5) incidental expenses in connection with the issuance and sale of bonds;

(6) reserves for principal and interest;

(7) interest during construction;

(8) financial advisory fees;

(9) insurance during construction;

(10) municipal bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement; and

(11) in the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on, the bonds being refunded or refinanced.

     (h) The authority may not issue bonds under this chapter unless the authority first finds that the following conditions are met:

(1) Each contract or subcontract for the construction of a facility and all buildings, facilities, structures, and improvements related to that facility to be financed in whole or in part through the issuance of the bonds requires the contractor or subcontractor to enter into a project labor agreement as a condition of being awarded and performing work on the contract.

(2) The capital improvement board and the authority have entered into a written agreement concerning the terms of the financing of the facility. This agreement must include the following provisions:

(A) Notwithstanding any other law, if the capital improvement board selected a construction manager and an architect for a facility before May 15, 2005, the authority will contract with that construction manager and architect and use plans as developed by that construction manager and architect. In addition, any other agreements entered into by the capital improvement board or a political subdivision served by the capital improvement board with respect to the design and construction of the facility will be reviewed by a selection committee consisting of:

(i) two (2) of the members appointed to the board of directors of the authority under section 7(a)(1) of this chapter, as designated by the governor;

(ii) the two (2) members appointed to the board of directors of the authority under section 7(a)(2) of this chapter; and

(iii) the executive director of the authority.

The selection committee is not bound by any prior commitments of the capital improvement board or the political subdivision, other than the general project design, and will approve all contracts necessary for the design and construction of the facility.

(B) If before May 15, 2005, the capital improvement board acquired any land, plans, or other information necessary for the facility and the board had budgeted for these items, the capital improvement board will transfer the land, plans, or other information useful to the authority for a price not to exceed the lesser of:

(i) the actual cost to the capital improvement board; or

(ii) three million five hundred thousand dollars ($3,500,000).

(C) The capital improvement board agrees to take any legal action that the authority considers necessary to facilitate the financing of the facility, including entering into agreements during the design and construction of the facility or a sublease of a capital improvement to any state agency that is then leased by the authority to any state agency under section 26 of this chapter.

(D) The capital improvement board is prohibited from taking any other action with respect to the financing of the facility without the prior approval of the authority. The authority is not bound by the terms of any agreement entered into by the capital improvement board with respect to the financing of the facility without the prior approval of the authority.

(E) As the project financier, the Indiana finance authority (or its successor agency) and the public finance director will be responsible for selecting all investment bankers, bond counsel, trustees, and financial advisors.

(F) The capital improvement board agrees to deliver to the authority the one hundred million dollars ($100,000,000) that is owed to the capital improvement board, the consolidated city, or the county having a consolidated city pursuant to an agreement between the National Football League franchised professional football team and the capital improvement board, the consolidated city, or the county. This amount shall be applied to the cost of construction for the stadium part of the facility. This amount does not have to be delivered until a lease is entered into for the stadium between the authority and the capital improvement board.

(G) The authority agrees to consult with the staff of the capital improvement board on an as needed basis during the design and construction of the facility, and the capital improvement board agrees to make its staff available for this purpose.

(H) The authority, the county, the consolidated city, the capital improvement board and the National Football League franchised professional football team must commit to using their best efforts to assist and cooperate with one another to design and construct the facility on time and on budget.

(3) The capital improvement board and the National Football League franchised professional football team have entered into a lease for the stadium part of the facility that has been approved by the authority and has a term of at least thirty (30) years.

As added by P.L.214-2005, SEC.6. Amended by P.L.1-2006, SEC.87; P.L.252-2015, SEC.7.

 

IC 5-1-17-18.5Negotiating with a single bidder for a project

     Sec. 18.5. (a) This section applies to bids received with respect to a capital improvement under this chapter:

(1) that is constructed by, for, or on behalf of the authority; and

(2) for which only one (1) bid was received from a responsible bidder.

     (b) The board may attempt to negotiate a more advantageous proposal and contract with the bidder if the board determines that rebidding:

(1) is not practicable or advantageous; or

(2) would adversely affect the construction schedule or budget of the project.

     (c) The board shall prepare a bid file containing the following information:

(1) A copy of all documents that are included as part of the invitation for bids.

(2) A list of all persons to whom copies of the invitation for bids were given, including the following information:

(A) The name and address of each person who received an invitation for bids.

(B) The name of each bidder who responded and the dollar amount of the bid.

(C) A summary of the bid received.

(3) The basis on which the bid was accepted.

(4) Documentation of the board's negotiating process with the bidder. The documentation must include the following:

(A) A log of the dates and times of each meeting with the bidder.

(B) A description of the nature of all communications with the bidder.

(C) A copy of all written communications, including electronic communications, with the bidder.

(5) The entire contents of the contract file except for proprietary information included with the bid, such as trade secrets, manufacturing processes, and financial information that was not required to be made available for public inspection by the terms of the invitation for bids.

As added by P.L.120-2006, SEC.2.

 

IC 5-1-17-19Bonds; complete authority

     Sec. 19. This chapter contains full and complete authority for the issuance of bonds. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the board or any other officer, department, agency, or instrumentality of the state or of any political subdivision is required to issue any bonds, except as prescribed in this chapter.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-20Bonds; legal investments

     Sec. 20. Bonds issued under this chapter are legal investments for private trust funds and the funds of banks, trust companies, insurance companies, building and loan associations, credit unions, banks of discount and deposit, savings banks, loan and trust and safe deposit companies, rural loan and savings associations, guaranty loan and savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and other financial institutions organized under Indiana law.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-21Bonds; security

     Sec. 21. (a) The authority may secure bonds issued under this chapter by a trust indenture between the authority and a corporate trustee, which may be any trust company or national or state bank within Indiana that has trust powers.

     (b) The trust indenture may:

(1) pledge or assign lease rentals, receipts, and income from leased capital improvements, but may not mortgage land or capital improvements;

(2) contain reasonable and proper provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the authority and board;

(3) set forth the rights and remedies of bondholders and trustee; and

(4) restrict the individual right of action of bondholders.

     (c) Any pledge or assignment made by the authority under this section is valid and binding from the time that the pledge or assignment is made, against all persons whether or not they have notice of the lien. Any trust indenture by which a pledge is created or an assignment made need not be filed or recorded. The lien is perfected against third parties by filing the trust indenture in the records of the board.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-22Bond issue for leased property purchase

     Sec. 22. If a capital improvement board exercises its option to purchase leased property, it may issue its bonds as authorized by statute.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-23Tax exemption

     Sec. 23. All:

(1) property owned by the authority;

(2) revenues of the authority; and

(3) bonds issued by the authority, the interest on the bonds, the proceeds received by a holder from the sale of bonds to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of interest in proceeds;

are exempt from taxation in Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5.

As added by P.L.214-2005, SEC.6. Amended by P.L.79-2017, SEC.7.

 

IC 5-1-17-24Bonds; contesting validity

     Sec. 24. Any action to contest the validity of bonds to be issued under this chapter may not be brought after the fifteenth day following:

(1) the receipt of bids for the bonds, if the bonds are sold at public sale; or

(2) the publication one (1) time in a newspaper of general circulation published in the county of notice of the execution and delivery of the contract for the sale of bonds;

whichever occurs first.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-25Bonds; maximum amount; conditions

     Sec. 25. The authority shall not issue bonds in a principal amount exceeding five hundred million dollars ($500,000,000) to finance any capital improvement in a county having a consolidated first class city unless:

(1) on or before June 30, 2005, the county fiscal body:

(A) increases the rate of the tax authorized by IC 6-6-9.7 by the maximum amount authorized by IC 6-6-9.7-7(c);

(B) increases the rate of the tax authorized by IC 6-9-8 by the maximum amount authorized by IC 6-9-8-3(d);

(C) increases the rate of tax authorized by IC 6-9-12 by the maximum amount authorized by IC 6-9-12-5(b); and

(D) increases the rate of the tax authorized by IC 6-9-13 by the maximum amount authorized by IC 6-9-13-2(b); and

(2) on or before October 1, 2005, the budget director makes a determination under IC 36-7-31-14.1 to increase the amount of money captured in a tax area established under IC 36-7-31 by up to eleven million dollars ($11,000,000) per year, commencing July 1, 2007.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-26Leases between authority and state agency

     Sec. 26. (a) Notwithstanding any other law, any capital improvement that may be leased by the authority to a capital improvement board under this chapter may also be leased by the authority to any state agency to accomplish the purposes of this chapter. Any lease between the authority and a state agency under this chapter:

(1) must set forth the terms and conditions of the use and occupancy under the lease;

(2) must set forth the amounts agreed to be paid at stated intervals for the use and occupancy under the lease;

(3) must provide that the state agency is not obligated to continue to pay for the use and occupancy under the lease but is instead required to vacate the facility if it is shown that the terms and conditions of the use and occupancy and the amount to be paid for the use and occupancy are unjust and unreasonable considering the value of the services and facilities thereby afforded;

(4) must provide that the state agency is required to vacate the facility if funds have not been appropriated or are not available to pay any sum agreed to be paid for use and occupancy when due;

(5) may provide for such costs as maintenance, operations, taxes, and insurance to be paid by the state agency;

(6) may contain an option to renew the lease;

(7) may contain an option to purchase the facility for an amount equal to the amount required to pay the principal and interest of indebtedness of the authority incurred on account of the facility and expenses of the authority attributable to the facility;

(8) may provide for payment of sums for use and occupancy of an existing capital improvement being used by the state agency, but may not provide for payment of sums for use and occupancy of a new capital improvement until the construction of the capital improvement or portion thereof has been completed and the new capital improvement or a portion thereof is available for use and occupancy by the state agency; and

(9) may contain any other provisions agreeable to the authority and the state agency.

     (b) Any state agency that leases a capital improvement from the authority under this chapter may sublease the capital improvement to a capital improvement board under the terms and conditions set forth in section 13(a) of this chapter, section 13(b)(1) through 13(b)(4) of this chapter, section 13(b)(6) through 13(b)(8) of this chapter, and section 13(c) of this chapter.

     (c) Notwithstanding any other law, in anticipation of the construction of any capital improvement and the lease of that capital improvement by the authority to a state agency, the authority may acquire an existing facility owned by the state agency and then lease the facility to the state agency. A lease made under this subsection shall describe the capital improvement to be constructed and may provide for the payment of rent by the state agency for the use of the existing facility. If such rent is to be paid pursuant to the lease, the lease shall provide that upon completion of the construction of the capital improvement, the capital improvement shall be substituted for the existing facility under the lease. The rent required to be paid by the state agency pursuant to the lease shall not constitute a debt of the state for purposes of the Constitution of the State of Indiana. A lease entered into under this subsection is subject to the same requirements for a lease entered into under subsection (a) with respect to both the existing facility and the capital improvement anticipated to be constructed.

     (d) This chapter contains full and complete authority for leases between the authority and a state agency and subleases between a state agency and a capital improvement board. No laws, procedures, proceedings, publications, notices, consents, approvals, orders, or acts by the board, the governing body of any state agency or the capital improvement board or any other officer, department, agency, or instrumentality of the state or any political subdivision is required to enter into any such lease or sublease, except as prescribed in this chapter.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-27Real property conveyance without bid or advertisement

     Sec. 27. In order to enable the authority to lease a capital improvement or existing facility to a state agency under section 26 of this chapter, the governor may convey, transfer, or sell, with or without consideration, real property (including the buildings, structures, and improvements), title to which is held in the name of the state, to the authority, without being required to advertise or solicit bids or proposals, in order to accomplish the governmental purposes of this chapter.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17-28Lease payments from taxes; budget director designee

     Sec. 28. If the authority enters into a lease with a capital improvement board under section 13 of this chapter or a state agency under section 26 of this chapter, which then enters into a sublease with a capital improvement board under section 26(b) of this chapter, and the rental payments owed by the capital improvement board to the authority under the lease or to the state agency under the sublease are payable from the taxes described in section 25 of this chapter or from the taxes authorized under IC 6-9-35, the budget director may choose the designee of the capital improvement board, which shall receive and deposit the revenues derived from such taxes. The designee shall hold the revenues on behalf of the capital improvement board pursuant to an agreement between the authority and the capital improvement board or between a state agency and the capital improvement board. The agreement shall provide for the application of the revenues in a manner that does not adversely affect the validity of the lease or the sublease, as applicable.

As added by P.L.214-2005, SEC.6.

 

IC 5-1-17.5Chapter 17.5. Motorsports Investment District
           5-1-17.5-1Legislative findings
           5-1-17.5-2"Admissions fees"
           5-1-17.5-3"Affected statutes"
           5-1-17.5-4"Authority"
           5-1-17.5-5"Board"
           5-1-17.5-6"Bonds"
           5-1-17.5-7"Budget agency"
           5-1-17.5-8"Budget committee"
           5-1-17.5-9"Commission"
           5-1-17.5-10"Department"
           5-1-17.5-11"Motorsports investment district"
           5-1-17.5-12"Person"
           5-1-17.5-13"Political subdivision"
           5-1-17.5-14"Qualified motorsports facility"
           5-1-17.5-15Commission established; purpose
           5-1-17.5-16Board of directors of the commission
           5-1-17.5-17Powers of the commission
           5-1-17.5-18Staff support and expenses; employees
           5-1-17.5-19Surety bonds of directors
           5-1-17.5-20Personal liability of directors
           5-1-17.5-21Annual audit
           5-1-17.5-22Annual report
           5-1-17.5-23Director's interest in contracts or in sale or lease of property prohibited
           5-1-17.5-24Resolution by commission establishing a district; public hearing; required findings by commission; territory of district
           5-1-17.5-25Allocation of amounts appropriated to the commission; expiration date of district
           5-1-17.5-26Filing of informational tax returns by certain taxpayers; guidelines
           5-1-17.5-27Submission to the budget agency of resolution establishing district
           5-1-17.5-28Budget committee review; approval by budget agency; required findings before resolution may be approved
           5-1-17.5-29Information to be provided to department of state revenue
           5-1-17.5-30Motorsports investment district fund; request for appropriations; use of money in the fund
           5-1-17.5-30.5Establishment of motorsports facility fund; deposits; reversions; requests for appropriations
           5-1-17.5-31Powers of Indiana finance authority
           5-1-17.5-32Lease of structures and improvements; requirements
           5-1-17.5-33Option to renew lease
           5-1-17.5-34Option to purchase leased property; conveyance of property; requirements
           5-1-17.5-35Authorization and execution of leases by commission board of directors
           5-1-17.5-36Commission approval of financed improvements; liens and security interests; transfer of controlling ownership interest in qualified motorsports facility; credits against obligations of owners
           5-1-17.5-37Issuance of bonds; terms and conditions; use of bond proceeds
           5-1-17.5-38Authority for certain actions by the commission and the Indiana finance authority; bonds as legal investments
           5-1-17.5-39Securing of bonds; trust indenture; validity of pledge or assignment
           5-1-17.5-40Action to contest validity of bonds
           5-1-17.5-41Equal opportunities in procurement and contracting
           5-1-17.5-42Income tax withholding; department of state revenue guidelines
           5-1-17.5-43Office of management and budget review

 

IC 5-1-17.5-1Legislative findings

     Sec. 1. The general assembly finds the following:

(1) Marion County and certain surrounding counties and municipalities located in those counties face unique and distinct challenges and opportunities related to the economic development issues associated with the maintenance of a world-class motorsports facility in the town of Speedway.

(2) A unique approach is required to ensure that such a motorsports facility can be maintained to allow these counties and municipalities to meet these challenges and opportunities.

(3) The powers and responsibilities provided to the Indiana motorsports commission created by this chapter and the Indiana finance authority are appropriate and necessary to carry out the public purposes of encouraging and fostering economic development in central Indiana and maintaining a world-class motorsports facility in the town of Speedway.

(4) Encouragement of economic development in central Indiana will:

(A) generate significant economic activity, a substantial part of which results from persons residing outside Indiana, which may attract new businesses and encourage existing businesses to remain or expand in central Indiana;

(B) promote central Indiana to residents outside Indiana, which may attract residents outside Indiana and new businesses to relocate to central Indiana;

(C) protect and increase state and local tax revenues; and

(D) encourage overall economic growth in central Indiana and in Indiana.

(5) Marion County faces unique challenges in the development of infrastructure and other facilities necessary to promote economic development as a result of its need to rely on sources of revenue other than property taxes, due to the large number of tax-exempt properties located in Marion County, because Indianapolis is the seat of state government and Marion County government, and because Marion County is home to multiple institutions of higher education and the site of numerous state and regional nonprofit corporations.

(6) Economic development benefits the health and welfare of the people of Indiana, is a public use and purpose for which public money may be spent, and is of public utility and benefit.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-2"Admissions fees"

     Sec. 2. As used in this chapter, "admissions fees" means the admissions fees under IC 6-8-14.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-3"Affected statutes"

     Sec. 3. As used in this chapter, "affected statutes" has the meaning set forth in IC 4-4-10.9-1.2.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-4"Authority"

     Sec. 4. As used in this chapter, "authority" refers to the Indiana finance authority.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-5"Board"

     Sec. 5. As used in this chapter, "board" refers to the board of directors of the commission.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-6"Bonds"

     Sec. 6. As used in this chapter, "bonds" has the meaning set forth in IC 4-4-10.9-2.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-7"Budget agency"

     Sec. 7. As used in this chapter, "budget agency" means the budget agency established by IC 4-12-1-3.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-8"Budget committee"

     Sec. 8. As used in this chapter, "budget committee" means the budget committee established by IC 4-12-1-3.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-9"Commission"

     Sec. 9. As used in this chapter, "commission" refers to the Indiana motorsports commission created by this chapter.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-10"Department"

     Sec. 10. As used in this chapter, "department" refers to the department of state revenue.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-11"Motorsports investment district"

     Sec. 11. As used in this chapter, "motorsports investment district" means the geographic area established as a motorsports investment district under this chapter.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-12"Person"

     Sec. 12. As used in this chapter, "person" has the meaning set forth in IC 36-1-2-12.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-13"Political subdivision"

     Sec. 13. As used in this chapter, "political subdivision" has the meaning set forth in IC 36-1-2-13.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-14"Qualified motorsports facility"

     Sec. 14. (a) As used in this chapter, "qualified motorsports facility" means a facility that:

(1) is located in Indiana;

(2) is used for professional motorsports racing events;

(3) has a motorsports racetrack that is greater than two (2) miles in length; and

(4) holds at least two (2) professional motorsports racing events annually at which the combined admissions total at least two hundred thousand (200,000).

     (b) For purposes of this section, a professional motorsports racing event includes a professional motorsports racing practice session that is open to the general public.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-15Commission established; purpose

     Sec. 15. The Indiana motorsports commission is created in Indiana as a separate body corporate and politic, as an instrumentality of the state, to finance and lease real and personal property improvements for the benefit of an owner of a qualified motorsports facility within a motorsports investment district.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-16Board of directors of the commission

     Sec. 16. (a) The board of directors of the commission is composed of the following five (5) directors, who serve at the pleasure of the governor and must be residents of Indiana:

(1) The budget director, or the budget director's designee, who shall serve as chair of the commission.

(2) Four (4) directors appointed by the governor. The president pro tempore of the senate and the speaker of the house of representatives may each make one (1) recommendation to the governor concerning the appointment of a director under this subdivision.

     (b) The commission shall be governed by the board. The directors may not be elected public officials of the state or any political subdivision. Except for the budget director, the directors first appointed continue in office for terms expiring on July 1, 2014, July 1, 2015, July 1, 2016, and July 1, 2017, and until their respective successors are duly appointed and qualified.

     (c) Except for the budget director, the term of any director first appointed must be designated by the governor. If a vacancy occurs on the board, the governor shall fill the vacancy by appointing a new director. The successor of each such director is appointed for a term of four (4) years, except that any person appointed to fill a vacancy is appointed to serve only for the unexpired term and until a successor is duly appointed and qualified. A director is eligible for reappointment.

     (d) The directors shall hold an initial organizational meeting within thirty (30) days after the board's appointment and after public notice given by the budget director in accordance with IC 5-3-1-4. As soon as practicable after January 15 of each year, the board shall hold its annual organizational meeting. The board shall elect one (1) of the directors as vice chair and another director as secretary-treasurer to perform the duties of those offices. These officers serve from the date of their election and until their successors are elected and qualified. Special meetings may be called by the chair or any two (2) directors of the board.

     (e) Three (3) directors constitute a quorum of the board, and the affirmative vote of at least three (3) directors is necessary for any official action taken by the board. A vacancy in the membership of the board does not impair the rights of a quorum to exercise all the rights and perform all the duties of the board.

     (f) Except for the budget director, the directors are entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with their duties as provided by law. Directors are not entitled to the salary per diem provided by IC 4-10-11-2.1(b) or any other compensation while performing their duties.

     (g) All expenses incurred in carrying out the provisions of this chapter shall be payable solely from funds provided under this chapter or from the proceeds of bonds issued by the authority under this chapter, and no liability or obligation shall be incurred by the commission or the authority under this chapter beyond the extent to which money shall have been provided under the authority of this chapter.

     (h) The board:

(1) is responsible for implementing the powers and duties of the commission under this chapter;

(2) may adopt bylaws for the regulation of the affairs of the board, the conduct of the business of the commission, and the safeguarding of the funds and property entrusted to the commission; and

(3) shall, without complying with IC 4-22-2, adopt the code of ethics specified in executive order 05-12 for its members and employees.

As added by P.L.233-2013, SEC.5. Amended by P.L.2-2014, SEC.9.

 

IC 5-1-17.5-17Powers of the commission

     Sec. 17. The commission is authorized and empowered to do the following:

(1) To sue and be sued, and to plead and be impleaded in the name of the commission.

(2) To receive and accept from any federal agency grants and to receive and accept aid or contributions from any source of money, property, labor, or other things of value, to be held, used, and applied only for the purposes for which such grants and contributions may be made.

(3) To hold, use, administer, and expend such sum or sums as may at any time be appropriated or transferred to the commission.

(4) To purchase, acquire, or hold debt securities or other investments for the commission's own account at prices and in a manner the commission considers advisable, and to sell or otherwise dispose of those securities or investments at prices without relation to cost and in a manner the commission considers advisable.

(5) To lease real or personal property as lessor or lessee from or to the authority or any person under this chapter.

(6) To do all acts and things necessary or proper to carry out the powers expressly granted in this chapter.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-18Staff support and expenses; employees

     Sec. 18. The authority shall provide staff support for the commission and pay all expenses of the commission from funds transferred to the commission from the motorsports investment district fund established under section 30 of this chapter. In providing such staff, the authority may employ, without the approval of the attorney general or any other state officer, any accounting and technical experts, attorneys, and other officers, employees, and agents, permanent or temporary, as may be necessary in the authority's judgment to carry out the efficient operation of the commission, including professionals who can prepare a report on the matters to be considered in making the findings of the commission set forth in section 24 of this chapter, and the commission may fix their compensation and title. Employees of the authority employed under this section shall not be considered employees of the state.

As added by P.L.233-2013, SEC.5. Amended by P.L.2-2014, SEC.10.

 

IC 5-1-17.5-19Surety bonds of directors

     Sec. 19. (a) Except as provided in subsection (b), each director of the board shall execute a surety bond in the penal sum of fifty thousand dollars ($50,000). To the extent an individual described in this section is already covered by a bond required by state law, the individual is not required to obtain another bond, so long as the bond required by state law is in at least the penal sum specified in this section and covers the individual's activities for the commission.

     (b) Instead of a bond, the chair may execute a blanket surety bond covering each director.

     (c) Each surety bond must be conditioned upon the faithful performance of the individual's duties and shall be issued by a surety company authorized to transact business in this state as surety. At all times after the issuance of any surety bonds, each individual described in this section shall maintain the surety bonds in full force and effect. All costs of the surety bonds shall be borne by the commission.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-20Personal liability of directors

     Sec. 20. The directors of the board are not subject to personal liability or accountability by reason of any act authorized by this chapter with respect to the:

(1) issuance of any obligations;

(2) execution of any lease or sublease; or

(3) execution of any other agreement under this chapter.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-21Annual audit

     Sec. 21. The commission shall cause an audit or review of its books and accounts to be made at least once each year by certified public accountants.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-22Annual report

     Sec. 22. The commission shall, following the close of each fiscal year of the commission, submit an annual report of its activities for the preceding year to the governor, the budget committee, and the legislative council. An annual report submitted under this section to the legislative council must be in an electronic format under IC 5-14-6. Each report must set forth a complete operating and financial statement for the commission during the fiscal year the report covers.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-23Director's interest in contracts or in sale or lease of property prohibited

     Sec. 23. (a) A director of the commission who knowingly has an interest:

(1) in any contract with the commission; or

(2) in the sale or lease of any real or personal property to the commission;

commits a Class A misdemeanor. All such contracts or leases are void.

     (b) This section does not apply to contracts for purchases of property, real or personal, between the commission and:

(1) the authority;

(2) any political subdivision; or

(3) any department or agency of the state.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-24Resolution by commission establishing a district; public hearing; required findings by commission; territory of district

     Sec. 24. (a) The commission may, after a public hearing, adopt a resolution establishing a motorsports investment district. Notice of the public hearing must be provided in accordance with IC 5-3-1.

     (b) In establishing the motorsports investment district, the commission must make the following findings:

(1) There are improvements that will be undertaken in the motorsports investment district that will have a positive effect on the activities of a qualified motorsports facility.

(2) The improvements that will be undertaken in the motorsports investment district will benefit the public health and welfare and will be of public utility and benefit.

(3) The improvements that will be undertaken in the motorsports investment district will protect or increase state and local tax bases and tax revenues.

     (c) A motorsports investment district consists of:

(1) the geographic area that is included within the qualified motorsports facility;

(2) adjacent property that is:

(A) related to the operation of the qualified motorsports facility; and

(B) owned by the owner of the qualified motorsports facility or a subsidiary or affiliate of the qualified motorsports facility;

(3) property on which activities related to the qualified motorsports facility occur; and

(4) other public property specified by the commission;

as determined in the resolution adopted by the commission.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-25Allocation of amounts appropriated to the commission; expiration date of district

     Sec. 25. A resolution establishing a motorsports investment district must provide for the allocation to the motorsports investment district fund established under section 30 of this chapter of the money appropriated to the commission. The resolution must state an expiration date for the motorsports investment district, which must be the later of:

(1) the date that is thirty (30) years after the date of the adoption of the resolution; or

(2) the date on which the owner or owners of a qualified motorsports facility no longer have a financial liability to the commission.

Subject to section 24(c) of this chapter, the commission shall specify in the resolution the geographic area that is included within the motorsports investment district.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-26Filing of informational tax returns by certain taxpayers; guidelines

     Sec. 26. (a) A taxpayer operating in the motorsports investment district that files a consolidated return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the motorsports investment district.

     (b) If the department is unable to determine the extent to which taxes remitted by a taxpayer are gross retail incremental amounts or income tax incremental amounts for purposes of IC 4-10-23, the department shall use the best information available in calculating those incremental amounts.

     (c) The department shall adopt guidelines to govern its responsibilities under this chapter.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-27Submission to the budget agency of resolution establishing district

     Sec. 27. Upon adoption by the commission of a resolution establishing a motorsports investment district under this chapter, the commission shall submit the resolution to the budget agency.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-28Budget committee review; approval by budget agency; required findings before resolution may be approved

     Sec. 28. The budget agency, after review by the budget committee, shall approve the resolution establishing the motorsports investment district if the budget agency finds that the improvements to be made within the qualified motorsports facility are economically sound and will benefit the people of Indiana by protecting or increasing state and local tax bases and tax revenues for at least the duration of the motorsports investment district.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-29Information to be provided to department of state revenue

     Sec. 29. (a) If the commission adopts a resolution establishing a motorsports investment district, the commission shall notify the department in an electronic format approved by the department of the adoption of the resolution and shall include with the notification a complete list of the following:

(1) Employers and vendors with a responsibility to remit taxes in the motorsports investment district.

(2) Street names and the range of street numbers of each street in the motorsports investment district.

     (b) The commission shall update the list prepared under subsection (a) before July 1 of each year.

     (c) At the request of the department, the commission, the owner or owners of a motorsports facility located in the district, and any political subdivision in which all or a part of the district is located shall disclose to the department the names of the employers described in subsection (a) and such other information that may assist in the determination of the gross retail incremental amounts or income tax incremental amounts for purposes of IC 4-10-23.

     (d) At the request of the department, a political subdivision in which the qualified motorsports facility is located shall provide to the department information requested by the department concerning permits issued by the political subdivision to vendors operating within the motorsports investment district.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-30Motorsports investment district fund; request for appropriations; use of money in the fund

     Sec. 30. (a) If a motorsports investment district is established under this chapter, the commission, or the authority for and on behalf of the commission, shall establish a motorsports investment district fund for the motorsports investment district. The fund shall be administered by the commission. Except as provided in subsection (g), money in the fund does not revert to the state general fund at the end of a state fiscal year.

     (b) The commission shall deposit amounts appropriated to the commission in the motorsports investment district fund as provided in this chapter.

     (c) The commission shall request that the general assembly make an appropriation not to exceed five million dollars ($5,000,000) to the commission for deposit in the motorsports investment district fund in each state fiscal year following the creation of the motor sports investment district fund, until the earlier of:

(1) the date that is twenty-two (22) years after the date on which appropriations are first deposited in the motorsports investment district fund; or

(2) the date on which all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding.

The commission may use money in the motorsports investment district fund for the purposes of this chapter.

     (d) Amounts held in the motorsports investment district fund may be distributed to a trustee of any bonds that are issued or to be issued by the authority under section 37 of this chapter and that are secured by rent to be paid by the commission under a lease entered into with the authority under section 32 of this chapter.

     (e) In addition, to the extent the rent due in a state fiscal year under leases of structures or other capital improvements that are within a motorsports investment district is anticipated to be insufficient to pay debt service on bonds issued under section 37 of this chapter, when due in that state fiscal year, the authority shall make the request under subsection (c) upon reaching the determination.

     (f) Money in the motorsports investment district fund may be used by the commission, the authority, or a trustee for the following:

(1) Payment of the rent due under leases of structures or other capital improvements that are located within a motorsports investment district.

(2) Payment of all expenses incurred by the commission or the authority in connection with the exercise of its duties and obligations set forth in this chapter, including those incurred in connection with the establishment of the motorsports investment district.

(3) Payment of debt service on bonds issued under section 37 of this chapter, but only to the extent of any deposit made to the motorsports investment district fund from appropriations requested under subsection (e) or section 30.5(d) of this chapter.

     (g) On the date that all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding and all expenses incurred by the commission or the authority in connection with the exercise of its duties and obligations set forth in this chapter have been paid, all money then remaining on deposit in the motorsports investment district fund reverts to the state general fund.

As added by P.L.233-2013, SEC.5. Amended by P.L.213-2015, SEC.55; P.L.149-2016, SEC.16.

 

IC 5-1-17.5-30.5Establishment of motorsports facility fund; deposits; reversions; requests for appropriations

     Sec. 30.5. (a) If a motorsports investment district is established under this chapter, the commission shall establish a motorsports facility fund for the motorsports investment district.

     (b) During the term of the written agreement entered into by:

(1) the owner or owners of the qualified motorsports facility;

(2) the authority; and

(3) the commission;

the commission shall, in each state fiscal year, deposit in the motorsports facility fund two million dollars ($2,000,000) solely from payments established under section 37(f)(1) of this chapter.

     (c) Subject to subsection (e), the commission, or the authority for and on behalf of the commission, shall request that the general assembly make an appropriation to the commission in each state fiscal year in which the written agreement described in subsection (b) is in effect. The amount of the requested appropriation must be equal to the amount that the commission is required to deposit into the motorsports facility fund under subsection (b) for that state fiscal year. An appropriation made to the commission under this subsection:

(1) must be deposited in the motorsports investment district fund established under section 30 of this chapter; and

(2) is in addition to an amount appropriated under section 30 of this chapter.

     (d) In addition, to the extent the rent due in a state fiscal year under leases of structures or other capital improvements that are within a motorsports investment district, plus the appropriation requested under section 30(e) of this chapter, are anticipated to be insufficient to pay debt service on bonds issued under section 37 of this chapter, when due in that state fiscal year, the authority shall make the request under subsection (c) upon reaching the determination.

     (e) The commission may not request an appropriation under subsection (c) after the earlier of:

(1) the date specified in section 30(c)(1) of this chapter; or

(2) the date specified in section 30(c)(2) of this chapter.

     (f) Money in the motorsports facility fund reverts to the state general fund on June 30 of each year.

As added by P.L.190-2014, SEC.8. Amended by P.L.213-2015, SEC.56.

 

IC 5-1-17.5-31Powers of Indiana finance authority

     Sec. 31. The authority may do any of the following:

(1) Finance the improvement, construction, reconstruction, renovation, and acquisition of real and personal property improvements within a qualified motorsports facility.

(2) Exercise the authority's powers under IC 4-4-11 within a qualified motorsports facility.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-32Lease of structures and improvements; requirements

     Sec. 32. (a) The commission may lease all or any part of structures and capital improvements located within a qualified motorsports facility from the authority, and the authority may lease all or any part of structures and capital improvements located within a qualified motorsports facility to the commission. Any property subject to such a lease is not exempt from taxation under the laws of the state solely by reason of it being subject to such a lease. In a lease from the authority to the commission, the commission may pledge:

(1) amounts appropriated to the commission and deposited in the motorsports investment district fund;

(2) any other rental payments, receipts, and income from the leased structures and capital improvements; or

(3) any other money legally available to the commission for the payment of rent under such a lease.

     (b) The amount of any such rent may include the amount necessary to pay the principal of, redemption premium, and interest on any bonds issued by the authority under section 37 of this chapter, when due, the amount of any necessary reserves, and the amount of any expenses incurred by the authority or the commission in connection with the exercise of its duties and obligations set forth in this chapter.

     (c) A lease from the authority to the commission under subsection (a):

(1) must set forth the terms and conditions of the use and occupancy, if applicable, under the lease;

(2) must set forth the amounts agreed to be paid at stated intervals for the use and occupancy, if applicable, under the lease;

(3) must provide that the commission is not obligated to continue to pay for the use and occupancy, if applicable, under the lease, but is instead required to vacate the equipment, structures, and capital improvements subject to the lease, if it is shown that the terms and conditions of such use and occupancy and the amount to be paid for such use and occupancy are unjust and unreasonable considering the value of the services, equipment, structures, and capital improvements thereby afforded;

(4) must provide that the commission is required to vacate such equipment, structures, and capital improvements if funds are not available to pay any sum agreed to be paid for such use and occupancy when due; and

(5) may contain any other provisions agreed upon by the authority and the commission.

     (d) If the commission enters into such a lease with the authority, it may sublease the structures and capital improvements subject to the lease to the owner or owners of the qualified motorsports facility.

     (e) The commission may, in anticipation of the acquisition, construction, reconstruction, renovation, or equipping of any such structures or capital improvements, including any equipment or necessary appurtenances, enter into a lease with the authority before any such construction, reconstruction, renovation, or equipping. Such a lease must require the payment of lease rental by the commission to begin when the equipment, structures, or improvements have been acquired or completed and are ready for use and occupancy, if applicable, but not before that time.

     (f) If necessary to enter into a lease under subsection (a):

(1) the commission may lease structures and capital improvements located within a motorsports investment district from the owner or owners of the qualified motorsports facility and sublease all or any part of such structures and capital improvements to the authority for a nominal rent; and

(2) the authority may lease all or any part of such structures and capital improvements from the commission for a nominal rent.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-33Option to renew lease

     Sec. 33. A lease from the authority to the commission under section 32 of this chapter may provide the commission with an option to renew the lease for the same term or a shorter term, on the conditions provided in the lease.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-34Option to purchase leased property; conveyance of property; requirements

     Sec. 34. (a) A lease from the authority to the commission under section 32 of this chapter shall give the commission an option to purchase the leased property before the expiration of the term of the lease:

(1) on the date or dates in each year that are fixed by the lease; and

(2) at a price to be computed by a method set forth in the lease.

However, such a lease may not provide, or be construed to provide, that the commission is under an obligation to purchase the leased structures or improvements or is under an obligation respecting any creditors or bondholders of the authority.

     (b) If the commission does not exercise the option to purchase the property, then upon the expiration of the lease and upon full performance by the commission, the property becomes the absolute property of the commission or the authority's leasehold interest in such property terminates, as applicable. The authority shall take the steps necessary to convey title or such leasehold interest to the commission.

     (c) If the commission purchases the leased property as provided in subsection (a) or in the event described in subsection (b), the commission may convey, with or without consideration, its ownership or leasehold interest, as applicable, in such property to the owner or owners of the qualified motorsports facility. However, the commission shall not convey its ownership or leasehold interest in any such property to the owner or owners of the qualified motorsports facility until:

(1) the date on which the aggregate amount of credits provided to the owner or owners of the qualified motorsports facility under IC 4-10-23 equals or exceeds the aggregate of the amount of money appropriated to the commission and used to pay rent by the commission to the authority under any lease entered into between the authority and the commission under this chapter and any expenses that are incurred by the authority or the commission under this chapter and are not paid out of such rent; and

(2) all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-35Authorization and execution of leases by commission board of directors

     Sec. 35. Each lease under section 32 of this chapter must be authorized by resolution of the board, which shall be entered in the official records of the commission. Such a lease must be executed on behalf of the commission by the chair or the vice-chair and the secretary-treasurer of the commission, and on behalf of the authority by the chairman or the vice chairman of the authority and the public finance director.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-36Commission approval of financed improvements; liens and security interests; transfer of controlling ownership interest in qualified motorsports facility; credits against obligations of owners

     Sec. 36. (a) Improvements financed under this chapter must be approved by the commission. The commission shall secure the obligations of the owner or owners of the qualified motorsports facility to the commission under a lease or sublease under this chapter with liens or security interests, which may include:

(1) perfected security interests in personal property;

(2) a mortgage lien on the real property; or

(3) such other security determined to be appropriate by the commission and the authority.

     (b) On the date that the aggregate amount of credits provided to the owner or owners of the qualified motorsports facility under IC 4-10-23 equals or exceeds the aggregate of the amount of the appropriations made to the commission and used to pay rent by the commission to the authority under any lease entered into between the authority and the commission under this chapter and any expenses that are incurred by the authority or the commission under this chapter and are not paid out of such rent, and all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding, the commission shall take the legal steps required to terminate each of its security interests in and mortgage liens on the improvements described in subsection (a).

     (c) If a controlling ownership interest in a qualified motorsports facility is sold after the authority issues bonds under this chapter, the commission shall determine whether there exists good cause not to allow the purchaser to assume the motorsports facility's obligations under this chapter. If the commission determines that no such good cause exists, the commission shall be deemed to have accepted the purchaser's assumption of the motorsports facility's obligations under this chapter, and the purchaser shall be deemed to have assumed and become obligated to fully perform those obligations. If the commission determines that there exists good cause not to approve the purchaser's assumption of the motorsports facility's obligations under this chapter, the commission shall be deemed to have disapproved such assumption and the commission may require that the owner or owners of the qualified motorsports facility shall pay or cause to be paid to the commission an amount to be deposited in the motorsports investment district fund sufficient to pay the cost of defeasing all outstanding bonds issued by the authority under section 37 of this chapter and paying all expenses of the commission and the authority incurred in connection with such defeasance. For purposes of this section, the following shall not be deemed to be the sale of a controlling ownership interest:

(1) Transfers among the qualified motorsports facility and its subsidiaries and affiliates existing at the time the owner or owners of the qualified motorsports facility enter into the written agreement under this chapter concerning the terms of the financing of the improvements under this chapter.

(2) Transfers among the qualified motorsports facility's existing equity owners (as determined at the time the owner or owners of the qualified motorsports facility enter into the written agreement under this chapter concerning the terms of the financing of the improvements under this chapter).

(3) Transfers between the qualified motorsports facility's existing equity owners (as determined at the time the owner or owners of the qualified motorsports facility enter into the written agreement under this chapter concerning the terms of the financing of the improvements under this chapter) and trusts, family limited partnerships, and other entities for estate planning purposes.

     (d) Money deposited in the motorsports investment district fund may be used to pay the cost of defeasing all outstanding bonds issued by the authority under section 37 of this chapter and paying all other expenses of the commission and the authority incurred in connection with such defeasance.

     (e) If, after the date payments are received by the commission from the owner or owners of the qualified motorsports facility under subsection (c), all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding, and all expenses incurred by the commission or the authority in connection with the exercise of its duties and obligations set forth in this chapter have been paid, all money then remaining in the motorsports investment district fund reverts to the state general fund.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-37Issuance of bonds; terms and conditions; use of bond proceeds

     Sec. 37. (a) Subject to subsection (f), the authority may issue bonds for the purpose of obtaining money to pay the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping improvements within a qualified motorsports facility.

     (b) The terms and form of the bonds must be set out either in the resolution or in a form of trust indenture approved by the resolution.

     (c) The bonds must mature within twenty (20) years.

     (d) The authority shall sell the bonds at public or private sale upon the terms determined by the authority.

     (e) All money received from any bonds issued under this chapter shall be applied to the payment of the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping improvements within a qualified motorsports facility, or payment of the cost of refunding or refinancing outstanding bonds for which the bonds are issued. The cost may include:

(1) planning and development of the improvement and all buildings, facilities, structures, and improvements related to the improvement;

(2) acquisition of a site and clearing and preparing the site for construction;

(3) equipment, facilities, structures, and improvements that are necessary or desirable to make the capital improvement suitable for use and operations;

(4) architectural, engineering, consultant, and attorney's fees;

(5) incidental expenses in connection with the issuance and sale of bonds;

(6) reserves for principal and interest;

(7) interest during construction;

(8) financial advisory fees;

(9) insurance during construction;

(10) bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement; and

(11) in the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on the bonds being refunded or refinanced.

     (f) The authority may not issue bonds under this chapter unless:

(1) the owner or owners of the qualified motorsports facility, the authority, and the commission have entered into a written agreement concerning the terms of the financing of the improvements financed under this chapter, including the obligation of the owner or owners of the qualified motorsports facility to make payments in an amount equal to at least two million dollars ($2,000,000) in each state fiscal year to the commission for deposit in the motorsports facility fund during the term of the agreement;

(2) in connection with the issuance of such bonds, the authority has leased the equipment, structures, and capital improvements being financed with the proceeds of the bonds to the commission under a lease under section 32 of this chapter, and the commission has entered into a sublease of such equipment, structures, and capital improvements with the owner or owners of the qualified motorsports facility. Such a sublease must include the terms described in sections 34(c) and 36(c) of this chapter; and

(3) as part of the written agreement concerning the terms of the financing of the improvements, the ultimate parent company of the qualified motorsports facility:

(A) guarantees the full and timely performance of all of the duties, responsibilities, and obligations of the qualified motorsports facility and the owner or owners of the qualified motorsports facility; and

(B) guarantees that if:

(i) the aggregate amount credited to the owner or owners of the qualified motorsports facility under IC 4-10-23-12 from income tax incremental amounts, gross retail incremental amounts, and admissions fees deposited in the state general fund under IC 6-8-14 during the thirty (30) years after the date of the adoption of the resolution establishing the motorsports improvement district; plus

(ii) the amounts deposited in the motorsports facility fund established under section 30.5 of this chapter;

is less than the aggregate of the amount of money appropriated to the commission and used to pay rent by the commission to the authority under any lease entered into between the authority and the commission under this chapter and any expenses that are incurred by the authority or the commission under this chapter and are not paid out of such rent, then the ultimate parent company will pay the difference to the commission.

     (g) Each bond issued under this chapter must contain on its face a statement that neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal of or the interest on the bond.

     (h) In connection with the issuance of each series of bonds under this section, the authority (or its successor agency) and the public finance director shall be responsible for selecting all investment bankers, bond counsel, trustees, and financial advisors.

As added by P.L.233-2013, SEC.5. Amended by P.L.190-2014, SEC.9.

 

IC 5-1-17.5-38Authority for certain actions by the commission and the Indiana finance authority; bonds as legal investments

     Sec. 38. (a) This chapter contains full and complete authority for the issuance of bonds, the improvement, construction, reconstruction, renovation, purchase, lease, acquisition, and equipping of structures and capital improvements located within a motorsports investment district by the commission and the authority, and the leasing of such structures and capital improvements by the commission or the authority. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the commission, the authority, or any other officer, department, agency, or instrumentality of the state or of any political subdivision is required to issue any bonds under this chapter, to improve, construct, reconstruct, renovate, purchase, lease, acquire, and equip structures and capital improvements located within a motorsports investment district, or to enter into any lease, except as prescribed in this chapter.

     (b) Bonds issued under this chapter are legal investments for private trust funds and the funds of banks, trust companies, insurance companies, building and loan associations, credit unions, banks of discount and deposit, savings banks, loan and trust and safe deposit companies, rural loan and savings associations, guaranty loan and savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and other financial institutions organized under Indiana law.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-39Securing of bonds; trust indenture; validity of pledge or assignment

     Sec. 39. (a) The authority may secure bonds issued under this chapter by a trust indenture between the authority and a corporate trustee, which may be any trust company or national or state bank within Indiana that has trust powers.

     (b) The trust indenture may:

(1) pledge or assign money appropriated to the commission and to be paid as rent by the commission to the authority, but may not mortgage land or capital improvements;

(2) contain reasonable and proper provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the authority;

(3) set forth the rights and remedies of bondholders and the trustee; and

(4) restrict the individual right of action of bondholders.

     (c) Any pledge or assignment made by the authority under this section is valid and binding from the time that the pledge or assignment is made, against all persons whether or not they have notice of the lien. Any trust indenture by which a pledge is created or an assignment made need not be filed or recorded. The lien is perfected against third parties by filing the trust indenture in the records of the authority.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-40Action to contest validity of bonds

     Sec. 40. Any action to contest the validity of bonds to be issued under this chapter may not be brought after the fifteenth day following:

(1) the receipt of bids for the bonds, if the bonds are sold at public sale; or

(2) the publication one (1) time in a newspaper of general circulation published in the county of notice of the execution and delivery of the contract for the sale of bonds;

whichever occurs first.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-41Equal opportunities in procurement and contracting

     Sec. 41. Improvements financed under this chapter are subject to the provisions of 25 IAC 5 concerning equal opportunities for minority business enterprises and women's business enterprises to participate in procurement and contracting processes. The goal for participation by minority business enterprises shall be fifteen percent (15%), the goal for participation by women's business enterprises shall be eight percent (8%), and the goal for participation by veteran or disabled business enterprises shall be three percent (3%), consistent with the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services. In fulfilling the goals, historical precedents in the same market shall be taken into account.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-42Income tax withholding; department of state revenue guidelines

     Sec. 42. The department shall develop guidelines and instructions concerning the appropriate amount of adjusted gross income tax to be withheld from purse money and prizes won for racing in the motorsports investment district.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-17.5-43Office of management and budget review

     Sec. 43. The office of management and budget shall in 2023 do the following:

(1) Conduct a review of:

(A) the structures and improvement that have been financed and constructed under this chapter;

(B) the amount of:

(i) the gross retail incremental amounts and income tax incremental amounts remitted for purposes of IC 4-10-23; and

(ii) the motorsports admissions fees that have been remitted under IC 6-8-14;

(C) the amount and terms of outstanding debt issued by the authority under this chapter; and

(D) the status, economic impact, and viability of the qualified motorsports facility.

(2) Before November 1, 2023, submit a copy of the review conducted under subdivision (1) to the budget committee and to the legislative council in an electronic format under IC 5-14-6.

As added by P.L.233-2013, SEC.5.

 

IC 5-1-18Chapter 18. Reports Concerning Bonds and Leases of Political Subdivisions
           5-1-18-1"Bonds"
           5-1-18-2"Department"
           5-1-18-3"Lease"
           5-1-18-4"Lease rentals"
           5-1-18-5"Political subdivision"
           5-1-18-6Information report for bonds and leases
           5-1-18-7Bond report requirements; uniformity; electronic submission
           5-1-18-8Lease report requirements; uniformity; electronic submission
           5-1-18-9Bonds or leases outstanding; annual summary; annual verification
           5-1-18-10Compiled reports; electronic data base; Internet publication
           5-1-18-11Information submitted; public record
           5-1-18-12Rulemaking power

 

IC 5-1-18-1"Bonds"

     Sec. 1. As used in this chapter,"bonds" means any bonds, notes, or other evidences of indebtedness, including guaranteed energy savings contracts and advances from the common school fund, whether payable from property taxes, other taxes, revenues, or any other source. However, the term does not include notes, warrants, or other evidences of indebtedness made in anticipation of and to be paid from current revenues of a political subdivision actually levied and in the course of collection for the fiscal year in which the notes, warrants, or other evidences of indebtedness are issued.

As added by P.L.199-2005, SEC.2.

 

IC 5-1-18-2"Department"

     Sec. 2. As used in this chapter, "department" refers to the department of local government finance.

As added by P.L.199-2005, SEC.2.

 

IC 5-1-18-3"Lease"

     Sec. 3. As used in this chapter, "lease" means a lease of real property that is entered into by a political subdivision for a term of at least twelve (12) months, whether payable from property taxes, other taxes, revenues, or any other source.

As added by P.L.199-2005, SEC.2.

 

IC 5-1-18-4"Lease rentals"

     Sec. 4. As used in this chapter, "lease rentals" means the payments required under a lease.

As added by P.L.199-2005, SEC.2.

 

IC 5-1-18-5"Political subdivision"

     Sec. 5. As used in this chapter, "political subdivision" has the meaning set forth in IC 36-1-2-13.

As added by P.L.199-2005, SEC.2.

 

IC 5-1-18-6Information report for bonds and leases

     Sec. 6. A political subdivision that issues bonds or enters into a lease after December 31, 2005, shall supply the department with a debt issuance report not later than one (1) month after the date on which the bonds are issued or the lease is executed.

As added by P.L.199-2005, SEC.2. Amended by P.L.219-2007, SEC.8; P.L.137-2012, SEC.4.

 

IC 5-1-18-7Bond report requirements; uniformity; electronic submission

     Sec. 7. (a) Except as provided by subsection (b), the debt issuance report required by section 6 of this chapter must be submitted on a form prescribed by the department and must include the following information concerning bonds:

(1) The par value of the bond issue.

(2) A schedule of maturities and interest rates.

(3) The purposes of the bond issue.

(4) The itemized costs of issuance information, including fees for bond counsel, other legal counsel, underwriters, and financial advisors.

(5) The type of bonds that are issued.

(6) Other information as required by the department.

A copy of the official statement and bond covenants, if any, must be supplied with this information.

     (b) A political subdivision or a person acting on behalf of a political subdivision shall submit the debt issuance report information described in subsection (a) to the department electronically, in the manner prescribed by the department.

     (c) For taxes due and payable for an assessment date after January 15, 2012, the department may not approve an appropriation or a property tax levy that is associated with a debt unless the debt issuance report for the debt has been submitted to the department, unless the department has granted a waiver under subsection (d).

     (d) The department may for good cause grant a waiver to the requirement under subsection (c) and approve an appropriation or a property tax levy, notwithstanding a political subdivision's failure to submit a required debt issuance report.

As added by P.L.199-2005, SEC.2. Amended by P.L.137-2012, SEC.5.

 

IC 5-1-18-8Lease report requirements; uniformity; electronic submission

     Sec. 8. (a) Except as provided by subsection (b), the lease information required by section 6 of this chapter must be submitted on a form prescribed by the department and must include the following information concerning leases:

(1) The term of the lease.

(2) The annual and total amount of lease rental payments due under the lease.

(3) The purposes of the lease.

(4) The itemized costs incurred by the political subdivision with respect to the preparation and execution of the lease, including fees for legal counsel and other professional advisors.

(5) If all or part of the lease rental payments are used by the lessor as debt service payments for bonds issued for the acquisition, construction, renovation, improvement, expansion, or use of a building, structure, or other public improvement for the political subdivision:

(A) the name of the lessor;

(B) the par value of the bond issue; and

(C) the purposes of the bond issue.

(6) Other information as required by the department.

     (b) A political subdivision or a person acting on behalf of a political subdivision shall submit the debt issuance report information described in subsection (a) to the department electronically, in the manner prescribed by the department.

     (c) For taxes due and payable for an assessment date after January 15, 2012, the department may not approve an appropriation or a property tax levy that is associated with a debt unless the debt issuance report for the debt has been submitted to the department, unless the department has granted a waiver under subsection (d).

     (d) The department may for good cause grant a waiver to the requirement under subsection (c) and approve an appropriation or a property tax levy, notwithstanding a political subdivision's failure to submit a required debt issuance report.

As added by P.L.199-2005, SEC.2. Amended by P.L.137-2012, SEC.6.

 

IC 5-1-18-9Bonds or leases outstanding; annual summary; annual verification

     Sec. 9. (a) This subsection applies to reporting that occurs before January 1, 2013. Each political subdivision that has any outstanding bonds or leases shall submit a report to the department before March 1 of 2006 and each year thereafter that includes a summary of all the outstanding bonds of the political subdivision as of January 1 of that year. The report must:

(1) distinguish the outstanding bond issues and leases on the basis of the type of bond or lease, as determined by the department;

(2) include a comparison of the political subdivision's outstanding indebtedness compared to any applicable statutory or constitutional limitations on indebtedness;

(3) include other information as required by the department; and

(4) be submitted on a form prescribed by the department or through the Internet or other electronic means, as determined by the department.

     (b) This subsection applies to reporting that occurs after December 31, 2012. The department may annually require each political subdivision to verify to the department that the list of indebtedness and related details in the department's database are current and accurate.

As added by P.L.199-2005, SEC.2. Amended by P.L.137-2012, SEC.7.

 

IC 5-1-18-10Compiled reports; electronic data base; Internet publication

     Sec. 10. The department shall:

(1) compile an electronic data base that includes the information submitted under this chapter; and

(2) after December 31, 2006, post the information submitted under this chapter on the Internet at least annually.

As added by P.L.199-2005, SEC.2.

 

IC 5-1-18-11Information submitted; public record

     Sec. 11. Information submitted to the department under this chapter is a public record that may be inspected and copied under IC 5-14-3.

As added by P.L.199-2005, SEC.2.

 

IC 5-1-18-12Rulemaking power

     Sec. 12. The department may adopt rules under IC 4-22-2 to carry out the purposes of this chapter.

As added by P.L.199-2005, SEC.2.

 

IC 5-1.4ARTICLE 1.4. LOCAL PUBLIC IMPROVEMENT BOND BANKS
           Ch. 1.Definitions
           Ch. 2.Establishment and Organization
           Ch. 3.Powers and Duties
           Ch. 4.Issuance of Obligations
           Ch. 5.Reserve Fund
           Ch. 6.Other Funds and Accounts
           Ch. 7.Default of the Bank
           Ch. 8.Purchase of Securities of Qualified Entities
           Ch. 9.Miscellaneous Provisions

 

IC 5-1.4-1Chapter 1. Definitions
           5-1.4-1-1Application
           5-1.4-1-2"Bank"
           5-1.4-1-3"Board"
           5-1.4-1-4"Bond"
           5-1.4-1-5"City"
           5-1.4-1-6"County"
           5-1.4-1-7"Financial institution"
           5-1.4-1-8"Holder"
           5-1.4-1-9"Note"
           5-1.4-1-10"Qualified entity"
           5-1.4-1-11"Reserve fund"
           5-1.4-1-12"Security"

 

IC 5-1.4-1-1Application

     Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-2"Bank"

     Sec. 2. "Bank" refers to the local public improvement bond bank established under IC 5-1.4-2-1.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-3"Board"

     Sec. 3. "Board" refers to the board of directors established under IC 5-1.4-2-2.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-4"Bond"

     Sec. 4. "Bond" refers to a bond of the bank issued under this article.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-5"City"

     Sec. 5. "City" refers to any of the following:

(1) A consolidated city.

(2) A second class city.

(3) A city having a population of more than five thousand (5,000) but less than five thousand one hundred (5,100).

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.1; P.L.255-1997(ss), SEC.1; P.L.170-2002, SEC.13; P.L.119-2012, SEC.12.

 

IC 5-1.4-1-6"County"

     Sec. 6. "County" refers to the county in which the bank is located.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-7"Financial institution"

     Sec. 7. "Financial institution" means a financial institution as defined in IC 28-1-1-3.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-8"Holder"

     Sec. 8. "Holder" means a person who is:

(1) the bearer of any outstanding bond or note registered to bearer or not registered; or

(2) the registered owner of any outstanding bond or note that is registered other than to bearer.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-9"Note"

     Sec. 9. "Note" refers to a note of the bank issued under this article.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-10"Qualified entity"

     Sec. 10. "Qualified entity" means the following:

(1) A city.

(2) A county.

(3) A special taxing district located wholly within a county.

(4) Any entity whose tax levies are subject to review and modification by a city-county legislative body under IC 36-3-6-9.

(5) A political subdivision (as defined in IC 36-1-2-13) that is located wholly within a county:

(A) that has a population of:

(i) more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); or

(ii) more than two hundred fifty thousand (250,000) but less than two hundred seventy thousand (270,000); or

(B) containing a city that:

(i) is described in section 5(3) of this chapter; and

(ii) has a public improvement bond bank under this article.

(6) A charter school established under IC 20-24 that is sponsored by the executive of a consolidated city.

(7) Any authority created under IC 36 that leases land or facilities to any qualified entity listed in subdivisions (1) through (6).

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.2; P.L.46-1987, SEC.1; P.L.12-1992, SEC.15; P.L.255-1997(ss), SEC.2; P.L.127-2002, SEC.1 and P.L.179-2002, SEC.1; P.L.1-2005, SEC.71; P.L.119-2012, SEC.13.

 

IC 5-1.4-1-11"Reserve fund"

     Sec. 11. "Reserve fund" refers to the reserve fund established under IC 5-1.4-5-1.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-1-12"Security"

     Sec. 12. "Security" means a bond, note, or evidence of indebtedness issued by a qualified entity and payable from taxes, revenues, rates, charges, assessments, proceeds of funding or refunding bonds or notes, or any combination of the foregoing.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-2Chapter 2. Establishment and Organization
           5-1.4-2-1Local public improvement bond bank; establishment; nature; purpose
           5-1.4-2-1.5Public purpose
           5-1.4-2-2Board of directors; establishment; membership; appointment; vacancy
           5-1.4-2-3Duties of board
           5-1.4-2-4Quorum
           5-1.4-2-5Action by affirmative vote of three directors; effect of vacancy
           5-1.4-2-6Surety bonds; issuer; cost
           5-1.4-2-7Disclosure of interest in contract; abstention; validity of contract
           5-1.4-2-8Liability of director or issuer of bonds or notes
           5-1.4-2-9Executive director; duties

 

IC 5-1.4-2-1Local public improvement bond bank; establishment; nature; purpose

     Sec. 1. (a) In a city there is established a local public improvement bond bank, to be known as "The ____________ (name of city) __________ Local Public Improvement Bond Bank", for:

(1) the public purposes set out in this article; and

(2) in the case of a city described in IC 5-1.4-1-5(3), the additional public purposes of:

(A) developing infrastructure;

(B) promoting education and tourism; and

(C) assisting economic development.

     (b) The bank is a body corporate and politic separate from the city in its corporate capacity.

     (c) The purpose of the bank is to buy and sell securities of qualified entities.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.3; P.L.11-1987, SEC.9; P.L.255-1997(ss), SEC.3.

 

IC 5-1.4-2-1.5Public purpose

     Sec. 1.5. The general assembly finds that the establishment of a local public improvement bond bank in a city described in IC 5-1.4-1-5(3):

(1) is necessary as a result of:

(A) unique sources of revenues available to the city in relation to its budget;

(B) extraordinary needs for infrastructure improvements in the city and in the county in which the city is located;

(C) unprecedented opportunities for economic development, including tourism development; and

(D) unique demands for education and workforce development, including facilities for providing education and training;

(2) will afford the city the necessary flexibility to address the extraordinary demands and opportunities in a manner that will best serve the interests of the city and the state; and

(3) constitutes an important public purpose and will protect and improve the health, safety, and welfare of the people of the city and the state.

As added by P.L.255-1997(ss), SEC.4.

 

IC 5-1.4-2-2Board of directors; establishment; membership; appointment; vacancy

     Sec. 2. (a) There is established a board of directors to govern the bank. The powers of the bank are vested in this board.

     (b) The board is composed of five (5) directors appointed by the mayor of the city.

     (c) Each of the five (5) directors appointed by the mayor:

(1) must be a resident of the county;

(2) serves for a term of three (3) years and until a successor is appointed and qualified;

(3) is eligible for reappointment;

(4) shall serve without compensation, but is entitled to reimbursement for traveling expenses and other expenses, actually incurred in connection with the director's duties;

(5) may be removed for cause by the mayor; and

(6) may not be an officer or employee of:

(A) the city;

(B) the county; or

(C) any qualified entity.

     (d) Any vacancy on the board, other than by expiration of term, shall be filled by appointment of the mayor for the unexpired term only.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-2-3Duties of board

     Sec. 3. The board shall do the following:

(1) Elect from its membership a chairman and a vice chairman.

(2) Appoint and fix the duties and compensation of an executive director, who shall serve as both secretary and treasurer. The executive director may be the fiscal officer of the city, in which case the executive director will receive no compensation for services performed as the executive director.

(3) Establish and maintain the office of the bank in the city.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-2-4Quorum

     Sec. 4. Three (3) directors constitute a quorum at any meeting of the board.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-2-5Action by affirmative vote of three directors; effect of vacancy

     Sec. 5. Action may be taken by the board at a meeting by the affirmative vote of at least three (3) directors. A vacancy on the board does not impair the right of a quorum of directors to exercise the powers and perform the duties of the board.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-2-6Surety bonds; issuer; cost

     Sec. 6. (a) Each director and the executive director must execute a surety bond in an amount specified by the legislative body of the city. Each surety bond shall be conditioned upon the faithful performance of the duties of the office of director and executive director, respectively. In lieu of these surety bonds, the bank may execute a blanket surety bond covering each director, the executive director, and any officers or employees of the bank.

     (b) The surety bonds required by this section must be issued by a surety company authorized to transact business in Indiana.

     (c) The cost of the surety bonds required by this section shall be paid by the bank.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.4.

 

IC 5-1.4-2-7Disclosure of interest in contract; abstention; validity of contract

     Sec. 7. (a) Notwithstanding any other law to the contrary, a director does not violate any law, civil or criminal, if the director:

(1) has, or to the director's knowledge may have or may later acquire, a direct or indirect pecuniary interest in a contract with the bank; or

(2) is an officer, member, manager, director, or employee of, or has an ownership interest in, any firm, limited liability company, or corporation that is or may be a party to the contract;

if the director discloses in writing to the bank the nature and extent of the interest as soon as the director has knowledge of the interest and abstains from discussion, deliberation, action, and voting with respect to the contract.

     (b) Notwithstanding any provision of this article or any other law, a contract or transaction is not void or voidable because of the existence of an interest described in subsection (a), if the provisions of subsection (a) have been satisfied.

As added by P.L.42-1985, SEC.1. Amended by P.L.8-1993, SEC.50.

 

IC 5-1.4-2-8Liability of director or issuer of bonds or notes

     Sec. 8. Neither a director nor a person executing bonds or notes issued under this article is liable personally on the bonds or notes.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-2-9Executive director; duties

     Sec. 9. (a) The executive director appointed under section 3 of this chapter shall, in addition to other duties fixed by the directors:

(1) administer, manage, and direct the employees of the bank;

(2) approve all amounts for salaries, allowable expenses of the bank or of any employee or consultant of the bank, and expenses incidental to the operation of the bank; and

(3) attend the meetings of the board, keep a record of the proceedings of the board, and maintain all books, documents, and papers filed with the bank, the minutes of the board, and the bank's official seal.

     (b) The executive director may:

(1) cause copies to be made of all minutes and other records and documents of the bank; and

(2) give certificates under seal of the bank to the effect that those copies are true copies, and all persons dealing with the bank may rely upon those certificates.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-3Chapter 3. Powers and Duties
           5-1.4-3-1Powers
           5-1.4-3-2Additional powers
           5-1.4-3-3Investments
           5-1.4-3-4Prohibited acts
           5-1.4-3-5Audit of books and accounts; annual report to mayor
           5-1.4-3-6Annual budget; amendment
           5-1.4-3-7Expenses
           5-1.4-3-8Open meetings; records

 

IC 5-1.4-3-1Powers

     Sec. 1. The bank is granted all powers necessary, convenient, or appropriate to carry out and effectuate its public and corporate purposes, including the following:

(1) Have a perpetual existence as a body politic and corporate and an independent instrumentality, but not a city or county agency, exercising essential public functions.

(2) Sue and be sued.

(3) Adopt and alter an official seal.

(4) Make and enforce bylaws and rules for the conduct of its business and for the use of its services and facilities.

(5) Acquire, hold, use, and dispose of its income, revenues, funds, and money.

(6) Acquire, rent, lease, hold, use, and dispose of other personal property for its purposes.

(7) Make contracts and incur liabilities, borrow money, issue its negotiable bonds or notes, subject to provisions for registration of negotiable bonds and notes, and provide for and secure their payment and provide for the rights of their holders, and purchase, hold, and dispose of any of its bonds or notes.

(8) Fix and revise from time to time and charge and collect fees and charges for the use of its services or facilities.

(9) Accept gifts or grants of property, funds, money, materials, labor, supplies, or services from the United States, the state, any governmental unit, or any person, carry out the terms or provisions of or make agreements with respect to the gifts or grants, and do all things necessary, useful, desirable, or convenient in connection with procuring, accepting, or disposing of the gifts or grants.

(10) Do anything authorized by this article, through its officers, agents, or employees or by contracts with a person.

(11) Procure insurance against any losses in connection with its property, operations, or assets in amounts and from insurers as it considers desirable.

(12) Cooperate with and exchange services, personnel, and information with any federal, state, or local government agency.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.5.

 

IC 5-1.4-3-2Additional powers

     Sec. 2. The bank may:

(1) make, enter into, and enforce all contracts necessary, convenient, or desirable for the purposes of the bank or pertaining to:

(A) a purchase or sale of securities or other investments; or

(B) the performance of its duties and execution of any of its powers under this article;

(2) purchase or hold securities at prices and in a manner the bank considers advisable and sell securities acquired or held by it at prices without relation to cost and in a manner the bank considers advisable;

(3) prescribe the form of application or procedure required of a qualified entity for a purchase of its securities, fix the terms and conditions of the purchase, and enter into agreements with qualified entities with respect to purchases;

(4) render services to a qualified entity in connection with a public or private sale of its securities, including advisory and other services, and charge for services rendered;

(5) charge for its costs and services in review or consideration of a proposed purchase by the bank of securities, whether the securities are purchased;

(6) fix and establish terms and provisions with respect to:

(A) a purchase of securities by the bank, including date and maturities of the securities;

(B) redemption or payment before maturity; and

(C) any other matters that in connection with the purchase are necessary, desirable, or advisable in the judgment of the bank;

(7) to the extent permitted under its contracts with the holders of bonds or notes of the bank, consent to modification of the rate of interest, time for payment of any installment of principal or interest, security, or any other term of a bond or note, contract, or agreement of any kind to which the bank is a party; and

(8) appoint and employ general or special counsel, accountants, financial advisors or experts, and all such other or different officers, agents, and employees as it requires and determine their qualifications, duties, and compensation, all in order to effectuate the purposes of this article.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-3-3Investments

     Sec. 3. Money not being used to purchase securities may be invested as provided in a resolution, agreement, or trust agreement of the bank.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.6.

 

IC 5-1.4-3-4Prohibited acts

     Sec. 4. The bank may not:

(1) purchase securities other than from a qualified entity or other than for investment under section 3 of this chapter;

(2) deal in securities within the meaning of or subject to any securities law, securities exchange law, or securities dealers law of the United States, of the state, or of any other state or jurisdiction, domestic or foreign, except as authorized in this article;

(3) emit bills of credit, accept deposits of money for time or demand deposit, administer trusts, engage in any form or manner, or in the conduct of, any private or commercial banking business, or act as a savings bank, savings association, or any other kind of financial institution;

(4) engage in any form of private or commercial banking business; or

(5) purchase securities from a qualified entity located in a county other than the county in which the bank is located.

As added by P.L.42-1985, SEC.1. Amended by P.L.79-1998, SEC.5.

 

IC 5-1.4-3-5Audit of books and accounts; annual report to mayor

     Sec. 5. (a) The bank shall have an audit of its books and accounts made at least once each year by either the state board of accounts or by an auditor or auditing firm to be appointed by the board upon review of the firm's proposal by the state board of accounts. The cost of the audit shall be considered an expense of the bank, and a copy of the audit shall be made available to the public.

     (b) The bank shall submit a report of its activities for each fiscal year to the mayor not more than forty-five (45) days after the end of each fiscal year. Each report shall set forth a complete operating and financial statement covering its operations during that fiscal year.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.7.

 

IC 5-1.4-3-6Annual budget; amendment

     Sec. 6. The board shall adopt an annual budget on either a calendar or fiscal year basis. The annual budget may be amended from time to time during the year.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.8.

 

IC 5-1.4-3-7Expenses

     Sec. 7. All expenses incurred in carrying out this article are payable solely from revenues of the bank or funds appropriated under this chapter, and nothing in this article authorizes the bank to incur an indebtedness or liability on behalf of or payable by the city or county.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.9.

 

IC 5-1.4-3-8Open meetings; records

     Sec. 8. All meetings of the bank shall be open to the public in accordance with and subject to IC 5-14-1.5. All records of the bank shall be subject to the requirements of IC 5-14-3.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-4Chapter 4. Issuance of Obligations
           5-1.4-4-1Bonds or notes; purposes; general obligation of bank; additional security
           5-1.4-4-2Nature of bonds or notes; state pledge and agreement
           5-1.4-4-3Negotiability of bonds and notes
           5-1.4-4-4Authorization; issuance in series; requirements; consent of city or state agency
           5-1.4-4-5Resolution authorizing issuance; adoption; action to set aside resolution
           5-1.4-4-6Public or private sale; notice
           5-1.4-4-7Issuance of notes; payment of principal or interest
           5-1.4-4-8Trust agreement as security; provisions of trust agreement or resolution; expenses
           5-1.4-4-9Purchase of bonds or notes of bank; disposition
           5-1.4-4-10Purchase of securities; documentation

 

IC 5-1.4-4-1Bonds or notes; purposes; general obligation of bank; additional security

     Sec. 1. (a) The bank may issue its bonds or notes in principal amounts that it considers necessary to provide funds for any purposes under this article, including:

(1) the purchase of securities;

(2) the payment, funding, or refunding of the principal of, or interest or redemption premiums on, bonds or notes issued by it whether the bonds or notes or interest to be paid, funded, or refunded have or have not become due; and

(3) the establishment or increase of reserves to secure or to pay bonds or notes or interest on bonds or notes and all other costs or expenses of the bank incident to and necessary or convenient to carry out its corporate purposes and powers.

     (b) Except as otherwise provided in this article or by the board, every issue of bonds or notes shall be general obligations of the bank payable out of the revenues or funds of the bank, subject only to agreements with the holders of a particular series of bonds or notes pledging a particular revenue or fund. Bonds or notes may be additionally secured by a pledge of a grant or contributions from the United States, the state, a qualified entity, or a person or a pledge of income or revenues, funds, or money of the bank from any source.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.10.

 

IC 5-1.4-4-2Nature of bonds or notes; state pledge and agreement

     Sec. 2. (a) A bond or note of the bank:

(1) is not a debt, liability, loan of the credit, or pledge of the faith and credit of any qualified entity;

(2) is payable solely from the money pledged or available for its payment under this article, unless funded or refunded by bonds or notes of the bank; and

(3) must contain on its face a statement that the bank is obligated to pay principal and interest, and redemption premiums if any, and that the faith, credit, and taxing power of any qualified entity is not pledged to the payment of the bond or note.

     (b) The state pledges to and agrees with the holders of the bonds or notes issued under this article that the state will not:

(1) limit or restrict the rights vested in the bank to fulfill the terms of any agreement made with the holders of its bonds or notes; or

(2) in any way impair the rights or remedies of the holders of the bonds or notes;

until the bonds or notes, together with the interest on the bonds or notes and interest on unpaid installments of interest and all costs and expenses in connection with an action or proceeding by or on behalf of the holders, are fully met, paid, and discharged.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.11.

 

IC 5-1.4-4-3Negotiability of bonds and notes

     Sec. 3. The bonds and notes of the bank are negotiable instruments for all purposes of the Uniform Commercial Code (IC 26-1), subject only to the provisions of the bonds and notes for registration.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-4-4Authorization; issuance in series; requirements; consent of city or state agency

     Sec. 4. (a) Bonds or notes of the bank must be authorized by resolution of the board, may be issued in one (1) or more series, and must:

(1) bear the date;

(2) mature at the time or times;

(3) bear interest at the rate or rates of interest or within a maximum rate or specify the method by which the interest rate or rates may be determined;

(4) be in the denomination;

(5) be in the form;

(6) carry the conversion or registration privileges;

(7) have the rank or priority;

(8) be executed in the manner;

(9) be payable from the sources in the medium of payment at the place inside or outside the state; and

(10) be subject to the terms of redemption;

as the resolution of the board or the trust agreement securing the bonds or notes provides.

     (b) Bonds or notes may be issued under this article without obtaining the consent of any agency of the state or city and without any other proceeding or condition other than the proceedings or conditions specified in this article.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-4-5Resolution authorizing issuance; adoption; action to set aside resolution

     Sec. 5. Upon the adoption of a resolution authorizing the issuance of bonds or notes, any action or proceeding in any court to set aside the resolution authorizing the issuance of bonds or notes of the bank under this article or to obtain any relief upon the ground that the resolution is invalid must be filed within fifteen (15) days following the adoption of the resolution. After the expiration of this fifteen (15) day period, no right of action shall be asserted nor shall the validity of the resolution or any of its provisions be open to question in any court or agency upon any grounds whatsoever.

As added by P.L.42-1985, SEC.1. Amended by P.L.2-1989, SEC.12.

 

IC 5-1.4-4-6Public or private sale; notice

     Sec. 6. Bonds or notes of the bank may be sold at public or private sale at the price the board determines. If bonds or notes of the bank are to be sold at public sale, the bank shall follow IC 5-1-11 and shall publish notice of the sale as required by IC 5-3-1 for the sale of bonds or notes of the city.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.12.

 

IC 5-1.4-4-7Issuance of notes; payment of principal or interest

     Sec. 7. The bank may from time to time issue its notes under this article and pay and retire the principal of the notes or pay the interest due thereon or fund or refund the notes from proceeds of bonds or of other notes or from other funds or money of the bank available for that purpose in accordance with a contract between the bank and the holders of the notes.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-4-8Trust agreement as security; provisions of trust agreement or resolution; expenses

     Sec. 8. (a) Any bonds or notes issued under this chapter may be secured by the board by a trust agreement by and between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the state.

     (b) The trust agreement or the resolution providing for the issuance of the bonds or notes may contain provisions for protecting and enforcing the rights and remedies of the holders of any such bonds or notes as may be reasonable and proper and not in violation of law.

     (c) The trust agreement or resolution may set forth the rights and remedies of the holders of any bonds or notes and of the trustee and may restrict the individual right of action by the holders.

     (d) In addition to subsections (a), (b), and (c), any trust agreement or resolution may contain other provisions that the board considers reasonable and proper for the security of the holders of any bonds or notes.

     (e) All expenses incurred in carrying out the provisions of the trust agreement or resolution may be paid from revenues or assets pledged or assigned to the payment of the principal of and the interest on bonds and notes or from any other funds available to the bank.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-4-9Purchase of bonds or notes of bank; disposition

     Sec. 9. The bank may purchase bonds or notes of the bank out of its funds or money available for the purchase of its own bonds and notes. The bank may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with holders of its bonds or notes. Unless cancelled, bonds or notes so held shall be deemed to be held for resale or transfer and the obligation evidenced by the bonds or notes shall not be deemed to be extinguished.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.13.

 

IC 5-1.4-4-10Purchase of securities; documentation

     Sec. 10. All securities purchased, held, or owned by the bank, upon delivery to the bank, must be accompanied by all documentation required by the board.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-5Chapter 5. Reserve Fund
           5-1.4-5-1Establishment and maintenance of reserve fund; application of funds; required debt service reserve; excess money
           5-1.4-5-2Investment of funds
           5-1.4-5-3Valuation of investments
           5-1.4-5-4Required debt service reserve; appropriation to assure maintenance; application of funds; excess money
           5-1.4-5-5Combining reserve funds

 

IC 5-1.4-5-1Establishment and maintenance of reserve fund; application of funds; required debt service reserve; excess money

     Sec. 1. (a) The board may establish and maintain a reserve fund for each issue of bonds or notes in which there shall be deposited or transferred:

(1) all proceeds of bonds or notes required to be deposited in the fund by terms of a contract between the bank and its holders or a resolution of the bank with respect to the proceeds of bonds or notes;

(2) all other money appropriated to the reserve fund; and

(3) any other money or funds of the bank that it decides to deposit in the fund.

     (b) Subject to subsection (c) and section 4(b) of this chapter, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds or notes of the bank as the interest and principal become due and payable and for the retirement of bonds or notes. The money may not be withdrawn if a withdrawal would reduce the amount in the reserve fund to an amount less than the required debt service reserve, except for payment of interest then due and payable on bonds or notes and the principal of bonds or notes then maturing and payable, whether by reason of maturity or mandatory redemption, for which payments other money of the bank is not then available. As used in this subsection, "required debt service reserve" means, as of the date of computation, the amount required to be on deposit in the reserve fund as provided by resolution or trust agreement of the bank. As used in this subsection, "interest" includes any payments so designated in any contract or agreement between the bank and, or for the benefit of, any holder.

     (c) Money in any reserve fund in excess of the required debt service reserve as defined in subsection (b), whether by reason of investment or otherwise, may be withdrawn at any time by the bank and transferred to another fund or account of the bank, subject to the provisions of any agreement with the holders of any bonds or notes.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.14.

 

IC 5-1.4-5-2Investment of funds

     Sec. 2. Money in any reserve fund may be invested in the manner provided by IC 5-1.4-3-3.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.15.

 

IC 5-1.4-5-3Valuation of investments

     Sec. 3. For purposes of valuation, investments in the reserve fund shall be valued at par or, if purchased at less than par, at cost unless otherwise provided by resolution or trust agreement of the bank. Valuation on a particular date shall include the amount of interest then earned or accrued to that date on the money or investments in the reserve fund.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-5-4Required debt service reserve; appropriation to assure maintenance; application of funds; excess money

     Sec. 4. (a) In order to assure the maintenance of the required debt service reserve in any reserve fund, the legislative body of the city may annually appropriate to the bank for deposit in one (1) or more of the funds the sum, certified by the chairman of the board to the legislative body, that is necessary to restore one (1) or more of the funds to an amount equal to the required debt service reserve. The chairman annually, before December 1, shall make and deliver to the legislative body a certificate stating the sum required to restore the funds to that amount. Nothing in this subsection creates a debt or liability of the city to make any appropriation.

     (b) All amounts received on account of money appropriated by the legislative body of the city to any reserve fund shall be held and applied in accordance with section 1(b) of this chapter. However, at the end of each fiscal year, if the amount in any reserve fund exceeds the required debt service reserve, any amount representing earnings or income received on account of any money appropriated to the reserve fund that exceeds the expenses of the bank for that fiscal year may be transferred to the general fund of the city.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.16.

 

IC 5-1.4-5-5Combining reserve funds

     Sec. 5. Subject to the provisions of any agreement with its holders, the bank may combine the reserve fund established for each issue of bonds or notes into one (1) or more reserve funds.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.17.

 

IC 5-1.4-6Chapter 6. Other Funds and Accounts
           5-1.4-6-1General fund; establishment; use; creation of subaccounts or special accounts
           5-1.4-6-2Additional reserves; other funds or accounts
           5-1.4-6-3Money or investments held for payment of bonds or notes; application

 

IC 5-1.4-6-1General fund; establishment; use; creation of subaccounts or special accounts

     Sec. 1. (a) The bank shall establish and maintain a fund called the general fund into which there shall be deposited all money received by the bank, unless otherwise provided by resolution or trust agreement of the bank, and any money that the bank shall transfer to the fund from any reserve fund under IC 5-1.4-5-1(c). Money in the general fund shall be used for operating expenses of the bank and, subject to any contract between the bank and its holders, may be:

(1) used to pay principal of or interest on bonds or notes of the bank to prevent a default;

(2) transferred to any reserve fund to prevent a default or to make up any deficiency in that reserve fund;

(3) used to purchase securities; and

(4) used to purchase or redeem the bank's bonds or notes.

     (b) No amount shall be paid or expended out of the general fund, or from any account therein established by the bank for the purpose of paying operating expenses, for the payment of operating expenses of the bank in any year in excess of the amount provided for operating expenses in the annual budget then in effect for that year or any amendment thereof in effect at the time of the payment or expenditure.

     (c) The bank is authorized and empowered to create and establish in the general fund accounts, subaccounts, or special accounts that in the opinion of the board are necessary, desirable, or convenient for the purposes of the bank under this chapter.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.18.

 

IC 5-1.4-6-2Additional reserves; other funds or accounts

     Sec. 2. The board may establish additional reserves or other funds or accounts as may be necessary, desirable, or convenient to further the accomplishment of its purposes or to comply with the provisions of any of its agreements or resolutions.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-6-3Money or investments held for payment of bonds or notes; application

     Sec. 3. Unless the resolution or trust agreement authorizing the bonds or notes provides otherwise, money or investments in a fund or account of the bank established or held for the payment of bonds or notes shall be applied to the payment or retirement of the bonds or notes, and to no other purpose.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-7Chapter 7. Default of the Bank
           5-1.4-7-1Achievement of purpose of article without jeopardizing holders of bonds or notes
           5-1.4-7-2Default; appointment of trustee to represent holders of bonds or notes
           5-1.4-7-3Trustee; duties; powers; venue; notice

 

IC 5-1.4-7-1Achievement of purpose of article without jeopardizing holders of bonds or notes

     Sec. 1. In order to:

(1) carry out its purpose under this article by purchasing securities of qualified entities and by receipt of its income from service charges and from payments of interest on and the maturing principal of securities purchased and held by it; and

(2) produce revenues or income to the bank sufficient at all times to meet its costs and expenses of operation under this article and to pay the principal of and interest on its outstanding bonds and notes when due;

the bank must at all times, and to the greatest extent possible, plan to issue its bonds and notes and purchase securities of qualified entities so that the purpose is achieved without in any way jeopardizing any rights of the holders of bonds or notes of the bank or adversely affecting other matters under this article.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.19.

 

IC 5-1.4-7-2Default; appointment of trustee to represent holders of bonds or notes

     Sec. 2. If the bank:

(1) defaults in the payment of principal or interest on an issue of notes or bonds after they become due, whether at maturity or upon call for redemption; or

(2) fails or refuses to comply with this article or defaults in an agreement made with the holders of an issue of notes or bonds;

and there is no trustee under a trust agreement, then the holders of twenty-five percent (25%) in the aggregate principal amount of the outstanding notes or bonds of that issue, by instrument filed in the office of the clerk of the county and executed in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of those notes or bonds for the purposes provided in this article.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-7-3Trustee; duties; powers; venue; notice

     Sec. 3. (a) A trustee appointed under section 2 of this chapter shall, in the trustee's name, upon written request of the holders of twenty-five percent (25%) in principal amount of the outstanding notes or bonds:

(1) by civil action enforce all rights of the holders, including the right to require the bank to:

(A) collect rates, charges, and other fees and to collect interest and principal payments on securities held by it adequate to carry out an agreement as to, or pledge of, the rates, charges, and other fees and of the interest and principal payments; and

(B) carry out any other agreements with the holders of the notes or bonds and to perform its duties under this article;

(2) bring a civil action upon the notes or bonds;

(3) by civil action require the bank to account as if it were the trustee of an express trust for the holders of the notes or bonds;

(4) by civil action enjoin anything that may be unlawful or in violation of the rights of the holders of the notes or bonds; and

(5) declare all the notes or bonds due and payable, and if all defaults are made good, then with the consent of the holders of twenty-five percent (25%) of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences.

     (b) The trustee also has all the powers necessary for the exercise of functions specifically set out or incident to the general representation of holders in the enforcement and protection of their rights.

     (c) The venue of any suit, action, or proceeding brought by the trustee on behalf of the holders shall be laid in the county in which the bank is located.

     (d) Before declaring the principal of notes or bonds due and payable, the trustee must first give not less than thirty (30) days notice in writing to the chairman of the board and the board's attorney.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.20.

 

IC 5-1.4-8Chapter 8. Purchase of Securities of Qualified Entities
           5-1.4-8-1Purchase of securities offered by qualified entity; private sale; issuance of bonds or notes for purpose of purchase
           5-1.4-8-2Securities to be purchased and held in name of bank; required documentation
           5-1.4-8-3Contracts with bank for purchase of securities; terms and conditions; fees and charges; denomination; prices; private sale
           5-1.4-8-4Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank
           5-1.4-8-5Bond anticipation notes of qualified entities; purchase by bank; renewal or extension; maturity; terms and conditions
           5-1.4-8-6Notes of qualified entities; purchase by bank; renewal or extension; maturity; compliance with other laws; terms and conditions

 

IC 5-1.4-8-1Purchase of securities offered by qualified entity; private sale; issuance of bonds or notes for purpose of purchase

     Sec. 1. The bank, to carry out the purposes and policies of this article, may purchase securities offered by a qualified entity. Notwithstanding any law to the contrary, a qualified entity may sell its securities to the bank at a negotiated, private sale. The bank, for this purpose, may issue its bonds and notes payable solely from the revenues or funds available to the bank for such payment and may otherwise assist qualified entities as provided in this article.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-8-2Securities to be purchased and held in name of bank; required documentation

     Sec. 2. (a) All securities at any time purchased, held, or owned by the bank shall at all times be purchased and held in the name of the bank.

     (b) All securities at any time purchased by the bank, upon delivery to the bank, shall be accompanied by all documentation required by the board. The documentation must include an approving opinion of recognized bond counsel, certification and guarantee of signatures, and certification as to no litigation pending as of the date of delivery of the securities challenging the validity or issuance of the securities.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-8-3Contracts with bank for purchase of securities; terms and conditions; fees and charges; denomination; prices; private sale

     Sec. 3. Every qualified entity is authorized and empowered to contract with the bank with respect to the purchase of its securities, and the contracts shall contain the terms and conditions of the purchase and may be in any form agreed to by the bank and the qualified entity, including a customary form of bond ordinance or resolution. Every qualified entity is authorized and empowered to pay fees and charges required to be paid to the bank for its services. Notwithstanding any statute applicable to or constituting any limitation on the sale of bonds or notes, any qualified entity may sell its securities to the bank, without limitation as to denomination, at a private sale at such price or prices as may be determined by the bank and the qualified entity.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-8-4Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank

     Sec. 4. Upon the sale and delivery by a qualified entity of any securities to the bank, the qualified entity shall be deemed to have agreed that upon its failure to pay interest or principal on the securities owned or held by the bank when payable, all statutory defenses to nonpayment are waived. Upon nonpayment and demand on the qualified entity for payment, if the securities are payable from property taxes and funds are not available in the treasury of the qualified entity to make payment, an action in mandamus for the levy of a tax to pay the interest and principal on the securities shall lie, and the bank shall be constituted a holder or owner of the securities as being in default. The bank may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the qualified entity. The bank may carry out this section and exercise all the rights, remedies, and provisions of law provided or referred to in this section.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-8-5Bond anticipation notes of qualified entities; purchase by bank; renewal or extension; maturity; terms and conditions

     Sec. 5. (a) Notwithstanding any law applicable to a qualified entity concerning the issuance of bonds, a qualified entity that has complied with all statutory requirements for the issuance of its bonds may (in lieu of issuing bonds at that time and without complying with any other law applicable to the issuance of bonds, notes, or other evidences of indebtedness) issue to the bank the qualified entity's notes in anticipation of the issuance of bonds, and the bank may purchase these bond anticipation notes. The bond anticipation notes may be issued on terms set forth in a resolution authorizing their issuance and in any amount equal to or less than the amount of bonds authorized to be issued.

     (b) The qualified entity may renew or extend the bond anticipation notes from time to time on terms agreed to with the bank, and the bank may purchase these renewals or extensions. The amount of the accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended so long as the aggregate principal amount of bond anticipation notes outstanding at any time does not exceed the maximum principal amount permitted by this section.

     (c) The bond anticipation notes of the qualified entity, including any renewals or extensions, must mature in the amounts and at the times (not exceeding five (5) years from the date of the original issuance of the bond anticipation notes) as are agreed to by the qualified entity and the bank. The bond anticipation notes shall be, and interest thereon may be, finally paid with the proceeds of the bonds issued by the qualified entity. In connection with the issuance of bonds part or all of the proceeds of which shall be used to retire the bond anticipation notes, the qualified entity is not required to repeat the procedures for the issuance of bonds because the procedures followed before the issuance of the bond anticipation notes are for all purposes sufficient to authorize the issuance of such bonds.

     (d) In connection with the purchase of bond anticipation notes, the bank may by agreement with the qualified entity impose any terms, conditions, and limitations as in its opinion are proper for the security of the bank and the holders of its bonds or notes. If the qualified entity fails to comply with the agreement or to issue its bonds to retire its bond anticipation notes, the bank may enforce all rights and remedies provided in the agreement or at law, including an action in mandamus to compel the issuance of bonds by the qualified entity.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.21.

 

IC 5-1.4-8-6Notes of qualified entities; purchase by bank; renewal or extension; maturity; compliance with other laws; terms and conditions

     Sec. 6. (a) Notwithstanding any other law applicable to a qualified entity as to borrowing money, a qualified entity may issue and sell its notes to the bank, and the bank may purchase these notes. The notes must be issued pursuant to a resolution of the qualified entity, and the proceeds must be applied to costs for which the qualified entity may issue bonds.

     (b) The qualified entity may renew or extend the notes from time to time on terms agreed to with the bank, and the bank may purchase these renewals or extensions. The amount of accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended.

     (c) The notes of the qualified entity, including any renewals or extensions, must mature in the amounts and at the times (not exceeding two (2) years from the date of original issuance) as are agreed to by the qualified entity and the bank. However, the legislative body of the city in the case of a qualified entity defined in IC 5-1.4-1-10(1) through (3) or the governing body of the qualified entity in the case of a qualified entity defined in IC 5-1.4-1-10(4) through (6), by resolution, may authorize an extension of the maturity beyond two (2) years for an additional period of no more than three (3) years. Any such extension may be authorized in the resolution originally authorizing issuance of the notes. The notes of the qualified entity and accrued interest thereon shall be paid with proceeds from the issuance of its bonds, when and if the bonds are issued, or other money available to the qualified entity, which money the qualified entity may pledge to the payment of its notes.

     (d) Compliance with this section constitutes full authority for a qualified entity to issue its notes and sell them to the bank, and the qualified entity is not required to comply with any other law applicable to the authorization, approval, issuance, and sale of bonds, notes, or other evidences of indebtedness. However, if the qualified entity decides to issue bonds, neither the provisions of this section nor the actual issuance by a qualified entity of its notes shall relieve the qualified entity of completing the requirements for the issuance of its bonds all or part of the proceeds of which will be used to retire the notes.

     (e) In connection with the purchase of notes, the bank may by agreement with the qualified entity impose any terms, conditions, and limitations as in its opinion are proper for the security of the bank and the holders of its bonds or notes. If the qualified entity fails to comply with the agreement or to retire its notes, the bank may enforce all rights and remedies provided in the agreement or at law.

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.22; P.L.46-1987, SEC.2.

 

IC 5-1.4-9Chapter 9. Miscellaneous Provisions
           5-1.4-9-1Limitation of actions
           5-1.4-9-2Bank property exempt from levy and sale; judgment against bank not charge or lien on property; rights of holders of bonds or notes
           5-1.4-9-3Pledge of revenues or money
           5-1.4-9-4Insurance or guaranty for payment
           5-1.4-9-5Authority to receive appropriations or grants from federal government; disposition
           5-1.4-9-6Undertaking by financial institution to keep and pay over funds deposited with it
           5-1.4-9-7Agreements with financial institutions; care and custody of securities or other investments
           5-1.4-9-8Financial institutions and fiduciaries; investment in bonds or notes
           5-1.4-9-9Nature of bank property; bonds and notes; exemption from taxation
           5-1.4-9-10Officers and departments of state; rendering of services to bank; costs and expenses
           5-1.4-9-11Dissolution of bank; assets and property of bank

 

IC 5-1.4-9-1Limitation of actions

     Sec. 1. (a) No action to contest the validity of any bonds or notes of the bank may be brought after the fifteenth day following the adoption of the resolution authorizing the sale of the bonds or notes. No action to contest the validity of any bond sale under this chapter may be brought after the fifth day following the bond sale.

     (b) If an action challenging the bonds or notes of the bank is not brought within the time prescribed by subsection (a), all bonds or notes of the bank shall be conclusively presumed to be fully authorized and issued under the laws of Indiana, and a person or a qualified entity is estopped from questioning their authorization, sale, issuance, execution, or delivery by the bank.

     (c) Insofar as this article is inconsistent with the provisions of any other law, general, special, or local, this article shall be controlling.

As added by P.L.42-1985, SEC.1. Amended by P.L.2-1989, SEC.13.

 

IC 5-1.4-9-2Bank property exempt from levy and sale; judgment against bank not charge or lien on property; rights of holders of bonds or notes

     Sec. 2. All property of the bank is exempt from levy and sale by virtue of an execution and no execution or other judicial process may issue against the property. A judgment against the bank may not be a charge or lien upon its property. However, nothing in this section applies to or limits the rights of the holder of bonds or notes to pursue a remedy for the enforcement of a pledge or lien given by the bank on its revenues or other money.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-9-3Pledge of revenues or money

     Sec. 3. A pledge of revenues or other money made by the bank is binding from the time the pledge is made. Revenues or other money pledged and thereafter received by the bank are immediately subject to the lien of the pledge without any further act, and the lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the bank, regardless of whether the parties have notice of the lien. Neither the resolution nor any other instrument by which a pledge is created needs to be filed or recorded except in the records of the bank.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-9-4Insurance or guaranty for payment

     Sec. 4. The bank may obtain from a department or agency of the United States or a nongovernmental insurer available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal, on bonds or notes issued by the bank or on securities purchased or held by the bank.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-9-5Authority to receive appropriations or grants from federal government; disposition

     Sec. 5. The chairman of the board of the bank is authorized to receive from the United States or any department or agency thereof any amount of money as and when appropriated, allocated, granted, turned over, or in any way provided for the purposes of the bank or this article. Those amounts shall, unless otherwise directed by the federal authority, be credited to and deposited in the general fund and be available to the bank.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-9-6Undertaking by financial institution to keep and pay over funds deposited with it

     Sec. 6. (a) A financial institution may give to the bank a good and sufficient undertaking, with such sureties as are approved by the bank, to the effect that the financial institution shall faithfully keep and pay over to the order of or upon the warrant of the bank or its authorized agent all those funds deposited with it by the bank and agreed interest, at such times or upon such demands as may be agreed with the bank. However, in lieu of these sureties, the financial institution may deposit with the bank or its authorized agent or a trustee for the holders of bonds, as collateral, those securities as the board may approve.

     (b) The deposits of the bank may be evidenced by an agreement in the form and upon the terms and conditions that may be agreed upon by the bank and the financial institution.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-9-7Agreements with financial institutions; care and custody of securities or other investments

     Sec. 7. The board may enter into agreements or contracts with a financial institution inside or outside the state as may be necessary, desirable, or convenient in the opinion of the board for rendering services in connection with the care, custody, or safekeeping of securities or other investments held or owned by the bank, for rendering services in connection with the payment or collection of amounts payable as to principal or interest, and for rendering services in connection with the delivery to the bank of securities or other investments purchased by it or sold by it and to pay the cost of those services. The board may also, in connection with any of the services to be rendered by a financial institution as to the custody and safekeeping of its securities or investments, require security in the form of collateral bonds, surety agreements, or security agreements in such form and amount as, in the opinion of the board, is necessary or desirable.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-9-8Financial institutions and fiduciaries; investment in bonds or notes

     Sec. 8. Notwithstanding the restrictions of any other law, all financial institutions, investment companies, insurance companies, insurance associations, executors, administrators, guardians, trustees, and other fiduciaries may legally invest sinking funds, money, or other funds belonging to them or within their control in bonds or notes issued under this article.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-9-9Nature of bank property; bonds and notes; exemption from taxation

     Sec. 9. All property of the bank is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments of the state or a political subdivision of the state. All bonds or notes issued under this article are issued by a body corporate and public of this state, but not a state, city, or county agency, and for an essential public and governmental purpose. The bonds and notes, the interest thereon, the proceeds received by a holder from the sale of the bonds or notes to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of the interest and proceeds shall be exempt from taxation in the state for all purposes except the financial institutions tax imposed under IC 6-5.5.

As added by P.L.42-1985, SEC.1. Amended by P.L.21-1990, SEC.5; P.L.254-1997(ss), SEC.5; P.L.79-2017, SEC.8.

 

IC 5-1.4-9-10Officers and departments of state; rendering of services to bank; costs and expenses

     Sec. 10. All officers, departments, boards, agencies, divisions, and commissions of the city shall render services to the bank that are within the area of their respective governmental functions and that may be requested by the board and must comply promptly with any reasonable request by the board relating to the making of a study or review as to desirability, need, cost, expense, or financial feasibility with respect to a public project, purpose, or improvement, or the financial or fiscal responsibility or ability of a qualified entity making application for the purchase by the bank of securities to be issued by that qualified entity. The cost and expense of a service requested by the board, at the request of the officer, department, board, agency, division, or commission rendering the service, shall be paid by the bank.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.4-9-11Dissolution of bank; assets and property of bank

     Sec. 11. Upon the dissolution of the bank, all interest in the assets and property of the bank reverts to the city.

As added by P.L.42-1985, SEC.1.

 

IC 5-1.5ARTICLE 1.5. INDIANA BOND BANK
           Ch. 1.Definitions
           Ch. 2.Establishment and Organization
           Ch. 3.Powers and Duties
           Ch. 4.Issuance of Obligations
           Ch. 5.Reserve Fund
           Ch. 6.Other Funds and Accounts
           Ch. 6.5.Capital Funds
           Ch. 7.Default by the Bond Bank
           Ch. 8.Loans to Qualified Entities
           Ch. 9.Miscellaneous Provisions

 

IC 5-1.5-1Chapter 1. Definitions
           5-1.5-1-1Application
           5-1.5-1-2"Bank"
           5-1.5-1-3"Board"
           5-1.5-1-4"Bond"
           5-1.5-1-5"Financial institution"
           5-1.5-1-6"Holder"
           5-1.5-1-7"Note"
           5-1.5-1-8"Qualified entity"
           5-1.5-1-9"Reserve fund"
           5-1.5-1-10"Security"

 

IC 5-1.5-1-1Application

     Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-1-2"Bank"

     Sec. 2. "Bank" refers to the Indiana bond bank established under IC 5-1.5-2-1.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-1-3"Board"

     Sec. 3. "Board" refers to the board of directors established under IC 5-1.5-2-2.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-1-4"Bond"

     Sec. 4. "Bond" means a bond of the bank issued under this article.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-1-5"Financial institution"

     Sec. 5. "Financial institution" means a financial institution as defined in IC 28-1-1.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-1-6"Holder"

     Sec. 6. "Holder" means a person who is:

(1) the bearer of any outstanding bond or note registered to bearer or not registered; or

(2) the registered owner of any outstanding bond or note that is registered other than to bearer.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-1-7"Note"

     Sec. 7. "Note" refers to a note of the bank issued under this article.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-1-8"Qualified entity"

     Sec. 8. "Qualified entity" means:

(1) a political subdivision (as defined in IC 36-1-2-13);

(2) a state educational institution;

(3) a leasing body (as defined in IC 5-1-1-1(a));

(4) a not-for-profit utility (as defined in IC 8-1-2-125);

(5) any rural electric membership corporation organized under IC 8-1-13;

(6) any corporation that was organized in 1963 under Acts 1935, c. 157 and that engages in the generation and transmission of electric energy;

(7) any telephone cooperative corporation formed under IC 8-1-17;

(8) any commission, authority, or authorized body of any qualified entity;

(9) any organization, association, or trust with members, participants, or beneficiaries that are all individually qualified entities;

(10) any commission, authority, or instrumentality of the state;

(11) any other participant (as defined in IC 13-11-2-151.1);

(12) a charter school established under IC 20-5.5 (before its repeal) or IC 20-24 that is not a qualified entity under IC 5-1.4-1-10;

(13) a volunteer fire department (as defined in IC 36-8-12-2); or

(14) a development authority (as defined in IC 36-7.6-1-8).

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.1; P.L.46-1987, SEC.3; P.L.48-1989, SEC.1; P.L.37-1991, SEC.1; P.L.132-1999, SEC.1; P.L.179-2002, SEC.2; P.L.50-2003, SEC.1; P.L.2-2007, SEC.70; P.L.232-2007, SEC.1.

 

IC 5-1.5-1-9"Reserve fund"

     Sec. 9. "Reserve fund" means a reserve fund established under IC 5-1.5-5-1.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.2.

 

IC 5-1.5-1-10"Security"

     Sec. 10. "Security" means:

(1) a bond, note, or evidence of indebtedness issued by a qualified entity;

(2) a lease or certificate or other evidence of participation in the lessor's interest in and rights under a lease with a qualified entity;

(3) an obligation of a qualified entity under an agreement between the qualified entity and the bank; or

(4) an agreement executed by a qualified entity under IC 20-49-4.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.3; P.L.30-1986, SEC.1; P.L.46-1987, SEC.4; P.L.28-1992, SEC.1; P.L.2-2006, SEC.9.

 

IC 5-1.5-2Chapter 2. Establishment and Organization
           5-1.5-2-1Indiana bond bank; establishment; nature; purpose
           5-1.5-2-2Board of directors; establishment; powers; membership; appointment; vacancy
           5-1.5-2-2.5Repealed
           5-1.5-2-3Duties of board
           5-1.5-2-4Quorum
           5-1.5-2-5Action by affirmative vote of three directors; effect of vacancy
           5-1.5-2-6Surety bonds; issuer; cost
           5-1.5-2-7Disclosure of interest in contracts; abstention with respect to contract; validity of contract
           5-1.5-2-8Liability on bonds or notes
           5-1.5-2-9Executive director; duties
           5-1.5-2-10Repealed

 

IC 5-1.5-2-1Indiana bond bank; establishment; nature; purpose

     Sec. 1. There is established the Indiana bond bank, a separate body corporate and politic, constituting an instrumentality of the state for the public purposes set out in this article, but not a state agency. The bank is separate from the state in its corporate and sovereign capacity. The purpose of the bank as described in IC 5-1.5-4 is to buy and sell securities and to make loans to qualified entities.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.4.

 

IC 5-1.5-2-2Board of directors; establishment; powers; membership; appointment; vacancy

     Sec. 2. (a) There is established a board of directors to govern the bank. The powers of the bank are vested in this board.

     (b) The board is composed of:

(1) the treasurer of state, who shall be the chairman ex officio;

(2) the public finance director appointed under IC 4-4-11-9, who shall be the director ex officio; and

(3) five (5) directors appointed by the governor.

     (c) Each of the five (5) directors appointed by the governor:

(1) must be a resident of Indiana;

(2) must have substantial expertise in the buying, selling, and trading of municipal securities, in municipal administration or in public facilities management;

(3) serves for a term of three (3) years and until his successor is appointed and qualified;

(4) is eligible for reappointment;

(5) is entitled to receive the same minimum salary per diem as is provided in IC 4-10-11-2.1(b) while performing the director's duties. Such a director is also entitled to the same reimbursement for traveling expenses and other expenses, actually incurred in connection with the director's duties as is provided in the state travel policies and procedures, established by the department of administration and approved by the budget agency; and

(6) may be removed by the governor for cause.

     (d) Any vacancy on the board, other than by expiration of term, shall be filled by appointment of the governor for the unexpired term only.

As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.5; P.L.235-2005, SEC.75.

 

IC 5-1.5-2-2.5Repealed

As added by P.L.38-1988, SEC.2. Repealed by P.L.134-2012, SEC.5.

 

IC 5-1.5-2-3Duties of board

     Sec. 3. The board shall:

(1) elect one (1) of its members vice chairman;

(2) appoint and fix the duties and compensation of an executive director, who shall serve as both secretary and treasurer; and

(3) establish and maintain the office of the bank in Indianapolis.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-2-4Quorum

     Sec. 4. Four (4) directors constitute a quorum at any meeting of the board.

As added by P.L.25-1984, SEC.1. Amended by P.L.38-1988, SEC.3.

 

IC 5-1.5-2-5Action by affirmative vote of three directors; effect of vacancy

     Sec. 5. Action may be taken by the board at a meeting by the affirmative vote of at least four (4) directors. A vacancy on the board does not impair the right of a quorum of directors to exercise the powers and perform the duties of the board.

As added by P.L.25-1984, SEC.1. Amended by P.L.38-1988, SEC.4.

 

IC 5-1.5-2-6Surety bonds; issuer; cost

     Sec. 6. (a) Each director and the executive director must execute a surety bond in an amount specified by the treasurer of state. Each surety bond shall be conditioned upon the faithful performance of the duties of the office of director and executive director, respectively. In lieu of these surety bonds, the bank may execute a blanket surety bond covering each director, the executive director, and any officers or employees of the bank.

     (b) The surety bonds required by this section must be issued by a surety company authorized to transact business in Indiana.

     (c) The cost of the surety bonds required by this section shall be paid by the bank.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.5.

 

IC 5-1.5-2-7Disclosure of interest in contracts; abstention with respect to contract; validity of contract

     Sec. 7. (a) Notwithstanding any other law to the contrary, a director does not violate any law, civil or criminal, if he:

(1) has, or to his knowledge, may have or may later acquire a direct or indirect pecuniary interest in a contract with the bank; or

(2) is an officer, member, manager, director, or employee of or has an ownership interest in any firm, limited liability company, or corporation that is or may be a party to the contract;

if he discloses in writing to the bank the nature and extent of his interest as soon as he has knowledge of the interest and abstains from discussion, deliberation, action, and voting with respect to the contract.

     (b) Notwithstanding any provision of this article or any other law, a contract or transaction shall not be void or voidable because of the existence of an interest described in subsection (a), if the provisions of subsection (a) have been satisfied.

As added by P.L.25-1984, SEC.1. Amended by P.L.8-1993, SEC.51.

 

IC 5-1.5-2-8Liability on bonds or notes

     Sec. 8. Neither a director nor a person executing bonds or notes issued under this article is liable personally on the bonds or notes.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-2-9Executive director; duties

     Sec. 9. The executive director appointed under section 3 of this chapter shall, in addition to other duties fixed by the directors, administer, manage, and direct the employees of the bank. The executive director shall approve all amounts for salaries, allowable expenses of the bank or of any employee or consultant of the bank, and expenses incidental to the operation of the bank. The executive director shall attend the meetings of the board, keep a record of the proceedings of the board, and maintain all books, documents, and papers filed with the bank, the minutes of the board, and the bank's official seal. The executive director may cause copies to be made of all minutes and other records and documents of the bank and may give certificates under seal of the bank to the effect that those copies are true copies, and all persons dealing with the bank may rely upon those certificates.

As added by P.L.25-1984, SEC.1. Amended by P.L.1-2010, SEC.10.

 

IC 5-1.5-2-10Repealed

As added by P.L.5-1996, SEC.5. Repealed by P.L.177-2011, SEC.5.

 

IC 5-1.5-3Chapter 3. Powers and Duties
           5-1.5-3-1Powers
           5-1.5-3-2Duties
           5-1.5-3-3Investments
           5-1.5-3-4Prohibited acts
           5-1.5-3-5Audit of books and accounts; costs; copy; annual report to governor
           5-1.5-3-6Annual budget
           5-1.5-3-7Expenses
           5-1.5-3-8Public meetings; records

 

IC 5-1.5-3-1Powers

     Sec. 1. The bank is granted all powers necessary, convenient, or appropriate to carry out and effectuate its public and corporate purposes, including, but not limited to, the following:

(1) Have a perpetual existence as a body politic and corporate, and an independent instrumentality, but not a state agency, exercising essential public functions.

(2) Sue and be sued.

(3) Adopt and alter an official seal.

(4) Make and enforce bylaws and rules for the conduct of its business and for the use of its services and facilities, which bylaws and rules may be adopted by the bank without complying with IC 4-22-2.

(5) Acquire, hold, use, and dispose of its income, revenues, funds, and money.

(6) Acquire, rent, lease, hold, use, and dispose of property for its purposes.

(7) Make contracts and incur liabilities, borrow money, issue its negotiable bonds or notes, subject to provisions for registration of negotiable bonds and notes, and provide for and secure their payment and provide for the rights of their holders, and purchase and hold and dispose of any of its bonds or notes.

(8) Fix and revise from time to time and charge and collect fees and charges for the use of its services or facilities.

(9) Accept gifts or grants of property, funds, money, materials, labor, supplies, or services from the United States, any governmental unit, or any person, carry out the terms or provisions or make agreements with respect to the gifts or grants, and do all things necessary, useful, desirable, or convenient in connection with procuring, accepting, or disposing of the gifts or grants.

(10) Do anything authorized by this article, through its officers, agents, or employees or by contracts with a person.

(11) Procure insurance against any losses in connection with its property, operations, or assets in amounts and from insurers as it considers desirable.

(12) Cooperate with and exchange services, personnel, and information with any federal, state, or local government agency.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.6; P.L.46-1987, SEC.6.

 

IC 5-1.5-3-2Duties

     Sec. 2. The bank may:

(1) make, enter into, and enforce all contracts necessary, convenient, or desirable for the purposes of the bank or pertaining to:

(A) a loan to or a lease or an agreement with a qualified entity;

(B) a purchase, acquisition, or sale of securities or other investments; or

(C) the performance of its duties and execution of any of its powers under this article;

(2) purchase, acquire, or hold securities or other investments for the bank's own account or for a qualified entity at prices and in a manner the bank considers advisable, and sell or otherwise dispose of those securities or investments at prices without relation to cost and in a manner the bank considers advisable;

(3) prescribe the form of application or procedure required of a qualified entity for a loan or purchase of its securities, fix the terms and conditions of the loan or purchase, and enter into agreements with qualified entities with respect to loans or purchases;

(4) render services to a qualified entity in connection with a public or private sale of its securities, including advisory and other services, and charge for services rendered;

(5) charge for its costs and services in review or consideration of a proposed loan to a qualified entity or purchase by the bank of securities, whether the loan is made or the securities purchased;

(6) fix and establish terms and provisions with respect to:

(A) a purchase of securities by the bank, including date and maturities of the securities;

(B) redemption or payment before maturity; and

(C) any other matters that in connection with the purchase are necessary, desirable, or advisable in the judgment of the bank;

(7) to the extent permitted under its contracts with the holders of bonds or notes of the bank, consent to modification of the rate of interest, time, and payment of installment of principal or interest, security, or any other term of a bond or note, contract, or agreement of any kind to which the bank is a party;

(8) appoint and employ general or special counsel, accountants, financial advisors or experts, and all such other or different officers, agents, and employees as it requires and determine their qualifications, duties, and compensation, all in order to effectuate the purposes of this article;

(9) in connection with the purchase of any securities, consider the need, desirability, or eligibility of the securities, the ability of the qualified entity to secure financing from other sources and the costs thereof, and the particular public improvement or purpose to be financed or refinanced with the proceeds of the securities to be purchased by the bank; and

(10) acquire, hold, and lease or sell property to a qualified entity. The lease or sale under this subdivision may be made under a financing lease, lease with option to purchase, conditional sales contract, or any other form of agreement, upon the terms and conditions that the board considers advisable in order to promote the purpose of this article.

The bank shall not be considered to have engaged in any acts prohibited by this chapter in performing any duty or exercising any power described in this section.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.7; P.L.46-1987, SEC.7; P.L.29-1992, SEC.1.

 

IC 5-1.5-3-3Investments

     Sec. 3. Money not being used to purchase securities may be temporarily invested and reinvested pending the disbursements of that money as provided in a resolution of the bank or in a trust agreement entered into by the bank under IC 5-1.5-4-8.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.8.

 

IC 5-1.5-3-4Prohibited acts

     Sec. 4. The bank may not:

(1) lend money other than to a qualified entity;

(2) purchase securities other than:

(A) a security to which a qualified entity is a party as issuer, borrower, or lessee; or

(B) an investment under section 3 of this chapter;

(3) deal in securities within the meaning of or subject to any securities law, securities exchange law, or securities dealers law of the United States of America or of the state or of any other state or jurisdiction, domestic or foreign, except as authorized in this article;

(4) emit bills of credit, or accept deposits of money for time or demand deposit, or administer trusts, or engage in any form or manner, or in the conduct of, any private or commercial banking business, or act as a savings bank or savings association, or any other kind of financial institution; or

(5) engage in any form of private or commercial banking business.

As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.8; P.L.79-1998, SEC.6.

 

IC 5-1.5-3-5Audit of books and accounts; costs; copy; annual report to governor

     Sec. 5. (a) The bank shall have an audit of its books and accounts made at least once in each year by a certified public accounting firm or the state board of accounts. If the audit is to be conducted by a certified public accounting firm, the firm may not be selected without a review of the firm's proposal and approval of the firm by the state board of accounts. The cost of the audit shall be considered an expense of the bank, and a copy of the audit shall be made available to the public.

     (b) The bank shall submit a report of its activities for each fiscal year to the governor before November 1 of the calendar year in which the bank's fiscal year ends. Each report shall set forth a complete operating and financial statement covering its operations during that fiscal year.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.9; P.L.46-1987, SEC.9.

 

IC 5-1.5-3-6Annual budget

     Sec. 6. The board shall adopt, on either a calendar or fiscal year basis, an annual budget, which may be amended from time to time during the year.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.10.

 

IC 5-1.5-3-7Expenses

     Sec. 7. All expenses incurred in carrying out this article are payable solely from revenues of the bank or funds appropriated under this article and nothing in this article authorizes the bank to incur an indebtedness or liability on behalf of or payable by the state.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.11.

 

IC 5-1.5-3-8Public meetings; records

     Sec. 8. All meetings of the bank shall be open to the public in accordance with and subject to the limitations of IC 5-14-1.5. All records of the bank shall be subject to the requirements of IC 5-14-3.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-4Chapter 4. Issuance of Obligations
           5-1.5-4-1Purposes; bonds to be general obligations of bank payable out of revenues or funds of bank; limitation on amount outstanding; exception to limitation
           5-1.5-4-2Nature of bond or note; state pledge and agreement
           5-1.5-4-3Negotiability of bonds and notes
           5-1.5-4-4Issuance; resolution; consent, proceedings, or conditions; rates of interest; redemption; prior approval
           5-1.5-4-5Resolution authorizing issuance; adoption; publication of notice; action to set aside resolution
           5-1.5-4-6Public or private sale; notice
           5-1.5-4-7Issuance of notes; payment of principal or interest thereon; funding or refunding
           5-1.5-4-8Trust agreement or resolution; provisions; expenses
           5-1.5-4-9Purchase of bonds or notes of bank; disposition; bonds or notes held considered held for resale or transfer
           5-1.5-4-10Purchase of securities; documentation

 

IC 5-1.5-4-1Purposes; bonds to be general obligations of bank payable out of revenues or funds of bank; limitation on amount outstanding; exception to limitation

     Sec. 1. (a) The bank may issue its bonds or notes in principal amounts that it considers necessary to provide funds for any purposes under this article, including:

(1) the purchase or acquisition of securities;

(2) the making of loans to or agreements with qualified entities through the purchase of securities;

(3) the payment, funding, or refunding of the principal of, or interest or redemption premiums on, bonds or notes issued by it whether the bonds or notes or interest to be paid, funded, or refunded have or have not become due;

(4) the establishment or increase of reserves to secure or to pay bonds or notes or interest on bonds or notes and all other costs or expenses of the bank incident to and necessary or convenient to carry out its corporate purposes and powers; and

(5) the acquisition of school buses to be leased or sold to school corporations (as defined in IC 36-1-2-17).

     (b) Except as otherwise provided in this article or by the board, every issue of bonds or notes shall be general obligations of the bank payable out of the revenues or funds of the bank, subject only to agreements with the holders of a particular series of bonds or notes pledging a particular revenue or fund. Bonds or notes may be additionally secured by a pledge of a grant or contributions from the United States, a qualified entity, or a person or a pledge of income or revenues, funds, or money of the bank from any source.

     (c) Notwithstanding subsections (a) and (b), the total amount of bank bonds and notes outstanding at any one (1) time, except:

(1) bonds or notes issued to fund or refund bonds or notes; and

(2) bonds or notes issued for the purpose of purchasing an agreement executed by a qualified entity under IC 20-49-4;

may not exceed one billion dollars ($1,000,000,000) for qualified entities described in IC 5-1.5-1-8(1) through IC 5-1.5-1-8(4), IC 5-1.5-1-8(8) through IC 5-1.5-1-8(11), and IC 5-1.5-1-8(14).

     (d) Notwithstanding subsections (a) and (b), the total amount of bank bonds and notes outstanding at any one (1) time, except bonds or notes issued to fund or refund bonds or notes, may not exceed two hundred million dollars ($200,000,000) for qualified entities described in IC 5-1.5-1-8(5) through IC 5-1.5-1-8(6).

     (e) Notwithstanding subsections (a) and (b), the total amount of bank bonds and notes outstanding at any one (1) time, except bonds or notes issued to fund or refund bonds or notes, may not exceed thirty million dollars ($30,000,000) for qualified entities described in IC 5-1.5-1-8(7).

     (f) The limitations contained in subsections (c), (d), and (e) do not apply to bonds, notes, or other obligations of the bank if:

(1) the bonds, notes, or other obligations are not secured by a reserve fund under IC 5-1.5-5; or

(2) funds and investments, and the anticipated earned interest on those funds and investments, are irrevocably set aside in amounts sufficient to pay the principal, interest, and premium on the bonds, notes, or obligations at their respective maturities or on the date or dates fixed for redemption.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.12; P.L.30-1986, SEC.2; P.L.46-1987, SEC.10; P.L.37-1991, SEC.2; P.L.29-1992, SEC.2; P.L.28-1992, SEC.2; P.L.1-1993, SEC.22; P.L.132-1999, SEC.2; P.L.192-2006, SEC.1; P.L.2-2006, SEC.10; P.L.1-2007, SEC.21; P.L.232-2007, SEC.2.

 

IC 5-1.5-4-2Nature of bond or note; state pledge and agreement

     Sec. 2. (a) A bond or note of the bank:

(1) is not a debt, liability, loan of the credit, or pledge of the faith and credit of the state or of any qualified entity;

(2) is payable solely from the money pledged or available for its payment under this article, unless funded or refunded by bonds or notes of the bank; and

(3) must contain on its face a statement that the bank is obligated to pay principal and interest, and redemption premiums if any, and that the faith, credit, and taxing power of the state are not pledged to the payment of the bond or note.

     (b) The state pledges to and agrees with the holders of the bonds or notes issued under this article that the state will not:

(1) limit or restrict the rights vested in the bank to fulfill the terms of any agreement made with the holders of its bonds or notes; or

(2) in any way impair the rights or remedies of the holders of the bonds or notes;

until the bonds or notes, together with the interest on the bonds or notes, and interest on unpaid installments of interest, and all costs and expenses in connection with an action or proceeding by or on behalf of the holders, are fully met, paid, and discharged.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.13; P.L.46-1987, SEC.11.

 

IC 5-1.5-4-3Negotiability of bonds and notes

     Sec. 3. The bonds and notes of the bank are negotiable instruments for all purposes of the Uniform Commercial Code, IC 26-1, subject only to the provisions of the bonds and notes for registration.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-4-4Issuance; resolution; consent, proceedings, or conditions; rates of interest; redemption; prior approval

     Sec. 4. (a) Bonds or notes of the bank must be authorized by resolution of the board, may be issued in one (1) or more series, and must:

(1) bear the date;

(2) mature at the time or times;

(3) be in the denomination;

(4) be in the form;

(5) carry the conversion or registration privileges;

(6) have the rank or priority;

(7) be executed in the manner;

(8) be payable from the sources in the medium of payment at the place inside or outside the state; and

(9) be subject to the terms of redemption;

as the resolution of the board or the trust agreement securing the bonds or notes provides.

     (b) Except as provided in subsection (e), bonds or notes may be issued under this article without obtaining the consent of any agency of the state and without any other proceeding or condition other than the proceedings or conditions specified in this article.

     (c) The rate or rates of interest on the bonds or notes may be fixed or variable. Variable rates shall be determined in the manner and in accordance with the procedures set forth in the resolution authorizing the issuance of the bonds or notes. Bonds or notes bearing a variable rate of interest may be converted to bonds or notes bearing a fixed rate or rates of interest, and bonds or notes bearing a fixed rate or rates of interest may be converted to bonds or notes bearing a variable rate of interest, to the extent and in the manner set forth in the resolution pursuant to which the bonds or notes are issued. The interest on bonds or notes may be payable semiannually or annually or at any other interval or intervals as may be provided in the resolution, or the interest may be compounded and paid at maturity or at any other times as may be specified in the resolution.

     (d) The bonds or notes may be made subject, at the option of the holders, to mandatory redemption by the bank at the times and under the circumstances set forth in the authorizing resolution.

     (e) The bank may not issue bonds for qualified entities described in IC 5-1.5-1-8(5) through IC 5-1.5-1-8(7) or IC 5-1.5-1-8(11) that are subject to the volume cap (as defined in IC 4-4-11.5-14) without obtaining the prior approval of the Indiana finance authority.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.14; P.L.46-1987, SEC.12; P.L.37-1991, SEC.3; P.L.10-1996, SEC.16; P.L.132-1999, SEC.3; P.L.235-2005, SEC.76.

 

IC 5-1.5-4-5Resolution authorizing issuance; adoption; publication of notice; action to set aside resolution

     Sec. 5. (a) Upon the adoption of a resolution authorizing the issuance of bonds or notes, the bank may publish notice of the adoption once each week for two (2) weeks in two (2) newspapers published and of general circulation in the city of Indianapolis.

     (b) If notice is published as provided in subsection (a), any action or proceeding in any court to set aside the resolution authorizing the issuance of bonds or notes of the bank under this article or to obtain any relief upon the ground that the resolution is invalid must be filed within thirty (30) days following the first publication of notice of the adoption of the resolution. After the expiration of this thirty (30) day period, no right of action shall be asserted nor shall the validity of the resolution or any of its provisions be open to question in any court or agency upon any grounds whatsoever.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-4-6Public or private sale; notice

     Sec. 6. Bonds or notes of the bank may be sold at public or private sale at the price the board determines. If bonds or notes of the bank are to be sold at public sale, the bank shall follow the provisions of IC 5-1-11 and shall publish notice of the sale in accordance with IC 5-3-1-2 in two (2) newspapers published and of general circulation in the city of Indianapolis.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.15.

 

IC 5-1.5-4-7Issuance of notes; payment of principal or interest thereon; funding or refunding

     Sec. 7. The bank may from time to time issue its notes under this article and pay and retire the principal of the notes or pay the interest due thereon or fund or refund the notes from proceeds of bonds or of other notes, or from other funds or money of the bank available for that purpose in accordance with a contract between the bank and the holders of the notes.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-4-8Trust agreement or resolution; provisions; expenses

     Sec. 8. (a) In the discretion of the board, any bonds or notes issued under this chapter may be secured by a trust agreement by and between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the state.

     (b) The trust agreement or the resolution providing for the issuance of the bonds or notes may contain provisions for protecting and enforcing the rights and remedies of the holders of any such bonds or notes as may be reasonable and proper and not in violation of law.

     (c) The trust agreement or resolution may set forth the rights and remedies of the holders of any bonds or notes and of the trustee and may restrict the individual right of action by the holders.

     (d) In addition to the provisions of subsections (a), (b), and (c), any trust agreement or resolution may contain such other provisions as the board may deem reasonable and proper for the security of the holders of any bonds or notes.

     (e) All expenses incurred in carrying out the provisions of the trust agreement or resolution may be paid from revenues or assets pledged or assigned to the payment of the principal of and the interest on bonds and notes or from any other funds available to the board.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-4-9Purchase of bonds or notes of bank; disposition; bonds or notes held considered held for resale or transfer

     Sec. 9. The bank may purchase bonds or notes of the bank out of its funds or money available for the purchase of its own bonds and notes. The bank may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with holders of its bonds or notes. Unless cancelled, bonds or notes so held shall be deemed to be held for resale or transfer and the obligation evidenced by the bonds or notes shall not be deemed to be extinguished.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.16.

 

IC 5-1.5-4-10Purchase of securities; documentation

     Sec. 10. Subject to IC 5-1.5-8-2, all securities purchased, held, or owned by the bank, upon delivery to the bank, must be accompanied by all documentation required by the board.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.17.

 

IC 5-1.5-5Chapter 5. Reserve Fund
           5-1.5-5-1Establishment; application of funds; required debt service reserve; excess money
           5-1.5-5-2Investment of funds
           5-1.5-5-3Valuation of investments
           5-1.5-5-4Required debt service reserve; resolution concerning appropriations; excess funds; budget committee review
           5-1.5-5-5Combining reserve funds
           5-1.5-5-6Certain qualified entities; debt service reserve appropriations not available

 

IC 5-1.5-5-1Establishment; application of funds; required debt service reserve; excess money

     Sec. 1. (a) The board may establish and maintain a reserve fund for each issue of bonds or notes in which there shall be deposited or transferred:

(1) all money appropriated by the general assembly for the purpose of the fund in accordance with section 4(a) of this chapter;

(2) all proceeds of bonds or notes required to be deposited in the fund by terms of a contract between the bank and its holders or a resolution of the bank with respect to the proceeds of bonds or notes;

(3) all other money appropriated by the general assembly to a reserve fund; and

(4) any other money or funds of the bank that it decides to deposit in the fund.

     (b) Subject to section 4(b) of this chapter, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds or notes of the bank as the interest and principal become due and payable and for the retirement of bonds or notes. The money may not be withdrawn if a withdrawal would reduce the amount in the reserve fund to an amount less than the required debt service reserve, except for payment of interest then due and payable on bonds or notes and the principal of bonds or notes then maturing and payable, whether by reason of maturity or mandatory redemption, for which payments other money of the bank is not then available. As used in this chapter, "required debt service reserve" means, as of the date of computation, the amount required to be on deposit in the reserve fund as provided by resolution or trust agreement of the bank.

     (c) Money in any reserve fund in excess of the required debt service reserve, whether by reason of investment or otherwise, may be withdrawn at any time by the bank and transferred to another fund or account of the bank, subject to the provisions of any agreement with the holders of any bonds or notes.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.18; P.L.46-1987, SEC.13.

 

IC 5-1.5-5-2Investment of funds

     Sec. 2. Money in any reserve fund may be invested in the manner provided in IC 5-1.5-3-3.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.19.

 

IC 5-1.5-5-3Valuation of investments

     Sec. 3. For purposes of valuation, investments in the reserve fund shall be valued at par, or if purchased at less than par, at cost unless otherwise provided by resolution or trust agreement of the bank. Valuation on a particular date shall include the amount of interest then earned or accrued to that date on the money or investments in the reserve fund.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.20.

 

IC 5-1.5-5-4Required debt service reserve; resolution concerning appropriations; excess funds; budget committee review

     Sec. 4. (a) Except as provided in subsection (c), and in order to assure the maintenance of the required debt service reserve in any reserve fund, a resolution authorizing the bank to issue bonds or notes may include a provision stating that:

(1) the general assembly may annually appropriate to the bank for deposit in one (1) or more of the funds the sum, certified by the chairman of the board to the general assembly, that is necessary to restore one (1) or more of the funds to an amount equal to the required debt service reserve; and

(2) the chairman annually, before December 1, shall make and deliver to the general assembly a certificate stating the sum required to restore the funds to that amount.

Nothing in this subsection creates a debt or liability of the state to make any appropriation.

     (b) All amounts received on account of money appropriated by the state to any reserve fund shall be held and applied in accordance with section 1(b) of this chapter. However, at the end of each fiscal year, if the amount in any reserve fund exceeds the required debt service reserve, any amount representing earnings or income received on account of any money appropriated to the reserve fund that exceeds the expenses of the bank for that fiscal year may be transferred to the general fund of the state.

     (c) Notwithstanding any other law, and except as provided by subsection (d), after June 30, 2005, the:

(1) issuance by the bank of any indebtedness that incorporates the provisions set forth in subsection (a) or otherwise establishes a procedure for the bank or a person acting on behalf of the bank to certify to the general assembly the amount needed to restore a reserve fund or another fund to required levels; or

(2) execution by the bank of any other agreement that creates a reserve fund subject to subsection (a) to pay all or part of any indebtedness issued by the bank;

is subject to the conditions set forth in subsection (e) and review by the budget committee and approval by the budget director as required by subsection (f).

     (d) If the budget committee does not conduct a review of a proposed transaction under subsection (c) within twenty-one (21) days after a request by the bank, the review is considered to have been conducted. If the budget director does not approve or disapprove a proposed transaction under subsection (c) within twenty-one (21) days after a request by the bank, the transaction is considered to have been approved.

     (e) Issuance by the bank of any indebtedness that establishes a reserve fund under subsection (a), the establishment of a procedure for certification, or the execution by the bank of any other agreement that creates a reserve fund subject to subsection (a) may be extended only for a project or a purpose that:

(1) can be financed by a qualified entity under the law applying to financing by the qualified entity; or

(2) is specifically authorized by the general assembly.

A reserve fund established under subsection (a) may be used only to finance the purchase of securities (as defined in IC 5-1.5-1-10) issued by entities described in IC 5-1.5-1-8.

     (f) The budget director may approve establishing a reserve fund under subsection (a) only if the following conditions are satisfied:

(1) The project or purpose qualifies under subsection (e).

(2) The documentation required by subsection (g) has been provided by the bank.

(3) The bank has provided the budget agency with a written finding that revenues available to the qualified entity to pay annual debt service exceed the annual debt service requirements by at least twenty percent (20%).

(4) If the financing is for a project or purpose that will produce ongoing revenue from fees or user charges, the qualified entity agrees to include a provision in the instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) that the qualified entity will first increase the rate of the fees or user charges, or both, by an amount sufficient to satisfy any shortfall in the reserve fund established under subsection (a) before subsection (a) is to be applied.

(5) A qualified entity seeking the benefit of a reserve fund established under subsection (a) agrees to include a provision in the instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) that the qualified entity will pledge sufficient property taxes, user fees, hook up fees, connection fees, or any other available local revenues or any combination of those revenues that will be sufficient to satisfy any shortfall in the reserve fund established under subsection (a) before subsection (a) is to be applied.

(6) The instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) will include, to the extent the budget director determines is possible, a provision that money payable to the qualified entity by the state may be withheld by the auditor of state to recover any funds provided by the state, if subsection (a) is applied in connection with the qualified entity's securities.

     (g) If the bank proposes that a reserve fund be established under subsection (a) for a project or purpose, the bank shall provide to the budget committee and the budget agency at or before the time of the bank's request, the following information in writing:

(1) A description of the project or purpose.

(2) How the project or purpose satisfies the requirements of subsection (e).

(3) The qualified entity's application for financing that was filed with the bank.

(4) The estimated relative savings that can be achieved by establishing a reserve fund under subsection (a).

(5) The finding required by subsection (f)(3) and proposed language for those instrument provisions required by subsection (f)(4) through (f)(6), if applicable.

(6) Any other information required by the budget committee or budget agency.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.21; P.L.235-2005, SEC.77; P.L.229-2011, SEC.67.

 

IC 5-1.5-5-5Combining reserve funds

     Sec. 5. Subject to the provisions of any agreement with its holders, the bank may combine a reserve fund established for an issue of bonds or notes into one (1) or more reserve funds.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.22.

 

IC 5-1.5-5-6Certain qualified entities; debt service reserve appropriations not available

     Sec. 6. The provisions of section 4(a) of this chapter are not available to any bonds or notes issued by the bank to purchase securities of, or fund loans to, any qualified entity described in IC 5-1.5-1-8(5) or IC 5-1.5-1-8(6).

As added by P.L.37-1991, SEC.4.

 

IC 5-1.5-6Chapter 6. Other Funds and Accounts
           5-1.5-6-1General fund; establishment; use; creation of subaccounts or special accounts
           5-1.5-6-2Additional reserves; other funds or accounts
           5-1.5-6-3Money or investments in fund or account established for specific purpose; application

 

IC 5-1.5-6-1General fund; establishment; use; creation of subaccounts or special accounts

     Sec. 1. (a) The bank shall establish and maintain a fund called the general fund into which there shall be deposited all money received by the bank and any money that the bank shall transfer to the fund from any reserve fund under IC 5-1.5-5-1(c). Money in the general fund shall be used for operating expenses of the bank and, subject to any contract between the bank and its holders, may be:

(1) used to pay principal of or interest on bonds or notes of the bank to prevent a default;

(2) transferred to any reserve fund to prevent a default or to make up any deficiency in that reserve fund;

(3) used to purchase securities; and

(4) used to purchase or redeem the bank's bonds or notes.

     (b) No amount shall be paid or expended out of the general fund, or from any account therein established by the bank for the purpose of paying operating expenses, for the payment of operating expenses of the bank in any year in excess of the amount provided for operating expenses in the annual budget then in effect for that year or any amendment thereof in effect at the time of the payment or expenditure.

     (c) The bank is authorized and empowered to create and establish in the general fund accounts, subaccounts, or special accounts that in the opinion of the board are necessary, desirable, or convenient for the purposes of the bank under this chapter.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.23.

 

IC 5-1.5-6-2Additional reserves; other funds or accounts

     Sec. 2. The board may establish additional reserves or other funds or accounts as may be in its discretion necessary, desirable, or convenient to further the accomplishment of its purposes or to comply with the provisions of any of its agreements or resolutions.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-6-3Money or investments in fund or account established for specific purpose; application

     Sec. 3. Unless the resolution or trust agreement authorizing the bonds or notes provides otherwise, money or investments in a fund or account of the bank established or held for the payment of bonds or notes shall be applied to the payment or retirement of the bonds or notes, and to no other purpose.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-6.5Chapter 6.5. Capital Funds
           5-1.5-6.5-1Capital principal fund and capital interest fund; programs for qualified entities
           5-1.5-6.5-2Investments; credit of earnings
           5-1.5-6.5-3Capital principal fund; debt service; agreement; recovery
           5-1.5-6.5-4Required debt service reserves; budget committee review
           5-1.5-6.5-5Capital interest fund; purposes for use

 

IC 5-1.5-6.5-1Capital principal fund and capital interest fund; programs for qualified entities

     Sec. 1. (a) The bank shall establish and maintain:

(1) a capital principal fund, to be funded from appropriations made to the fund by the general assembly and any other money that the bank transfers to the fund; and

(2) a capital interest fund, to be funded from investment earnings on the capital principal fund.

     (b) The bank may use the funds only for programs for qualified entities issuing securities for any of the following purposes:

(1) Sewage works.

(2) Waterworks.

(3) Parking facilities.

(4) Redevelopment projects financed with allocated property tax proceeds under IC 36-7-14-39 or IC 36-7-15.1-26.

As added by P.L.38-1988, SEC.5.

 

IC 5-1.5-6.5-2Investments; credit of earnings

     Sec. 2. Money in the funds may be invested in the manner provided in IC 5-1.5-3-3. However, all earnings on the funds shall be credited to the capital interest fund.

As added by P.L.38-1988, SEC.5.

 

IC 5-1.5-6.5-3Capital principal fund; debt service; agreement; recovery

     Sec. 3. (a) The capital principal fund may be used only to guarantee payment of debt service on:

(1) securities issued by a qualified entity for a purpose specified in section 1(b) of this chapter; or

(2) bonds or notes issued to purchase securities issued for a purpose specified in section 1(b) of this chapter.

     (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).

     (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).

As added by P.L.38-1988, SEC.5.

 

IC 5-1.5-6.5-4Required debt service reserves; budget committee review

     Sec. 4. (a) Except as provided in subsection (d), whenever a reserve fund for an issue of bonds or notes issued to purchase securities specified in section 1(b) of this chapter does not contain the required debt service reserve (as defined in IC 5-1.5-5-1(b)), the chairman of the board shall immediately:

(1) transfer to the reserve fund the amount needed to restore the required debt service reserve first from the capital interest fund and, to the extent necessary, from the capital principal fund; and

(2) certify the amounts transferred to the general assembly.

     (b) The general assembly may appropriate to the bank for deposit in the capital principal fund the amount transferred from the fund to restore required debt service reserves. Nothing in this subsection creates a debt or a liability of the state to make any appropriation.

     (c) Appropriations made to the capital principal fund do not revert to the state general fund at the end of any fiscal year.

     (d) Notwithstanding any other law, and except as provided by subsection (e), after June 30, 2005, the:

(1) issuance by the bank of any indebtedness that incorporates the provisions set forth in subsection (a) or otherwise establishes a procedure for the bank or a person acting on behalf of the bank to certify to the general assembly the amount needed to restore a reserve fund or another fund to required levels; or

(2) execution by the bank of any other agreement that creates a moral obligation of the state to pay all or part of any indebtedness issued by the bank;

is subject to review by the budget committee and approval by the budget director.

     (e) If the budget committee does not conduct a review of a proposed transaction under subsection (d) within twenty-one (21) days after a request by the bank, the review is considered to have been conducted. If the budget director does not approve or disapprove a proposed transaction under subsection (d) within twenty-one (21) days after a request by the bank, the transaction is considered to have been approved.

As added by P.L.38-1988, SEC.5. Amended by P.L.235-2005, SEC.78.

 

IC 5-1.5-6.5-5Capital interest fund; purposes for use

     Sec. 5. With respect to the programs specified in section 1(b) of this chapter, the capital interest fund may be used for the following purposes in addition to the purpose specified in section 4 of this chapter:

(1) To guarantee payment of debt service on bonds or notes.

(2) To pay premiums for bond insurance or debt service reserve insurance for bonds or notes.

(3) To pay credit enhancement, liquidity support, remarketing, or conversion fees for bonds or notes.

(4) To pay other costs of issuance of a bank transaction.

As added by P.L.38-1988, SEC.5.

 

IC 5-1.5-7Chapter 7. Default by the Bond Bank
           5-1.5-7-1Achievement of purpose of article
           5-1.5-7-2Default; appointment of trustee to represent holders of notes or bonds
           5-1.5-7-3Trustees; duties; powers; venue; notice

 

IC 5-1.5-7-1Achievement of purpose of article

     Sec. 1. In order to:

(1) carry out its purpose under this article of making loans to qualified entities by purchase of the securities and by receipt of its income from service charges and from payments of interest on and the maturing principal of securities purchased and held by it; and

(2) produce revenues or income to the bank sufficient at all times to meet its costs and expenses of operation under this article and to pay the principal of and interest on its outstanding bonds and notes when due;

the bank must at all times, and to the greatest extent possible, plan to issue its bonds and notes and lend money to qualified entities so that the purpose is achieved without in any way jeopardizing any rights of the holders of bonds or notes of the bank or adversely affecting other matters under this article.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.24.

 

IC 5-1.5-7-2Default; appointment of trustee to represent holders of notes or bonds

     Sec. 2. If the bank:

(1) defaults in the payment of principal or interest on an issue of notes or bonds after they become due, whether at maturity or upon call for redemption, and the default continues for thirty (30) days; or

(2) fails or refuses to comply with this article or defaults in an agreement made with the holders of an issue of notes or bonds;

and there is no trustee under a trust agreement, then the holders of twenty-five percent (25%) in the aggregate principal amount of the outstanding notes or bonds of that issue, by instrument filed in the office of the clerk of Marion County and executed in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of those notes or bonds for the purposes provided in this article.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-7-3Trustees; duties; powers; venue; notice

     Sec. 3. (a) A trustee appointed under section 2 of this chapter shall, in his name, upon written request of the holders of twenty-five percent (25%) in principal amount of the outstanding notes or bonds:

(1) by civil action enforce all rights of the holders, including the right to require the bank to:

(A) collect rates, charges, and other fees and to collect interest and principal payments on securities held by it adequate to carry out an agreement as to, or pledge of, the rates, charges, and other fees and of the interest and principal payments; and

(B) carry out any other agreements with the holders of the notes or bonds and to perform its duties under this article;

(2) bring a civil action upon the notes or bonds;

(3) by civil action require the bank to account as if it were the trustee of an express trust for the holders of the notes or bonds;

(4) by civil action enjoin anything that may be unlawful or in violation of the rights of the holders of the notes or bonds; and

(5) declare all the notes or bonds due and payable, and if all defaults are made good, then with the consent of the holders of twenty-five percent (25%) of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences.

     (b) The trustee also has all the powers necessary for the exercise of functions specifically set out or incident to the general representation of holders in the enforcement and protection of their rights.

     (c) The venue of any suit, action, or proceeding brought by the trustee on behalf of the holders shall be laid in Marion County, Indiana.

     (d) Before declaring the principal of notes or bonds due and payable, the trustee must first give not less than thirty (30) days notice in writing to the chairman of the board and the attorney general.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.25.

 

IC 5-1.5-8Chapter 8. Loans to Qualified Entities
           5-1.5-8-1Purchase of securities offered by qualified entity; private sale; issuance of bonds and notes for purpose of purchase
           5-1.5-8-2Securities to be purchased and held in name of bank; required documentation
           5-1.5-8-3Contracts with bank; terms and conditions; fees and charges; denomination and prices
           5-1.5-8-4Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank
           5-1.5-8-5Department or agency of state as custodian of money payable to qualified entity; duty on default on payment of principal or interest by qualified entity
           5-1.5-8-6Repealed
           5-1.5-8-6.1Anticipation notes; issuance and purchase
           5-1.5-8-7Investment and reinvestment; securities sold to bank

 

IC 5-1.5-8-1Purchase of securities offered by qualified entity; private sale; issuance of bonds and notes for purpose of purchase

     Sec. 1. The bank, to carry out the purposes and policies of this article, may purchase securities of the qualified entity, including any securities issued by a school corporation to refund bonds or other obligations that were issued or entered into by a school corporation before that school corporation completed a consolidation or merger under IC 20-23 or any other law. Notwithstanding any law to the contrary, a qualified entity may sell its securities to the bank at a negotiated, private sale. The bank, for this purpose, may issue its bonds and notes payable solely from the revenues or funds available to the bank for such payment and may otherwise assist qualified entities as provided in this article.

As added by P.L.25-1984, SEC.1. Amended by P.L.28-1992, SEC.3; P.L.140-2014, SEC.1.

 

IC 5-1.5-8-2Securities to be purchased and held in name of bank; required documentation

     Sec. 2. (a) All securities at any time purchased, held, or owned by the bank shall at all times be purchased and held in the name of the bank.

     (b) Except for agreements described in IC 5-1.5-1-10(4), all securities at any time purchased by the bank, upon delivery to the bank, shall, unless waived by the board, be accompanied by all documentation required by the board that shall include an approving opinion of recognized bond counsel, certification and guarantee of signatures, and certification as to no litigation pending as of the date of delivery of the securities challenging the validity or issuance of such securities.

As added by P.L.25-1984, SEC.1. Amended by P.L.44-1990, SEC.3; P.L.28-1992, SEC.4.

 

IC 5-1.5-8-3Contracts with bank; terms and conditions; fees and charges; denomination and prices

     Sec. 3. (a) Every qualified entity is authorized and empowered to contract with the bank with respect to the loan or purchase of its securities, and the contracts shall contain the terms and conditions of the loan or purchase and may be in any form agreed to by the bank and the qualified entity, including a customary form of bond ordinance or resolution. Every qualified entity is authorized and empowered to pay fees and charges required to be paid to the bank for its services.

     (b) Notwithstanding any statute applicable to or constituting any limitation on the sale of bonds or notes or on entry into an agreement, any qualified entity may sell its securities to the bank, without limitation as to denomination, at a private sale at such price or prices as may be determined by the bank and the qualified entity.

     (c) Notwithstanding any law that applies to or constitutes a limitation on the leasing or disposition of materials or other property, and subject to subsection (d), any qualified entity, or any purchasing agency (as defined in IC 5-22-2-25) of a qualified entity, may:

(1) assign or sell a lease or purchase contract for property to the bank;

(2) enter into a lease or purchase contract for property with the bank; or

(3) buy property from or sell property to the bank;

at any price and under any other terms and conditions as may be determined by the bank and the qualified entity.

     (d) This subsection does not apply to a school corporation that buys or leases a school bus from the bank under IC 5-1.5-4-1(a)(5). Before taking an action described under subsection (c)(1) through (c)(3) that would otherwise be subject to IC 5-22, a qualified entity or its purchasing agent must obtain or cause to be obtained a purchase price for the property to be subject to the sale, purchase contract, or lease from the lowest responsible and responsive bidder in accordance with the requirements for the purchase of supplies under IC 5-22.

As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.14; P.L.48-1989, SEC.2; P.L.49-1997, SEC.25; P.L.192-2006, SEC.2.

 

IC 5-1.5-8-4Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank

     Sec. 4. Upon the sale and delivery by a qualified entity of any securities to the bank, the qualified entity shall be deemed to have agreed that upon its failure to pay interest or principal on the securities owned or held by or arising from an agreement with the bank when payable, all statutory defenses to nonpayment are waived. Upon nonpayment and demand on the qualified entity for payment, if the securities are payable from property taxes and funds are not available in the treasury of the qualified entity to make payment, an action in mandamus for the levy of a tax to pay the interest and principal on the securities shall lie, and the bank shall be constituted a holder or owner of the securities as being in default. The bank may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the qualified entity. The bank may carry out this section and exercise all the rights, remedies, and provisions of law provided or referred to in this section.

As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.15.

 

IC 5-1.5-8-5Department or agency of state as custodian of money payable to qualified entity; duty on default on payment of principal or interest by qualified entity

     Sec. 5. (a) Notwithstanding any other provision of 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 qualified entity (other than for goods or services provided by the qualified entity), at any time after written notice to the department or agency head from the bank that the qualified entity is in default on the payment of principal or interest on the securities of the qualified entity then held or owned by or arising from an agreement with the bank, the department or agency shall withhold the payment of that money from that qualified entity and pay over the money to the bank for the purpose of paying principal of and interest on bonds of the bank. However, the withholding of payment from the qualified entity and payment to the bank under this section must not adversely affect the validity of the security in default.

     (b) This subsection applies to securities of a qualified entity acquired by the bank, or arising from an agreement entered into with the bank, on or after March 1, 2016. Upon receiving notice from the bank that a qualified entity has failed to pay when due the principal or interest on the securities of the qualified entity then held or owned by or arising from an agreement with the bank, the fiscal officer (as defined in IC 36-1-2-7) of the county, for any county in which the qualified entity is wholly or partially located, shall do the following:

(1) Reduce the amount of any revenues or other money or property that:

(A) is held, possessed, maintained, controlled, or otherwise in the custody of the county or a department, an agency, or an instrumentality of the county; and

(B) would otherwise be available for distribution to the qualified entity under any other law;

by an amount equal to the amount of the qualified entity's unpaid securities.

(2) Pay the amount by which the revenues or other money or property is reduced under subdivision (1) to the bank to pay the principal of and interest on bonds or other obligations of the bank.

(3) Notify the qualified entity that the revenues or other money or property, which would otherwise be available for distribution to the qualified entity, has been reduced by an amount necessary to satisfy all or part of the qualified entity's unpaid securities to the bank.

     (c) This subsection applies to securities of a qualified entity acquired by the bank, or arising from an agreement with the bank, that is covered by subsection (b). A reduction under subsection (b) must be made as follows:

(1) First, from local income tax distributions under IC 6-3.6-9 that would otherwise be distributed to the qualified entity under the schedules in IC 6-3.6-9-12 and IC 6-3.6-9-16.

(2) Second, from any other revenues or other money or property that:

(A) is held, possessed, maintained, or controlled by, or otherwise in the custody of, the county or a department, an agency, or an instrumentality of the county; and

(B) would otherwise be available for distribution to the qualified entity under any other law.

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.26; P.L.46-1987, SEC.16; P.L.47-2016, SEC.1.

 

IC 5-1.5-8-6Repealed

As added by P.L.25-1984, SEC.1. Repealed by P.L.43-1985, SEC.28.

 

IC 5-1.5-8-6.1Anticipation notes; issuance and purchase

     Sec. 6.1. (a) Notwithstanding any law applicable to a qualified entity concerning the issuance of bonds, a qualified entity that has complied with all statutory requirements for the issuance of its bonds may, in lieu of issuing bonds at that time and without the need for complying with any other law applicable to the issuance of bonds, notes, or other evidences of indebtedness, issue its notes in anticipation of the issuance of bonds to the bank, and the bank may purchase the bond anticipation notes. The bond anticipation notes may be issued on terms set forth in a resolution authorizing their issuance and in any amount equal to or less than the amount of bonds authorized to be issued. The qualified entity may renew or extend the bond anticipation notes from time to time on terms agreed to with the bank, and the bank may purchase the renewals or extensions. The amount of the accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended so long as the aggregate principal amount of bond anticipation notes outstanding at any time does not exceed the maximum principal amount permitted by this section. The bond anticipation notes of the qualified entity, including any renewals or extensions, must mature in the amounts and at the times (not exceeding five (5) years from the date of the original issuance of the bond anticipation notes) agreed to by the qualified entity and the bank. The bond anticipation notes must be finally paid, and interest on the bond anticipation notes may be finally paid, with the proceeds of the bonds issued by the qualified entity. In connection with the issuance of bonds part or all of the proceeds of which will be used to retire the bond anticipation notes, it is not necessary for the qualified entity to repeat the procedures for the issuance of bonds, as the procedures followed before the issuance of the bond anticipation notes are for all purposes sufficient to authorize the issuance of the bonds.

     (b) In connection with the purchase of bond anticipation notes, the bank may by agreement with the qualified entity impose any terms, conditions, and limitations as in its opinion are proper for the security of the bank and the holders of its bonds or notes. If the qualified entity fails to comply with the agreement or to issue its bonds to retire its bond anticipation notes, the bank may enforce all rights and remedies provided in the agreement or at law, including an action in mandamus to compel the issuance of bonds by the qualified entity.

As added by P.L.43-1985, SEC.27.

 

IC 5-1.5-8-7Investment and reinvestment; securities sold to bank

     Sec. 7. Notwithstanding any statute applicable to or constituting any limitation on the investment or reinvestment of funds by or on behalf of political subdivisions, a qualified entity selling securities to the bank in connection with a program established by the bank may invest and reinvest funds that constitute, replace, or substitute for the proceeds of securities sold to the bank under an established bank program in any instrument or other investment authorized under a resolution of the bank.

As added by P.L.29-1992, SEC.3.

 

IC 5-1.5-9Chapter 9. Miscellaneous Provisions
           5-1.5-9-1Limitation of actions
           5-1.5-9-2Property of bank exempt from levy and sale; judgment against bank not charge or lien on property; rights of holders of bonds or notes
           5-1.5-9-3Repealed
           5-1.5-9-4Insurance or guaranty for payment or repayment of interest or principal, or both
           5-1.5-9-5Authority to receive money; disposition
           5-1.5-9-6Financial institution to keep and pay over funds deposited with it
           5-1.5-9-7Contracts or agreements with financial institutions; care, custody, or safekeeping of securities; services connected with payment or collection of interest or principal
           5-1.5-9-8Financial institutions and fiduciaries; investment in bonds and notes
           5-1.5-9-9Nature of bank property; bonds or notes issued; interest and proceeds received; tax exemption
           5-1.5-9-10Officers, departments, etc., of the state to render services to bank; costs and expenses
           5-1.5-9-11Pledges of revenues or other money
           5-1.5-9-12Securities; registration requirements; exemption

 

IC 5-1.5-9-1Limitation of actions

     Sec. 1. (a) No action to contest the validity of any bonds or notes of the bank to be sold at public sale may be brought after the fifteenth day following the first publication of notice of the sale of the bonds or notes. No action to contest the validity of any bond sale under this chapter may be brought after the fifth day following the bond sale.

     (b) If bonds or notes are sold at private sale, the bank may publish notice of the execution of the contract of sale of the bonds or notes one (1) time in two (2) newspapers published and of general circulation in the city of Indianapolis. If notice is published as permitted in this subsection, no action to contest the validity of such bonds or notes sold at private sale may be brought after the fifteenth day following the publication of notice of the execution of the contract of sale pertaining to the bonds or notes.

     (c) If an action challenging the bonds or notes of the bank is not brought within the time prescribed by subsection (a) or (b), whichever is applicable, all bonds or notes of the bank shall be conclusively presumed to be fully authorized and issued under the laws of the state, and a person or a qualified entity is estopped from questioning their authorization, sale, issuance, execution, or delivery by the bank.

     (d) Insofar as the provisions of this article are inconsistent with the provisions of any other law, general, special, or local, the provisions of this article shall be controlling.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-9-2Property of bank exempt from levy and sale; judgment against bank not charge or lien on property; rights of holders of bonds or notes

     Sec. 2. All property of the bank is exempt from levy and sale by virtue of an execution and no execution or other judicial process may issue against the property. A judgment against the bank may not be a charge or lien upon its property. However, nothing in this section applies to or limits the rights of the holder of bonds or notes to pursue a remedy for the enforcement of a pledge or lien given by the bank on its revenues or other money.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-9-3Repealed

As added by P.L.25-1984, SEC.1; P.L.48-1989, SEC.3. Repealed by P.L.1-1990, SEC.46.

 

IC 5-1.5-9-4Insurance or guaranty for payment or repayment of interest or principal, or both

     Sec. 4. The bank may obtain from a department or agency of the United States, or a nongovernmental insurer, available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal, on bonds or notes issued by the bank, or on securities purchased or held by the bank.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-9-5Authority to receive money; disposition

     Sec. 5. The treasurer of the state, as chairman of the board of the bank, is authorized to receive from the United States of America or any department or agency thereof any amount of money as and when appropriated, allocated, granted, turned over, or in any way provided for the purposes of the bank or this article, and those amounts shall, unless otherwise directed by the federal authority, be credited to and deposited in the general fund, and be available to the bank.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-9-6Financial institution to keep and pay over funds deposited with it

     Sec. 6. A financial institution may give to the bank a good and sufficient undertaking with such sureties as are approved by the bank to the effect that the financial institution shall faithfully keep and pay over to the order of or upon the warrant of the bank or its authorized agent all those funds deposited with it by the bank and agreed interest under or by reason of this article, at such times or upon such demands as may be agreed with the bank or in lieu of these sureties, deposit with the bank or its authorized agent or a trustee or for the holders of bonds, as collateral, those securities as the board may approve. The deposits of the bank may be evidenced by an agreement in the form and upon the terms and conditions that may be agreed upon by the bank and the financial institution.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-9-7Contracts or agreements with financial institutions; care, custody, or safekeeping of securities; services connected with payment or collection of interest or principal

     Sec. 7. The board may enter into agreements or contracts with a financial institution inside or outside the state as may be necessary, desirable, or convenient in the opinion of the board for rendering services in connection with the care, custody, or safekeeping of securities or other investments held or owned by the bank, for rendering services in connection with the payment or collection of amounts payable as to principal or interest, and for rendering services in connection with the delivery to the bank of securities or other investments purchased by it or sold by it, and to pay the cost of those services. The board may also, in connection with any of the services to be rendered by a financial institution as to the custody and safekeeping of its securities or investments, require security in the form of collateral bonds, surety agreements, or security agreements in such form and amount as, in the opinion of the board, is necessary or desirable.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-9-8Financial institutions and fiduciaries; investment in bonds and notes

     Sec. 8. Notwithstanding the restrictions of any other law, all financial institutions, investment companies, insurance companies, insurance associations, executors, administrators, guardians, trustees, and other fiduciaries may legally invest sinking funds, money, or other funds belonging to them or within their control in bonds or notes issued under this article.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-9-9Nature of bank property; bonds or notes issued; interest and proceeds received; tax exemption

     Sec. 9. All property of the bank is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments, direct or indirect, of the state or a political subdivision of the state. All bonds or notes issued under this article are issued by a body corporate and public of this state, but not a state agency, and for an essential public and governmental purpose and the bonds and notes, the interest thereon, the proceeds received by a holder from the sale of the bonds or notes to the extent of the holder's cost of acquisition proceeds received upon redemption prior to maturity, and proceeds received at maturity and the receipt of the interest and proceeds shall be exempt from taxation in the state for all purposes except the financial institutions tax imposed under IC 6-5.5.

As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.17; P.L.21-1990, SEC.6; P.L.254-1997(ss), SEC.6; P.L.79-2017, SEC.9.

 

IC 5-1.5-9-10Officers, departments, etc., of the state to render services to bank; costs and expenses

     Sec. 10. All officers, departments, boards, agencies, divisions, and commissions of the state shall render services to the bank that are within the area of their respective governmental functions and that may be requested by the board and must comply promptly with any reasonable request by the board relating to the making of a study or review as to desirability, need, cost, or expense, or financial feasibility with respect to a public project, purpose, or improvement, or the financial or fiscal responsibility or ability of a qualified entity making application for loan to the bank and for the purchase by the bank of securities to be issued by that qualified entity. The cost and expense of a service requested by the board, at the request of the officer, department, board, agency, division, or commission rendering the service, shall be paid by the bank.

As added by P.L.25-1984, SEC.1.

 

IC 5-1.5-9-11Pledges of revenues or other money

     Sec. 11. A pledge of revenues or other money made by the bank is binding from the time the pledge is made. Revenues or other money so pledged and thereafter received by the bank are immediately subject to the lien of the pledge without any further act, and the lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the bank, regardless of whether the parties have notice of the lien. Neither the resolution nor any other instrument by which a pledge is created needs to be filed or recorded except in the records of the bank.

As added by P.L.1-1990, SEC.47.

 

IC 5-1.5-9-12Securities; registration requirements; exemption

     Sec. 12. All securities issued under this article are exempt from the registration requirements of IC 23-19 and other securities registration statutes.

As added by P.L.1-1990, SEC.48. Amended by P.L.27-2007, SEC.4.

 

IC 5-2ARTICLE 2. LAW ENFORCEMENT