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Indiana Code 2018 - Indiana General Assembly, 2019 Session
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IC 5TITLE 5. STATE AND LOCAL ADMINISTRATION

 

           Art. 1.BONDS AND OTHER OBLIGATIONS
           Art. 1.2.INDIANA FINANCE AUTHORITY
           Art. 1.3.LEASE FINANCING FOR RAIL PROJECTS FOR THE NORTHWEST INDIANA REGIONAL DEVELOPMENT AUTHORITY AND THE NORTHERN INDIANA COMMUTER TRANSPORTATION DISTRICT
           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REPEALED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REPEALED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REPEALED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REPEALED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REPEALED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REPEALED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.Repealed
           Ch. 16.5.Repealed
           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. 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 in this chapter.

Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1; Acts 1975, P.L.35, SEC.1. As amended by P.L.136-2018, SEC.16.

 

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. 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. The trust agreement or the resolution providing for the issuance of 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 of the project. Any pledge or assignment made by an authority pursuant shall be valid and binding from the time that the pledge or assignment is made, and the revenues pledged and received by the authority shall immediately be subject to the lien of the pledge or assignment without physical delivery or further act. The lien of the 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 the parties have notice. 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 a lien against third parties except that a copy of the records shall be filed in the records of the authority. The trust agreement or resolution providing for the issuance of 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 provisions as have been specifically authorized to be included in any resolution or resolutions of an authority authorizing bonds. 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 indemnifying bonds or pledge securities as may be required by an authority. Any 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. Any trust agreement or resolution may contain 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 the 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. As amended by P.L.136-2018, SEC.17.

 

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. 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. However, nothing in this section 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; P.L.136-2018, SEC.18.

 

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
           5-1-5-2.5Issuance of refunding bonds by an eligible school corporation
           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:

(1) "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.

(2) "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.

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

(4) "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.

(5) "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.

(6) "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.

(7) "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 under this chapter takes formal action and adopts legislative provisions and matters of some permanency.

(8) "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.

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

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

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

(C) a corporation or other entity that:

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

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

(10) "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:

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

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

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

(A) ad valorem property taxes;

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

(C) 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.

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

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

(B) A redevelopment district established under:

(i) IC 36-7-14; or

(ii) IC 36-7-15.1.

(C) A special taxing district described in:

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

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

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

(13) 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; P.L.136-2018, SEC.19.

 

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 until 7-1-2019, and following version of this section effective 7-1-2019.

     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 until 7-1-2019. See also preceding version of this section effective until 1-1-2019, and following version of this section effective 7-1-2019.

     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 5-1-5-2.5Issuance of refunding bonds by an eligible school corporation

     Note: This version of section effective 7-1-2019. See also preceding version of this section effective until 1-1-2019, and preceding version of this section effective 1-1-2019 until 7-1-2019.

     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; and

(B) operations fund (IC 20-46-8).

(2) Compute the school corporation's levy for the school corporation's operations 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; P.L.88-2018, 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 provided in this chapter.

Formerly: Acts 1973, P.L.28, SEC.1. As amended by P.L.136-2018, SEC.20.

 

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:

(1) 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.

(2) 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.

(3) 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 authorized under this section 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 authorized under this section.

Formerly: Acts 1973, P.L.28, SEC.1. As amended by P.L.136-2018, SEC.21.

 

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
           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 in the resolution or resolutions or in this chapter, 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; P.L.136-2018, SEC.22.

 

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 bonds become due, either at maturity or upon call for redemption, a default shall continue for a period of thirty (30) days.

     (b) If the issuing body or the governing body or officers, agents, or employees:

(1) fail or refuse to comply with this chapter; or

(2) default in any agreement made with the holders of the refunding bonds;

any holder or holders of refunding bonds, or trustee may 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 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, is seeking or has sought to enforce any other right, or exercise any remedy in connection with such refunding bonds.

     (c) Upon an application described in subsection (b), 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 refunding bonds in such principal amount, shall appoint a receiver of the enterprise.

     (d) The receiver appointed:

(1) shall directly or by the receiver's agents and attorneys enter into and take possession of the enterprise;

(2) may exclude the issuing body, its governing body, officers, agents, and employees and all persons claiming under them;

(3) shall have, hold, use, operate, manage, and control, the enterprise in the name of the issuing body or otherwise, as the receiver may deem best; and

(4) shall exercise all rights and powers of the issuing body with respect to the enterprise as the issuing body itself might do.

     (e) A receiver shall maintain, restore, insure and keep insured, the enterprise, and from time to time shall make all necessary or proper repairs as to the receiver may seem expedient and shall establish, levy, maintain and collect such fees, tolls, rentals, and other charges in connection with the enterprise as the 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.

     (f) Whenever a refunding bond is due, including interest, and upon any other notes, bonds, or other obligations, including interest, 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, and all defaults shall have been cured and made good, the court may in its discretion, and after 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.

     (g) The receiver shall in the performance of the powers conferred upon the receiver, act under the direction and supervision of the court making the appointment and shall at all times be subject to the orders and decrees of such court and may be removed. This section does not limit or restrict the jurisdiction of the court to enter other orders and decrees as the court may deem necessary or appropriate for the exercise by the receiver of the receiver's duties.

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

As added by Acts 1980, P.L.8, SEC.10. Amended by P.L.136-2018, SEC.23.

 

IC 5-1-6-15Remedy

     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 in the default. 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. Amended by P.L.136-2018, SEC.24.

 

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; negotiated sale; "bonds"; 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; negotiated sale; "bonds"; 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 bonds are general obligations or issued in anticipation of the collection of special taxes or are payable out of revenues, may be sold:

(1) at a public sale; or

(2) alternatively, at a negotiated sale after June 30, 2018, and before July 1, 2021, in the case of:

(A) a consolidated city;

(B) a second class city; or

(C) a school corporation located in a city described in clause (A) or (B).

     (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; P.L.125-2018, SEC.1.

 

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

     Sec. 2. (a) Notice of sale of bonds 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; P.L.125-2018, SEC.2.

 

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 the new bonds to cause the bonds to be offered:

(1) at a public sale as provided in this chapter; or

(2) alternatively, at a negotiated sale after June 30, 2018, and before July 1, 2021, in the case of:

(A) a consolidated city;

(B) a second class city; or

(C) a school corporation located in a city described in clause (A) or (B).

     (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 the refunding bonds may, for the purpose of reducing the cost of issuance of the bonds, 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 the six (6) month period.

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

As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.125-2018, SEC.3.

 

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. Repealed

Repealed by P.L.189-2018, SEC.19.

 

IC 5-1-16.5Chapter 16.5. Repealed

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Repealed by P.L.189-2018, SEC.20.

 

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 5-1.2-2.

As added by P.L.214-2005, SEC.6. Amended by P.L.189-2018, SEC.21.

 

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"
           5-1-17.5-3Repealed
           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 5-1-17.5-3Repealed

As added by P.L.233-2013, SEC.5. Repealed by P.L.189-2018, SEC.22.

 

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 5-1.2-2-5.

As added by P.L.233-2013, SEC.5. Amended by P.L.189-2018, SEC.23.

 

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 5-1.2-4 within a qualified motorsports facility.

As added by P.L.233-2013, SEC.5. Amended by P.L.189-2018, SEC.24.

 

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 5-1.2ARTICLE 1.2. INDIANA FINANCE AUTHORITY

 

           Ch. 1.Purpose and Scope of Authority; General Provisions
           Ch. 2.Definitions
           Ch. 3.Indiana Finance Authority
           Ch. 4.General Powers and Duties
           Ch. 5.State Facility Financing
           Ch. 6.Recreational Development Facilities and Park Projects
           Ch. 7.Health Facility Financing
           Ch. 8.Educational Facility Financing
           Ch. 9.Economic Development Projects
           Ch. 10.Wastewater and Drinking Water Revolving Loan Programs
           Ch. 11.Supplemental Drinking Water and Wastewater Assistance Program
           Ch. 11.5.Monitoring, Study, and Assessment by the Indiana Finance Authority
           Ch. 12.Indiana Brownfields Program
           Ch. 13.Flood Control Program
           Ch. 14.Water Infrastructure Assistance Program
           Ch. 15.Local Transportation Infrastructure Program
           Ch. 16.Bond Ceiling

 

IC 5-1.2-1Chapter 1. Purpose and Scope of Authority; General Provisions

 

           5-1.2-1-1Purposes of the authority
           5-1.2-1-2Construction of article
           5-1.2-1-3Applicability of other statutes; laws

 

IC 5-1.2-1-1Purposes of the authority

     Sec. 1. The authority exists and shall operate for the following public purposes:

(1) Assisting, at the request of a state agency, with project or program development on behalf of or in cooperation with the state agency.

(2) Providing decision making concerning access to the capital and financial markets in the name of, or for the benefit of, the state.

(3) Enabling the state to communicate, with a single voice, with the various participants in the financial markets, including credit rating agencies, investment bankers, investors, and municipal bond insurers and other credit enhancers.

(4) Facilitating opportunities for gainful employment and business opportunities by the financing of economic development projects, intrastate and interstate sales, transactions, and business activities.

(5) Facilitating the educational enrichment (including cultural, intellectual, scientific, or artistic opportunities) of all the people of the state by the financing of educational facility projects.

(6) Preventing and remediating environmental pollution, including water pollution, air pollution, sewage and solid waste disposal, radioactive waste, thermal pollution, radiation contamination, and noise pollution affecting the health and well-being of the people of the state by:

(A) the financing of economic development projects; and

(B) carrying out the purposes of this article.

(7) Facilitating the provision of safe and adequate drinking water, helping to upgrade deteriorating infrastructure, and facilitating wastewater and storm water management to positively affect the public health and well-being of the people of the state.

(8) Financing state and local infrastructure, facilities, and assets that are publicly owned, operated, or otherwise supported under this article.

(9) Carrying out the purposes of IC 5-1-17.5 concerning a motorsports investment district.

(10) Administering a regional development authority infrastructure fund established under IC 36-9-43-9.

(11) Managing, applying, and operating each of the programs in a manner to positively affect the public health, economic welfare, and well-being of the state and its citizens.

(12) Otherwise positively affecting the public health, economic welfare, and well-being of the state and its citizens by carrying out the purposes of this article.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-1-2Construction of article

     Sec. 2. This article and the referenced statutes shall be liberally construed to effect the purposes of this article and the referenced statutes.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-1-3Applicability of other statutes; laws

     Sec. 3. Any general, special, or local law that is made applicable to a particular entity by referring to an officer or office of the state, an agency, a state agency, an authority, a board, a commission, a committee, a department, a division, a bureau, an instrumentality, an institution, an association, a service agency, a body corporate and politic created by statute, or any other entity of the executive, including the administrative, department of state government, or a similar reference or term, is not applicable to the authority, unless the reference is made specifically applicable to or in the name of the authority or to or by naming any statutes that are specific to the authority, including the referenced statutes. However, the following statutes apply to the authority:

(1) IC 4-2-6.

(2) IC 5-3.

(3) IC 5-10.

(4) IC 5-10.1.

(5) IC 5-10.2.

(6) IC 5-10.3.

(7) IC 5-14-1.5.

(8) IC 5-14-3.

(9) IC 5-15.

(10) IC 5-19.

(11) IC 34-13.

(12) IC 34-30-9.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2Chapter 2. Definitions

 

           5-1.2-2-1Application of definitions; priority of definitions
           5-1.2-2-2"Approved assistance"
           5-1.2-2-3"Authority"
           5-1.2-2-4"Bond"
           5-1.2-2-5"Bonds"
           5-1.2-2-6"Bond resolution"
           5-1.2-2-7"Building" or "buildings"
           5-1.2-2-8"Carryforward election"
           5-1.2-2-9"Clean Water Act"
           5-1.2-2-10"Construction"
           5-1.2-2-11"Correctional facility"
           5-1.2-2-12"Cost"
           5-1.2-2-13"Cost of the project"
           5-1.2-2-14"County"
           5-1.2-2-15"Covered taxes"
           5-1.2-2-16"Developer"
           5-1.2-2-17"Drinking water program"
           5-1.2-2-18"Drinking water SRF fund"
           5-1.2-2-19"Economic development project"
           5-1.2-2-20"Educational facility"
           5-1.2-2-21"Educational facility project"
           5-1.2-2-22"Educational facility property"
           5-1.2-2-23"Eligible activity"
           5-1.2-2-24"Eligible member"
           5-1.2-2-25"Equipment"
           5-1.2-2-26"Financial assistance agreement"
           5-1.2-2-27"Financing agreement"
           5-1.2-2-28"Flood control fund"
           5-1.2-2-29"Flood control program"
           5-1.2-2-30"Governing board"
           5-1.2-2-31"Hazardous substance"
           5-1.2-2-32"Health facility"
           5-1.2-2-33"Health facility property"
           5-1.2-2-34"IHCDA"
           5-1.2-2-35"Indiana brownfields fund"
           5-1.2-2-36"Indiana brownfields program"
           5-1.2-2-37"Internal Revenue Code"
           5-1.2-2-38"ISMEL"
           5-1.2-2-39"Issuer"
           5-1.2-2-40"Liability"
           5-1.2-2-41"Liability or other loss insurance reserves"
           5-1.2-2-42"Loan contract"
           5-1.2-2-43"Local transportation infrastructure program"
           5-1.2-2-44"Local transportation infrastructure project"
           5-1.2-2-45"Local transportation infrastructure revolving fund"
           5-1.2-2-46"Local unit"
           5-1.2-2-47"Mental health facility"
           5-1.2-2-48"Mortgage credit certificate"
           5-1.2-2-49"NAICS Manual"
           5-1.2-2-50"Net revenues"
           5-1.2-2-51"Nonprofit college or university"
           5-1.2-2-52"Park"
           5-1.2-2-53"Park project"
           5-1.2-2-54"Participant"
           5-1.2-2-55"Participating provider"
           5-1.2-2-56"Person"
           5-1.2-2-57"Political subdivision"
           5-1.2-2-58"Pollution"
           5-1.2-2-58.4"Pollution control facility"
           5-1.2-2-59"Program" or "programs"
           5-1.2-2-60"Public finance director"
           5-1.2-2-61"Public water system"
           5-1.2-2-62"Referenced statutes"
           5-1.2-2-63"Regional blood center"
           5-1.2-2-64"Regional health facility"
           5-1.2-2-65"Remediation"
           5-1.2-2-66"Revenues"
           5-1.2-2-67"Risk retention group"
           5-1.2-2-68"Safe Drinking Water Act"
           5-1.2-2-69"SIC Manual"
           5-1.2-2-70"Special volume cap"
           5-1.2-2-71"State agency"
           5-1.2-2-72"State educational institution"
           5-1.2-2-73"State facility"
           5-1.2-2-74"Storm water management program"
           5-1.2-2-75"Supplemental fund"
           5-1.2-2-76"Supplemental program"
           5-1.2-2-77"Taxable bonds"
           5-1.2-2-78"Tax exempt bonds"
           5-1.2-2-79"User"
           5-1.2-2-80"Volume cap"
           5-1.2-2-81"Wastewater program"
           5-1.2-2-82"Wastewater SRF fund"
           5-1.2-2-83"Wastewater infrastructure assistance program"

 

IC 5-1.2-2-1Application of definitions; priority of definitions

     Sec. 1. (a) The definitions in this chapter apply throughout this article and the referenced statutes unless the context of the statute clearly denotes otherwise.

     (b) To the extent that a definition in a referenced statute is inconsistent with the definition in this chapter, the definition in the referenced statute prevails.

     (c) Except as provided in subsection (b), to the extent that this article is inconsistent with any other general, special, or local law, this article is controlling and supersedes all other laws.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-2"Approved assistance"

     Sec. 2. "Approved assistance", for purposes of the flood control program established under IC 5-1.2-13, means any loan or other financial assistance:

(1) that is requested by a participant for an eligible activity; and

(2) that the authority makes available to the participant.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-3"Authority"

     Sec. 3. "Authority" refers to the Indiana finance authority established by this article.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-4"Bond"

     Sec. 4. "Bond", for purposes of IC 5-1.2-16, means any:

(1) bond or mortgage credit certificate for which it is necessary to procure volume under the volume cap under Section 146 of the Internal Revenue Code; or

(2) bond or other obligation for which a special volume cap is authorized under a federal act.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-5"Bonds"

     Sec. 5. "Bonds" means any bonds, mortgage credit certificates, notes, debentures, interim certificates, revenue anticipation notes, warrants, or any other evidence of indebtedness of the authority, and, for purposes of a refunding issue, means the same types of such evidence of indebtedness of the authority and types of evidence of indebtedness of a unit (as defined in IC 36-1-2-23) issued for the purpose of refunding, renewing, paying, or otherwise providing for the payment of any such evidence of indebtedness.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-6"Bond resolution"

     Sec. 6. "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 article.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-7"Building" or "buildings"

     Sec. 7. "Building" or "buildings" or similar words, for purposes of financing health facility property under IC 5-1.2-7, 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-8"Carryforward election"

     Sec. 8. "Carryforward election", for purposes of IC 5-1.2-16, means a carryforward election of a part of the volume cap made under the authority of Section 146(f) of the Internal Revenue Code.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-9"Clean Water Act"

     Sec. 9. "Clean Water Act" refers to:

(1) 33 U.S.C. 1251 et seq., and laws supplemental and ancillary to 33 U.S.C. 1251 et seq.; and

(2) regulations adopted under 33 U.S.C. 1251 et seq., and laws supplemental and ancillary to these regulations.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-10"Construction"

     Sec. 10. "Construction", for purposes of financing a state facility under IC 5-1.2-5, means the erection, renovation, refurbishing, or alteration of all or any part of a building, an improvement, or a structure, including installation of fixtures or equipment, landscaping of grounds, site work, and providing for other ancillary facilities pertinent to the building, improvement, or structure.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-11"Correctional facility"

     Sec. 11. "Correctional facility", for purposes of financing a state facility under IC 5-1.2-5, means a building, a structure, or an improvement for the custody, care, confinement, or treatment of committed persons under IC 11.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-12"Cost"

     Sec. 12. "Cost" includes the following:

(1) As applied to financing a health facility and health facility property under IC 5-1.2-7, the following:

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

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

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

(D) 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.

(E) 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 the health facility property for up to two (2) years after the 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.

(F) The costs paid or incurred in connection with the financing of health facility property, including:

(i) out-of-pocket expenses;

(ii) the cost of any policy of insurance;

(iii) the cost of printing, engraving, and reproduction services; and

(iv) the cost of the initial or acceptance fee of any trustee or paying agent.

(G) 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.

(H) 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.

(2) As applied to a park or park project under IC 5-1.2-6, the following:

(A) The cost of construction, renovation, or improvement.

(B) The cost of acquisition of all land, rights in land, rights-of-way, property, rights, easements, and interests, including land under water and riparian rights acquired by the commission for construction.

(C) The cost of demolishing or removing any buildings or structures on land acquired, including the cost of acquiring any land to which buildings or structures may be moved.

(D) The cost of relocating public roads, railroads, and public utility facilities, including the cost of land or easements.

(E) The cost of all machinery and equipment, financing charges, and interest before and during construction.

(F) The cost of engineering and legal expenses, plans, specifications, surveys, estimates of use, and revenues.

(G) Other expenses necessary or incident to determining the feasibility or practicability of financing and constructing any project.

(H) Administrative expense.

(I) Other expenses that are necessary or incident to the construction of the project, the financing of construction, and the placing of the project in operation, including an initial bond service reserve.

(3) As applied to an educational facility project under IC 5-1.2-8, all costs necessary or incident to the acquisition, construction, or funding of an educational facility project under that chapter, including the costs of refunding or refinancing outstanding indebtedness incurred for the financing of the educational facility 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 educational facility project to a date six (6) months after the estimated date of completion.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-13"Cost of the project"

     Sec. 13. "Cost of the project", for purposes of an economic development project under IC 5-1.2-9, means the cost or fair market value of construction, equipment, lands, property rights, easements, franchises, patents, financing charges, interest cost during construction, engineering and legal services, plans, specifications, surveys, cost estimates, studies, and other expenses as may be necessary or incident to the development, construction, financing, and placing in operation of an economic development project.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-14"County"

     Sec. 14. "County", for purposes of financing health facility property under IC 5-1.2-7, means any county in the state that owns and operates a county hospital.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-15"Covered taxes"

     Sec. 15. "Covered taxes" refers to any of the following:

(1) The state gross retail tax imposed under IC 6-2.5-2-1 or the use tax imposed under IC 6-2.5-3-2.

(2) The adjusted gross income tax imposed under IC 6-3-2-1.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-16"Developer"

     Sec. 16. "Developer", for purposes of an economic development project under IC 5-1.2-9, means a person who proposes to enter, or has entered, into a financing agreement with the authority for an economic development project and who has entered into a separate agreement with some other persons for the substantial use of the facilities financed.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-17"Drinking water program"

     Sec. 17. "Drinking water program" refers to the drinking water revolving loan program established by IC 5-1.2-10.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-18"Drinking water SRF fund"

     Sec. 18. "Drinking water SRF fund" refers to the drinking water revolving loan fund established by IC 5-1.2-10-3.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-19"Economic development project"

     Sec. 19. "Economic development project", for purposes of IC 5-1.2-9, means projects and undertakings that include:

(1) the acquisition of land, site improvements, infrastructure improvements, buildings, or structures, rehabilitation, renovation, and enlargement of buildings and structures, machinery, equipment, furnishings, or facilities (or any combination of these), comprising or being functionally related and subordinate to any project (whether manufacturing, commercial, agricultural, environmental, technological, or otherwise), the development or expansion of which serves the public purposes set forth in IC 5-1.2-1; and

(2) educational facility projects.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-20"Educational facility"

     Sec. 20. "Educational facility", for purposes of an educational facility project under IC 5-1.2-8, means any educational facility 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; and

(2) is not used or is not to be used for sectarian instruction or study or as a place for devotional activities or workshop.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-21"Educational facility project"

     Sec. 21. (a) "Educational facility project" includes the following:

(1) As applied to an educational facility project under IC 5-1.2-8, the following:

(A) The acquisition, construction, enlarging, remodeling, renovation, improvement, furnishing, or equipping of an educational facility by the authority for a nonprofit college or university.

(B) The funding of any liability, other loss, or insurance reserves or the funding and contribution of these insurance reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses.

(2) As applied to an educational facility project under IC 5-1.2-9, the following:

(A) The acquisition of land, site improvements, infrastructure improvements, buildings, or structures, the rehabilitation, renovation, and enlargement of buildings and structures, machinery, equipment, furnishings, or facilities (or any combination of these):

(i) comprising or being functionally related and subordinate to any aquaria, botanical societies, historical societies, libraries, museums, performing arts associations or societies, scientific societies, zoological societies, and independent elementary, secondary, or postsecondary educational institutions (or any combination of these) that engage in the cultural, intellectual, scientific, educational, or artistic enrichment of the people of the state, the development or expansion of which serves the purposes set forth in IC 5-1.2-9; and

(ii) not used or not to be used primarily for sectarian instruction or study or as a place for devotional activities.

(B) Funding (including reimbursement or refinancing) by a nonprofit organization described in subsection (b) of:

(i) real property and improvements;

(ii) personal property; or

(iii) noncapital costs to fund a judgment, a settlement, or other cost or liability, other than an ordinary and recurring operating cost or expenditure.

     (b) For purposes of subsection (a)(2)(B), a nonprofit organization must:

(1) be qualified as tax exempt under Section 501(c)(3) of the Internal Revenue Code; and

(2) have headquarters or a primary educational or exhibit facility located on property owned by or titled in the name of the state or an agency, a commission, or an instrumentality of the state that serves the purposes set forth in IC 5-1.2-9.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-22"Educational facility property"

     Sec. 22. "Educational facility property", for purposes of an educational facility project under IC 5-1.2-8, 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-23"Eligible activity"

     Sec. 23. "Eligible activity", for purposes of the flood control program established under IC 5-1.2-13, includes the following:

(1) The removal of obstructions and accumulated debris from channels of streams.

(2) The clearing and straightening of channels of streams.

(3) The creating of new and enlarged channels of streams, wherever required.

(4) The building or repairing of dikes, levees, or other flood protective works.

(5) The construction of bank protection works for streams.

(6) The establishment of floodways.

(7) The conducting of all other activities that are allowed by the federal Flood Control Act and federal Clean Water Act.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-24"Eligible member"

     Sec. 24. "Eligible member", for purposes of an educational facility project under IC 5-1.2-8, means a state educational institution or any nonprofit college or university.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-25"Equipment"

     Sec. 25. "Equipment", for purposes of an economic development project under IC 5-1.2-9, means any capital item.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-26"Financial assistance agreement"

     Sec. 26. (a) "Financial assistance agreement", for purposes of the wastewater program and drinking water program established under IC 5-1.2-10, the supplemental program established under IC 5-1.2-11, the Indiana brownfields program established under IC 5-1.2-12, the flood control program established under IC 5-1.2-13, the water infrastructure assistance program established under IC 5-1.2-14, and the local transportation infrastructure program established under IC 5-1.2-15, refers to a financial assistance agreement, financial aid agreement, or any other obligation between the authority and a participant under those chapters establishing the terms and conditions of a grant, loan, or other financial assistance, including forgiveness of principal if allowed under federal law, by the authority to the participant under those chapters.

     (b) Nothing in this section restricts the authority from denominating any financial assistance agreement by any other name the authority determines to be administratively convenient.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-27"Financing agreement"

     Sec. 27. "Financing agreement", for purposes of an economic development project under IC 5-1.2-9, means an agreement that is entered into between the authority and a developer, user, or lender concerning the financing of, the title to, or possession of an economic development project and that provides for payments to the authority in an amount sufficient to pay the principal of, premium on, if any, and interest on bonds authorized by the authority for the financing of an economic development project.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-28"Flood control fund"

     Sec. 28. "Flood control fund" refers to the flood control fund established by IC 5-1.2-13.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-29"Flood control program"

     Sec. 29. "Flood control program" refers to the flood control program established by IC 5-1.2-13.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-30"Governing board"

     Sec. 30. "Governing board", for purposes of the flood control program established under IC 5-1.2-13, means the legislative body created by law to administer the affairs of the participant.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-31"Hazardous substance"

     Sec. 31. "Hazardous substance", for purposes of the Indiana brownfields program established under IC 5-1.2-12, has the meaning set forth in IC 13-11-2-98.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-32"Health facility"

     Sec. 32. "Health facility", for purposes of IC 5-1.2-7, 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:

(i) a residential facility for individuals with a physical, mental, or emotional disability;

(ii) a residential facility for individuals with a physical or mental illness; or

(iii) a residential facility for the elderly; or

(C) as a licensed child caring institution that 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-33"Health facility property"

     Sec. 33. "Health facility property", for purposes of IC 5-1.2-7, means any tangible or intangible property or asset owned or used by a participating provider that:

(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 the property is in existence at the time of, or is to be provided after the making of, the finding;

(2) is:

(A) a residential facility for individuals with a physical, mental, or emotional disability;

(B) a residential facility for individuals with a physical or mental illness; or

(C) a residential facility for 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-34"IHCDA"

     Sec. 34. "IHCDA" refers to the Indiana housing and community development authority created by IC 5-20-1.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-35"Indiana brownfields fund"

     Sec. 35. "Indiana brownfields fund" refers to the Indiana brownfields fund established by IC 5-1.2-12-3.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-36"Indiana brownfields program"

     Sec. 36. "Indiana brownfields program" refers to the Indiana brownfields revolving loan program established by IC 5-1.2-12-2.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-37"Internal Revenue Code"

     Sec. 37. "Internal Revenue Code" has the meaning set forth in IC 6-3-1-11.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-38"ISMEL"

     Sec. 38. "ISMEL" refers to the Indiana secondary market for education loans, incorporated, designated by the governor under IC 20-12-21.2-2 (before its repeal) or IC 21-16-5-1.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-39"Issuer"

     Sec. 39. "Issuer", for purposes of IC 5-1.2-16, means the authority, IHCDA, ISMEL, a local unit, or any other issuer of bonds that must procure volume under the volume cap.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-40"Liability"

     Sec. 40. "Liability", for purposes of an educational facility project under IC 5-1.2-8, 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 the other persons or entities resulting from or arising out of any activity of an eligible member.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-41"Liability or other loss insurance reserves"

     Sec. 41. "Liability or other loss insurance reserves", for purposes of an educational facility project under IC 5-1.2-8, 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-42"Loan contract"

     Sec. 42. "Loan contract", for purposes of financing a state facility under IC 5-1.2-5, means a debt instrument other than a revenue bond and includes but is not limited to a note.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-43"Local transportation infrastructure program"

     Sec. 43. "Local transportation infrastructure program" refers to the local infrastructure program established by IC 5-1.2-15.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-44"Local transportation infrastructure project"

     Sec. 44. "Local transportation infrastructure project" means a facility to be financed under the local transportation infrastructure program.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-45"Local transportation infrastructure revolving fund"

     Sec. 45. "Local transportation infrastructure revolving fund" refers to the local transportation infrastructure revolving fund established under the local transportation infrastructure program.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-46"Local unit"

     Sec. 46. "Local unit", for purposes of IC 5-1.2-16, means a county, city, or town.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-47"Mental health facility"

     Sec. 47. "Mental health facility", for purposes of IC 5-1.2-5, means a building, a structure, or an improvement for the care, maintenance, or treatment of persons with mental or addictive disorders.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-48"Mortgage credit certificate"

     Sec. 48. "Mortgage credit certificate" refers to a mortgage credit certificate issued under Section 25 of the Internal Revenue Code.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-49"NAICS Manual"

     Sec. 49. "NAICS Manual" refers to the current edition of the North American Industry Classification System Manual - United States published by the National Technical Information Service of the United States Department of Commerce.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-50"Net revenues"

     Sec. 50. "Net revenues", for purposes of financing a health facility and health facility property under IC 5-1.2-7, means the revenues of a hospital remaining after provision for proper and reasonable expenses of operation, repair, replacement, and maintenance of the hospital.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-51"Nonprofit college or university"

     Sec. 51. "Nonprofit college or university", for purposes of an educational facility project under IC 5-1.2-8, has the meaning set forth in IC 21-7-13-23(a).

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-52"Park"

     Sec. 52. "Park", for purposes of IC 5-1.2-6, includes any land suitable for public recreational facilities, including all parks, reservoirs, land, and water under the jurisdiction of the department of natural resources. The term does not include park and park facilities of political subdivisions of the state.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-53"Park project"

     Sec. 53. "Park project", for purposes of IC 5-1.2-6, includes facilities, renovations, improvements, adjuncts, and appurtenances necessary or proper to the operation of public parks, such as the following:

(1) Means of ingress and egress and interior arterial systems.

(2) Food and lodging facilities.

(3) Camping areas.

(4) Boating facilities.

(5) Public participation sports facilities.

(6) Parking lots.

(7) Garages.

(8) Trailer sites.

(9) Automotive service facilities.

(10) Communication systems.

(11) Sewers, drains, and other sanitary facilities for the treatment of sewage, garbage, and wastes.

(12) The furnishing of utility service necessary to serve the property under the jurisdiction or control of the commission.

(13) Other buildings and facilities whose acquisition and use are consistent with the purposes of this chapter.

The term does not include park and park facilities of political subdivisions of the state or the acquisition of railroad rights-of-way.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-54"Participant"

     Sec. 54. "Participant" means the following:

(1) For purposes of the wastewater program established under IC 5-1.2-10:

(A) a political subdivision; or

(B) any person, entity, association, trust, or other manner of participant allowed by law to enter contractual arrangements for a purpose eligible for assistance under the federal Clean Water Act.

(2) For purposes of the drinking water program established under IC 5-1.2-10:

(A) a political subdivision; or

(B) any person, entity, association, trust, or other manner of participant allowed by law to enter contractual arrangements for a purpose eligible for assistance under the federal Safe Drinking Water Act.

(3) For purposes of the supplemental program established under IC 5-1.2-11, the Indiana brownfields program established under IC 5-1.2-12, the flood control program established under IC 5-1.2-13, and the water infrastructure assistance program established under IC 5-1.2-14:

(A) a political subdivision; or

(B) any person, entity, association, trust, or other manner of participant allowed by law to enter contractual arrangements for a purpose eligible for assistance under those chapters.

(4) For purposes of the local transportation infrastructure program established under IC 5-1.2-15:

(A) a political subdivision;

(B) an agency, authority, department, instrumentality, or body corporate and politic acting on behalf of a political subdivision; or

(C) a regional authority, instrumentality, or body corporate and politic acting on behalf of one (1) or more entities described in clause (A) or (B).

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-55"Participating provider"

     Sec. 55. "Participating provider", for purposes of financing a health facility and health facility property under IC 5-1.2-7, means a person, corporation, municipal corporation, political subdivision, or other entity, public or private, that:

(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, business entity, or 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 licensed child caring institution providing residential care described in IC 12-7-2-29(1).

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-56"Person"

     Sec. 56. "Person" means an individual, a partnership, a corporation, a limited liability company, an unincorporated association, or a governmental entity.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-57"Political subdivision"

     Sec. 57. "Political subdivision" means any of the following:

(1) A political subdivision (as defined in IC 36-1-2-13).

(2) A regional water, sewage, or solid waste district organized under:

(A) IC 13-26; or

(B) IC 13-3-2 (before its repeal July 1, 1996).

(3) A local public improvement bond bank organized under IC 5-1.4.

(4) A qualified entity described in IC 5-1.5-1-8(4) that is a public water utility described in IC 8-1-2-125.

(5) A conservancy district established pursuant to IC 14-33.

(6) A district organized under IC 14-27-8.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-58"Pollution"

     Sec. 58. "Pollution", for purposes of IC 5-1.2-9, means all forms of environmental pollution, including water pollution, air pollution, sewage, solid and radioactive waste, thermal pollution, radiation contamination, and noise pollution.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-58.4"Pollution control facility"

     Sec. 58.4. "Pollution control facility", for purposes of IC 5-1.2-9, means a facility for the abatement, reduction, or prevention of pollution or for the removal or treatment of any substances in materials being processed that otherwise would cause pollution when used. This includes the following:

(1) Coal washing, coal cleaning, or coal preparation facilities designed to reduce the sulfur and ash levels of Indiana coal.

(2) Coal-fired boiler facilities designed to reduce emissions while burning Indiana coal.

(3) Pollution control equipment to allow for the environmentally sound use of Indiana coal.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-59"Program" or "programs"

     Sec. 59. "Program" or "programs" means:

(1) the drinking water program established under IC 5-1.2-10;

(2) the Indiana brownfields program established under IC 5-1.2-12;

(3) the flood control program established under IC 5-1.2-13;

(4) the water infrastructure assistance program established under IC 5-1.2-14;

(5) the local transportation infrastructure program established under IC 5-1.2-15;

(6) the storm water management program;

(7) the supplemental program established under IC 5-1.2-11; and

(8) the wastewater program established under IC 5-1.2-10.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-60"Public finance director"

     Sec. 60. "Public finance director" means the public finance director appointed under IC 5-1.2-3-6.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-61"Public water system"

     Sec. 61. "Public water system", for purposes of the drinking water program established under IC 5-1.2-10, and the supplemental program established under IC 5-1.2-11, has the meaning set forth in the federal Safe Drinking Water Act.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-62"Referenced statutes"

     Sec. 62. "Referenced statutes" means all statutes that grant a power to or impose a duty on the authority, including but not limited to this article, IC 5-1-17, IC 5-1-17.5, IC 5-1.3, IC 8-9.5, IC 8-14.5, IC 8-15, IC 8-15.5, and IC 8-16.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-63"Regional blood center"

     Sec. 63. "Regional blood center", for purposes of financing a health facility and health facility property under IC 5-1.2-7, 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.189-2018, SEC.25.

 

IC 5-1.2-2-64"Regional health facility"

     Sec. 64. "Regional health facility", for purposes of financing a state facility under IC 5-1.2-5, means a building, a structure, or an improvement to a building or structure for the care, maintenance, or treatment of adults or children with mental illness, developmental disabilities, addictions, or other medical or rehabilitative needs.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-65"Remediation"

     Sec. 65. "Remediation", for purposes of the Indiana brownfields program established under IC 5-1.2-12, means any of the following:

(1) Actions necessary to:

(A) prevent;

(B) minimize; or

(C) mitigate;

damages to the public health or welfare or to the environment that may otherwise result from a release or threat of a release of hazardous substances or petroleum.

(2) Actions consistent with a permanent remedy taken instead of or in addition to removal actions if a release or threatened release of a hazardous substance or petroleum into the environment occurs to eliminate the release of hazardous substances or petroleum so that the hazardous substances or petroleum do not migrate to cause substantial danger to present or future public health or welfare or the environment.

(3) The clean-up or removal of released hazardous substances or petroleum from the environment.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-66"Revenues"

     Sec. 66. "Revenues", for purposes of an educational facility project under IC 5-1.2-8, means the rents, fees, charges, and other income or profit derived from the educational facility project.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-67"Risk retention group"

     Sec. 67. "Risk retention group", for purposes of an educational facility project under IC 5-1.2-8, 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-68"Safe Drinking Water Act"

     Sec. 68. "Safe Drinking Water Act" refers to:

(1) 42 U.S.C. 300f et seq., and laws supplemental and ancillary to these laws; and

(2) regulations adopted under 42 U.S.C. 300f et seq., and laws supplemental and ancillary to these regulations.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-69"SIC Manual"

     Sec. 69. "SIC Manual" refers to the current edition of the Standard Industrial Classification Manual of the United States Office of Management and Budget.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-70"Special volume cap"

     Sec. 70. "Special volume cap" means the maximum dollar amount of bonds that may be allocated to the state under the authority of a federal act. The special volume cap is in addition to the volume cap as defined in section 80 of this chapter.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-71"State agency"

     Sec. 71. "State agency" means an authority, a board, a commission, a committee, a department, a division, or other instrumentality of state government, but does not include a state educational institution.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-72"State educational institution"

     Sec. 72. "State educational institution", for purposes of an educational facility project under IC 5-1.2-8, has the meaning set forth in IC 21-7-13-32.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-73"State facility"

     Sec. 73. " State facility", for purposes of IC 5-1.2-5, means all or any part of one (1) or more buildings, structures, or improvements (whether new or existing), or parking areas (whether surface or an above or below ground parking garage or garages), owned or leased by the authority or the state for the purpose of:

(1) housing the personnel or activities of state agencies or branches of state government;

(2) providing transportation or parking for state employees or persons having business with state government;

(3) providing a correctional facility;

(4) providing a mental health facility; or

(5) providing a regional health facility.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-74"Storm water management program"

     Sec. 74. "Storm water management program" means a program that is consistent with the requirements in:

(1) 40 CFR 122.26(d)(2)(iv) for a proposed management program; or

(2) 40 CFR 122.34 for a storm water management program.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-75"Supplemental fund"

     Sec. 75. "Supplemental fund" refers to the supplemental drinking water and wastewater assistance fund established by IC 5-1.2-11.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-76"Supplemental program"

     Sec. 76. "Supplemental program" refers to the supplemental drinking water and wastewater assistance program established by IC 5-1.2-11.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-77"Taxable bonds"

     Sec. 77. "Taxable bonds" means bonds, the interest on which will not be excluded from the gross income of the owners of the bonds under Section 103 of the Internal Revenue Code.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-78"Tax exempt bonds"

     Sec. 78. "Tax exempt bonds" means bonds, the interest on which is excludable from the gross income of the owners of the bonds under Section 103 of the Internal Revenue Code.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-79"User"

     Sec. 79. "User" means a person who has entered into a financing agreement with the authority or lender or a contract for use with the developer or lender in contemplation of the person's use of an economic development project.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-80"Volume cap"

     Sec. 80. "Volume cap", as it relates to a year, means the maximum dollar amount of bonds that may be issued by issuers within that year under Section 146 of the Internal Revenue Code.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-81"Wastewater program"

     Sec. 81. "Wastewater program" refers to the wastewater revolving loan program established by IC 5-1.2-10.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-82"Wastewater SRF fund"

     Sec. 82. "Wastewater SRF fund" refers to the wastewater revolving loan fund established by IC 5-1.2-10.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-2-83"Wastewater infrastructure assistance program"

     Sec. 83. "Water infrastructure assistance program" refers to the infrastructure assistance program established by IC 5-1.2-14.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3Chapter 3. Indiana Finance Authority

 

           5-1.2-3-1Establishment; membership
           5-1.2-3-2Members; terms of office
           5-1.2-3-3Officers; compensation of members
           5-1.2-3-4Vesting of powers; quorum; voting
           5-1.2-3-5Meetings
           5-1.2-3-6Public finance director; powers and duties
           5-1.2-3-7Public finance director; designee; attendance; record keeping duties; certification of copies
           5-1.2-3-8Employment; delegation of administrative duties
           5-1.2-3-9Members; conflicts of interest; disclosure
           5-1.2-3-10State officers and employees; nonforfeiture of offices and employment
           5-1.2-3-11Members; surety bonds

 

IC 5-1.2-3-1Establishment; membership

     Sec. 1. (a) There is established for the public purposes set forth in this article a body politic and corporate, not a state agency but an independent instrumentality exercising essential public functions, to be known as the Indiana finance authority. The authority is separate and apart from the state in its corporate and sovereign capacity, and though separate from the state, the exercise by the authority of its powers constitutes an essential governmental, public, and corporate function.

     (b) The authority is comprised of five (5) members.

     (c) The members are as follows:

(1) The director of the office of management and budget, or the director's designee, who shall serve as chair of the authority.

(2) The treasurer of state, or the treasurer of state's designee.

(3) Three (3) members appointed by the governor, not more than two (2) of whom may be from the same political party.

     (d) All members must be residents of Indiana.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-2Members; terms of office

     Sec. 2. Appointments to the authority under section 1(c)(3) of this chapter are for terms of four (4) years. Each member appointed to the authority under section 1(c)(3) of this chapter:

(1) holds office for the term of this appointment;

(2) continues to serve after expiration of the appointment until a successor is appointed and qualified;

(3) is eligible for reappointment; and

(4) may be removed from office by the governor with or without cause and serves at the pleasure of the governor.

The governor shall fill a vacancy for the unexpired term of any member appointed under section 1(c)(3) of this chapter.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-3Officers; compensation of members

     Sec. 3. (a) The members shall elect from among their number a vice chair and other officers as they may determine.

     (b) The members of the authority are entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with their duties as provided by law. Members 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-4Vesting of powers; quorum; voting

     Sec. 4. The powers of the authority are vested in the members. Three (3) members of the authority constitute a quorum for the transaction of business. The affirmative vote of at least three (3) members is necessary for any action to be taken by the authority. Members may vote by written proxy delivered in advance to any other member who is present at the meeting. A vacancy in the membership of the authority does not impair the right of a quorum to exercise all rights and perform all duties of the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-5Meetings

     Sec. 5. Meetings of the members of the authority shall be held at the call of the chair or whenever any three (3) members so request. The members shall meet at least once every three (3) months to attend to the business of the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-6Public finance director; powers and duties

     Sec. 6. The governor shall appoint the public finance director, who serves at the pleasure of the governor. The public finance director shall:

(1) administer, manage, and direct the affairs and activities of the authority and the employees of the authority in accordance with the policies and under the control and direction of the members of the authority;

(2) approve all accounts for salaries, allowable expenses of the authority or of any employee or consultant, and expenses incidental to the operation of the authority; and

(3) perform other duties as may be directed by the members of the authority in carrying out the purposes of the referenced statutes.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-7Public finance director; designee; attendance; record keeping duties; certification of copies

     Sec. 7. The public finance director, or the public finance director's designee, shall attend the meetings of the members of the authority, shall keep a record of the proceedings of the authority, and shall maintain and be custodian of all books, documents, and papers filed with the authority and its official seal. The public finance director may make copies of all minutes and other records and documents of the authority and may give certificates under seal of the authority to the effect that the copies are true copies. All persons dealing with the authority may rely upon these certificates.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-8Employment; delegation of administrative duties

     Sec. 8. (a) The authority may, without the approval of the attorney general or any other state officer, employ bond counsel, other legal counsel, technical experts, and such other officers, agents, and employees, permanent or temporary, as the authority considers necessary to carry out the efficient operation of the authority, and shall determine their qualifications, duties, compensation, and terms of service. The authority shall fix the compensation of the public finance director.

     (b) The members of the authority may adopt a resolution delegating to:

(1) a member of the authority;

(2) the public finance director; or

(3) one (1) or more agents or employees of the authority;

administrative duties that they consider proper, including the powers of the authority set forth in this chapter.

     (c) Employees of the authority shall not be considered employees of the state.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-9Members; conflicts of interest; disclosure

     Sec. 9. Any member or employee of the authority who has, will have, or later acquires an interest, direct or indirect, in any transaction with the authority shall immediately disclose the nature and extent of the interest in writing to the authority as soon as the member or employee has knowledge of the actual or prospective interest. The disclosure shall be announced in an open meeting and entered in the minutes of the authority. Upon disclosure, the member or employee shall not participate in any action by the authority authorizing the transaction. An interest shall not invalidate actions by the authority with the participation of the disclosing member before the time when the member became aware of the interest or should reasonably have become aware of the interest.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-10State officers and employees; nonforfeiture of offices and employment

     Sec. 10. Notwithstanding any other law, no officer or employee of the state forfeits the officer's or employee's office or employment by reason of the officer's or employee's acceptance of membership in the authority or by reason of the officer or employee providing services to the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-3-11Members; surety bonds

     Sec. 11. (a) Each member of the authority, the public finance director, and any other employee or agent of the authority authorized by resolution of the authority to handle funds or sign checks, before beginning the individual's duties, 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 need not 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 authority. Instead of a bond, the chair of the authority may execute a blanket surety bond covering each member and the employees or other officers of the authority. Each surety bond shall 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 authority.

     (b) The public finance director, before beginning the public finance director's duties, must:

(1) execute a surety bond as provided in subsection (a); or

(2) be included in the coverage of a blanket surety bond described in subsection (a).

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4Chapter 4. General Powers and Duties

 

           5-1.2-4-1Powers of Indiana finance authority
           5-1.2-4-2Prohibited activities
           5-1.2-4-3Issuance of bonds or notes; failure to pay obligations
           5-1.2-4-4Additional authority powers; capital improvements; northwest Indiana regional development authority; motorsports investment district
           5-1.2-4-5Requirements; establishment of terms governing reserves or funding levels
           5-1.2-4-6Power to borrow money and issue bonds
           5-1.2-4-7Bonds; liability of authority; pledges as additional security
           5-1.2-4-8Bonds; liability of state
           5-1.2-4-9Bonds; issuance; procedure; terms
           5-1.2-4-10Bonds; authorized provisions
           5-1.2-4-11Bonds; issue to renew or pay bonds; refund
           5-1.2-4-12Pledges
           5-1.2-4-13Bonds; purchase by authority
           5-1.2-4-14Bonds; trust agreement or indenture
           5-1.2-4-15Bonds; negotiability
           5-1.2-4-16Bonds; execution; manual or facsimile signatures
           5-1.2-4-17Personal liability for acts authorized by affected statutes
           5-1.2-4-18Funds and accounts; establishment
           5-1.2-4-19Money; deposit; security; trust funds
           5-1.2-4-20Money for the payment of bonds; contracts; security
           5-1.2-4-21Bonds; pledge of state
           5-1.2-4-22Bonds; exempt from state taxes
           5-1.2-4-23Bonds; legal investments; securities
           5-1.2-4-24Application of state laws
           5-1.2-4-25Bonds; exempt for securities registration
           5-1.2-4-26Bond holders; right to specific performance
           5-1.2-4-27Payment of expenses and power to incur indebtedness; limitations; authority budget
           5-1.2-4-28Property; tax exemption
           5-1.2-4-29Annual report
           5-1.2-4-30Participants may invest funds
           5-1.2-4-31Participants may borrow money from the authority; competitive sale requirements inapplicable; issue and sell notes; terms
           5-1.2-4-32Liability
           5-1.2-4-33Financial assistance agreement; default by the participant
           5-1.2-4-34Violations; material misstatement in application
           5-1.2-4-35Annual report
           5-1.2-4-36State debt management plan; established by the authority

 

IC 5-1.2-4-1Powers of Indiana finance authority

     Sec. 1. (a) The authority is granted all powers necessary or appropriate to carry out and effectuate its public and corporate purposes under the referenced statutes, including the following:

(1) Have perpetual succession as a body politic and corporate and an independent instrumentality exercising essential public functions.

(2) Without complying with IC 4-22-2, adopt, amend, and repeal bylaws, rules, guidelines, and policies not inconsistent with the referenced statutes, and necessary or convenient to regulate its affairs and to carry into effect the powers, duties, and purposes of the authority and conduct its business under the referenced statutes. These bylaws, rules, guidelines, and policies must be made by a resolution of the authority introduced at one (1) meeting and approved at a subsequent meeting of the authority.

(3) Sue and be sued in its own name.

(4) Have an official seal and alter it at will.

(5) Maintain an office or offices at a place or places within the state as it may designate.

(6) Make, execute, and enforce contracts and all other instruments necessary, convenient, or desirable for the purposes of the authority or pertaining to:

(A) a purchase, acquisition, or sale of securities or other investments; or

(B) the performance of the authority's duties and execution of any of the authority's powers under the referenced statutes.

(7) Employ architects, engineers, attorneys, space planners, construction managers, inspectors, accountants, agriculture experts, silviculture experts, aquaculture experts, health care experts, and financial experts, and any other advisers, consultants, and agents as may be necessary in its judgment and to fix their compensation and contract for the creation of plans and specifications for a facility.

(8) Procure insurance against any loss in connection with its property and other assets, including loans and loan notes in amounts and from insurers as it may consider advisable.

(9) Borrow money, make guaranties, issue bonds, and otherwise incur indebtedness for any of the authority's purposes, and issue debentures, notes, or other evidence of indebtedness, whether secured or unsecured, to any person, as provided by the referenced statutes. Notwithstanding any other law, the:

(A) issuance by the authority of any indebtedness that establishes a procedure for the authority or a person acting on behalf of the authority to certify to the general assembly the amount needed to restore a debt service reserve fund or another fund to required levels; or

(B) execution by the authority of any other agreement that creates a moral obligation of the state to pay all or part of any indebtedness issued by the authority;

is subject to review by the budget committee and approval by the budget director.

(10) Procure insurance or guaranties from any public or private entities, including any department, agency, or instrumentality of the United States, to guarantee, insure, coinsure, and reinsure against political and commercial risk of loss, and any other insurance the authority considers necessary, including insurance 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 insurance, reinsurance, or guarantee.

(11) Purchase, receive, take by grant, gift, devise, bequest, or otherwise, and accept, from any source, aid or contributions of money, property, labor, or other things of value to be held, used, and applied to carry out the purposes of the referenced statutes, subject to the conditions upon which the grants or contributions are made, including but not limited to gifts or grants from any department, agency, or instrumentality of the United States, and lease (as lessee or lessor) or otherwise acquire, own, hold, improve, employ, use, or otherwise deal in and with real or personal property or any interest in real or personal property, wherever situated, for any purpose consistent with the referenced statutes.

(12) Enter into agreements with any department, agency, or instrumentality of the United States or this state and with lenders and enter into loan agreements, sales contracts, financial assistance agreements, and leases with contracting parties, including participants for any purpose allowed under IC 5-1.2-10, IC 5-1.2-11, or IC 5-1.2-14, borrowers, lenders, developers, or users, for the purpose of planning, regulating, and providing for the financing and refinancing of any economic development project, for any purpose allowed under IC 5-1.2-10, IC 5-1.2-11, or IC 5-1.2-14, or intrastate and interstate sales, transactions and business activities or international exports, and distribute data and information concerning the encouragement and improvement of economic development projects, intrastate and interstate sales, transactions and business activities, international exports, and other types of employment in the state undertaken with the assistance of the authority under this article.

(13) Enter into contracts or agreements with lenders and lessors for the servicing and processing of loans and leases pursuant to the referenced statutes.

(14) Provide technical assistance to local public bodies and to for profit and nonprofit entities in the development or operation of economic development projects.

(15) To the extent allowed under its contract with the holders of the 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 the extent allowed under its contract with the holders of bonds of the authority, enter into contracts with any lender containing provisions enabling it to reduce the rental or carrying charges to persons unable to pay the regular schedule of charges when, by reason of other income or payment by any department, agency, or instrumentality of the United States or of this state, the reduction can be made without jeopardizing the economic stability of the economic development project being financed.

(17) Notwithstanding IC 5-13, but subject to the requirements of any trust agreement entered into by the authority, 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) Fix and revise periodically, and charge and collect, fees and charges as the authority determines to be reasonable in connection with:

(A) the authority's loans, guarantees, advances, insurance, commitments, and servicing; and

(B) the use of the authority's services or facilities.

(19) Cooperate and exchange services, personnel, and information with any federal, state, or local government agency, or instrumentality of the United States or this state.

(20) Sell, at public or private sale, with or without public bidding, any loan or other obligation held by the authority.

(21) Enter into agreements concerning, and acquire, hold, and dispose by any lawful means, land or interests in land, building improvements, structures, personal property, franchises, patents, accounts receivable, loans, assignments, guarantees, and insurance needed for the purposes of the referenced statutes.

(22) Purchase, lease as lessee, construct, remodel, rebuild, enlarge, or substantially improve economic development projects, including land, machinery, equipment, or any combination of these.

(23) Lease economic development projects to users or developers, with or without an option to purchase.

(24) Sell economic development projects to users or developers, for consideration to be paid in installments or otherwise.

(25) Make direct loans from the proceeds of the bonds to users or developers for:

(A) the cost of acquisition, construction, or installation of economic development projects, including land, machinery, equipment, or any combination of these; or

(B) eligible expenditures for an educational facility project;

with the loans to be secured by the pledge of one (1) or more bonds, notes, warrants, or other secured or unsecured debt obligations of the users or developers.

(26) Lend or deposit the proceeds of bonds to or with a lender for the purpose of furnishing funds to the lender to be used for making a loan to a developer or user for the financing of economic development projects under this article.

(27) Enter into agreements with users or developers to allow the users or developers, directly or as agents for the authority, to wholly or partially construct economic development projects to be leased from or to be acquired by the authority.

(28) Establish reserves from the proceeds of the sale of bonds, other funds, or both, in the amount determined to be necessary by the authority to secure the payment of the principal of and interest on the bonds.

(29) Adopt rules and guidelines governing its activities authorized under the referenced statutes.

(30) Purchase, discount, sell, and negotiate, with or without guaranty, notes and other evidence of indebtedness.

(31) Sell and guarantee securities.

(32) 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.

(33) Accept gifts, grants, or loans from, and enter into contracts or other transactions with, any federal or state agency, municipality, private organization, or other source.

(34) Sell, convey, mortgage, pledge, assign, lease, exchange, transfer, or otherwise dispose of property or any interest in property, wherever the property is located.

(35) Reimburse from bond proceeds expenditures for economic development projects under this article.

(36) Acquire, hold, use, and dispose of the authority's income, revenues, funds, and money.

(37) Purchase, acquire, or hold debt securities or other investments for the authority's own account at prices and in a manner the authority considers advisable, and sell or otherwise dispose of those securities or investments at prices without relation to cost and in a manner the authority considers advisable.

(38) Fix and establish terms and provisions with respect to:

(A) a purchase of securities by the authority, including dates 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 authority.

(39) To the extent allowed under the authority's contracts with the holders of bonds or notes, amend, modify, and supplement any provision or term of:

(A) a bond, a note, or any other obligation of the authority; or

(B) any agreement or contract of any kind to which the authority is a party.

(40) Subject to the authority's investment policy, do any act and enter into any agreement pertaining to a swap agreement (as defined in IC 8-9.5-9-4) related to the purposes of the referenced statutes in accordance with IC 8-9.5-9-5 and IC 8-9.5-9-7, whether the action is incidental to the issuance, carrying, or securing of bonds or otherwise.

(41) Do any act necessary or convenient to the exercise of the powers granted by the referenced statutes, or reasonably implied from those statutes, including compliance with requirements of federal law imposed from time to time for the issuance of bonds.

     (b) The authority's powers under this article shall be interpreted broadly to effectuate the purposes of this article and may not be construed as a limitation of powers. The omission of a power from the list in subsection (a) does not imply that the authority lacks that power. The authority may exercise any power that is not listed in subsection (a) but is consistent with the powers listed in subsection (a) to the extent that the power is not expressly denied by the Constitution of the State of Indiana or by another statute.

     (c) This chapter does not authorize the financing of economic development projects for a developer unless any written agreement that may exist between the developer and the user at the time of the bond resolution is fully disclosed to and approved by the authority.

     (d) The authority shall work with and assist the Indiana housing and community development authority created by IC 5-20-1-3, the ports of Indiana created under IC 8-10-1-3, and the state fair commission established by IC 15-13-2-1 in the issuance of bonds, notes, or other indebtedness. The Indiana housing and community development authority, the ports of Indiana, and the state fair commission shall work with and cooperate with the authority in connection with the issuance of bonds, notes, or other indebtedness.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-2Prohibited activities

     Sec. 2. The authority:

(1) may not deal in securities within the meaning of or subject to any securities law, securities exchange law, or securities dealers law of the United States or of the state of Indiana or of any other state or jurisdiction, domestic or foreign, except as authorized in the referenced statutes;

(2) may not:

(A) emit bills of credit;

(B) accept deposits of money for time or demand deposit;

(C) administer trusts;

(D) engage in any form or manner, or in the conduct of, any private or commercial banking business; or

(E) act as a savings bank, savings association, or any other kind of financial institution; and

(3) may not engage in any form of private or commercial banking business.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-3Issuance of bonds or notes; failure to pay obligations

     Sec. 3. (a) The authority may issue bonds or notes and invest or loan the proceeds of those bonds or notes to a participant for the purposes of one (1) or more programs.

     (b) If the authority loans money to or purchases debt securities of a political subdivision, the authority may, by the resolution approving the bonds or notes, provide that subsection (c) is applicable to the political subdivision.

     (c) Notwithstanding any other law or any other right in an agreement with the authority, any state department or state agency, including the treasurer of state, that is the custodian of money payable to a political subdivision, other than money in payment for goods or services provided by the political subdivision, at any time after written notice from the public finance director that the political subdivision is in default on the payment of principal or interest on the obligations then held or owned by or arising from an agreement with the authority, the state department or state agency shall:

(1) withhold payment of money from that political subdivision; and

(2) pay over the money to the authority for the purpose of paying principal of and interest on the bonds or notes of the authority.

However, the withholding of payment from the political subdivision and payment to the authority under this section must not adversely affect the validity of the obligation in default.

     (d) Upon receiving notice from the authority that the political subdivision has failed to pay when due the principal or interest on the obligations of the political subdivision then held or owned by or arising from an agreement with the authority, the fiscal officer (as defined in IC 36-1-2-7) of the county, for any county in which the political subdivision 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 political subdivision under any other law;

by an amount equal to the amount of the political subdivision's unpaid obligations.

(2) Pay the amount by which the revenues or other money or property is reduced under subdivision (1) to the authority to pay the principal of and interest on bonds or other obligations of the authority.

(3) Notify the political subdivision that the revenues or other money or property, which would otherwise be available for distribution to the political subdivision, has been reduced by an amount necessary to satisfy all or part of the political subdivision's unpaid obligations to the authority.

     (e) This subsection applies to securities of a political subdivision acquired by the authority, or arising from an agreement with the authority, that is covered by subsection (d). A reduction under subsection (d) 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 political subdivision 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 political subdivision under any other law.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-4Additional authority powers; capital improvements; northwest Indiana regional development authority; motorsports investment district

     Sec. 4. In addition to the powers listed in section 1 of this chapter, the authority may:

(1) enter into leases and issue bonds under terms and conditions determined by the authority and use the proceeds of the bonds to:

(A) acquire obligations issued by any entity authorized to acquire, finance, construct, or lease capital improvements under IC 5-1-17;

(B) acquire any obligations issued by the northwest Indiana regional development authority established by IC 36-7.5-2-1; or

(C) carry out the purposes of IC 5-1-17.5 within a motorsports investment district; and

(2) perform any other functions determined by the authority to be necessary or appropriate to carry out the purposes of this section.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-5Requirements; establishment of terms governing reserves or funding levels

     Sec. 5. (a) This section does not apply to any indebtedness issued by the authority if:

(1) the proceeds will be used for a project that has been specifically authorized by the general assembly; or

(2) the indebtedness is authorized under the referenced statutes.

     (b) Notwithstanding any other law in effect before:

(1) the authority issues indebtedness that establishes a procedure for the authority or a person acting on behalf of the authority to certify to the general assembly the amount needed to restore a debt service reserve fund or another fund to a required level; or

(2) execution by the authority of any other agreement that creates a moral obligation of the state to pay all or any part of any indebtedness issued by the authority;

the authority is subject to, and shall comply with, to the extent practicable, the requirements set forth in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(g) as if the authority were specifically named in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(g).

     (c) In addition:

(1) indebtedness described in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(g) is considered a reference to an indebtedness or agreement referred to in this section; and

(2) a qualified entity referred to in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(g) is considered a reference to a borrower of any indebtedness and to any other parties referred to in this section.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-6Power to borrow money and issue bonds

     Sec. 6. (a) The authority has the power to borrow money and to issue its bonds from time to time in the principal amounts as the authority determines are necessary to provide sufficient funds to carry out its purposes, powers, and programs, including:

(1) carrying out the purposes, powers, and programs stated in this article;

(2) the payment of interest on bonds of the authority;

(3) the establishment of reserves to secure the bonds; and

(4) all other expenditures of the authority incident to, necessary, and convenient to carry out the authority's purposes, powers, and programs.

     (b) The authority may also issue bonds in the manner and for the purposes provided by the referenced statutes.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-7Bonds; liability of authority; pledges as additional security

     Sec. 7. Except as may otherwise be expressly provided by the authority, every issue of its bonds shall be obligations of the authority payable solely out of any specified revenue or money of the authority, 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.189-2018, SEC.25.

 

IC 5-1.2-4-8Bonds; liability of state

     Sec. 8. No bonds issued by the authority under this article shall constitute a debt, liability, or obligation of the state, or a pledge of the faith and credit of the state, but shall be payable solely as provided by section 7 of this chapter. Each bond issued under this article shall 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-9Bonds; issuance; procedure; terms

     Sec. 9. The bonds shall be authorized by a resolution of the authority, shall bear the date or dates, and shall mature at a time or times as the resolution may provide, except that no bond shall mature more than fifty (50) years from the date of its issue. The bonds shall be in denominations, be in the form, either coupon or registered, carry the conversion or registration privileges, be executed in the manner, be payable in the medium of payment at the place or places inside or outside Indiana, and be subject to the terms of redemption, including redemption prior to maturity, as the resolution or any trust agreement or indenture of the authority securing the bonds may provide. The bonds shall bear interest at a rate or rates that may be fixed, variable, fixed convertible to variable, variable convertible to fixed, or any combination of these rates. Variable rates shall be determined in the manner and in accordance with the provisions set forth in the resolution or the trust agreement or indenture securing the bonds. The interest on the bonds may be payable at the time or times or at the interval or intervals as may be provided in the resolution or the trust agreement or indenture securing the bonds, including the compounding and payment of interest at maturity or at any other time or times as may be specified in the resolution, trust agreement, or indenture. The bonds and their issuance shall not be subject to the provisions of any other statute concerning bonds or the issuance of bonds. Bonds of the authority may be sold by the authority at public or private sale, and at a price or prices as the authority shall determine. No action to contest the validity of any bonds issued or guarantees entered into by the authority under this article shall be commenced more than thirty (30) days following the adoption of the resolution approving such bonds or guarantees as provided in section 10 of this chapter.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-10Bonds; authorized provisions

     Sec. 10. Any resolution authorizing the issuance of bonds or trust agreement or indenture pursuant to which the bonds are issued may contain provisions, which shall be a part of the contract or contracts with the holders of the bonds, as to the following:

(1) Pledging all or any part of the revenue of the authority to secure the payment of the bonds, subject to agreements with bondholders as may then exist.

(2) Pledging all or any part of the assets of the authority, including loans and obligations securing the loans and obligations, to secure the payment of the bonds, subject to agreements with bondholders as may then exist.

(3) The use and disposition of the gross income from loans owned by the authority and payment of the principal of loans owned by the authority.

(4) The setting aside of reserves or sinking funds and the regulation and disposition of these reserves or sinking funds.

(5) Limitations on the purposes to which or the investments in which the proceeds from the sale of bonds may be applied and pledging the proceeds to secure the payment 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 or other 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 must consent to, and the manner in which the consent may be given.

(8) Limitations on the amount of money to be expended by the authority for operating expenses of the authority.

(9) Vesting in a trustee or trustee property, rights, powers, and trust as the authority may determine, and limiting or abrogating the right of the bondholders to appoint a trustee or limiting the rights, powers, and duties of the trustee.

(10) Defining the acts or omissions that constitute a default and the obligations or duties of the authority to the holders of the bonds, and providing for the rights and remedies of the holders of the bonds in the event of a default, including as a matter of right the appointment of a receiver. However, the rights and remedies shall not be inconsistent with the general laws of this state and this article.

(11) The rentals, fees, and other amounts to be charged, and the amounts to be raised in each year and the use, investment, and disposition of these amounts.

(12) Any other matter, of like or different character, which in any way affects the security or protection of the holders of the bonds.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-11Bonds; issue to renew or pay bonds; refund

     Sec. 11. (a) The authority has the power to issue, from time to time, bonds to renew or to pay bonds, including the interest on these bonds, whenever the authority considers refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund outstanding bonds and partly for any other of its purposes, powers, and programs.

     (b) The refunding bonds may be sold and the proceeds applied to the purchase, redemption, or payment of the bonds to be refunded, or exchanged for the bonds to be refunded.

     (c) A savings to the authority or to the unit issuing the bonds to be refunded is not required for the issuance of the refunding bonds or the issuance of bonds to refund refunding bonds. Refunding bonds issued under this article are payable out of any specified revenue or money of the authority, subject only to any agreements with the holders of particular bonds pledging any particular money or revenue.

     (d) Refunding bonds issued under this section are not:

(1) in any respect a general obligation of the authority; and

(2) payable in any manner from revenues raised by taxation.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-12Pledges

     Sec. 12. 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 received by the authority after the pledge is immediately subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice. The resolution or any other instrument by which a pledge is created does not need to be recorded.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-13Bonds; purchase by authority

     Sec. 13. The authority, subject to any agreements with bondholders as may then exist, has the power out of any funds available to purchase bonds of the authority, which, at the option of the authority, shall be canceled after the purchase, at any reasonable price which, if the bonds are then redeemable, shall not exceed the redemption price then applicable plus accrued interest to the next interest payment on the bond.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-14Bonds; trust agreement or indenture

     Sec. 14. The bonds may be secured by a trust agreement or indenture by and between the authority and a corporate trustee, which may be a bank having the power of a trust company or any trust company within or without the state. The trust agreement or indenture may contain 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 covenants setting forth the duties of the authority in relation to the exercise of the authority's powers and the custody, safekeeping, and application of all money related to the particular bond financing for which the trust agreement or indenture exists. The authority may provide by the trust agreement or indenture for the payment of the proceeds of the bonds and the revenue to the trustee under the trust agreement or indenture or other depository, and for the method of disbursement of the proceeds, with safeguards and restrictions as the authority may determine. All expenses incurred in carrying out the trust agreement or indenture may be treated as a part of the operating expenses of the authority. If the bonds are secured by a trust agreement or indenture, the bondholders have no authority to appoint a separate trustee to represent them.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-15Bonds; negotiability

     Sec. 15. 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.189-2018, SEC.25.

 

IC 5-1.2-4-16Bonds; execution; manual or facsimile signatures

     Sec. 16. Any bonds issued by the authority under this article shall be executed by the manual or facsimile, except as otherwise provided in this article, signatures of the officers or agents of the authority that the authority designates. If bonds are issued pursuant to a trust indenture, the manual authentication of each bond by the trustee shall be required. If bonds are issued without a trust indenture or trustee, at least one (1) of the officers or agents of the authority shall manually execute each bond. If any of the members or officers of the authority shall cease to be members or officers of the authority before the delivery of any bonds or coupons signed by them, their signatures or facsimiles shall nevertheless be valid and sufficient for all purposes, the same as if the members or officers had remained in office until the delivery. Pending preparation of the definitive bonds, the authority may issue interim receipts or certificates, which must be exchanged for the definitive bonds.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-17Personal liability for acts authorized by affected statutes

     Sec. 17. The members of the authority, the officers and employees of the authority, the public finance director, any agents of the authority, and any other persons executing bonds issued under the referenced statutes are not subject to personal liability or accountability by reason of any act authorized by the referenced statutes, including without limitation the issuance of bonds, the failure to issue bonds, the execution of bonds, and the making of guarantees.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-18Funds and accounts; establishment

     Sec. 18. The authority may create and establish any funds and accounts necessary or desirable for the authority's purposes.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-19Money; deposit; security; trust funds

     Sec. 19. All money received by the authority, except as provided in the referenced statutes, shall be deposited as soon as practical in a separate account or accounts in banks or trust companies organized under the laws of this state or in national banking associations. The money in these accounts shall be paid out on checks signed by the chair or other officers or employees of the authority that the authority authorizes or by wire transfer or other electronic means authorized by the authority. All deposits of money shall, if required by the authority, be secured in a manner that the authority determines to be prudent, and all banks or trust companies are authorized to give security for the deposits. Notwithstanding any other law to the contrary, all money received pursuant to the referenced statutes are trust funds to be held and applied solely as provided in the referenced statutes. The resolution authorizing any obligations, or trust agreement or indenture securing the same, may provide that any of the money may be temporarily invested pending the disbursement of the money, and shall provide that any officer with whom or any bank or trust company with which the money is deposited shall act as trustee of the money and shall hold and apply the money for the authorized purposes of the authority, subject to the referenced statutes, the authority's investment policy, and the resolution or trust agreement or indenture.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-20Money for the payment of bonds; contracts; security

     Sec. 20. Notwithstanding section 19 of this chapter, the authority has the power to contract with the holders of any of its bonds as to the custody, collection, securing, investment, and payment of any money of the authority and of any money held in trust or otherwise for the payment of bonds, and to carry out the contract. Money held in trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of money may be secured in the same manner as money of the authority, and all banks and trust companies are authorized to give security for the deposits.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-21Bonds; pledge of state

     Sec. 21. The state pledges to and agrees with the holder of any bonds issued under this article that the state will not limit or alter the rights vested in the authority to fulfill the terms of any agreements made with bondholders or in any way impair the rights or remedies of bondholders until the bonds, together with the interest, 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 bondholders, are fully met and discharged. The authority is authorized to include this pledge and agreement of the state in any agreement with the bondholders.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-22Bonds; exempt from state taxes

     Sec. 22. Bonds issued under this article and:

(1) proceeds received from their sale by a holder, to the extent of the holder's costs of acquisition;

(2) proceeds received on their redemption before maturity;

(3) proceeds received at their maturity; and

(4) interest received on them;

are exempt from state taxes as provided by IC 6-8-5.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-23Bonds; legal investments; securities

     Sec. 23. The bonds issued under this article by the authority are declared to be legal investments in which all public officers or public bodies of this state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and 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. The bonds are also made securities that may be deposited with and received by all public officers and bodies of this state or any agency or political subdivisions of this state and all municipalities and public commissions for any purpose for which the deposit of bonds or other obligations of this state is authorized by law.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-24Application of state laws

     Sec. 24. The issuance of bonds and the adoption of rules under the referenced statutes need not comply with the requirements of any other state laws applicable to the issuance of the bonds or adoption of these rules. No proceedings, notice, or approval is required for the issuance of any bonds or any instrument or the security for the bonds or instrument, except as provided in the referenced statutes. All economic development projects for which funds are advanced, loaned, or otherwise provided by the authority under IC 5-1.2-9 must be in compliance with any land use, zoning, subdivision, and other laws of this state applicable to the land upon which the economic development project is located or is to be constructed, but a failure to comply with these laws does not invalidate any bonds issued to finance an economic development project under IC 5-1.2-9.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-25Bonds; exempt for securities registration

     Sec. 25. Any bonds issued by the authority pursuant to this article and any other securities issued in connection with a financing under this article are exempt from the registration and other requirements of IC 23-19 and any other securities registration laws.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-26Bond holders; right to specific performance

     Sec. 26. Any holder of bonds or any coupons appertaining to the bonds, and the trustee under any trust agreement or resolution authorizing the issuance of the bonds, except to the extent the rights given in this article may be restricted by the 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 the trust agreement or resolution, or under any other contract executed by the authority under this article, and enforce and compel the performance of all duties required by this article or by the trust agreement or resolution to be performed by the authority or by any officer of the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-27Payment of expenses and power to incur indebtedness; limitations; authority budget

     Sec. 27. (a) All expenses incurred by the authority in carrying out the referenced statutes are payable solely from funds provided under the referenced statutes, 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 nothing in the referenced statutes shall be construed to authorize the authority to incur indebtedness or liability of the state or any political subdivision.

     (b) The authority shall annually prepare a budget that allocates the expenses incurred by the authority in an equitable manner among the programs administered by the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-28Property; tax exemption

     Sec. 28. (a) Except as provided in subsection (b), all property, both tangible and intangible, acquired or held by the authority under the referenced statutes is declared to be public property used for public and governmental purposes, and all the property and income from the property is at all times exempt from all taxes imposed by this state, any county, any city, or any other political subdivision of this state, except for the financial institutions tax imposed under IC 6-5.5.

     (b) Property owned by the authority and:

(1) leased to a person for an economic development project; or

(2) financed by a loan;

under IC 5-1.2-9 is not public property. The property and the economic development project are subject to all taxes of this state or any county, city, or other political subdivision of this state in the same manner and subject to the same exemptions that apply to all persons.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-29Annual report

     Sec. 29. The authority shall, following the close of each fiscal year, submit an annual report of the authority's activities under the referenced statutes for the preceding year to the governor, the budget committee, and the general assembly. A report submitted to the general assembly must be in an electronic format under IC 5-14-6. Each report shall set forth a complete operating and financial statement for the authority during the fiscal year it covers.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-30Participants may invest funds

     Sec. 30. Notwithstanding any statute applicable to or constituting any limitation on the investment or reinvestment of funds by or on behalf of political subdivisions:

(1) a participant receiving financial assistance in connection with a program may invest and reinvest funds that constitute, replace, or substitute for the proceeds of bonds or other evidence of indebtedness sold to the authority under the program, together with any account or reserves of a participant not funded with the proceeds of the bonds or other evidence of indebtedness purchased by the authority but that secure or provide payment for those bonds or other evidence of indebtedness, in any instrument or other investment authorized under a resolution of the authority; and

(2) a participant that is obligated to make payments on bonds or other evidence of indebtedness purchased in connection with the operation of a program may invest and reinvest funds that constitute, replace, or substitute for the proceeds of those bonds or other evidence of indebtedness, together with any account or reserves of a participant not funded with the proceeds of the bonds or other evidence of indebtedness purchased under the program but that secure or provide payment for those bonds or other evidence of indebtedness, in any instrument or other investment authorized under a resolution of the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-31Participants may borrow money from the authority; competitive sale requirements inapplicable; issue and sell notes; terms

     Sec. 31. (a) Notwithstanding any other law, a participant may borrow money from the authority for any program by negotiating a loan or other financial assistance directly with the authority and without complying with requirements for the competitive sale of bonds, notes, or other obligations or evidence of indebtedness. A participant shall observe any existing contractual commitments to bondholders or other persons when entering into a financial assistance agreement.

     (b) Notwithstanding any other law, a participant may issue and sell notes, the principal and accrued interest on which shall be paid with proceeds from the issuance of bonds or other available money at the time the notes are due. The notes must be issued under a resolution or ordinance and the proceeds must be used to carry out the purposes allowed by the program.

     (c) A participant that issues notes under subsection (b) may renew or extend the notes periodically on terms agreed to with the authority, and the authority may purchase and sell the renewed or extended notes. 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.

     (d) The notes issued by a participant under subsection (b), including any renewals or extensions, must mature:

(1) in the amounts; and

(2) at the times not exceeding four (4) years from the date of original issuance;

that are agreed to by the participant and the authority.

     (e) Compliance with subsection (b) constitutes full authority for a participant to issue notes and sell the notes to the authority, and the participant is not required to comply with any other law applicable to the authorization, approval, issuance, and sale of the notes. The notes are:

(1) valid and binding obligations of the participant;

(2) enforceable in accordance with the terms of the notes; and

(3) payable solely from the sources specified in the resolution or ordinance authorizing the issuance of the notes.

     (f) If the participant issues bonds, all or part of the proceeds of which will be used to pay notes issued under subsection (b), the:

(1) provisions of this section; or

(2) actual issuance by a participant of notes under subsection (b);

do not relieve the participant of the obligation to comply with the statutory requirements for the issuance of bonds.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-32Liability

     Sec. 32. (a) Notwithstanding any other law, the authority, program, or the program related fund, or any person or agent acting on behalf of the authority, the program, or the program related fund, is not liable in damages or otherwise to any participant or party seeking to be a participant for any act or omission in connection with a loan or other financial assistance, or any application, service, or other undertaking, allowed by or taken under this article applicable to any program or any related fund or under any financial assistance agreement or related agreement or understanding.

     (b) No direction given by or service or other undertaking allowed or taken under this article applicable to any program or related fund or under any financial assistance agreement or related agreement or understanding by the authority is a defense for or otherwise excuses any act or omission of a participant otherwise required or imposed by law upon a participant under any chapter applicable to any program or related fund or under any financial assistance agreement or related agreement or understanding.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-33Financial assistance agreement; default by the participant

     Sec. 33. (a) Notwithstanding any other law and if provided in a financial assistance agreement related to any program, any state department or state agency, including the treasurer of state:

(1) that is the custodian of money payable to a participant, other than money in payment for goods or services provided by the participant; and

(2) after written notice from the public finance director that the participant is in default on the payment of principal of or interest on a loan or evidence of other financial assistance related to any program owed to the authority;

may withhold payment of money from that participant and pay over the money to the authority as directed by the public finance director, for the purpose of curing the default.

     (b) The withholding of payment from the participant and payment to the authority may not adversely affect the validity of the loan or other financial assistance.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-34Violations; material misstatement in application

     Sec. 34. A person who, with intent to defraud, knowingly or intentionally makes a material misstatement in connection with an application for a loan or other financial assistance pursuant to any program commits a Level 6 felony.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-35Annual report

     Sec. 35. The public finance director shall prepare an annual report that provides an update on transportation projects in which the authority is involved. The report must be submitted to the legislative council in an electronic format under IC 5-14-6.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-4-36State debt management plan; established by the authority

     Sec. 36. The authority, after consulting with the treasurer of state, the Indiana bond bank, the budget agency, and the commission for higher education, shall establish and periodically update a state debt management plan. The plan must include at least the following provisions with respect to debt issued or to be issued by the authority, other bodies corporate and politic of the state, and state educational institutions:

(1) An inventory of existing debt.

(2) Projections of future debt obligations.

(3) Recommended criteria for the appropriate use of debt as a means to finance capital projects.

(4) Recommended strategies to minimize costs associated with debt issuance.

(5) An analysis of the impact of debt issued by all bodies corporate and politic and state educational institutions on the state budget.

(6) Recommended guidelines for the prudent issuance of debt that creates a moral obligation of the state to pay all or part of the debt.

(7) Recommended policies for the investment of:

(A) proceeds of bonds, notes, or other obligations issued by bodies corporate and politic and state educational institutions; and

(B) other money, funds, and accounts owned or held by a body corporate and politic.

(8) Recommended policies for the establishment of a system of record keeping and reporting to meet the arbitrage rebate compliance requirements of the Internal Revenue Code.

(9) Recommended policies for the preparation of financial disclosure documents, including official statements accompanying debt issues, comprehensive annual financial reports, and continuing disclosure statements. The recommended policies must include a provision for approval by the budget director of any statements or reports that include a discussion of the state's economic and fiscal condition.

(10) Potential opportunities to more effectively and efficiently authorize and manage debt.

(11) Recommendations to the budget director, the governor, and the general assembly with respect to financing of capital projects.

The recommendations to the general assembly under subdivision (11) must be in an electronic format under IC 5-14-6.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5Chapter 5. State Facility Financing

 

           5-1.2-5-1Applicability
           5-1.2-5-2Facilities for state agencies; request; findings; authorization
           5-1.2-5-3Authorization to transfer real property; department of administration
           5-1.2-5-4Department of administration; contracts with the authority; state facility projects
           5-1.2-5-5Authority may borrow money
           5-1.2-5-6Authority may issue and sell bonds
           5-1.2-5-7Authority may enter into contracts; exempt from certain rules
           5-1.2-5-8Approval of plans; department of administration
           5-1.2-5-9Allocation of space; department of administration; department of correction
           5-1.2-5-10Condemnation of property; procedures
           5-1.2-5-11Use and occupancy agreements; negotiation; terms
           5-1.2-5-12State facilities; operation; maintenance; repair
           5-1.2-5-13Authorized projects by the General Assembly

 

IC 5-1.2-5-1Applicability

     Sec. 1. This chapter does not apply to the authority when acting under any other statute for any other purpose.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-2Facilities for state agencies; request; findings; authorization

     Sec. 2. At the request of the department of administration, the authority may provide for facilities for state agencies or branches of state government if the general assembly, by statute:

(1) finds that the state needs renovation, refurbishing, or alteration of existing facilities or construction of additional facilities; and

(2) authorizes the authority to provide for the facilities.

In providing for the facilities, the authority shall proceed under this chapter.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-3Authorization to transfer real property; department of administration

     Sec. 3. To accomplish the governmental purposes of this chapter, the department of administration or applicable state agency 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.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-4Department of administration; contracts with the authority; state facility projects

     Sec. 4. The department of administration may enter into a contract with the authority to renovate, refurbish, or alter a state facility owned by the state without advertising or soliciting bids or proposals under IC 4-13.6 or IC 5-22. However, in accomplishing the project to renovate, refurbish, or alter a state facility owned by the state, the authority shall comply with IC 4-13.5-1-8.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-5Authority may borrow money

     Sec. 5. The authority may borrow money from the public deposits insurance fund, a bank, an insurance company, an investment company, or any other person to carry out this chapter. The authority shall negotiate the terms of the loan contract.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-6Authority may issue and sell bonds

     Sec. 6. (a) For the purpose of providing money to carry out the provisions of this chapter with respect to:

(1) the construction and equipment of a state facility;

(2) acquiring or providing a site or sites; or

(3) the refunding of any bonds or payment of any loan contract of the authority;

the authority may, by resolution, issue and sell interest-bearing revenue bonds of the authority.

     (b) The proceeds of the revenue bonds are appropriated for and may be used for the purpose for which the bonds may be issued under this chapter. The proceeds shall be deposited and disbursed in accordance with any provisions and restrictions that the authority may provide in:

(1) the resolution or trust indenture authorizing:

(A) the issuance of the bonds in the first instance; or

(B) the issuance of any refunding bonds; or

(2) a trust indenture authorized and approved by resolution of the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-7Authority may enter into contracts; exempt from certain rules

     Sec. 7. Except for persons the authority considers necessary to prepare complete plans and specifications necessary for bidding for construction, the authority may not enter into:

(1) a contract for the performance of work, other than a contract of employment with a professional person or a commission employee; or

(2) a contract for the purchase or sale of materials or supplies;

without complying with IC 4-13-2 and the rules and procedures of the department of administration.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-8Approval of plans; department of administration

     Sec. 8. (a) The authority shall consider economy of operation to the extent practicable in preparing and approving plans and specifications. The authority shall present plans and specifications for a state facility for approval to the department of administration and:

(1) if the state facility is designed to house the supreme court or court of appeals, the administrator of the supreme court for approval by the courts; and

(2) if the state facility is a correctional facility, the department of correction.

     (b) After the plans and specifications have been approved by the authority under subsection (a), the authority shall advertise for and receive construction bids and award contracts to the best bidders in the same manner as required by law for the department of administration.

     (c) With regard to participation by minority and women's business enterprises (as defined in IC 4-13-16.5-1 and IC 4-13-16.5-1.3), the authority shall act in the same manner as required by law for the department of administration.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-9Allocation of space; department of administration; department of correction

     Sec. 9. Except with respect to a correctional facility, the department of administration shall allocate space in each state facility to state agencies and departments of state government. The department of correction shall allocate space in correctional facilities under IC 11.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-10Condemnation of property; procedures

     Sec. 10. 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.189-2018, SEC.25.

 

IC 5-1.2-5-11Use and occupancy agreements; negotiation; terms

     Sec. 11. (a) Before or after the award of construction contracts, or the arranging of financing, the authority and the department of administration may negotiate a use and occupancy agreement. The budget agency, after consulting with the budget committee, must approve any use and occupancy agreement before the department of administration may execute the agreement. The use and occupancy agreement:

(1) must set forth the terms and conditions of the use and occupancy;

(2) must set forth the amounts agreed to be paid at stated intervals for the use and occupancy;

(3) must provide that the department of administration is not obligated to continue to pay for the use and occupancy but is instead required to vacate the state 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 being provided;

(4) must provide that the department of administration is required to vacate the state 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 costs such as maintenance, operations, taxes, and insurance to be paid by the department of administration;

(6) may contain an option to renew the agreement;

(7) may contain an option to purchase the state facility for an amount equal to the amount required to pay the principal of and interest on indebtedness of the authority incurred on account of the state facility and expenses of the authority attributable to the state facility;

(8) may not provide for payment of sums for use and occupancy until the construction of the state facility has been completed and the state facility is available for use and occupancy by the department of administration; and

(9) may contain any other provisions agreeable to the authority and the department of administration.

     (b) In determining just and reasonable amounts to be paid for the use and occupancy of the state facility under subsection (a)(3), the authority shall impose and collect amounts that in the aggregate will be sufficient to:

(1) pay the expenses of operation, maintenance, and repair of the state facility, to the extent that the expenses are not otherwise provided; and

(2) leave a balance of revenues from the state facility to pay the principal of and interest (including any reserve or sinking funds) on bonds or loans as they become due and retire them at or before maturity.

     (c) The department of administration may negotiate and execute a use and occupancy agreement for all or any state agencies or branches of state government.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-12State facilities; operation; maintenance; repair

     Sec. 12. Unless the use and occupancy agreement provides otherwise, the department of administration shall provide for the operation, maintenance, and repair of each state facility.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-5-13Authorized projects by the General Assembly

     Sec. 13. (a) The general assembly authorizes the authority to continue to undertake and complete a project for the construction, equipping, purchasing, or leasing for Central Indiana Neuro-Diagnostic Institute and Advanced Treatment Center to replace the Larue D. Carter Memorial Hospital, including the borrowing of money or the issuance and sale of bonds, or both.

     (b) This section does not authorize any:

(1) additional construction; or

(2) issuance of additional bonds or other evidence of indebtedness;

other than as described in subsection (a).

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6Chapter 6. Recreational Development Facilities and Park Projects

 

           5-1.2-6-1Recreational facilities and park projects; request; findings; authorization
           5-1.2-6-2Purposes
           5-1.2-6-3Applicability
           5-1.2-6-4Authority's exercise of powers an essential governmental function
           5-1.2-6-5Authority may acquire sites; make improvements; enter into use agreements; department of natural resources; approval required
           5-1.2-6-6Authority may lease property to the department of natural resources; lease terms
           5-1.2-6-7Public notice and bidding required for certain contracts
           5-1.2-6-8Authority may acquire interests in land from department of natural resources; park project requirements
           5-1.2-6-9Authority may acquire interest in land by appropriation; eminent domain; operation of park project
           5-1.2-6-10Use of park improvement agreements; terms
           5-1.2-6-11Payment of expenses
           5-1.2-6-12Appropriation of bond proceeds
           5-1.2-6-13Surcharge on admissions fees; commission rentals; boat registrations; launching fees; and mooring fees
           5-1.2-6-14Revolving fund
           5-1.2-6-15Control of property after termination of lease

 

IC 5-1.2-6-1Recreational facilities and park projects; request; findings; authorization

     Sec. 1. At the request of the department of natural resources, the authority may provide for recreational facilities and park projects if the general assembly, by statute:

(1) finds that the state needs renovation, refurbishing, or alteration of a recreational facility or park project or the construction of a new recreational facility or park project; and

(2) authorizes the authority to provide for the recreational facility or park project.

In providing for the recreational facility or park project, the authority shall proceed under this chapter.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-2Purposes

     Sec. 2. The general purposes of this chapter are the following:

(1) To provide for the general health and welfare of Indiana citizens by the acquisition, construction, improvement, and operation of public recreational facilities.

(2) To facilitate, support, and promote the development and use of the parks of the state.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-3Applicability

     Sec. 3. This chapter applies only to recreational facilities and park projects and not to any other facilities or projects financed by the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-4Authority's exercise of powers an essential governmental function

     Sec. 4. The exercise by the authority of the powers conferred by this chapter in the acquisition, construction, improvement, operation, and maintenance of a park project is an essential governmental function of the state.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-5Authority may acquire sites; make improvements; enter into use agreements; department of natural resources; approval required

     Sec. 5. (a) The authority may acquire sites or improvements from the department of natural resources.

     (b) The authority may make improvements and enter into agreements for use with the department of natural resources. The agreements:

(1) do not need to be approved by the attorney general; and

(2) must be approved by the:

(A) budget agency, after consulting with the budget committee; and

(B) governor;

before the department of natural resources may execute the agreement.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-6Authority may lease property to the department of natural resources; lease terms

     Sec. 6. The authority may lease property to the department of natural resources and others. A lease:

(1) may provide for the operation, maintenance, improvement, or renovation of the property;

(2) must contain standards for operation, quality of goods and services, and price of goods and services;

(3) need not be approved by the attorney general or the governor;

(4) may be executed by the:

(A) chair or vice chair of the authority; and

(B) public finance director; and

(5) is binding on the state after advertisement one (1) time a week for two (2) weeks in two (2) newspapers published in Indianapolis. The first publication must be at least fourteen (14) days before a public hearing by the authority, and the proposed lease must be on file in the department of natural resources during the period of publication.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-7Public notice and bidding required for certain contracts

     Sec. 7. If the cost of a contract for construction or for the purchase of equipment, materials, or supplies involves an expenditure of more than twenty thousand dollars ($20,000), the authority shall make a written contract with the lowest and best bidder after advertisement for not less than two (2) consecutive weeks in a newspaper of general circulation in Marion County, Indiana, and in other publications if the authority determines. The notice must state the general character of the work and the general character of the materials to be furnished, the place where the plans and specifications may be examined, and the time and place for receiving bids. Each bid must contain the full name of every person or company interested in the bid and must be accompanied by a sufficient bond or certified check on a solvent bank so that if the bid is accepted a contract will be entered into and the performance of the bidder's proposal secured. The authority may reject any and all bids. A bond with good and sufficient surety approved by the authority is required of all contractors in an amount equal to at least fifty percent (50%) of the contract price conditioned upon the faithful performance of the contract.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-8Authority may acquire interests in land from department of natural resources; park project requirements

     Sec. 8. (a) The authority may acquire by:

(1) department of natural resources transfer;

(2) purchase; or

(3) lease;

for nominal or substantial consideration any interest in land, including existing facilities, adjuncts, and appurtenances, that the authority considers necessary or convenient for the acquisition, construction, improvement, or development of a park project.

     (b) A park project undertaken by the authority must:

(1) comply with:

(A) the master plan for that property; or

(B) the Indiana outdoor recreation plan approved by the natural resources commission; or

(2) be specifically approved by the natural resources commission.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-9Authority may acquire interest in land by appropriation; eminent domain; operation of park project

     Sec. 9. The authority may acquire by appropriation, under Indiana eminent domain law, any interest in land necessary or proper for the construction or the efficient operation of a park project except land used for parks or park facilities owned by the state or a political subdivision of the state. Title to the property shall be taken in the name of the state for the use of the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-10Use of park improvement agreements; terms

     Sec. 10. (a) The authority and the department of natural resources may enter into appropriate agreements setting forth the terms and conditions of use of park improvements and the money agreed to be paid at intervals for the use. The department of natural resources is not obligated to continue the use and make payments under the agreement but shall vacate the improvements if it is shown that:

(1) the terms and conditions of the use and occupancy; and

(2) the amount to be paid;

are unjust and unreasonable considering the value of the improvements.

     (b) In determining just and reasonable amounts to be paid for the use of improvements, the authority shall impose and collect money that in the aggregate will be sufficient to pay the expenses of operation, maintenance, and repair of the improvements to the extent that the expenses are not otherwise provided and leave a balance of net income of revenues from the improvements to pay the interest on the bonds as the interest is due and accomplish retirement of the bonds at or before maturity. If the department of natural resources has made all payments provided in the agreements, the use of improvements covered by the agreements and the sites of the improvements revert to the department of natural resources at the end of the terms of the agreement.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-11Payment of expenses

     Sec. 11. All expenses of the authority incurred in carrying out this chapter are payable solely from money provided under this chapter.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-12Appropriation of bond proceeds

     Sec. 12. The proceeds of the bonds are appropriated for and shall be used solely for the payment of the cost of the park project for which the bonds have been issued. The proceeds shall be disbursed in the manner and under the restrictions, if any, that the authority provides in the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-13Surcharge on admissions fees; commission rentals; boat registrations; launching fees; and mooring fees

     Sec. 13. (a) The natural resources commission may levy a surcharge not exceeding ten percent (10%), as established by the commission, on any of the following:

(1) Admission fees.

(2) Commission rentals.

(3) Boat registrations.

(4) Launching fees.

(5) Mooring fees.

     (b) The receipts from a surcharge shall be deposited in a special fund to be used only to pay rent to the authority and for maintenance of facilities covered by use agreements with the authority as provided in a use agreement entered into between the department of natural resources and the authority. The special fund may be spent for that purpose without appropriation.

     (c) During the life of a use agreement, a surcharge that has been imposed may not be rescinded or reduced so that the amount in the special fund and the receipts for one (1) year are less than one and two-tenths (1.2) times the anticipated rental payment and maintenance expense of facilities covered by a use agreement.

     (d) The money in the special fund does not revert to the state general fund.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-14Revolving fund

     Sec. 14. (a) A special revolving fund is created to be used only for the planning of projects, including the hiring of architects, engineers, consultants, and other experts and the doing of any work preliminary to the actual construction of a project.

     (b) The money in the special revolving fund does not revert to the state general fund.

     (c) The amount of money in the special revolving fund may not exceed five hundred thousand dollars ($500,000).

     (d) The authority may do the following:

(1) Transfer to the special revolving fund other money in the authority's possession not otherwise committed or needed.

(2) Place a gift or grant to the authority not limited in character in the special revolving fund.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-6-15Control of property after termination of lease

     Sec. 15. (a) Property leased by the authority to another entity other than the department of natural resources, at the termination of the lease or a renewal of the lease, may be leased to the same or other persons upon the terms the authority determines after following the procedure in section 6 of this chapter. If the authority does not lease the property, the property reverts to the control of the department of natural resources for the department's use and operation. The authority may not operate the property.

     (b) If the authority is entitled to take over the operation of property because of a default in an agreement, the authority may operate the property through the authority's employees or contract with others for the operation of the property. The contract for operation may be with the department of natural resources if the department is not a defaulting party.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-7Chapter 7. Health Facility Financing

 

           5-1.2-7-1Purpose
           5-1.2-7-2Applicability
           5-1.2-7-3County commissioner approval; presuppose and include approval by county council; voting requirements for valid lease
           5-1.2-7-4Competitive bidding requirement
           5-1.2-7-5Powers of the authority
           5-1.2-7-6Security; transactions with participating providers
           5-1.2-7-7Power to issue bonds; proceeds; use
           5-1.2-7-8Bond resolutions or related instruments; provisions
           5-1.2-7-9Bonds; additional security authorized
           5-1.2-7-10Payment of expenses
           5-1.2-7-11Public property; tax exemption
           5-1.2-7-12Construction of chapter
           5-1.2-7-13Leases by county with the authority
           5-1.2-7-14Leases before construction, erection, or renovation of buildings
           5-1.2-7-15Payment of lease rental
           5-1.2-7-16Payment of lease rental from cumulative building fund
           5-1.2-7-17Notice of public hearing; notice of execution of lease; action to contest validity of lease; taxpayer objections to lease
           5-1.2-7-18Options to renew and to purchase; obligations of county; general obligation bonds
           5-1.2-7-19Approval of plans, specifications, and cost estimates
           5-1.2-7-20Sale of county land to the authority
           5-1.2-7-21Party wall agreements

 

IC 5-1.2-7-1Purpose

     Sec. 1. The general purpose of this chapter is to provide financing for health facilities and health facility property.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-7-2Applicability

     Sec. 2. This chapter applies only to health facilities and health facility property and not to any other facilities or projects financed by the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-7-3County commissioner approval; presuppose and include approval by county council; voting requirements for valid lease

     Sec. 3. (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.189-2018, SEC.25.

 

IC 5-1.2-7-4Competitive bidding requirement

     Sec. 4. 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 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 the lessee or purchaser.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-7-5Powers of the authority

     Sec. 5. (a) The authority has all the powers necessary to carry out and effectuate its public purposes under this chapter, including initiating 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 do one (1) or more of the following:

(1) 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.

(2) Lease as lessor any item of health facility property for those rentals and upon the terms and conditions as the authority considers advisable and are not in conflict with this chapter.

(3) 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 and IC 5-1.2-4.

(4) 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 subdivision 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.

(5) Employ and enter into agreements with, and delegate to any person as the authority 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.

(6) 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.

(7) Contract with any entity securing the payment of bonds under IC 5-1.2-4-1(a)(10) and IC 5-1.2-4-1(a)(33), 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.

(8) 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 for the health facility property, to terminate such a 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 the lease provisions that the lessee has the option to renew the term of the lease for the periods and at the rents as may be determined by the authority or to purchase any or all of the health facility property to which the lease applies.

(9) 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 the loan, upon the terms and conditions as the authority considers proper.

(10) Sell or otherwise dispose of any unneeded or obsolete health facility property under terms and conditions as determined by the authority.

(11) Maintain, repair, replace, and otherwise improve or cause to be maintained, repaired, replaced, and otherwise improved any health facility property owned by the authority.

(12) 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.

(13) Enter into any agreement, contract, or other instrument with respect to any insurance, guarantee, or letter of credit, accepting payment in the manner and form as provided in the insurance, guarantee, or letter of credit if a participating provider defaults, and to assign the insurance, guarantee, or letter of credit as security for bonds issued by the authority.

     (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 of the authority, 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.189-2018, SEC.25.

 

IC 5-1.2-7-6Security; transactions with participating providers

     Sec. 6. Before exercising any of the powers conferred by section 5 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 the authority considers reasonable and necessary.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-7-7Power to issue bonds; proceeds; use

     Sec. 7. (a) The authority may issue, sell, and deliver its bonds, in accordance with IC 5-1.2-4 and 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.

     (b) 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 on these bonds and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity of these 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.

     (c) 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 the outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity of the bonds and may, pending such an application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on the date as may be determined by the authority. Subject to the provisions of any trust indenture to the contrary, any of the escrowed proceeds, pending such a use, may be invested and reinvested in obligations as are determined by the authority 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 such an 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 the proceeds and interest, income, and profits, if any, earned or realized on the investments shall be returned to the authority or the participating providers for use by them in any lawful manner. All the bonds are subject to this chapter in the same manner and to the same extent as other bonds issued under this chapter.

     (d) 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 the 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 the 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.189-2018, SEC.25.

 

IC 5-1.2-7-8Bond resolutions or related instruments; provisions

     Sec. 8. 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 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 the bonds or other specified revenues or property of the authority.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-7-9Bonds; additional security authorized

     Sec. 9. Bonds of the authority issued to finance or refinance a health facility or health facility property may also be secured by and payable from:

(1) a pooling of leases 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

(2) a pooling of notes and mortgages or other security instruments whereby the authority may 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 the terms as may be provided for in bond resolutions or other instruments under which the bonds are issued.

As added by P.L.189-2018, SEC.25.

 

IC 5-1.2-7-10Payment of expenses

     Sec. 10. All expenses incurred in carrying out this chapter shall be payable solely from funds provided under 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.189-2018, SEC.25.

 

IC 5-1.2-7-11Public property; ta