Indiana § 5-1-18-12 - Rulemaking power
Full text of Indiana Indiana Code § 5-1-18-12 — Rulemaking power, with citation guidance and answers to common questions.
§ 5-1-18-12. Rulemaking 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. 4.5.Public-Private Agreements and Certain Other Agreements 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. 14.5.Water Infrastructure Grant Program Ch. 15.Local Transportation Infrastructure Program Ch. 15.5.Residential Housing Infrastructure Assistance 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" 5-1.2-2-84"Water infrastructure grant 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 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. Amended by P.L.10-2019, SEC.9.
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 and the water infrastructure grant program established by IC 5-1.2-14.5, 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. Amended by P.L.154-2021, SEC.2.
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, the water infrastructure grant program established by IC 5-1.2-14.5, the local transportation infrastructure program established under IC 5-1.2-15, and the residential housing infrastructure assistance program established by IC 5-1.2-15.5, refers to a financial assistance agreement, financial aid agreement, grant 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. Amended by P.L.154-2021, SEC.3; P.L.204-2023, SEC.1.
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 12-7-2.1-60(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. Amended by P.L.145-2026, SEC.13.
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 12-7-2.1-60(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. Amended by P.L.145-2026, SEC.14.
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 program established by IC 5-1.2-12-2.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.10.
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, the water infrastructure assistance program established under IC 5-1.2-14, and the water infrastructure grant program established by IC 5-1.2-14.5:
(A) a political subdivision;
(B) the Kankakee River basin and Yellow River basin development commission established by IC 14-13-9-6; or
(C) 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).
(5) For purposes of the residential housing infrastructure assistance program established by IC 5-1.2-15.5, a political subdivision.
As added by P.L.189-2018, SEC.25. Amended by P.L.282-2019, SEC.1; P.L.154-2021, SEC.4; P.L.204-2023, SEC.2.
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 12-7-2.1-78 and IC 12-7-2.1-77 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, aging, 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 12-7-2.1-60(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 12-7-2.1-60(1).
As added by P.L.189-2018, SEC.25. Amended by P.L.122-2026, SEC.5; P.L.145-2026, SEC.15.
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;
(8) the wastewater program established under IC 5-1.2-10;
(9) the water infrastructure grant program established by IC 5-1.2-14.5; and
(10) the residential housing infrastructure assistance program established by IC 5-1.2-15.5.
As added by P.L.189-2018, SEC.25. Amended by P.L.154-2021, SEC.5; P.L.204-2023, SEC.3.
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 5-1-17.1, 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. Amended by P.L.44-2026, SEC.2.
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 water infrastructure assistance program established by IC 5-1.2-14.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.11.
IC 5-1.2-2-84"Water infrastructure grant program" Sec. 84. "Water infrastructure grant program" refers to the water infrastructure grant program established by IC 5-1.2-14.5.
As added by P.L.154-2021, SEC.6.
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; local innovation development 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 5-1.2-4-31Borrowing money from the authority; issuing and selling bonds to the authority 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 5-1.2-4-37.5Annual report on drinking water testing for lead
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, IC 5-1.2-14, or IC 5-1.2-14.5, 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, IC 5-1.2-14, or IC 5-1.2-14.5, 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 of 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.
(42) Contract and collaborate with a state supported college or university to provide the research and extension program authorized by IC 5-1.2-11.5-10.
(43) Serve as the executive branch coordinator for funding allocated or made available to the state or local communities from federal, state, and other sources for purposes related to drinking water, wastewater, or storm water infrastructure and systems, as set forth in IC 5-1.2-11.5-9(a)(2).
(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. Amended by P.L.10-2019, SEC.12; P.L.154-2021, SEC.7; P.L.18-2022, SEC.1.
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 are 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. Amended by P.L.10-2019, SEC.13.
IC 5-1.2-4-4Additional authority powers; capital improvements; northwest Indiana regional development authority; motorsports investment district; local innovation development district Sec. 4. (a) 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, IC 5-1-17.1, or IC 36-10-9.5;
(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;
(2) at the request of the Indiana economic development corporation established by IC 5-28-3-1, and subject to subsections (b), (c), and (d), enter into leases and issue bonds under terms and conditions determined by the authority payable solely from:
(A) revenues that are deposited in a local innovation development district fund established under IC 36-7-32.5-19;
(B) revenues generated from a project under IC 36-7-32.5-19; and
(C) appropriations from the general assembly; and
(3) perform any other functions determined by the authority to be necessary or appropriate to carry out the purposes of this section.
(b) The proceeds of bonds issued under subsection (a)(2) may be used to pay the costs of projects:
(1) described in IC 36-7-32.5-19; and
(2) located within or directly serving the innovation development district in which the revenue was generated.
(c) Before the authority enters into leases or issues bonds under subsection (a)(2), the proposed lease or issuance of bonds must be reviewed by the budget committee.
(d) The authority may not issue more than one billion dollars ($1,000,000,000) of bonds under subsection (a)(2).
As added by P.L.189-2018, SEC.25. Amended by P.L.135-2022, SEC.1; P.L.44-2026, SEC.3.
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(h) as if the authority were specifically named in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(h).
(c) In addition:
(1) indebtedness described in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(h) 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(h) 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. Amended by P.L.259-2019, SEC.1.
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 is a trust fund 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. Amended by P.L.10-2019, SEC.14.
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. (a) 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.
(b) All:
(1) economic development projects for which funds are advanced, loaned, or otherwise provided by the authority under IC 5-1.2-9; and
(2) eligible projects for which funds are loaned by the authority under IC 5-1.2-15.5;
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 or eligible 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 or an eligible project under IC 5-1.2-15.5.
As added by P.L.189-2018, SEC.25. Amended by P.L.204-2023, SEC.4.
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 5-1.2-4-31Borrowing money from the authority; issuing and selling bonds to the authority 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) Notwithstanding any other law, a participant may issue and sell bonds to the authority without the requirement of an increase to the user rates and charges of the participant. The bonds must be issued under a resolution or ordinance and the proceeds must be used to carry out the purposes allowed by the program.
(d) 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.
(e) 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.
(f) Compliance with subsection (b) or (c) constitutes full authority for a participant to issue notes or bonds and sell the notes or bonds to the authority, and the participant is not required to pay any fees or comply with any other law applicable to the authorization, approval, issuance, and sale of the notes or bonds, including, without limitation, IC 8-1-2-79. The notes or bonds are:
(1) valid and binding obligations of the participant;
(2) enforceable in accordance with the terms of the notes or bonds; and
(3) payable solely from the sources specified in the resolution or ordinance authorizing the issuance of the notes or bonds.
(g) 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. Amended by P.L.224-2023, SEC.1; P.L.9-2024, SEC.113.
IC 5-1.2-4-32Liability Sec. 32. (a) Notwithstanding any other law, the authority, program, or 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. Amended by P.L.10-2019, SEC.15.
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 5-1.2-4-37.5Annual report on drinking water testing for lead Sec. 37.5. (a) The public finance director shall prepare an annual report that provides information on the programs of the authority under which the drinking water in schools, preschools, and child care facilities is tested for the presence of lead.
(b) The report required by this section:
(1) must provide information on:
(A) the number of schools, preschools, and child care facilities in which the drinking water has been tested for the presence of lead under a program of the authority;
(B) the actions taken through a program of the authority to eliminate the danger of lead contamination in the drinking water of schools, preschools, and child care facilities; and
(C) the funds available to the authority to conduct further drinking water testing and remediation actions under the programs; and
(2) may include other information and recommendations concerning remediation of the exposure of children to lead in drinking water.
(c) The report required by this section must be submitted to the general assembly in an electronic format under IC 5-14-6.
As added by P.L.125-2023, SEC.1. Amended by P.L.9-2024, SEC.114.
IC 5-1.2-4.5Chapter 4.5. Public-Private Agreements and Certain Other Agreements
5-1.2-4.5-1Applicability; extension or amendment; approval; review by the budget committee; special payment reserve fund; uses 5-1.2-4.5-2Applicability; extension or amendment; threshold amounts; review by the budget agency 5-1.2-4.5-3Repealed
IC 5-1.2-4.5-1Applicability; extension or amendment; approval; review by the budget committee; special payment reserve fund; uses Sec. 1. (a) This section applies to a public-private agreement to which the authority is a party under IC 8-15.5 and that was originally entered into before January 1, 2013.
(b) If an extension or an amendment to a public-private agreement, which is proposed to be entered into after May 1, 2019, would require the approval of the authority at a meeting of the authority before taking effect, the authority shall submit the proposed extension or amendment to the public-private agreement to the budget committee established by IC 4-12-1-3 for its review. The budget committee may request that the authority or the department of transportation, or both, appear at a public meeting of the budget committee concerning the proposed extension or amendment to the public-private agreement. The authority may not enter into any extension or amendment to the public-private agreement until after the budget committee has reviewed the proposed extension or amendment.
(c) If the authority or the state receives a lump sum payment or a series of payments totaling more than one million dollars ($1,000,000) as a result of entering into any extension or amendment to the public-private agreement in accordance with subsection (b), any amount of that payment that is not obligated to cover any obligation incurred or amounts owed by the authority or the state before the date of the extension or amendment shall be deposited in a special payment reserve fund to be administered by the authority.
(d) The money in the special payment reserve fund at the end of any state fiscal year does not revert to any other fund.
(e) The authority shall invest or cause to be invested all the money in the special payment reserve fund in one (1) or more fiduciary accounts with a trustee that is a financial institution in accordance with the authority's investment policy.
(f) All proceeds, including interest earned on such proceeds, received in connection with an extension or amendment executed after January 1, 2026, and before December 31, 2026, related to a public-private agreement to which the authority is a party under IC 8-15.5 and that was originally entered into before January 1, 2013, shall be deposited into the special payment reserve fund and may be used by the authority through December 31, 2029, to pay or reimburse costs associated with transportation projects and infrastructure projects, or both, in the following counties:
(1) Elkhart County.
(2) LaGrange County.
(3) Lake County.
(4) LaPorte County.
(5) Porter County.
(6) Steuben County.
(7) St. Joseph County.
Unless the use of the fund is otherwise specified by law, any remaining proceeds, including interest earned on such proceeds, held in the special payment reserve fund after December 31, 2029, that were received in connection with an extension or amendment executed after January 1, 2026, and before December 31, 2026, related to a public-private agreement to which the authority is a party under IC 8-15.5 and that was originally entered into before January 1, 2013, shall be allocated and distributed to the fund into which the payment would have otherwise been deposited under IC 8-15.5.
(g) Except as provided in subsection (f), the special payment reserve fund may not be used for any purpose before May 1 of the year following the year in which the payment was received. Thereafter, unless the use of the fund is otherwise specified by law, the money in the fund shall be allocated and distributed to the fund into which the payment would have otherwise been deposited under IC 8-15.5.
As added by P.L.108-2019, SEC.82. Amended by P.L.44-2026, SEC.4.
IC 5-1.2-4.5-2Applicability; extension or amendment; threshold amounts; review by the budget agency Sec. 2. (a) This section applies to:
(1) a public-private agreement to which the authority is a party under IC 8-15.5 and that is originally entered into after May 1, 2019; and
(2) any other agreement to which the authority or the state is a party under any provision of the Indiana Code, other than IC 8-15.5, that would increase revenue as the result of the sale or lease of a state asset, or a grant of a license to operate a state asset, and that is entered into after May 1, 2020.
(b) If:
(1) an extension or an amendment to a public-private agreement described in subsection (a)(1) would increase the amount to be:
(A) paid by the authority to the operator, another private entity, or a governmental entity by at least one hundred million dollars ($100,000,000); or
(B) received by the operator or a party related to the operator by at least one hundred million dollars ($100,000,000); or
(2) an agreement described in subsection (a)(2) would increase revenue by at least one hundred million dollars ($100,000,000) as the result of the sale or lease of a state asset, or a grant of a license to operate a state asset;
the authority or the state shall submit the proposed extension or amendment to the public-private agreement described in subdivision (1) or the proposed agreement described in subdivision (2) to the budget committee established by IC 4-12-1-3 for its review.
(c) The budget committee may request that the authority, the department of transportation, or both, or the state, as applicable, appear at a public meeting of the budget committee concerning the proposed extension or amendment to the public-private agreement described in subsection (a)(1) or the proposed agreement described in subsection (a)(2). The authority or the state may not enter into any extension or amendment to the public-private agreement described in subsection (a)(1) or the proposed agreement described in subsection (a)(2) until after the budget committee has reviewed the proposed extension or amendment to the public-private agreement described in subsection (a)(1) or the proposed agreement described in subsection (a)(2).
As added by P.L.108-2019, SEC.82. Amended by P.L.159-2020, SEC.2.
IC 5-1.2-4.5-3RepealedAs added by P.L.108-2019, SEC.82. Repealed by P.L.1-2020, SEC.2.
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 5-1.2-5-14Feasibility study; authority may borrow money or issue bonds for project
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), 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. Amended by P.L.15-2020, SEC.12.
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 5-1.2-5-14Feasibility study; authority may borrow money or issue bonds for projectEffective 7-1-2027.
Sec. 14. (a) The Indiana economic development corporation shall conduct a study on the feasibility of constructing, equipping, purchasing, leasing, renovating, refurbishing, or altering the Learning and Training Center located in Boone County.
(b) The authority may, after receiving the feasibility study required in subsection (a), undertake and complete a project for the construction, equipping, purchasing, leasing, renovation, refurbishing, or alteration of the Learning and Training Center located in Boone County, including, subject to subsection (c), the borrowing of money or the issuance and sale of bonds, or both.
(c) Before borrowing money or issuing bonds, the authority shall review the feasibility plan and cost estimate for the project and present the authority's findings to the budget committee.
(d) This section may not be construed to authorize any additional construction or issuance of additional bonds or other evidence of indebtedness other than that described in subsection (b).
(e) The authority may enter into a public-private agreement for the project.
As added by P.L.213-2025, SEC.60.
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 appropriate. 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. Amended by P.L.10-2019, SEC.16.
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)(32), 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, and 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. Amended by P.L.10-2019, SEC.17.
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; tax exemption Sec. 11. All property acquired or held by the authority under this chapter is declared to be public property used for public and governmental purposes, and all property, income from the property and bonds issued under this chapter, interest payable on the bonds and income derived from the bonds, are exempt from all taxes, direct or indirect, imposed by the state, any county, any city, or any political subdivision of the state.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-7-12Construction of chapter Sec. 12. Nothing in this chapter may be construed as a restriction or limitation upon any powers which the authority might otherwise have under any other law of this state, and this chapter is cumulative to these powers. This chapter shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized, and shall be construed as supplemental to powers conferred by any other laws. The adoption by the authority of bylaws and rules, and the issuance of bonds by the authority under this chapter need not comply with the requirements of any other state laws applicable to the adoption of bylaws and rules and the issuance of bonds, notes, and other obligations. No proceedings, notice, or approval is required for the issuance of any bonds or any instrument or the security for the bonds or instruments, or for the proper conduct of the authority's business, affairs, or operations, except as provided in this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-7-13Leases by county with the authority Sec. 13. (a) A county may lease land and buildings, including the necessary equipment and appurtenances, from the authority for hospital purposes. No lease on a particular building shall be entered into for a period of more than forty (40) years. However, a lease is renewable for less than forty (40) years.
(b) A lease entered into by a county may require the funding of a reserve fund for the benefit of the authority or the authority's assigns. To assure the maintenance of the required reserve amount in any reserve fund, the county council may appropriate for deposit in the reserve fund the sum certified by the county fiscal officer to the county council that is necessary to restore the reserve fund to an amount equal to the required reserve amount. The county fiscal officer shall annually before July 1 prepare and deliver a certificate to the county council stating the sum required to restore the reserve fund to the appropriate reserve amount. Nothing in this subsection creates a debt or liability of the county to make an appropriation.
(c) All amounts received because of money appropriated by the county to a reserve fund must be held by the authority under the lease and applied in accordance with the lease.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-7-14Leases before construction, erection, or renovation of buildings Sec. 14. A county may, in anticipation of the construction, erection, or renovation of a building (including the necessary equipment and appurtenances), make and enter into a lease with the authority before the actual acquisition of a site and the construction, erection, or renovation of the building. The lease shall not provide for the payment of any lease rental by the lessee until the building is ready for occupancy. However, if a building is to be acquired and renovated under this chapter, a county may, in anticipation of the acquisition and renovation, make and enter into a lease upon terms and conditions that are agreed upon by the county and the authority, including:
(1) terms and conditions upon which the county may continue to operate the building until completion of the renovation; and
(2) the payment of a lease rental by the lessee during the period of renovation.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-7-15Payment of lease rental Sec. 15. (a) Any lease executed under section 13 or 14 of this chapter may provide for the payment of the lease rental in any one (1) of the following ways as established in the lease:
(1) Entirely from the levy of taxes.
(2) Entirely from the net revenues of the hospital of which the leased building is a part.
(3) In part from the levy of taxes and in part from the net revenues described in subdivision (2).
(b) If any lease provides for the payment of lease rental in whole or in part from net revenues of the hospital, the lease may also provide that the county and the board of trustees or board of managers of the hospital set aside and hold as a reserve for this purpose excess net revenues over and above the amount required to pay lease rental payable from net revenues. The reserve fund may not exceed an amount equal to the amount of lease rental payable from net revenues for two (2) years. The reserve fund shall be held and used only for the purpose of paying lease rental payable from net revenues, if the net revenues at any time are insufficient to pay lease rentals. The amount in the reserve fund may be invested in the manner and to the extent provided in the lease. All interest or other income from the investment shall become part of the reserve fund unless the reserve fund contains the maximum amount required to be in the reserve fund. The following apply if the reserve fund contains the maximum amount required to be in the reserve fund:
(1) If any of the lease rental is payable from taxes, the interest or other income shall be transferred to the fund to be used for the payment of the lease rental provided to be paid from taxes.
(2) If none of the lease rental is payable from taxes, the interest or other income shall become a part of the reserve fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-7-16Payment of lease rental from cumulative building fund Sec. 16. In addition to the ways specified in section 15 of this chapter for the payment of lease rental, any lease executed under this chapter may provide for the payment of lease rental from a cumulative building fund established by the lessee under IC 16-22-5-3 (or IC 16-12.1-4-4 before its repeal). Part or all of a cumulative building fund and the tax levied for that cumulative building fund may be committed and pledged to the payment of the lease rental. To the extent that the amount committed and pledged is insufficient to pay the lease rental, the lease shall provide that any remaining lease rental shall be paid entirely from the net revenues of the hospital of which the leased building is a part. So long as the lease remains in effect:
(1) any amount of cumulative building fund so committed and pledged may not be expended by the lessee for any other purpose; and
(2) the tax levy committed and pledged for the cumulative building fund may not be reduced or rescinded by the county council.
Notwithstanding any other provision of this chapter, if a lease provides for payment of lease rental under this section, no approval of the county council is required for the lease, the terms and conditions of the lease, or the sale of the land by the county to the authority under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-7-17Notice of public hearing; notice of execution of lease; action to contest validity of lease; taxpayer objections to lease Sec. 17. (a) When the authority, the board of trustees or board of managers of the hospital, the board of commissioners of the county, and a majority of the county council have agreed upon the terms and conditions of any lease proposed to be entered into under section 13 or 14 of this chapter, and before the final execution of the lease, the county auditor shall give notice by publication of a public hearing to be held in the county by the board of commissioners. The hearing shall take place on a day not earlier than ten (10) days after the publication of the notice. The notice of the hearing shall be published one (1) time in a newspaper of general circulation printed in the English language and published in the county. The notice shall do the following:
(1) Name the day, place, and hour of the hearing.
(2) Set forth a brief summary of the principal terms of the lease agreed upon, including the character and location of the property to be leased, the lease rental to be paid, and the number of years the contract is to be in effect.
(3) State a location where the proposed lease, drawings, plans, specifications, and estimates may be examined.
The proposed lease and the drawings, plans, specifications, and estimates of construction cost for the building shall be open to inspection by the public during the ten (10) day period and at the hearing. All interested persons shall have a right to be heard at the hearing on the necessity for the execution of the lease and whether the lease rental under the lease is fair and reasonable. The hearing may be adjourned to a later date with the place of the hearing fixed before adjournment. Following the hearing, the board of commissioners may either authorize the execution of the lease as originally agreed upon or may make modifications that are agreed upon by the authority, the board of trustees or board of managers of the hospital, and the county council. The authorization shall be by an order that is entered in the official records of the board of commissioners. The lease contract shall be executed on behalf of the county by the board of commissioners.
(b) If the execution of the lease as originally agreed upon or as modified by agreement is authorized, notice of the signing of the lease shall be given on behalf of the county by publication one (1) time in a newspaper of general circulation printed in the English language and published in the county. Except as provided in subsection (d), ten (10) or more taxpayers in the county whose tax rate will be affected by the proposed lease and who may be of the opinion that no necessity exists for the execution of the lease or that the lease rental under the lease is not fair and reasonable may file a petition in the office of the county auditor, within thirty (30) days after publication of notice of the execution of the lease, that sets forth the taxpayers' objections and facts supporting those objections. Upon the filing of a petition, the county auditor shall immediately certify a copy of the petition together with any other data as may be necessary in order to present the questions involved to the department of local government finance. Upon receipt of the certified petition and information, the department of local government finance shall fix a time for the hearing of the matter that is not less than five (5) or more than fifteen (15) days after receipt. The department of local government finance may either hold the hearing in the affected county or through electronic means. Notice of the hearing shall be given by the department of local government finance to the board of county commissioners and to the first ten (10) taxpayer petitioners upon the petition by certified mail sent to the addresses listed on the petition at least five (5) days before the date of the hearing.
(c) No action to contest the validity of the lease or to enjoin the performance of any of the terms and conditions of the lease shall be instituted at any time later than thirty (30) days after publication of notice of the execution of the lease, or, if an appeal has been taken to the department of local government finance, within thirty (30) days after the decision of the department.
(d) The authority for taxpayers to object to a proposed lease under subsection (b) does not apply if the authority complies with the procedures for the issuance of bonds and other evidence of indebtedness described in IC 6-1.1-20.
As added by P.L.189-2018, SEC.25. Amended by P.L.38-2021, SEC.3.
IC 5-1.2-7-18Options to renew and to purchase; obligations of county; general obligation bonds Sec. 18. (a) A lease under this chapter may provide that the lessee has an option to renew the lease for a like or lesser term, on the conditions that are provided in the lease. A lease shall contain an option to purchase:
(1) at any time after ten (10) years from the execution of the lease and before the expiration of the term of lease on the date fixed in the lease; and
(2) at a price equal to:
(A) the amount required to enable the authority to redeem all outstanding securities payable out of the rentals provided for in the lease, all premiums payable on the redemption, and accrued and unpaid interest; and
(B) all other expenses, indebtedness, and obligations of the authority attributable to the acquisition, construction, renovation, and leasing of the building.
(b) A lease may not provide or be construed to provide that the county is under any obligation to purchase the leased building or under any obligation with respect to any creditor or bondholder of the authority.
(c) A county exercising an option to purchase may issue general obligation bonds for the purpose of procuring funds with which to pay the purchase price of the building. The general obligation bonds shall be authorized, issued, and sold in the manner provided by law for the authorization, issuance, and sale of general obligation bonds of the county for other purposes.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-7-19Approval of plans, specifications, and cost estimates Sec. 19. On behalf of the authority, the board of directors or board of managers of the hospital shall, before the execution of a lease, submit to and receive the approval of the board of commissioners of the county of the plans, specifications, and estimates of cost for the building or renovation. The plans and specifications shall be submitted to and approved by the state board of health, the department of homeland security, and other state agencies that are required by law to pass on plans and specifications for public buildings.
As added by P.L.189-2018, SEC.25. Amended by P.L.187-2021, SEC.3.
IC 5-1.2-7-20Sale of county land to the authority Sec. 20. A county desiring to have a building erected or renovated on land owned or to be acquired by the county may sell that land or building to the authority. Before the sale may take place, the county commissioners shall file a petition with the circuit court, superior court, or probate court of the county requesting the appointment of:
(1) one (1) disinterested freeholder of the county as an appraiser; and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana to determine the fair market value of the land or building. One (1) of the appraisers described under subdivision (2) must reside not more than fifty (50) miles from the land or building. Upon appointment, the appraisers shall fix the fair market value of the land or building and shall report that value within two (2) weeks after the date of their appointment. The county may then sell the land or building to the authority for an amount not less than the amount fixed by the appraisers as the fair market value. The amount shall be paid in cash upon delivery of the deed by the county to the authority. If a cumulative building fund exists at the time of the sale, the proceeds from the sale shall be placed in that fund. If a cumulative building fund does not exist at the time of the sale, the proceeds from the sale shall be paid into the county hospital fund with the principal of and interest on the fund to be used solely by the county hospital for the purposes set forth in IC 16-22-5-3 (or IC 16-12.1-4-4 before its repeal on July 1, 1993). A sale of land or a building by a county to the authority shall be authorized by the board of commissioners by an order that shall be entered in the official records of the board. The deed shall be executed on behalf of the county by the board of county commissioners.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-7-21Party wall agreements Sec. 21. A county and an authority that have entered into, or propose to enter into, a lease under this chapter may enter into party wall agreements or other agreements concerning the attaching of an addition to a hospital building, if the agreement is:
(1) approved by the board of trustees or board of managers of the hospital; and
(2) recorded in the office of the recorder of the county in which the hospital is located.
An agreement may provide for an easement or license to construct a part of an addition over or above the existing hospital building.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8Chapter 8. Educational Facility Financing
5-1.2-8-1Purposes of this chapter 5-1.2-8-2Applicability 5-1.2-8-3Scope of powers 5-1.2-8-4Powers; educational facility projects 5-1.2-8-5Rents and charges 5-1.2-8-6Rules for projects 5-1.2-8-7Loans 5-1.2-8-8Loans and bonds 5-1.2-8-9Costs 5-1.2-8-10Financing 5-1.2-8-11Mortgages 5-1.2-8-12Risk retention 5-1.2-8-13Payment of expenses 5-1.2-8-14Conveyance of title 5-1.2-8-15Income from investments or reserves or sinking funds; allocation and use 5-1.2-8-16Leases 5-1.2-8-17Issuance of bonds 5-1.2-8-18Bonds; use of proceeds 5-1.2-8-19Escrowed proceeds 5-1.2-8-20Bonds; authority to refund 5-1.2-8-21Competitive bidding requirement 5-1.2-8-22Powers of authority; financing 5-1.2-8-23Promissory notes 5-1.2-8-24Mortgages 5-1.2-8-25Powers of authority; restrictions
IC 5-1.2-8-1Purposes of this chapter Sec. 1. The general purposes of this chapter are the following:
(1) To provide financing for educational facility projects.
(2) To provide a measure of assistance and an alternative method to enable nonprofit colleges or universities in Indiana to refund or refinance outstanding indebtedness incurred by nonprofit colleges or universities in Indiana for the renovation, construction, acquisition, or equipping of educational facilities.
(3) To establish liability or other loss insurance reserves or to contribute those insurance reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses.
(4) To provide the needed additional educational facilities for the public benefit and good.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-2Applicability Sec. 2. This chapter applies only to educational facilities and not to any other facilities financed by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-3Scope of powers Sec. 3. Except as otherwise expressly provided in this chapter, none of the powers granted to the authority under this chapter are subject to the supervision or regulation or require the approval or consent of:
(1) any municipality or political subdivision;
(2) any department, division, commission, board, body, bureau, official, or agency of any municipality or political subdivision; or
(3) the state.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-4Powers; educational facility projects Sec. 4. (a) The authority may determine the location and character of any educational facility project to be financed under this chapter.
(b) The authority may construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease as lessee or lessor, regulate any educational facility project, or enter into contracts for any purpose stated in this section.
(c) The authority may designate a nonprofit college or university as the authority's agent for purposes of this section.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-5Rents and charges Sec. 5. The authority:
(1) may require that the rates, rents, fees, or charges established by a nonprofit college or university are sufficient to discharge the institution's obligations to the authority; but
(2) has no other jurisdiction over the rates, rents, fees, or charges.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-6Rules for projects Sec. 6. The authority may:
(1) establish rules for the use of an educational facility project or any part of an educational facility project; and
(2) designate a nonprofit college or university as the authority's agent to establish rules for the use of an educational facility project undertaken for that nonprofit college or university.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-7Loans Sec. 7. (a) The authority may make loans to any nonprofit college or university for the cost of an educational facility project, including the establishment of liability or other loss insurance reserves or the contribution of those reserves to a risk retention group for the purpose of providing insurance coverage against liability claims or other losses in accordance with an agreement between the authority and the nonprofit college or university.
(b) A loan authorized under this section may not exceed the total cost of the educational facility project as determined by the nonprofit college or university and approved by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-8Loans and bonds Sec. 8. (a) The authority may make loans to a nonprofit college or university to refund outstanding obligations or advances issued, made, or given by the nonprofit college or university for the cost of an educational facility project, including the establishment of liability or other loss insurance reserves or the contribution of those reserves to a risk retention group to provide insurance coverage against liability claims or other losses.
(b) The authority may issue bonds and make loans to a nonprofit college or university to refinance indebtedness incurred or to reimburse advances made for educational facility projects undertaken before the date of the bond issue whenever the authority finds that the financing is in the public interest and:
(1) alleviates a financial hardship upon the nonprofit college or university;
(2) results in a lesser cost of education; or
(3) enables the nonprofit college or university to offer greater security for a loan or loans to finance a new educational facility project or educational facility projects or to effect savings in interest costs or more favorable amortization terms.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-9Costs Sec. 9. The authority may charge to and apportion among nonprofit colleges or universities the authority's administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-10Financing Sec. 10. (a) The authority may, for financing purposes, combine an educational facility project or educational facility projects and some or all future educational facility projects of any nonprofit college or university or nonprofit colleges or universities if:
(1) the authority obtains the consent of all of the nonprofit colleges or universities that are involved, or, when financing loans for the funding of liability or other loss insurance reserves or for the providing of those reserves or other capital to be contributed to a risk retention group, the authority obtains the consent of all of the eligible members that are involved; and
(2) the money set aside in any fund or funds pledged for any series of bonds or issue of bonds is held for the sole benefit of a series or issue separate and apart from the money pledged for any other series or issue of bonds of the authority.
(b) To facilitate the combining of educational facility projects, bonds may be issued in one (1) or more series under one (1) or more resolutions or trust agreements and be:
(1) fully open ended, thus providing for unlimited issuance of additional series; or
(2) partially open ended, limited as to additional series;
all in the discretion of the authority.
(c) Notwithstanding any provision of this chapter, the authority may permit a nonprofit college or university to substitute one (1) or more educational facilities of similar value (as determined by an independent appraiser satisfactory to the authority) as security for any educational facility financed under this chapter on the terms and conditions that the authority may prescribe.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-11Mortgages Sec. 11. The authority may mortgage all or any part of:
(1) any educational facility project and any other educational facilities conveyed to the authority for an educational purpose; and
(2) the site or sites of the facilities, whether presently owned or subsequently acquired;
for the benefit of the holders of the bonds of the authority issued to finance an educational facility project or any portion of an educational facility project or issued to refund or refinance outstanding indebtedness of a nonprofit college or university as permitted by this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-12Risk retention Sec. 12. The authority may join in a risk retention group with state educational institutions or any nonprofit college or university.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-13Payment of expenses Sec. 13. All expenses incurred in carrying out this chapter are payable solely from funds provided under the authority of this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-14Conveyance of title Sec. 14. The authority shall promptly take any action and execute any deeds and conveyances necessary and required to convey the title to an educational facility project or educational facility projects to the appropriate nonprofit college or university whenever:
(1) the principal of and interest on bonds of the authority issued to finance the cost of an educational facility project or educational facility projects for a nonprofit college or university, including any refunding bonds issued to refund and refinance the bonds, have been fully paid and retired; or
(2) adequate provision has been made to fully pay and retire bonds of the authority issued to finance the cost of an educational facility project or educational facility projects for a nonprofit college or university, all other conditions of the bond resolution have been satisfied, and the lien created by the bond resolution has been released in accordance with the provisions of the bond resolution.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-15Income from investments or reserves or sinking funds; allocation and use Sec. 15. Any income received from the investment of reserves or sinking funds must be applied in reduction of the rentals or other amounts paid by the nonprofit college or university or nonprofit colleges or universities for whose educational facility project or educational facility projects the reserves or sinking funds were created. Funds held as reserves or sinking funds when invested must be allocated to a specific educational facility project or educational facility projects of the institution for which the fund was created, and the income from the investment must be used to reduce the bonded indebtedness attributable to the educational facility project or educational facility projects.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-16Leases Sec. 16. (a) In connection with any lease entered into between the authority and any nonprofit college or university, the authority shall fix, revise, charge, and collect rents for the use of each educational facility project and contract with any person, partnership, association, limited liability company, or corporation, or other body, public or private, with respect to the educational facility project.
(b) Each lease entered into by the authority with a nonprofit college or university must provide that the rents or other money payable by the nonprofit college or university is sufficient at all times:
(1) to pay the private institution's share of the administrative costs and expenses of the authority;
(2) to pay the principal of, the premium on (if any), and the interest on outstanding bonds of the authority issued in respect of the educational facility project as the bonds become due and payable; and
(3) to create and maintain reserves that may be required or provided for in the bond resolution relating to the bonds of the authority.
(c) The authority shall pledge the revenues derived and to be derived from an educational facility project for the purposes specified in subsection (b).
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.18.
IC 5-1.2-8-17Issuance of bonds Sec. 17. The authority may provide for the issuance of bonds of the authority:
(1) to refund any bonds of the authority then outstanding, including the payment of any redemption premium on the bonds and any interest accrued or to accrue to the earlier or any subsequent date of redemption, purchase, or maturity of the bonds; and
(2) if determined advisable by the authority, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project or any part of an addition, improvement, extension, or enlargement of an educational facility project. However, no refunding bonds may be issued unless the authority provides for the payment of rentals adequate to satisfy the requirements of section 13 of this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-18Bonds; use of proceeds Sec. 18. The proceeds of any bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority:
(1) be applied to the purchase or retirement at maturity or redemption of the outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity of the outstanding bonds; and
(2) pending the application of the proceeds, be placed in escrow to be applied to the purchase or retirement at maturity or redemption of the outstanding bonds on a date determined by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-19Escrowed proceeds Sec. 19. Any escrowed proceeds, pending use for the refunding of outstanding bonds, may be invested and reinvested in:
(1) direct obligations of the United States of America; or
(2) obligations having the timely payment of principal and interest unconditionally guaranteed by the United States of America;
maturing at a time or times that are appropriate to assure the prompt payment of the principal and interest and redemption premium, if any, on the outstanding bonds to be refunded. Any interest, income, and profits earned or realized on any investment may also be applied to the payment of the outstanding bonds to be refunded. Only after the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and any interest, income, and profits earned or realized on the investments described in this section must be returned to the nonprofit college or university for use by the nonprofit college or university in any lawful manner.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-20Bonds; authority to refund Sec. 20. All bonds issued to refund outstanding bonds of the authority are subject to this chapter in the same manner and to the same extent as other bonds issued under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-21Competitive bidding requirement Sec. 21. Except as provided in IC 21-36-2, an educational facility project is not subject to any statutory requirement of competitive bidding or other restriction imposed on the procedure for award of contracts or the lease, sale, or other disposition of property with regard to any action taken under authority of this chapter. If, however, the prospective lessee makes a request in writing, the authority shall call for the construction bids in the manner determined by the authority with the approval of the lessee.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-22Powers of authority; financing Sec. 22. Notwithstanding any other provision of this chapter, the authority may:
(1) finance the cost of an educational facility or refund outstanding indebtedness of a nonprofit college or university, as authorized under section 8 of this chapter; or
(2) finance the establishment of liability or other loss insurance reserves or the contribution of reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses;
by issuing the authority's bonds for the purpose of loaning the proceeds to a nonprofit college or university for the cost of a project or to refund or refinance outstanding indebtedness or reimburse advances made in connection with a project in accordance with an agreement between the authority and the institution and in exchange for the institution's promissory note or notes.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-23Promissory notes Sec. 23. (a) Any promissory notes received under section 22 of this chapter:
(1) must have the same principal amounts, maturities, and interest rates as the bonds being issued;
(2) may be secured by a first mortgage lien on the educational facility being financed or by a first mortgage lien on or security interest in other real or personal property or funds acceptable to the authority subject to any exceptions that the authority may approve and created by a mortgage instrument or security agreement satisfactory to the authority; and
(3) may be insured or guaranteed by others.
(b) Any bonds described in section 22 of this chapter must be payable solely out of the payments to be made on the promissory notes and under the corresponding agreement. Any bonds described in section 22 of this chapter may not exceed in principal amount the cost of the educational facility, as determined by the nonprofit college or university, or the necessary amount of these liability or other loss insurance reserves, and approved by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-24Mortgages Sec. 24. If an educational facility is financed and mortgaged under sections 22 and 23 of this chapter:
(1) the title to the facility must remain in the nonprofit college or university owning the facility, subject to the lien of the mortgage securing the promissory notes then being purchased; and
(2) there may not be a lease of the facility between the authority and the institution.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-8-25Powers of authority; restrictions Sec. 25. Section 15 of this chapter does not apply to any educational facility or any liability or loss insurance reserves financed under this section and sections 22 through 24 of this chapter. However, the authority shall return the promissory notes purchased through the issuance of bonds to the nonprofit college or university issuing the promissory notes when:
(1) the bonds have been fully paid and retired or adequate provision has been made to pay and retire the bonds fully;
(2) all other conditions of the trust agreement or indenture creating the bonds have been satisfied; and
(3) the lien has been released in accordance with the provisions of the instrument creating the lien.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9Chapter 9. Economic Development Projects
5-1.2-9-1Purposes of this chapter 5-1.2-9-2Applicability 5-1.2-9-3Public offering for sale or lease of property 5-1.2-9-4Public offering; requirements; offering sheet 5-1.2-9-5Notice 5-1.2-9-6Offers 5-1.2-9-7Award to highest and best bidder; factors that may be considered; rejection 5-1.2-9-8Cost benefit analyses 5-1.2-9-9Contracts with a bidder; provisions 5-1.2-9-10Sale, exchange, or lease of property; terms; time period 5-1.2-9-11Action to contest validity 5-1.2-9-12Negotiation of financing agreements; considerations; expenses 5-1.2-9-13Report for proposed economic development project; plan commission; school superintendent 5-1.2-9-14Public hearing 5-1.2-9-15Approval of proposed financing agreement 5-1.2-9-16Financing agreement; payment provisions 5-1.2-9-17Financing agreement; limit on term of an agreement 5-1.2-9-18Financing agreement; requirement for user or developer to pay costs if authority retains an interest in the project 5-1.2-9-19Financing of projects for developers or users through issuance of bonds 5-1.2-9-20Requirements that must be complied with before entering into a financing agreement 5-1.2-9-21Bonds not general obligation of the state 5-1.2-9-22Taxable bonds; payment provisions 5-1.2-9-23Power to engage in financing activities; purchase of a loan 5-1.2-9-24Lender certifications 5-1.2-9-25Guarantees; secured loans; reservation of funds 5-1.2-9-26Power to issue bonds; cumulative term of refunding bonds 5-1.2-9-27Property not public property; not exempt from taxation
IC 5-1.2-9-1Purposes of this chapter Sec. 1. The general purpose of this chapter is to provide financing for economic development projects.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-2Applicability Sec. 2. This chapter applies only to economic development projects and not to any other facilities or projects financed by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-3Public offering for sale or lease of property Sec. 3. The authority may, instead of a private sale or leasing as authorized by IC 5-1.2-4-1(a) or a financing of an economic development project under section 12 of this chapter, decide to hold a public offering under this chapter for the sale or leasing of any land or interests in land, building improvements, structures, personal property, and franchises and patents acquired by the authority under this article for an economic development project. If the authority decides to hold a public offering for the sale or leasing of any property or interests acquired for an economic development project, the offering shall be made in accordance with this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-4Public offering; requirements; offering sheet Sec. 4. Before offering for sale or lease to the public any property or interests acquired for an economic development project, the authority shall prepare an offering sheet showing the property or interests to be offered and copies of the offering sheets shall be furnished to prospective buyers or lessees. Maps and plats of the property and any additional information considered appropriate by the authority shall also be kept available for inspection at the office of the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-5Notice Sec. 5. The authority shall publish a notice of the offering in accordance with IC 5-3-1. The notice must state that at a designated time the authority will open and consider written offers for the purchase or lease of the property or interests being offered. In giving the notice, it is not necessary to describe specifically the property or interests or to specify the exact terms of the disposition, but the notice must state the general location of the property or interests and call attention generally to any requirements or limitations that the authority may establish in respect to the economic development project.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-6Offers Sec. 6. At the time fixed in the notice, the authority shall open and consider any offers received. All offers received shall be opened at public meetings of the authority and shall be kept open for public inspection.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-7Award to highest and best bidder; factors that may be considered; rejection Sec. 7. The authority may reject any or all bids or may make awards to the highest and best bidder or bidders. In determining the highest and best bids, the authority may take into consideration the following:
(1) The size and character of the improvements for the economic development project as proposed by the bidder to be made on the property and the terms and conditions of the consideration offered by the bidder.
(2) The bidder's plans and ability to carry out the economic development project with reasonable promptness.
(3) Whether the property and interests to be acquired by the bidder will be leased or released for the economic development project.
(4) The nature and extent of any obligations to be undertaken by the authority in conjunction with the improvement of the property or interests to be acquired for the economic development project as proposed by the bidder.
(5) The potential impact of the bidder's proposal on the creation of new employment or the retention of existing employment resulting from the economic development project.
(6) The potential impact of the bidder's proposal to attract or establish a major new business enterprise or to retain or expand a significant existing business enterprise that will provide or preserve gainful employment for the citizens of the state.
(7) The economic benefits to the state and its citizens that will result from the economic development project, as proposed by the bidder, including the dollar volume of new or preserved wages and salaries, increases in or preservation of state and local government tax revenues, the incremental economic benefits to the citizens of the state, the state, and local governmental units potentially resulting from the economic development project as proposed by the bidder, and any other direct or indirect economic benefit to the state and its citizens resulting from the economic development project as proposed by the bidder.
(8) The potential impact and benefit to the state and its citizens of the economic development project as proposed by the bidder from the standpoint of both human and economic welfare.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-8Cost benefit analyses Sec. 8. In making an award to the highest and best bidder as provided in section 7 of this chapter, the authority shall determine whether in its judgment the potential benefits to the state and its citizens of the economic development project as proposed by the bidder exceed the direct costs to the authority of acquiring the property and interests being offered for sale or lease for the economic development project less any sums to be paid by the successful bidder pursuant to its bid. The authority's judgment concerning this determination shall be based on the economic studies, analyses, and projections that the authority determines are reasonably necessary. The authority's determination is final and conclusive.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-9Contracts with a bidder; provisions Sec. 9. The authority may contract with a bidder concerning any of the factors listed in section 7 of this chapter, and the contract may provide for the deposit of surety bonds, the making of good faith deposits, liquidated damages, the right of reversion or repurchase, or other rights and remedies if the bidder fails to comply with the contract.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-10Sale, exchange, or lease of property; terms; time period Sec. 10. After the opening, consideration, and determination of the written offers filed in response to the notice, the authority may dispose of all or part of the remaining available property or interests for any approved use, either at public sale or by private negotiation carried on by the authority, its regular employees, or real estate experts employed for that purpose. For a period of thirty (30) days after the opening of the written offers and determination on them, no sale, exchange, or lease may be made on terms less than that shown on the offering sheet, but after that period the authority may adjust the offering terms the authority considers necessary to further the economic development project.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-11Action to contest validity Sec. 11. An action to contest the validity of any sale or lease awarded and approved by the authority under this section may not be commenced more than thirty (30) days following the authority's adoption of a resolution designating the successful bidder or bidders and stating and approving the basic terms and conditions of the sale or lease.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-12Negotiation of financing agreements; considerations; expenses Sec. 12. The authority may enter into negotiations with one (1) or more persons concerning the terms and conditions of financing agreements for economic development projects. The authority shall consider whether a proposed economic development project may have an adverse competitive effect on similar economic development projects already constructed or operating in the local governmental unit where the economic development project will be located. Preliminary expenses in connection with negotiations under this section may be paid from:
(1) money furnished by the proposed user or developer;
(2) money made available by the state or federal government, or by any of their departments or agencies; or
(3) money of the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-13Report for proposed economic development project; plan commission; school superintendent Sec. 13. The authority shall prepare a report that:
(1) briefly describes the proposed economic development project;
(2) estimates the number and expense of public works or services that would be made necessary or desirable by the proposed economic development project, including public ways, schools, water, sewers, street lights, and fire protection;
(3) estimates the total costs of the proposed economic development project;
(4) for an economic development project that is not exclusively either a pollution control facility or an educational facility project, estimates the number of jobs and the payroll to be created or saved by the project;
(5) for educational facility projects, describes how the project promotes the educational enrichment (including cultural, intellectual, scientific, or artistic opportunities) of the people of the state; and
(6) for pollution control facilities, describes the facilities and how they will abate, reduce, or prevent pollution.
The report shall be submitted to the executive director or chair of the plan commission, if any, having jurisdiction over the economic development project and, if the number of new jobs estimated exceeds one hundred (100), to the superintendent of the school corporation where the economic development project will be located. The executive director or chair of the plan commission and the school superintendent may formulate their written comments concerning the report and transmit their comments, if any, to the authority within five (5) days after the receipt of the report.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-14Public hearing Sec. 14. The authority shall hold a public hearing, which may be conducted by the authority, or any officer, member, or agent designated by the authority, on the proposed financing agreement for the economic development project, after giving notice by publication in one (1) newspaper of general circulation in the city, town, or county where the economic development project is to be located at least ten (10) days in advance of this public hearing.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-15Approval of proposed financing agreement Sec. 15. If the authority finds that the economic development project will be of benefit to the health, safety, morals, and general welfare of the area where the economic development project is to be located, and complies with the purposes and provisions of this chapter, the authority may by resolution approve the proposed financing agreement.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-16Financing agreement; payment provisions Sec. 16. A financing agreement approved under this chapter must provide for payments in an amount sufficient to pay the principal of, premium for (if any), and interest on the bonds authorized for the financing of the economic development project. However, interest payments for the anticipated construction period, plus a period of not more than one (1) year, may be funded in the bond issue.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-17Financing agreement; limit on term of an agreement Sec. 17. The term of a financing agreement may not exceed fifty (50) years from the date of any bonds issued under the financing agreement. However, a financing agreement does not terminate after fifty (50) years if a default under that financing agreement remains uncured, unless the termination is authorized by the terms of the financing agreement.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-18Financing agreement; requirement for user or developer to pay costs if authority retains an interest in the project Sec. 18. If the authority retains an interest in the economic development project, the financing agreement must require the user or the developer to pay all costs of maintenance, repair, taxes, assessments, insurance premiums, trustee's fees, and any other expenses relating to the economic development project, so that the authority will not incur any expenses on account of the economic development project other than those that are covered by the payments provided for in the financing agreement.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.19.
IC 5-1.2-9-19Financing of projects for developers or users through issuance of bonds Sec. 19. The authority may initiate programs for financing economic development projects for developers and users in Indiana through the issuance of bonds under this article. In furtherance of this objective, the authority may do any of the following:
(1) Establish eligibility standards for developers and users, 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 given by publication under IC 5-3-1.
(2) Contract with any entity securing the payment of bonds issued under this chapter and authorizing the entity to approve the developers and users that can finance or refinance economic development projects with proceeds from the bond issue secured by that entity.
(3) Lease to a developer or user economic development projects upon terms and conditions that the authority considers proper and, with respect to the lease:
(A) charge and collect rents;
(B) terminate the lease upon the failure of the lessee to comply with any of its obligations under the lease or otherwise as the lease provides; and
(C) include in the lease provisions that the lessee has the option to renew the term of the lease for those periods and at those rents as may be determined by the authority or to purchase any or all of the economic development projects to which the lease applies.
(4) Lend money, upon terms and conditions as the authority considers proper, to a developer or user under an installment purchase contract or loan agreement to:
(A) finance, reimburse, or refinance the cost of an economic development project; and
(B) take back a secured or unsecured promissory note evidencing such a loan or a security interest in the economic development project financed or refinanced with the loan.
(5) Sell or otherwise dispose of any unneeded or obsolete economic development project under terms and conditions determined by the authority.
(6) Maintain, repair, replace, and otherwise improve or cause to be maintained, repaired, replaced, and otherwise improved any economic development project owned by the authority.
(7) Require any type of security that the authority considers reasonable and necessary.
(8) Obtain or aid in obtaining property insurance on all economic development projects owned or financed, or accept payment if any economic development project property is damaged or destroyed.
(9) Enter into any agreement, contract, or other instrument with respect to any insurance, guarantee, letter of credit, or other form of credit enhancement, accepting payment in the manner and form as provided in the instrument if a developer or user defaults, and assign the insurance, guarantee, letter of credit, or other form of credit enhancement as security for bonds issued by the authority.
(10) Finance for eligible developers and users in connection with an economic development project:
(A) the cost of their economic development projects; and
(B) in the case of a program funded from the proceeds of taxable bonds, working capital associated with the operation of the economic development project;
in amounts determined to be appropriate by the authority.
(11) Issue bonds to fund a program for financing multiple, identified or unidentified economic development projects if the authority finds that issuance of the bonds will be of benefit to the health, safety, morals, or general welfare of the state and complies with the purposes and provisions of this article by promoting a substantial likelihood for one (1) or more of the following:
(A) Creating opportunities for gainful employment.
(B) Creating business opportunities.
(C) Educational enrichment (including cultural, intellectual, scientific, or artistic opportunities).
(D) The abatement, reduction, or prevention of pollution.
(E) The removal or treatment of any substances in materials being processed that would otherwise cause pollution when used.
The authority may by resolution approve the proposed taxable bond issue.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-20Requirements that must be complied with before entering into a financing agreement Sec. 20. As each unidentified economic development project is identified for possible funding from a program under section 19(11) of this chapter, the requirements of sections 12, 13, 14, 15, and 16 of this chapter shall be complied with as a condition precedent to entering into a financing agreement for the funding of the economic development project.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-21Bonds not general obligation of the state Sec. 21. Bonds issued to fund a program under this chapter are not in any respect a general obligation of the state, nor are they payable in any manner from revenues raised by taxation.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-22Taxable bonds; payment provisions Sec. 22. Any resolution adopted to authorize the issuance of taxable bonds to fund a program under section 19(11) of this chapter may provide that the bonds are payable solely from:
(1) revenues and receipts derived from the various financing agreements; or
(2) the payments made under any other agreements to secure the obligations of the developers, users, related persons, or the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-23Power to engage in financing activities; purchase of a loan Sec. 23. (a) The authority may invest in, purchase or make commitments to invest in or purchase, and take assignments or make commitments to take assignments of, loans made for the acquisition, construction, installation, rehabilitation, or purchase of economic development projects.
(b) Before investment, purchase, assignment, or commitment, the lender shall certify that the proceeds of the authority's bonds will be used to make loans to provide financing for economic development projects, or pending the making of the loan, invested in short term obligations complying with the requirements of this article.
(c) The authority shall purchase a loan at a purchase price equal to the outstanding principal balance, but the authority may require a discount from the principal balance or make a payment of a premium to effect a fair rate of return for the lender, as determined by the rate of return on comparable investments under market conditions existing at the time of purchase.
(d) In addition to the payment of the outstanding principal balance, the authority shall pay the accrued interest due on the loan, on the date the loan is delivered against payment for the loan or on another date as may be established by agreement between the authority and the selling lender.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-24Lender certifications Sec. 24. Before exercising any of the powers authorized in section 23 of this chapter, the authority shall require the lender to certify and agree that:
(1) the loan is, or, if the loan has not been made, will be, at the time of making, in all respects a prudent investment; and
(2) the lender will make the loan and sell the loan to the authority within a reasonable period of time.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-25Guarantees; secured loans; reservation of funds Sec. 25. Before exercising any of the powers conferred by section 23 of this chapter, the authority may:
(1) require that the loan involved be insured by a loan insurer or be guaranteed by a loan guarantor;
(2) require any type of security that the authority considers reasonable and necessary; or
(3) authorize the reservation of funds by lenders in the amount and subject to conditions as the authority considers reasonable and necessary under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-26Power to issue bonds; cumulative term of refunding bonds Sec. 26. (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, if these bonds have been issued to finance projects that constitute economic development projects, and 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 corporate purposes as long as the bonds to be refunded were issued to finance projects that constitute economic development projects.
(b) With respect to any bonds issued under this chapter, the cumulative terms of refunding bonds may not exceed fifty (50) years.
(c) Refunding bonds issued under this section are payable solely from revenues and receipts derived from:
(1) financing agreements with the users or developers of the facilities originally financed by the outstanding bonds, or related persons; or
(2) payments made under guaranty agreements by developers, users, or related persons.
The financing agreements or guaranties may be new financing agreements or guaranties or amendments of the original financing agreements or guaranties.
(d) Sections 13 and 15 of this chapter do not apply to the issuance of refunding bonds under this section.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-9-27Property not public property; not exempt from taxation Sec. 27. (a) Property owned by the authority and leased to a person for an economic development project is not public property.
(b) Any economic development project financed by a loan under the authority of this chapter is not public property and is not exempt from any taxes of this state, or any county, city, or other political subdivision of this state, except for pollution control equipment.
(c) 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 5-1.2-10Chapter 10. Wastewater and Drinking Water Revolving Loan Programs
5-1.2-10-1Request 5-1.2-10-2Programs 5-1.2-10-3Funds 5-1.2-10-4Funds; purpose 5-1.2-10-5Money; sources 5-1.2-10-6Money; investment 5-1.2-10-7Money; uses 5-1.2-10-8Technical, managerial, and financial capacity 5-1.2-10-9Discretion of the authority 5-1.2-10-10Contracting; authorization 5-1.2-10-11Duties 5-1.2-10-12Provision of services 5-1.2-10-13Fees 5-1.2-10-14Priority ranking system 5-1.2-10-15Loans or other financial assistance; authorization 5-1.2-10-16Loans or other financial assistance; required asset management program and reports 5-1.2-10-17Financial assistance agreement 5-1.2-10-18Sale or pledging of loans; federal restrictions 5-1.2-10-19Pledging of loans or property 5-1.2-10-20Interest rates 5-1.2-10-21Sufficient user charges 5-1.2-10-22Guidelines 5-1.2-10-23Leveraged loan program; authorization 5-1.2-10-24Leveraged loan program; authorization
IC 5-1.2-10-1Request Sec. 1. At the request of the department of environmental management, the authority shall carry out the programs established under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-2Programs Sec. 2. The following programs are established:
(1) The wastewater revolving loan program.
(2) The drinking water revolving loan program.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-3Funds Sec. 3. (a) The following funds are established:
(1) The drinking water revolving loan fund (referred to in this chapter as the "drinking water SRF fund" or "fund").
(2) The wastewater revolving loan fund (referred to in this chapter as the "wastewater SRF fund" or "fund").
(b) The authority shall administer, hold, and manage each fund.
(c) Except as provided in the federal Clean Water Act or the federal Safe Drinking Water Act, the cost of administering either fund or program may be paid from the appropriate fund or from other money.
(d) All money accruing to each fund and money allotted to the state under federal law is appropriated continuously for the purposes specified in this chapter.
(e) Money in the each fund does not revert to the state general fund at the end of a state fiscal year.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-4Funds; purpose Sec. 4. Each fund is established to provide money for loans and other financial assistance under this chapter to or for the benefit of participants, including forgiveness of principal if allowed under federal law.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-5Money; sources Sec. 5. (a) The general assembly may appropriate money to either fund.
(b) Grants or gifts of money to either fund from the federal government or other sources and the proceeds of the sale of:
(1) gifts to either fund; and
(2) loans and other financial assistance, as provided in sections 11 through 15 of this chapter;
shall be deposited in the appropriate fund.
(c) Repayments of loans and other financial assistance from either fund, including interest, premiums, and penalties, shall be deposited in the appropriate fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-6Money; investment Sec. 6. (a) The authority shall invest the money in each fund in accordance with an investment policy adopted by the authority. Interest, premiums, gains, or other earnings from the investments shall be credited to and deposited in the appropriate fund.
(b) As an alternative to subsection (a), the authority may invest or cause to be invested all or a part of each fund in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture may permit disbursements by the trustee to:
(1) a participant;
(2) the authority; or
(3) any person to which the authority or a participant is obligated, as provided in the trust agreement or indenture.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-7Money; uses Sec. 7. (a) Money in the wastewater SRF fund may be used for wastewater collection and treatment systems.
(b) Money in the drinking water SRF fund may be used for public water systems that will facilitate compliance with national primary drinking water regulations applicable to public water systems under the federal Safe Drinking Water Act or otherwise significantly further the health protection objectives of the federal Safe Drinking Water Act.
(c) Money in each fund may be used to do the following:
(1) Provide loans or other financial assistance to participants for:
(A) the planning;
(B) the designing;
(C) the construction;
(D) the renovation;
(E) the improvement;
(F) the expansion; or
(G) any combination of the activities described in clauses (A) through (F);
for the purposes described in subsections (a) and (b), including other activities necessary or convenient to complete these tasks.
(2) Pay the cost of administering each fund and program.
(3) Carry out any purpose eligible for assistance under the federal Clean Water Act or the federal Safe Drinking Water Act.
(4) Conduct all other activities that are allowed by the federal Clean Water Act or the federal Safe Drinking Water Act.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-8Technical, managerial, and financial capacity Sec. 8. The authority may develop and implement a strategy to assist participants in acquiring and maintaining technical, managerial, and financial capacity as contemplated by the federal Clean Water Act or the federal Safe Drinking Water Act.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-9Discretion of the authority Sec. 9. This chapter does not require the authority to provide a loan or other financial assistance to any participant to the extent the authority determines the loan or financial assistance is not in the best interests of the wastewater or drinking water program and the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-10Contracting; authorization Sec. 10. The authority may contract with the department of environmental management or any other entity or person for assistance in administering the wastewater or drinking water program and the wastewater SRF fund or drinking water SRF fund and in carrying out the purposes of this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-11Duties Sec. 11. For the purposes of this chapter, the authority shall do the following:
(1) Administer, hold, and manage all aspects of each fund and the wastewater or drinking water program, and any related fund or account the authority creates under this chapter.
(2) Be the point of contact in relations with the United States Environmental Protection Agency.
(3) Prepare and provide wastewater or drinking water program information.
(4) Ensure that each proposed financial assistance agreement meets the environmental and technical aspects of the wastewater or drinking water program.
(5) Periodically inspect project design and construction to determine compliance with the following:
(A) This chapter.
(B) The federal Clean Water Act or the federal Safe Drinking Water Act.
(C) Construction plans and specifications.
(6) Negotiate the negotiable aspects of each financial assistance agreement.
(7) Manage any payment systems through which the state receives grant payments from the federal government for the wastewater or drinking water program and disbursements to the wastewater SRF fund or drinking water SRF fund.
(8) Prepare annual reports concerning each fund and program.
(9) Be the point of contact with participants and other interested persons in preparing and providing wastewater or drinking water program information.
(10) Prepare or cause to be prepared each financial assistance agreement.
(11) Sign each financial assistance agreement.
(12) Conduct or cause to be conducted an evaluation as to the financial ability of each participant to pay the loan or other financial assistance and other obligations evidencing the loans or other financial assistance, if required to be paid, and comply with the financial assistance agreement.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-12Provision of services Sec. 12. The authority may provide services to a participant in connection with a loan or other financial assistance, including advisory and other services.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-13Fees Sec. 13. (a) In connection with the wastewater or drinking water program, the authority may:
(1) charge a fee for services provided;
(2) charge a fee for costs and services incurred in the review or consideration of an application for a proposed loan or other financial assistance to or for the benefit of a participant under this chapter, regardless of whether the application is approved or rejected; and
(3) charge a fee (or cause interest on a loan made from the wastewater SRF fund or drinking water SRF fund to be so designated) in any manner allowed by the federal Clean Water Act or the federal Safe Drinking Water Act.
(b) A participant may pay fees charged under this section. If directed by the authority, a fee charged under this section may be instead of all or a portion of a scheduled interest payment.
(c) Fees shall be held and applied by the authority in any manner allowed by the federal Clean Water Act or the federal Safe Drinking Water Act.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-14Priority ranking system Sec. 14. (a) The authority shall use a priority ranking system in making loans or other financial assistance from each fund.
(b) The authority, in consultation with other state agencies the authority determines to be appropriate, shall develop the priority ranking system to achieve optimum water quality consistent with federal primary drinking water regulations and health protection objectives of the federal Safe Drinking Water Act, the water quality goals of the state, and the federal Clean Water Act.
(c) The ranking system shall prioritize loans securing longer term benefits over shorter term projects, all other factors being equal.
As added by P.L.189-2018, SEC.25. Amended by P.L.120-2021, SEC.1.
IC 5-1.2-10-15Loans or other financial assistance; authorization Sec. 15. (a) The authority may make loans or provide other financial assistance from each fund to or for the benefit of a participant for the following:
(1) Establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the wastewater SRF fund or drinking water SRF fund (including financial institutions) for a purpose permitted by this chapter.
(2) Provide interest subsidies.
(3) Pay financing charges, including interest on the loan or other financial assistance during construction and for a reasonable period after the completion of construction.
(b) The authority shall establish the terms and conditions that the authority considers necessary or convenient to:
(1) make loans; or
(2) provide other financial assistance under this chapter.
(c) Notwithstanding any other law, the authority may establish and implement requirements that:
(1) apply to loans and other financial assistance to be made to participants that are not political subdivisions; and
(2) are different from, or in addition to, requirements that apply to loans and financial assistance made to political subdivisions.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-16Loans or other financial assistance; required asset management program and reports Sec. 16. (a) A loan or other financial assistance from either fund must be accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of the authority, the following:
(A) An approving opinion of nationally recognized bond counsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or other financial assistance:
(i) no litigation is pending challenging the validity of or entry into the loan or other financial assistance or any security for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have a material adverse effect on the validity of the loan or other financial assistance or any security for the loan or other financial assistance.
(D) If litigation is pending, as an alternative to the certification described in clause (C), an opinion of legal counsel that the litigation will not have a material adverse effect on the validity of the loan or other financial assistance.
(E) Documentation demonstrating that the participant has the financial, managerial, technical, and legal capability of operating and maintaining its water or wastewater collection and treatment system.
(b) Each participant to which, or for the benefit of which:
(1) a loan, grant, or other financial assistance is awarded before July 1, 2023, must demonstrate that it has developed or is in the process of developing an asset management program, as defined in the guidelines of the authority; or
(2) a loan, grant, or other financial assistance is awarded after June 30, 2023:
(A) must demonstrate that it has developed:
(i) an asset management program, as defined in the guidelines of the authority; and
(ii) an estimate of the life cycle management costs, as defined in the guidelines of the authority, that will be incurred over the useful life of the asset to be financed with the loan, grant, or other financial assistance;
not later than the time of submission of the participant's preliminary engineering report for any project for which the loan, grant, or other financial assistance would be provided;
(B) must report to the authority on an ongoing basis, at such times as the authority shall prescribe, the actual life cycle management costs incurred by the participant over the useful life of the asset; and
(C) in the case of a participant that is not under the jurisdiction of the Indiana utility regulatory commission, must regularly report, at such times and in such manner as the authority shall prescribe, to all:
(i) customers;
(ii) counties; and
(iii) municipalities;
within the participant's service territory such information concerning the participant's asset management program and utility asset life cycle management costs as the authority may require.
As added by P.L.189-2018, SEC.25. Amended by P.L.18-2022, SEC.2.
IC 5-1.2-10-17Financial assistance agreement Sec. 17. A participant receiving a loan or other financial assistance from the wastewater SRF fund or drinking water SRF fund shall enter into a financial assistance agreement. A financial assistance agreement related to the wastewater or drinking water program is a valid, binding, and enforceable agreement of the participant.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-18Sale or pledging of loans; federal restrictions Sec. 18. The authority may sell or pledge loans or evidence of other financial assistance and other obligations of participants to the extent allowed by the federal Clean Water Act or the federal Safe Drinking Water Act.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-19Pledging of loans or property Sec. 19. (a) The authority may pledge loans or evidence of other financial assistance and other obligations of participants evidencing the loans or other financial assistance from the wastewater SRF fund or drinking water SRF fund to secure:
(1) other loans or financial assistance from the wastewater SRF fund or drinking water SRF fund to or for the benefit of participants; or
(2) other loans or financial assistance from the supplemental fund to or for the benefit of participants;
to the extent allowed by the federal Safe Drinking Water Act or the federal Clean Water Act.
(b) The authority must approve the terms of a pledge under this section.
(c) Notwithstanding any other law, a pledge of property made by the authority under this section is binding from the time the pledge is made. Revenues, other money, or other property pledged and that is received after the pledge are immediately subject to the lien of the pledge without any other act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against:
(1) the drinking water SRF fund;
(2) the wastewater SRF fund; or
(3) the authority;
regardless of whether the parties have notice of any lien.
(d) A resolution, an indenture, or another instrument by which a pledge is created does not have to be filed or recorded, except in the records of the authority.
(e) Action taken to:
(1) enforce a pledge under this section; and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section does not create a liability or indebtedness of the state.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-20Interest rates Sec. 20. (a) The authority shall establish the interest rate or parameters for establishing the interest rate on each loan made under this chapter, including parameters for establishing the amount of interest subsidies.
(b) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:
(1) Credit risk.
(2) Environmental, water quality, and health protection.
(3) Affordability.
(4) Other fiscal factors the authority considers relevant, including the wastewater or drinking water program's cost of funds and whether the financial assistance provided to a particular participant is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (4), more than one (1) interest rate may be established and used for loans or other financial assistance to different participants or for different loans or other financial assistance to the same participants.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-21Sufficient user charges Sec. 21. The authority shall require a participant receiving a loan or other financial assistance under this chapter to establish under applicable law and maintain sufficient user charges or other charges, fees, taxes, special assessments, or revenues available to the participant to:
(1) operate and maintain the public water or wastewater collection and treatment system; and
(2) pay the obligations of the public water system.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-22Guidelines Sec. 22. The authority may adopt guidelines, without complying with IC 4-22-2, to govern the administration of this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-23Leveraged loan program; authorization Sec. 23. (a) As an alternative to making loans or providing other financial assistance to participants, the authority may use the money in either fund to provide a leveraged loan program and other financial assistance programs allowed by the federal Clean Water Act or the federal Safe Drinking Water Act to or for the benefit of participants, including using money in the wastewater SRF fund or drinking water SRF fund to enhance the obligations of participants issued for the purposes of this chapter by:
(1) granting money to:
(A) be deposited in:
(i) a capital fund or reserve fund established under IC 5-1.2-4 or another statute or a trust agreement or indenture as contemplated by this chapter; or
(ii) an account established within a fund described in item (i); or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurance premiums, or credit enhancement, liquidity support, remarketing, or conversion fees, or other similar fees or costs for obligations of a participant or for bonds issued by the authority, if credit market access is improved or interest rates are reduced; or
(3) guaranteeing all or a part of obligations issued by participants or bonds issued by the authority.
(b) A guarantee of obligations or bonds under subsection (a)(3) must be limited to money in the wastewater SRF fund or drinking water SRF fund and the supplemental fund. A guarantee under subsection (a)(3) does not create a liability or indebtedness of the state.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-10-24Leveraged loan program; authorization Sec. 24. Notwithstanding any other law, and to the extent allowed by the federal Clean Water Act or the federal Safe Drinking Water Act, money in the wastewater SRF fund or drinking water SRF fund, together with loan repayments to be deposited in the wastewater SRF fund or drinking water SRF fund, may be used to establish a leveraged loan program or other financial assistance programs established in connection with the wastewater SRF fund or drinking water SRF fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11Chapter 11. Supplemental Drinking Water and Wastewater Assistance Program
5-1.2-11-1Request 5-1.2-11-2Supplemental program; establishment 5-1.2-11-3Supplemental fund 5-1.2-11-4Money; sources 5-1.2-11-5Money; investment 5-1.2-11-6Uses of money in supplemental fund 5-1.2-11-7Grants, loans, or other financial assistance; criteria 5-1.2-11-8Grants, loans, or other financial assistance; terms and conditions 5-1.2-11-9Discretion of the authority 5-1.2-11-10Loans or other financial assistance; necessary documents 5-1.2-11-11Financial assistance agreement
IC 5-1.2-11-1Request Sec. 1. At the request of the department of environmental management, the authority shall carry out the program established under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11-2Supplemental program; establishment Sec. 2. The supplemental drinking water and wastewater assistance program (referred to in this chapter as "supplemental program") is established.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.20.
IC 5-1.2-11-3Supplemental fund Sec. 3. (a) The supplemental drinking water and wastewater assistance fund (referred to in this chapter as "supplemental fund") is established.
(b) The authority shall administer, hold, and manage the supplemental fund.
(c) The cost of administering the supplemental fund may be paid from money in the supplemental fund.
(d) All money accruing to the supplemental fund is appropriated continuously for the purposes specified in this chapter.
(e) Money in the supplemental fund does not revert to the state general fund at the end of a state fiscal year.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.21.
IC 5-1.2-11-4Money; sources Sec. 4. (a) The general assembly may appropriate money to the supplemental fund.
(b) Grants or gifts of money to the supplemental fund and proceeds of the sale of:
(1) gifts to the supplemental fund; and
(2) loans and other financial assistance, as provided in this chapter;
shall be deposited in the supplemental fund.
(c) Repayments of loans and other financial assistance from the supplemental fund, including interest, premiums, and penalties, shall be deposited in the supplemental fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11-5Money; investment Sec. 5. (a) The authority shall invest the money in the supplemental fund in accordance with an investment policy adopted by the authority. Interest, premiums, gains, or other earnings from the investments shall be credited to and deposited in the supplemental fund.
(b) As an alternative to subsection (a), the authority may invest or cause to be invested all or a part of the supplemental fund in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture may permit disbursements by the trustee to the authority, a participant, or any other person as provided in the trust agreement or indenture.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11-6Uses of money in supplemental fund Sec. 6. Money in the supplemental fund may be used to do the following:
(1) Provide grants, loans, or other financial assistance to or for the benefit of participants for the planning, designing, acquisition, construction, renovation, improvement, or expansion of the following:
(A) A public water system, whether or not those other activities are allowed by the federal Clean Water Act or the federal Safe Drinking Water Act.
(B) A wastewater or storm water collection and treatment system.
The money may be used to pay for other activities necessary or convenient to complete these tasks, regardless of whether those other activities are allowed by the federal Clean Water Act or the federal Safe Drinking Water Act.
(2) Provide grants, loans, or other financial assistance to political subdivisions for tasks associated with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses; and
(C) storm water management programs.
(3) Provide grants, loans, or other financial assistance to or for the benefit of participants for the planning, designing, acquisition, construction, renovation, improvement, or expansion of septic relief systems in accordance with guidelines of the authority.
(4) Provide interest subsidies.
(5) Establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the supplemental fund (including financial institutions) for a purpose allowed by subdivision (1).
(6) Pay financing charges, including interest on the loan or other financial assistance during construction and for a reasonable period after the completion of construction.
(7) Pay the cost of administering the supplemental fund and the supplemental program.
(8) Conduct all other activities that are allowed by the federal Clean Water Act or the federal Safe Drinking Water Act.
As added by P.L.189-2018, SEC.25. Amended by P.L.18-2022, SEC.3.
IC 5-1.2-11-7Grants, loans, or other financial assistance; criteria Sec. 7. The authority shall develop criteria to make or provide grants, loans, or other financial assistance from the supplemental fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11-8Grants, loans, or other financial assistance; terms and conditions Sec. 8. The authority must establish the terms and conditions that the authority considers necessary or convenient to make grants or loans or provide other financial assistance under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11-9Discretion of the authority Sec. 9. This chapter does not require the authority to provide a loan or other financial assistance to any participant to the extent the authority determines loan or financial assistance is not in the best interests of the supplemental program and the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11-10Loans or other financial assistance; necessary documents Sec. 10. A loan or other financial assistance from the fund must be accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of the authority, the following:
(A) An approving opinion of nationally recognized bond counsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or other financial assistance:
(i) no litigation is pending challenging the validity of or entry into the loan or other financial assistance or any security for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have a material adverse effect on the validity of the loan or other financial assistance or any security for the loan or other financial assistance.
(D) If litigation is pending, as an alternative to the certification described in clause (C), an opinion of legal counsel that the litigation will not have a material adverse effect on the validity of the loan or other financial assistance.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11-11Financial assistance agreement Sec. 11. A participant receiving a grant, loan, or other financial assistance from the supplemental fund shall enter into a financial assistance agreement. A financial assistance agreement related to the supplemental program is a valid, binding, and enforceable agreement of the participant.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11.5Chapter 11.5. Monitoring, Study, and Assessment by the Indiana Finance Authority
5-1.2-11.5-1"Governmental requirement" 5-1.2-11.5-2"Utility" 5-1.2-11.5-3Safe drinking water; duty to monitor utilities 5-1.2-11.5-4Powers 5-1.2-11.5-5Study areas 5-1.2-11.5-6Annual meeting; other meetings; report 5-1.2-11.5-7Participation a prerequisite to financial assistance 5-1.2-11.5-8Rules 5-1.2-11.5-9Authority to coordinate drinking water and wastewater programs; cooperation, consultation, and collaboration; data usage 5-1.2-11.5-10Drinking water and wastewater infrastructure research and extension program; contract with college or university; services and programs
IC 5-1.2-11.5-1"Governmental requirement" Sec. 1. As used in this chapter, "governmental requirement" means a requirement imposed on a utility by a governmental unit in connection with:
(1) the federal Clean Water Act (33 U.S.C. 1251 et seq.);
(2) the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.); or
(3) any other law, order, rule, or regulation administered or issued by the United States Environmental Protection Agency, the department of environmental management, or the department of natural resources in connection with the federal Clean Water Act or the federal Safe Drinking Water Act.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11.5-2"Utility" Sec. 2. As used in this chapter, "utility" means:
(1) a public utility (as defined in IC 8-1-2-1(a));
(2) a municipally owned utility (as defined in IC 8-1-2-1(h)); or
(3) a not-for-profit utility (as defined in IC 8-1-2-125(a));
that provides water or wastewater service to the public.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-11.5-3Safe drinking water; duty to monitor utilities Sec. 3. The authority shall monitor and study events and conditions that bear upon the ability of utilities to provide clean and safe drinking water in Indiana for the foreseeable future, including the ability of utilities to directly or indirectly fund the increasing costs of meeting governmental requirements.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.22.
IC 5-1.2-11.5-4Powers Sec. 4. The powers of the authority under section 3 of this chapter include the following:
(1) Assessing issues related to service line ownership and replacement.
(2) Assessing the challenges that utilities are likely to encounter as they become subject to more stringent governmental requirements.
(3) Studying cost recovery mechanisms that enable utilities to respond quickly to system needs.
(4) Monitoring the growing costs for utilities in complying with consent decrees related to governmental requirements.
(5) Studying regional water ownership issues, including cross-border issues.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.23.
IC 5-1.2-11.5-5Study areas Sec. 5. (a) For the purposes of this chapter, the authority shall divide the state of Indiana into study areas.
(b) Each study area created under this section must consist of multiple counties. In selecting the counties to comprise each study area, the authority may consider similarities among the counties in:
(1) the watersheds in which they are located;
(2) the water sources that are available in them; and
(3) any other factors the authority considers relevant.
As added by P.L.15-2019, SEC.2.
IC 5-1.2-11.5-6Annual meeting; other meetings; report Sec. 6. (a) The authority shall hold an annual meeting with the officers and employees of the utilities located in each study area created under section 5 of this chapter to:
(1) set expectations for the utilities' activities under this section;
(2) provide training; and
(3) conduct communications;
as the authority considers appropriate.
(b) In addition to attending the annual meetings held under subsection (a), the utilities in each study area may meet voluntarily on a periodic basis as they consider appropriate.
(c) In the meetings held under subsections (a) and (b), the utilities of a study area shall determine the water and wastewater priorities of the study area, establish future meeting agendas, and consider other matters related to the function of the study area, including the following:
(1) Promoting cooperation among the utilities located in the study area.
(2) Promoting mutual assistance among utilities located in the study area.
(3) Facilitating needed investment in the water and wastewater infrastructure of utilities in the study area.
(4) Protecting public health.
(5) The prudent management of water resources.
(6) Projecting the water demand and water needs of the study area for a planning horizon of at least twenty-five (25) years.
(d) Not later than:
(1) March 1, 2021; and
(2) March 1 of each odd-numbered year after 2021;
the utilities of each study area shall file a report with the authority on a form provided by the authority summarizing the activities undertaken by the utilities of the study area concerning the matters set forth in subsection (c).
(e) Not later than:
(1) November 1, 2021; and
(2) November 1 of each odd-numbered year after 2021;
the authority shall compile a report summarizing the activities undertaken by the utilities of all study areas concerning the matters set forth in subsection (c).
(f) A utility may participate in activities undertaken under this section in more than one (1) study area.
As added by P.L.15-2019, SEC.3.
IC 5-1.2-11.5-7Participation a prerequisite to financial assistance Sec. 7. To apply to the authority for a loan, a grant, or other financial assistance from:
(1) the drinking water revolving loan program established by IC 5-1.2-10; or
(2) the water infrastructure assistance program established by IC 5-1.2-14;
a utility must demonstrate to the authority that its officers and employees have participated in study area activities under section 6 of this chapter.
As added by P.L.15-2019, SEC.4.
IC 5-1.2-11.5-8Rules Sec. 8. The authority may adopt rules under IC 4-22-2 concerning the administration of this chapter, including rules addressing the standard for a utility's minimum participation in study area activities under section 6 of this chapter.
As added by P.L.15-2019, SEC.5.
IC 5-1.2-11.5-9Authority to coordinate drinking water and wastewater programs; cooperation, consultation, and collaboration; data usage Sec. 9. (a) The authority shall coordinate the executive branch activities related to the state's drinking water and wastewater programs. The authority's duties under this section include the following:
(1) Serving as the executive branch coordinator of drinking water and wastewater related programs and activities of the state.
(2) Serving as the executive branch coordinator for funding allocated or made available to the state or local communities from federal, state, and other sources for purposes related to drinking water, wastewater, or storm water infrastructure and systems. The authority's duties under this subdivision include:
(A) communicating with utilities, local communities, and state agencies about the availability of funds;
(B) vetting proposals for, and potential recipients of, available funds; and
(C) directing available funds to and among utilities, local communities, and state agencies;
as appropriate.
(3) Advising state agencies and political subdivisions, and coordinating their activities, regarding best practices concerning the best use of funding streams and incentives in the manner most likely to achieve comprehensive drinking water and wastewater related data collection and regional collaboration in drinking water and wastewater service.
(4) Promoting and coordinating the collection and sharing of information throughout Indiana concerning drinking water and wastewater service.
(5) Providing leadership regarding investment, affordability, supply, and economic development related to drinking water and wastewater service.
(b) All instrumentalities, agencies, authorities, boards, and commissions of the state, including the management performance hub established by IC 4-3-26, shall cooperate with and provide assistance to the authority in carrying out the authority's duties under this section.
(c) In carrying out the authority's duties under subsection (a)(3) and (a)(4), the authority may consult and collaborate with, and draw on the technical expertise of, the drinking water and wastewater infrastructure research and extension program authorized by section 10 of this chapter, as appropriate.
(d) In carrying out the authority's duties under this section, the authority shall use any data the authority acquires in a manner that:
(1) protects the confidential information of individual drinking water utilities, wastewater utilities, and their customers; and
(2) is consistent with IC 5-14-3-4.
As added by P.L.15-2019, SEC.6. Amended by P.L.18-2022, SEC.4.
IC 5-1.2-11.5-10Drinking water and wastewater infrastructure research and extension program; contract with college or university; services and programs Sec. 10. (a) As used in this section, "program" refers to the drinking water and wastewater infrastructure research and extension program authorized by subsection (c).
(b) As used in this section, "utility" means any of the following that provides drinking water, wastewater, or storm water service in Indiana:
(1) A public utility (as defined in IC 8-1-2-1(a)).
(2) A municipally owned utility (as defined in IC 8-1-2-1(h)).
(3) A not-for-profit utility (as defined in IC 8-1-2-125(a)).
(4) A cooperatively owned corporation.
(5) A conservancy district established under IC 14-33.
(6) A regional sewer district established under IC 13-26.
(7) A department of storm water management under IC 8-1.5-5.
(c) A drinking water and wastewater infrastructure research and extension program may be established to provide data collection and information, training, and technical assistance concerning:
(1) drinking water infrastructure;
(2) wastewater infrastructure; and
(3) storm water infrastructure;
in Indiana, including assistance with infrastructure and system design, construction, operation, maintenance, financial management, and administration.
(d) The authority may contract with a state supported college or university in Indiana to provide the program. The program:
(1) must be overseen by a director and include such staff as mutually agreed upon by the authority and the college or university; and
(2) may be housed within, or share staff with, the research and highway extension program established by IC 8-17-7, as may be mutually agreed upon by the authority and the college or university.
The authority may financially support the program from existing funds appropriated to the authority.
(e) The program may provide the following services and programs to, or for the benefit of, utilities that provide drinking water, wastewater, or storm water service in Indiana:
(1) Assisting utilities in the development of asset management programs by:
(A) providing educational and technical assistance concerning the principles, benefits, requirements, and implementation of a successful asset management program; and
(B) reviewing the asset management programs of utilities and offering advice in cases in which information or essential components may be missing or lacking.
(2) Serving as a central repository for data concerning the location and condition of, and populations served by, drinking water infrastructure, wastewater infrastructure, and storm water infrastructure throughout Indiana, by:
(A) collecting:
(i) data from utilities, local units, and state agencies; or
(ii) field data;
(B) compiling and organizing the data collected; and
(C) subject to subsection (g), making the data available in an electronic format specified by the authority on a website maintained by:
(i) the authority; or
(ii) the program.
(3) Providing training and technical assistance to utilities by:
(A) offering, participating in, or sponsoring statewide or local conferences and workshops on topics related to the design, construction, operation, maintenance, and administration of utilities' infrastructure and systems; and
(B) making available or providing information on professional development opportunities for Indiana's drinking water, wastewater, and storm water utility industry workforces.
(f) Subject to subsection (g), not later than July 1, 2023, the authority shall make information concerning all:
(1) utility asset management programs; and
(2) utility asset lifecycle management costs;
submitted to or reviewed by the authority under this article available in an electronic format specified by the authority on a website maintained by the authority or the program.
(g) In carrying out the duties set forth in subsections (e)(2) and (f), the authority and, if applicable, the program shall use any data the authority or the program acquires in a manner that:
(1) protects the confidential information of individual utilities and customers; and
(2) is consistent with IC 5-14-3-4.
As added by P.L.18-2022, SEC.5. Amended by P.L.1-2025, SEC.33.
IC 5-1.2-12Chapter 12. Indiana Brownfields Program
5-1.2-12-1Request 5-1.2-12-2Indiana brownfields program; establishment; purposes 5-1.2-12-3Indiana brownfields fund 5-1.2-12-4Duties and powers 5-1.2-12-5Additional powers 5-1.2-12-6Fees 5-1.2-12-7Priority ranking system 5-1.2-12-8Loans or other financial assistance; uses; interest rates; required submissions; sales; pledges 5-1.2-12-9Loans or other financial assistance; necessary documents 5-1.2-12-10Guidelines 5-1.2-12-11Leveraged loan program; authorization 5-1.2-12-12Authorization to issue, guarantee, and sell obligations 5-1.2-12-13Deposits of money; uses
IC 5-1.2-12-1Request Sec. 1. At the request of the department of environmental management, the authority shall carry out the program established under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-2Indiana brownfields program; establishment; purposes Sec. 2. The Indiana brownfields program is established to assist in the remediation of brownfields to encourage the rehabilitation, redevelopment, and reuse of real property by providing grants, loans, forgivable loans, awards of professional services, or other financial assistance to or for the benefit of political subdivisions to conduct any of the following activities:
(1) Identification and acquisition of brownfields within a political subdivision as suitable candidates for redevelopment.
(2) Environmental assessment of identified brownfields, including assessment of petroleum and hazardous substances contamination, and other activities necessary or convenient to complete the environmental assessments.
(3) Remediation activities conducted on brownfields, including:
(A) remediation of petroleum and hazardous substances contamination; and
(B) other activities necessary or convenient to complete remediation activities conducted on brownfields, including clearance of real property.
(4) Other activities in conjunction with assessment and remediation activities necessary or convenient to prepare a brownfield for redevelopment.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-3Indiana brownfields fund Sec. 3. (a) The Indiana brownfields fund is established to provide money for grants, loans, and other financial assistance to or for the benefit of political subdivisions under this chapter. The authority shall administer, hold, and manage the Indiana brownfields fund.
(b) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(c) Expenses of administering the Indiana brownfields fund shall be paid from money in the Indiana brownfields fund.
(d) The Indiana brownfields fund consists of the following:
(1) Appropriations made by the general assembly.
(2) Grants and gifts intended for deposit in the Indiana brownfields fund.
(3) Repayments of loans and other financial assistance from the Indiana brownfields fund, including premiums, interest, and penalties.
(4) Proceeds from the sale of loans and other financial assistance under section 8 of this chapter.
(5) Interest, premiums, gains, or other earnings on the Indiana brownfields fund.
(6) Money transferred from the hazardous substances response trust fund under IC 13-25-4-1(a)(9).
(7) Fees collected under section 6 of this chapter.
(8) Money transferred from the petroleum storage tank excess liability trust fund under IC 13-23-7 for the purpose of environmental assessment and remediation on a property containing at least one (1) underground storage tank or aboveground storage tank.
(9) Money transferred from the petroleum trust fund under IC 13-23-12-4(1) for the purpose of corrective actions that involve releases of regulated substances from underground storage tanks or aboveground storage tanks and are ineligible to receive funds from the petroleum storage tank excess liability trust fund under IC 13-23-7.
(e) The authority shall invest the money in the Indiana brownfields fund not currently needed to meet the obligations of the Indiana brownfields fund in accordance with an investment policy adopted by the authority. Interest, premiums, gains, or other earnings from the investments shall be credited to and deposited in the Indiana brownfields fund.
(f) As an alternative to subsection (e), the authority may invest or cause to be invested all or a part of the Indiana brownfields fund in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture may allow disbursements by the trustee to the authority, a participant, or any other person as provided in the trust agreement or indenture.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.24; P.L.176-2023, SEC.2.
IC 5-1.2-12-4Duties and powers Sec. 4. (a) The authority shall do the following under this chapter:
(1) Be responsible for the management of all aspects of the Indiana brownfields program.
(2) Prepare and provide program information.
(3) Negotiate the negotiable aspects of each financial assistance agreement.
(4) Sign each financial assistance agreement.
(5) Review each proposed project and financial assistance agreement to determine if the project meets the credit, economic, or fiscal criteria established by guidelines of the authority.
(6) Periodically inspect or cause to be inspected projects to determine compliance with this chapter.
(7) Conduct or cause to be conducted an evaluation concerning the financial ability of a private individual or entity, nonprofit entity, or political subdivision to:
(A) pay a loan or other financial assistance and other obligations evidencing loans or other financial assistance, if required to be paid; and
(B) otherwise comply with terms of the financial assistance agreement.
(8) Evaluate or cause to be evaluated the technical aspects of the private individual or entity, nonprofit entity, or political subdivision's:
(A) environmental assessment of potential brownfield properties;
(B) proposed remediation; and
(C) remediation activities conducted on brownfield properties.
(9) Inspect or cause to be inspected remediation activities conducted under this chapter.
(10) Act as a liaison to the United States Environmental Protection Agency regarding the Indiana brownfields program.
(11) Be a point of contact for private entities, nonprofit entities, and political subdivisions concerning questions about the Indiana brownfields program.
(12) Enter into memoranda of understanding, as necessary, with the department of environmental management and the budget agency concerning the administration and management of the Indiana brownfields fund and the Indiana brownfields program.
(b) The authority may do the following under this chapter:
(1) Undertake activities to make private environmental insurance products available to encourage and facilitate the cleanup and redevelopment of brownfield properties.
(2) Enter into agreements with private entities, nonprofit entities, and political subdivisions to manage any of the following conducted on brownfield properties:
(A) Environmental assessment activities.
(B) Environmental remediation activities.
(C) Demolition and clearance activities.
(c) The authority may:
(1) negotiate with;
(2) select; and
(3) contract with;
one (1) or more insurers to provide insurance products as described in subsection (b)(1).
(d) The authority may:
(1) negotiate with;
(2) select; and
(3) contract with;
one (1) or more environmental consultants to undertake the activities described in subsection (b)(2) for the benefit of private entities, nonprofit entities, and political subdivisions.
(e) Notwithstanding IC 13-23, IC 13-24-1, and IC 13-25-4, the authority is not liable for any contamination addressed by the authority under an agreement under subsection (b)(2) unless existing contamination on the brownfield is exacerbated due to gross negligence or intentional misconduct by the authority.
(f) For purposes of subsection (e), reckless, willful, or wanton misconduct constitutes gross negligence.
(g) The authority is entitled to the same governmental immunity afforded a political subdivision under IC 34-13-3-3(a)(22) for any act taken to investigate or remediate hazardous substances, petroleum, or other pollutants associated with a brownfield under an agreement under subsection (b)(2).
(h) This chapter does not require the authority to provide a loan or other financial assistance to any private individual or entity, nonprofit entity, or political subdivision to the extent the authority determines that providing the loan or other financial assistance is not in the best interests of the Indiana brownfields program and the authority.
As added by P.L.189-2018, SEC.25. Amended by P.L.166-2021, SEC.1.
IC 5-1.2-12-5Additional powers Sec. 5. The authority may do the following:
(1) Employ:
(A) fiscal consultants;
(B) environmental consultants;
(C) engineers;
(D) bond counsel;
(E) other special counsel;
(F) accountants; and
(G) any other consultants, employees, and agents;
that the authority considers necessary to carry out the purposes of this chapter.
(2) Fix and pay the compensation of persons employed under subdivision (1) from money available in the Indiana brownfields fund or otherwise made available for the Indiana brownfields program.
(3) Provide services to a private individual or entity, nonprofit entity, or political subdivision in connection with a loan or other financial assistance, including advisory and other services.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-6Fees Sec. 6. (a) The authority may provide services to a person (as defined in IC 13-11-2-158(a)) in connection with financial assistance, technical assistance, and liability clarification, and may assess and collect a fee for:
(1) services provided to offset the costs of providing the services; and
(2) costs and services incurred in the review or consideration of an application for a proposed loan or other financial assistance to or for the benefit of a political subdivision under this chapter, regardless of whether the application is approved or rejected.
(b) A political subdivision may pay fees charged under this section.
(c) The authority shall adopt guidelines for the assessment and collection of fees under this section.
(d) Fees collected under this section shall be deposited in the Indiana brownfields fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-7Priority ranking system Sec. 7. The authority shall use a priority ranking system in making loans and providing other financial assistance under this chapter based on the following:
(1) Socioeconomic distress in an area, as determined by the poverty level and unemployment rate in the area.
(2) The technical evaluation under section 4(a)(8)(A), 4(a)(8)(B), and 4(a)(8)(C) of this chapter.
(3) Other factors determined by the authority, including the following:
(A) The number and quality of jobs that would be generated by a project.
(B) Housing, recreational, and educational needs of communities.
(C) Any other factors the authority determines will assist in the implementation of this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-8Loans or other financial assistance; uses; interest rates; required submissions; sales; pledges Sec. 8. (a) A loan or other financial assistance must be used for at least one (1) of the purposes under section 2 of this chapter and may be used for any of the following purposes:
(1) To:
(A) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the Indiana brownfields fund (including financial institutions) for a purpose allowed by this chapter; or
(B) provide interest subsidies.
(2) To pay financing charges, including interest on the loan or other financial assistance during remediation and for a reasonable period after the completion of remediation.
(3) To pay consultant, advisory, and legal fees, and any other costs or expenses resulting from:
(A) the assessment, planning, or remediation of a brownfield; or
(B) the loan or other financial assistance.
(b) The authority shall establish the interest rate or parameters for establishing the interest rate on each loan made under this chapter, including parameters for establishing the amount of interest subsidies.
(c) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:
(1) Credit risk.
(2) Environmental, water quality, and health protection.
(3) Affordability.
(4) Other fiscal factors the authority considers relevant, including the Indiana brownfields program's cost of funds and whether the financial assistance provided to or for the benefit of a particular political subdivision is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (4), more than one (1) interest rate may be established and used for loans or other financial assistance to or for the benefit of different political subdivisions or for different loans or other financial assistance to or for the benefit of the same political subdivision.
(d) Before a private individual or entity, nonprofit entity, or political subdivision may receive a loan or other financial assistance, including grants, from the Indiana brownfields fund, the private individual or entity, nonprofit entity, or political subdivision must submit the following:
(1) Documentation of community and neighborhood comment concerning the use of a brownfield on which remediation activities will be undertaken after remediation activities are completed.
(2) A plan for repayment of the loan or other financial assistance, if applicable.
(3) A summary of the environmental objectives of the proposed project.
(e) A private individual or entity, nonprofit entity, or political subdivision that receives a loan or other financial assistance from the Indiana brownfields fund shall enter into a financial assistance agreement. A financial assistance agreement related to the Indiana brownfields program is a valid, binding, and enforceable agreement of the private individual or entity, nonprofit entity, or political subdivision.
(f) The authority may sell or assign:
(1) loans or evidence of other financial assistance; and
(2) other obligations of the private individuals or entities, nonprofit entities, or political subdivisions evidencing the loans or other financial assistance from the Indiana brownfields fund;
at any price and on terms acceptable to the authority. Proceeds of sales or assignments under this subsection shall be deposited in the Indiana brownfields fund. A sale or an assignment under this subsection does not create a liability or an indebtedness of the state or the authority except, in the case of the authority, strictly in accordance with the sale or assignment terms.
(g) The authority may pledge loans or evidence of other financial assistance and other obligations of private individuals or entities, nonprofit entities, or political subdivisions evidencing the loans or other financial assistance from the Indiana brownfields fund to secure other loans or financial assistance from the Indiana brownfields fund to or for the benefit of political subdivisions. The terms of a pledge under this subsection must be approved by the budget agency. Notwithstanding any other law, a pledge of property made by the authority and approved by the budget agency under this subsection is binding from the time the pledge is made. Revenues, other money, or other property pledged and then received are immediately subject to the lien of the pledge without any further act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, a trustee, or the Indiana brownfields fund, regardless of whether the parties have notice of a lien. A resolution, an indenture, or other instrument by which a pledge is created is not required to be filed or recorded, except in the records of the authority. An action taken to enforce a pledge under this subsection and to realize the benefits of the pledge is limited to the property pledged. A pledge under this subsection does not create a liability or an indebtedness of the state or the authority except, in the case of the authority, strictly in accordance with the pledge terms.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-9Loans or other financial assistance; necessary documents Sec. 9. A loan or other financial assistance from the fund must be accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of the authority, the following:
(A) An approving opinion of nationally recognized bond counsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or other financial assistance:
(i) no litigation is pending challenging the validity of or entry into the loan or other financial assistance or any security for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have a material adverse effect on the validity of the loan or other financial assistance or any security for the loan or other financial assistance.
(D) If litigation is pending, as an alternative to the certification described in clause (C), an opinion of legal counsel that the litigation will not have a material adverse effect on the validity of the loan or other financial assistance.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-10Guidelines Sec. 10. The authority may adopt guidelines without complying with IC 4-22-2 to govern the administration of this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-11Leveraged loan program; authorization Sec. 11. (a) As an alternative to making loans or providing other financial assistance to private individuals or entities, nonprofit entities, or political subdivisions, the authority may use the money in the Indiana brownfields fund to provide a leveraged loan program and other financial assistance programs to or for the benefit of political subdivisions, including using money in the Indiana brownfields fund to enhance a private individual or entity's, nonprofit entity's, or political subdivision's obligations under this chapter by:
(1) granting money to:
(A) be deposited in:
(i) a capital fund or reserve fund established under IC 5-1.2-4 or another law, including this chapter; or
(ii) any account established within the Indiana brownfields fund; or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurance premiums, or credit enhancement, liquidity support, remarketing, or conversion fees, or other similar fees or costs for obligations of a political subdivision or for bonds or other obligations issued by a trustee that is a financial institution for a grantor trust or the authority if credit market access is improved or interest rates are reduced; or
(3) guaranteeing all or a part of obligations issued by political subdivisions or of bonds or other obligations issued by a trustee that is a financial institution for a grantor trust or the authority.
(b) The authority may enter into any agreements with:
(1) a trustee that is a financial institution for a grantor trust; or
(2) private individuals or entities, nonprofit entities, or political subdivisions;
to carry out this chapter.
(c) A guarantee of obligations or bonds under subsection (a)(3) must be limited to money in the Indiana brownfields fund. A guarantee under subsection (a)(3) does not create a liability or an indebtedness of the state or of the authority except, in the case of the authority, strictly in accordance with the guarantee terms.
(d) Notwithstanding any other law, the authority is considered a qualified entity for purposes of IC 5-1.5.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-12Authorization to issue, guarantee, and sell obligations Sec. 12. (a) Notwithstanding any other law and in addition to any other law, including this article, the authority may issue, guarantee, and sell its revenue bonds, notes, and other obligations and guarantee loans and other financial assistance in connection with the Indiana brownfields program and the Indiana brownfields fund. The revenue bonds, notes, and other obligations must be issued in accordance with a resolution of the authority on terms or within parameters established by the authority, and proceeds must be used to carry out one (1) or more of the purposes of this chapter.
(b) Compliance with this section constitutes full authority for the authority to issue and guarantee its revenue bonds, notes, and other obligations, to guarantee loans and other financial assistance, and to sell the revenue bonds, notes, and other obligations at public or private negotiated sale on terms or within parameters established by the authority. The authority is not required to comply with any other law applicable to the authorization, approval, issuance, guarantee, and sale of its revenue bonds, notes, and other obligations and guarantee loans and other financial assistance. The revenue bonds, notes, and other obligations, including guarantees, issued by the authority in connection with the Indiana brownfields program and the Indiana brownfields fund are valid and binding obligations of the authority and are enforceable in accordance with their terms and payable solely from the sources specified in the resolution authorizing their issuance, guarantee, and sale. The authority's revenue bonds, notes, and other obligations, including guarantees, do not create a liability or debt of the state.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-12-13Deposits of money; uses Sec. 13. (a) The authority may deposit appropriations or other money received under this chapter (or IC 13-19-5, before its repeal) after June 30, 1999, into an account of the Indiana brownfields fund. The authority may use money deposited in the account to award financial assistance, including forgivable loans, to or for the benefit of a political subdivision, and awards of professional services to private individuals or entities, nonprofit entities, and political subdivisions for remediation or other brownfield redevelopment activities. The authority shall, in the manner provided by section 10 of this chapter, adopt guidelines to establish a political subdivision's eligibility for a forgivable loan. The guidelines may provide priority for projects based on the funding source.
(b) The financial assistance agreement for a project to be financed with a forgivable loan must specify economic development or redevelopment goals for the project that must be achieved before the political subdivision will be released from its obligation to repay the forgivable loan.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13Chapter 13. Flood Control Program
5-1.2-13-1Request 5-1.2-13-2Flood control program and fund; establishment 5-1.2-13-3Loans and financial assistance; procedures 5-1.2-13-4Loans and financial assistance; use of money 5-1.2-13-5Loans and financial assistance; conditions 5-1.2-13-6Application; financial assistance agreement; assurances 5-1.2-13-7Duties and powers 5-1.2-13-8Priority ranking system 5-1.2-13-9Interest rates 5-1.2-13-10Financial assistance agreement 5-1.2-13-11Loan or other financial assistance; required documents 5-1.2-13-12Levy for flood control purposes 5-1.2-13-13Default; withholding from distributions
IC 5-1.2-13-1Request Sec. 1. At the request of the department of natural resources, the authority shall carry out the program established under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-2Flood control program and fund; establishment Sec. 2. (a) The flood control program is established.
(b) The flood control fund is created to provide money for loans and financial assistance to or for the benefit of participants under this chapter as part of the flood control program.
(c) The flood control fund must be used exclusively for the purposes of this chapter.
(d) The authority shall hold the flood control fund in the name of the authority. The authority shall administer the flood control fund in the manner provided by IC 5-1.2-4 and this chapter.
(e) Money in the flood control fund does not revert to the state general fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-3Loans and financial assistance; procedures Sec. 3. Loans and financial assistance may be made from the flood control fund to participants in the manner provided by IC 5-1.2-4 and this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-4Loans and financial assistance; use of money Sec. 4. The authority may make an approved loan or provide other financial assistance from the flood control fund to a participant. The money loaned or provided must be used by the participant only for the purpose of undertaking approved assistance.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-5Loans and financial assistance; conditions Sec. 5. The authority may make an approved loan or provide other financial assistance from the flood control fund to a participant for an eligible activity only if:
(1) the eligible activity is authorized and approved by ordinance or resolution enacted by the governing board of the participant; and
(2) the assistance has been approved by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-6Application; financial assistance agreement; assurances Sec. 6. (a) The authority shall authorize the making of a loan or providing other financial assistance to a participant under this chapter subject to the following:
(1) An application for the loan or other financial assistance to undertake an eligible activity has been submitted by the participant to the authority in the manner and form that the authority directs. The application must state the following:
(A) The need for the requested eligible activity and the need for the loan or other financial assistance for undertaking the requested eligible activity.
(B) A detailed description of the requested eligible activity.
(C) An engineering estimate of the cost of the requested eligible activity.
(D) The amount of the loan or other financial assistance considered to be needed.
(E) Other information that is requested by the authority.
(2) By entering into a financial assistance agreement, the authority determines that the eligible activity for which the approved assistance is provided will preserve, protect, or benefit the health, safety, and general welfare of the inhabitants of the participant's jurisdiction and the citizens of the state.
(3) The participant agrees and furnishes assurance, satisfactory to the authority, that after completion, the participant will operate and maintain the eligible activity receiving approved assistance.
(b) This chapter does not require the authority to provide a loan or other financial assistance to any participant to the extent it determines that providing the loan or other financial assistance is not in the best interests of the flood control program and the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-7Duties and powers Sec. 7. (a) The participant:
(1) shall undertake and complete work related to the eligible activity receiving approved assistance; and
(2) may provide labor, equipment, and materials from any source available to the participant related to the eligible activity receiving approved assistance.
(b) The authority may do the following:
(1) Evaluate the participation of the participant in the accomplishment of the eligible activity receiving approved assistance.
(2) Require a contribution by the participant toward the total cost of the eligible activity receiving approved assistance.
(c) Any participation required under this section shall be supervised by the governing board of the participant.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-8Priority ranking system Sec. 8. (a) The authority shall use a priority ranking system in making loans or providing other financial assistance from the flood control fund. The authority, in consultation with other state agencies the authority determines to be appropriate, shall develop the priority ranking system to achieve the purposes of this chapter.
(b) If an emergency demands immediate relief from actual or threatened flood damage, the application made by a participant for a loan or financial assistance may be considered regardless of a previous priority rating ascribed to the applicant.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-9Interest rates Sec. 9. (a) The authority shall establish the interest rate or parameters for establishing the interest rate on each loan and other financial assistance made under this chapter, including parameters for establishing the amount of interest subsidies.
(b) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan and other financial assistance, may take the following into account:
(1) Credit risk.
(2) Environmental enforcement and protection.
(3) Affordability.
(4) Other fiscal factors the authority considers relevant, including the program's cost of flood control funds and whether the financial assistance provided to a particular participant is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (4), more than one (1) interest rate may be established and used for loans and other financial assistance to different participants or for different loans and other financial assistance to the same participants.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-10Financial assistance agreement Sec. 10. A participant receiving a loan or other financial assistance from the flood control fund shall enter into a financial assistance agreement with the authority. A financial assistance agreement related to the flood control program is a valid, binding, and enforceable agreement on the participant.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-11Loan or other financial assistance; required documents Sec. 11. A loan or other financial assistance from the fund must be accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of the authority, the following:
(A) An approving opinion of nationally recognized bond counsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or other financial assistance:
(i) no litigation is pending challenging the validity of or entry into the loan or other financial assistance or any security for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have a material adverse effect on the validity of the loan or other financial assistance or any security for the loan or other financial assistance.
(D) If litigation is pending, as an alternative to the certification described in clause (C), an opinion of legal counsel that the litigation will not have a material adverse effect on the validity of the loan or other financial assistance.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-13-12Levy for flood control purposes Sec. 12. (a) Except as provided in subsection (b), a participant receiving a loan or other financial assistance under:
(1) this chapter;
(2) IC 13-2-23 (before its repeal); or
(3) IC 14-28-5 (before its repeal);
may levy an annual tax on personal and real property located within the geographical limits of the participant for flood control purposes. The tax is in addition to any other tax authorized by law to be levied for flood control purposes. The tax shall be levied at the rate that will produce sufficient revenue to pay the annual installment and interest on a loan or other financial assistance made under this chapter, under IC 13-2-23 (before its repeal), or under IC 14-28-5 (before its repeal). The tax at the rate authorized in this section is in addition to the maximum annual rates prescribed by law.
(b) This subsection applies to the participation of the Kankakee River basin and Yellow River basin development commission. If the commission receives a loan or other financial assistance under this chapter, the commission must pay the annual installment and interest on the loan or other financial assistance from any combination of the direct support payments received under IC 14-13-9-21, the proceeds of special assessments imposed under IC 14-13-9-21, or other funds of the commission deemed acceptable by the authority.
As added by P.L.189-2018, SEC.25. Amended by P.L.282-2019, SEC.2.
IC 5-1.2-13-13Default; withholding from distributions Sec. 13. If a participant fails to make a payment to the flood control fund or any other payment required by this chapter, under IC 13-2-23 (before its repeal), or under IC 14-28-5 (before its repeal) or is in any way indebted to the flood control fund for an amount incurred or accrued, the state may recover the amount through any of the following:
(1) The state may, through the attorney general and on behalf of the authority, file a suit in the circuit or a superior court with jurisdiction in the county in which the participant is located to recover the amount that the participant owes the flood control fund.
(2) The state comptroller may, after a sixty (60) day written notice to the participant, withhold the payment and distribution of state money that the defaulting participant is entitled to receive under Indiana law.
(3) For a special taxing district, upon certification by the state comptroller after a sixty (60) day written notice to the special taxing district, the auditor of each county containing land within the special taxing district shall withhold collected tax money for the special taxing district and remit the withheld tax money to the state comptroller. The state comptroller shall make a payment to the flood control fund in the name of the special taxing district. Upon elimination of the delinquency payment, the state comptroller shall certify the fact to the auditors of the counties involved and any additional withheld tax money shall be released to the special taxing district.
As added by P.L.189-2018, SEC.25. Amended by P.L.9-2024, SEC.115.
IC 5-1.2-14Chapter 14. Water Infrastructure Assistance Program
5-1.2-14-1Request 5-1.2-14-1.2"Non-revenue water" 5-1.2-14-2Water infrastructure assistance program; establishment 5-1.2-14-3Water infrastructure assistance fund 5-1.2-14-4Uses of money in water infrastructure assistance fund; grants, loans, and other financial assistance 5-1.2-14-5Guidelines; interest rate or parameters 5-1.2-14-6Grants, loans, other financial assistance; conditions 5-1.2-14-7Application; required submissions 5-1.2-14-8Asset management program, estimate of life cycle management costs, reports, and other requirements for loan or grant recipients 5-1.2-14-8.2Project prioritization system for awarding loans and grants; variables to be included 5-1.2-14-8.4Utilities serving less than 3,200 customers 5-1.2-14-8.6Advisory services in connection with loan 5-1.2-14-9Selling of loans 5-1.2-14-10Pledging of loans 5-1.2-14-11Report 5-1.2-14-12Requirement to maintain sufficient user charges 5-1.2-14-13Alternative of providing leveraged loan program 5-1.2-14-14Use of money in fund to establish leveraged loan program
IC 5-1.2-14-1Request Sec. 1. At the request of the department of environmental management, the authority shall carry out the program established under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-14-1.2"Non-revenue water" Sec. 1.2. As used in this chapter, "non-revenue water" means the difference between the amount of water that enters a water distribution system and the amount of water provided to users of the water distribution system.
As added by P.L.56-2019, SEC.1.
IC 5-1.2-14-2Water infrastructure assistance program; establishment Sec. 2. The water infrastructure assistance program is established.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-14-3Water infrastructure assistance fund Sec. 3. (a) The water infrastructure assistance fund is established as a source of money for grants, loans, and other financial assistance to, or for the benefit of, participants in the program.
(b) The fund shall be administered, held, and managed by the authority.
(c) The authority shall invest or cause to be invested all or a part of the fund, pursuant to the authority's investment policy, in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment under this subsection may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture referred to in this subsection may permit disbursements by the trustee to the authority, the department, the budget agency, a participant, or any other person as provided in the trust agreement or indenture.
(d) The fund consists of the following:
(1) Fees and other amounts received by the state, paid by the treasurer of state to the authority upon warrants issued by the state comptroller, and deposited in the fund.
(2) Appropriations to the fund from the general assembly.
(3) Grants and gifts of money to the fund.
(4) Proceeds of the sale of:
(A) gifts to the fund; and
(B) loans, evidences of other financial assistance, and other obligations evidencing the loans or other financial assistance, as provided in sections 5 through 9 of this chapter.
(5) Repayments of loans and other financial assistance from the fund, including interest, premiums, and penalties.
(e) Fees and other amounts received by the state pursuant to law concerning the funding of the water infrastructure assistance fund shall be paid monthly by the treasurer of state to the authority upon warrants issued by the state comptroller and deposited in the fund.
(f) The expenses of administering the fund shall be paid from money in the fund.
(g) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(h) All:
(1) money accruing to the fund; and
(2) money allotted to the state under federal law for the purposes of the fund;
is continuously appropriated for the purposes specified in this chapter.
As added by P.L.189-2018, SEC.25. Amended by P.L.56-2019, SEC.2; P.L.9-2024, SEC.116.
IC 5-1.2-14-4Uses of money in water infrastructure assistance fund; grants, loans, and other financial assistance Sec. 4. (a) Money in the water infrastructure assistance fund may be used to do the following:
(1) Provide grants, loans, and other financial assistance to or for the benefit of participants for:
(A) the planning, designing, acquisition, construction, renovation, improvement, or expansion of public water systems; and
(B) other activities necessary or convenient to complete the tasks referred to in clause (A) whether or not the other activities are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
(2) Provide grants, loans, or other financial assistance to or for the benefit of participants for:
(A) the planning, designing, acquisition, construction, renovation, improvement, or expansion of wastewater or storm water collection and treatment systems; and
(B) other activities necessary or convenient to complete the tasks referred to in clause (A) whether or not the other activities are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
(3) Provide grants, loans, or other financial assistance to or for the benefit of participants for the planning, designing, acquisition, construction, renovation, improvement, or expansion of septic relief systems in accordance with guidelines of the authority.
(4) Provide grants to political subdivisions for tasks associated with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses; and
(C) storm water management programs.
(5) Undertake tasks associated with the development and preparation of water, wastewater, and storm water infrastructure and resource analyses.
(6) Conduct all other activities that are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
(b) The authority may make loans or provide other financial assistance from the water infrastructure assistance fund to or for the benefit of a participant to do any of the following:
(1) Establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the fund (including financial institutions) for a purpose permitted by this chapter.
(2) Provide interest subsidies.
(3) Pay financing charges, including interest on the loan or other financial assistance:
(A) during design and construction of a water or wastewater infrastructure project based upon a viable financial plan; and
(B) for a reasonable period after the completion of construction.
As added by P.L.189-2018, SEC.25. Amended by P.L.56-2019, SEC.3; P.L.18-2022, SEC.6.
IC 5-1.2-14-5Guidelines; interest rate or parameters Sec. 5. (a) The authority shall adopt guidelines to establish criteria for the making of grants, loans, and other financial assistance from the water infrastructure assistance fund.
(b) The authority shall establish:
(1) the interest rate; or
(2) parameters for establishing the interest rate;
on each loan made from the water infrastructure assistance fund, including parameters for establishing the amount of interest subsidies.
(c) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan under subsection (b), may take into account the following:
(1) Credit risk.
(2) Environmental, water quality, and health protection.
(3) Affordability.
(4) Other fiscal factors the authority considers relevant, including the wastewater or drinking water program's cost of funds and whether the financial assistance provided to a particular participant is taxable or tax exempt under federal law.
(d) Based on the factors set forth in subsection (c)(1) through (c)(4), more than one (1) interest rate may be established and used:
(1) for loans or other financial assistance to different participants; or
(2) for different loans or other financial assistance to the same participant.
As added by P.L.189-2018, SEC.25. Amended by P.L.56-2019, SEC.4.
IC 5-1.2-14-6Grants, loans, other financial assistance; conditions Sec. 6. (a) The making of grants and loans and the providing of other financial assistance from the water infrastructure assistance fund to or for the benefit of participants under this chapter are subject to the following conditions:
(1) A grant, loan, or other financial assistance may be used:
(A) for:
(i) the planning, designing, acquiring, constructing, renovating, improving, or expanding of public water systems; and
(ii) other activities necessary or convenient to the completion of the tasks referred to in item (i);
(B) to:
(i) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the fund (including financial institutions), for a purpose permitted by clause (A); or
(ii) provide interest subsidies;
(C) to pay financing charges, including interest on the loan during construction and for a reasonable period after the completion of construction; or
(D) to pay the following:
(i) Consultant, advisory, and legal fees.
(ii) Other costs or expenses necessary or incident to the making of grants, loans, or other financial assistance or the administration of the fund or the program.
(2) A grant may be used for tasks associated with the development and preparation of water infrastructure and resource analyses.
(3) The authority must establish the terms and conditions that the authority considers necessary or convenient to the making of grants or loans or providing of other financial assistance under this chapter.
(b) In addition to exercising its powers under subsection (a), the authority may also make grants or loans or provide other financial assistance from the fund to or for the benefit of a participant under the following conditions:
(1) A grant, loan, or other financial assistance may be used:
(A) for planning, designing, acquiring, constructing, renovating, improving, or expanding wastewater or storm water collection and treatment systems, and other activities necessary or convenient to the completion of these tasks;
(B) to:
(i) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the water infrastructure assistance fund (including financial institutions), for a purpose permitted by clause (A); or
(ii) provide interest subsidies;
(C) to pay financing charges, including interest on the loan during construction and for a reasonable period after the completion of construction; or
(D) to pay:
(i) consultant, advisory, and legal fees; and
(ii) other costs or expenses necessary or incident to the grant, loan, or other financial assistance or the administration of the water infrastructure assistance fund or the infrastructure program.
(2) A grant may be used for tasks associated with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses;
(C) storm water management programs; or
(D) other wastewater or storm water infrastructure and resource analyses.
(3) The authority must establish the terms and conditions that the authority considers necessary or convenient to the making of grants or loans or providing of other financial assistance under this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-14-7Application; required submissions Sec. 7. (a) An application for a grant, loan, or other financial assistance from the water infrastructure assistance fund must be accompanied by all papers and opinions required by the authority.
(b) The authority may require that an application for a loan or other financial assistance from the water infrastructure assistance fund be accompanied by the following:
(1) A certification and guarantee of signatures.
(2) A certification that, as of the date of the loan or other financial assistance, no litigation is pending challenging the validity of or entry into:
(A) the grant, loan, or other financial assistance; or
(B) any security for the loan or other financial assistance.
(3) Any other certifications, agreements, security, or requirements that the authority requests.
(4) An approving opinion of nationally recognized bond counsel.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-14-8Asset management program, estimate of life cycle management costs, reports, and other requirements for loan or grant recipients Sec. 8. (a) To receive a loan, grant, or other financial assistance from the water infrastructure assistance fund, a participant:
(1) must demonstrate that it has developed or is in the process of developing an asset management program, as defined in the guidelines of the authority, in the case of a loan, grant, or other financial assistance awarded before July 1, 2023;
(2) must:
(A) demonstrate that it has developed:
(i) an asset management program, as defined in the guidelines of the authority; and
(ii) an estimate of the life cycle management costs, as defined in the guidelines of the authority, that will be incurred over the useful life of the asset to be financed with the loan, grant, or other financial assistance;
not later than the time of submission of the participant's preliminary engineering report for any project for which the loan, grant, or other financial assistance would be provided;
(B) report to the authority on an ongoing basis, at such times as the authority shall prescribe, the actual life cycle management costs incurred by the participant over the useful life of the asset; and
(C) in the case of a participant that is not under the jurisdiction of the Indiana utility regulatory commission, must regularly report, at such times and in such manner as the authority shall prescribe, to all:
(i) customers;
(ii) counties; and
(iii) municipalities;
within the participant's service territory such information concerning the participant's asset management program and utility asset life cycle management costs as the authority may require;
in the case of a loan, grant, or other financial assistance awarded after June 30, 2023; and
(3) must demonstrate to the authority that it has a plan to participate with one (1) or more other participants in cooperative activities, which may include using the proceeds of the loan or grant to pay a part of the costs associated with a cooperative activity.
(b) To receive a loan or grant from the water infrastructure assistance fund for purposes of cybersecurity, a participant must satisfy the same requirements that are established under this chapter for loans or grants for projects for other purposes.
(c) A participant receiving a grant, loan, or other financial assistance from the water infrastructure assistance fund shall enter into a financial assistance agreement with the authority. A financial assistance agreement entered into under this section is a valid, binding, and enforceable agreement of the participant.
(d) After receiving a loan or grant from the water infrastructure assistance fund, a participant must maintain its asset management program:
(1) as long as the loan remains unpaid; or
(2) during the useful life of the asset financed with the loan or grant.
(e) In addition to meeting the other requirements established under this section, a participant must, if appropriate, conduct or participate in efforts to determine and eliminate the causes of non-revenue water in its water distribution system.
(f) Notwithstanding any other law, the authority may establish and implement requirements that:
(1) apply to loans and other financial assistance to be made to participants that are not political subdivisions; and
(2) are different from, or in addition to, requirements that apply to loans and financial assistance made to political subdivisions.
As added by P.L.189-2018, SEC.25. Amended by P.L.56-2019, SEC.5; P.L.18-2022, SEC.7.
IC 5-1.2-14-8.2Project prioritization system for awarding loans and grants; variables to be included Sec. 8.2. (a) The authority shall establish a project prioritization system for the purposes of awarding loans and grants from the water infrastructure assistance fund. The project prioritization system must be based on a model that includes at least the following variables:
(1) The effect of a project on the environment and public health and safety.
(2) The effect upon the user rates and charges of participants.
(3) The existence of plans for collaboration with other entities.
(4) The existence of a plan to measure and manage non-revenue water.
(5) Whether an applicant is employing other best practices as determined by the authority.
(b) The authority shall use the results of the project prioritization system established under subsection (a) to create a project priority list, and shall use the project priority list in awarding grants, loans, and other financial assistance under this chapter. The authority may adjust the project priority list established under this section:
(1) if the authority determines that unforeseen circumstances require an adjustment; or
(2) in case of an emergency.
As added by P.L.56-2019, SEC.6. Amended by P.L.18-2022, SEC.8.
IC 5-1.2-14-8.4Utilities serving less than 3,200 customers Sec. 8.4. The authority shall set aside forty percent (40%) of the water infrastructure assistance fund for purposes of providing grants, loans, and other financial assistance to or for the benefit of utilities serving less than three thousand two hundred (3,200) customers.
As added by P.L.56-2019, SEC.7.
IC 5-1.2-14-8.6Advisory services in connection with loan Sec. 8.6. The authority may provide services to a participant in connection with a loan or other financial assistance from the water infrastructure assistance fund, including advisory services and other services.
As added by P.L.56-2019, SEC.8.
IC 5-1.2-14-9Selling of loans Sec. 9. (a) The authority may sell loans, evidences of other financial assistance, and other obligations evidencing the loans or other financial assistance from the water infrastructure assistance fund:
(1) periodically;
(2) at any price; and
(3) on terms acceptable to the authority.
(b) Proceeds of sales under subsection (a) shall be deposited in:
(1) the water infrastructure assistance fund;
(2) the wastewater revolving loan fund established by IC 5-1.2-10;
(3) the drinking water revolving loan fund established by IC 5-1.2-10; or
(4) the supplemental drinking water and wastewater assistance fund established by IC 5-1.2-11;
at the direction of the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-14-10Pledging of loans Sec. 10. (a) The authority may pledge loans, evidences of other financial assistance, and other obligations evidencing the loans or other financial assistance from the water infrastructure assistance fund to secure other loans or financial assistance from:
(1) the water infrastructure assistance fund;
(2) the wastewater revolving loan fund established by IC 5-1.2-10;
(3) the drinking water revolving loan fund established by IC 5-1.2-10; or
(4) the supplemental drinking water and wastewater assistance fund established by IC 5-1.2-11;
for the benefit of participants.
(b) The terms of a pledge under this section must be acceptable to the authority.
(c) Notwithstanding any other law, a pledge of property made by the authority under this section is binding from the time the pledge is made. Revenues, other money, or other property pledged and thereafter received are immediately subject to the lien of the pledge without any further act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against:
(1) the authority;
(2) the budget agency; or
(3) the water infrastructure assistance fund;
regardless of whether the parties have notice of any lien.
(d) A resolution, an indenture, or another instrument by which a pledge is created under this section does not have to be filed or recorded, except in the records of the authority.
(e) Action taken to:
(1) enforce a pledge made under this section; and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section does not create a liability or indebtedness of the state.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-14-11Report Sec. 11. Not later than August 1 of each odd-numbered year through 2021, the public finance director shall prepare for the budget committee established by IC 4-12-1-3 and the legislative council a report that includes the following:
(1) Information concerning the financial assistance made available to participants from the water infrastructure assistance fund during the two (2) most recent fiscal years.
(2) Any other information requested by the budget committee and the legislative council.
The report must be submitted in an electronic format under IC 5-14-6.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-14-12Requirement to maintain sufficient user charges Sec. 12. The authority shall, if appropriate, require a participant receiving a loan or other financial assistance from the water infrastructure assistance fund to establish under applicable law and maintain sufficient user charges or other charges, fees, taxes, special assessments, or revenues available to the participant to:
(1) operate and maintain its water system or wastewater collection and treatment system; and
(2) pay the obligations of its water system or wastewater collection and treatment system, including all debt service associated with financial assistance from the water infrastructure assistance fund.
As added by P.L.56-2019, SEC.9.
IC 5-1.2-14-13Alternative of providing leveraged loan program Sec. 13. (a) As an alternative to making loans or providing other financial assistance to participants, the authority may use the money in the water infrastructure assistance fund to provide a leveraged loan program and other financial assistance programs to or for the benefit of participants, including using money in the water infrastructure assistance fund to enhance the obligations of participants issued for the purposes of this chapter by:
(1) granting money to:
(A) be deposited in:
(i) a capital fund or reserve fund established under IC 5-1.2-4 or another statute or a trust agreement or indenture as contemplated by this chapter; or
(ii) an account established within a fund described in item (i); or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurance premiums, or credit enhancement, liquidity support, remarketing, or conversion fees, or other similar fees or costs for obligations of a participant or for bonds issued by the authority, if credit market access is improved or interest rates are reduced; or
(3) guaranteeing all or a part of obligations issued by participants or bonds issued by the authority.
(b) A guarantee of obligations or bonds under subsection (a)(3) must be limited to money in the water infrastructure assistance fund. A guarantee under subsection (a)(3) does not create a liability or indebtedness of the state.
As added by P.L.56-2019, SEC.10.
IC 5-1.2-14-14Use of money in fund to establish leveraged loan program Sec. 14. Notwithstanding any other law, money in the water infrastructure assistance fund, together with loan repayments to be deposited in the fund, may be used to establish a leveraged loan program or other financial assistance programs established in connection with the water infrastructure assistance fund.
As added by P.L.56-2019, SEC.11.
IC 5-1.2-14.5Chapter 14.5. Water Infrastructure Grant Program
5-1.2-14.5-1"Non-revenue water" 5-1.2-14.5-2Grant program established 5-1.2-14.5-3Water infrastructure grant fund 5-1.2-14.5-4Uses of money in water infrastructure grant fund 5-1.2-14.5-5Allocation of grants, loans, and other financial assistance; uses; conditions 5-1.2-14.5-6Application for grant, loan, or other financial assistance 5-1.2-14.5-7Asset management program, estimate of life cycle management costs, reports, and other requirements for loan or grant recipients 5-1.2-14.5-8Project prioritization system for awarding loans and grants; variables to be included 5-1.2-14.5-9Advisory services in connection with grant, loan, or other financial assistance 5-1.2-14.5-10Report 5-1.2-14.5-11Requirement to maintain sufficient user charges
IC 5-1.2-14.5-1"Non-revenue water" Sec. 1. As used in this chapter, "non-revenue water" means the difference between the amount of water that enters a water distribution system and the amount of water provided to users of the water distribution system.
As added by P.L.154-2021, SEC.8.
IC 5-1.2-14.5-2Grant program established Sec. 2. The water infrastructure grant program is established.
As added by P.L.154-2021, SEC.8.
IC 5-1.2-14.5-3Water infrastructure grant fund Sec. 3. (a) The water infrastructure grant fund is established as a source of money for grants, loans, and other financial assistance to, or for the benefit of, participants in the program.
(b) The fund shall be administered, held, and managed by the authority.
(c) The authority shall invest or cause to be invested all or a part of the fund, pursuant to the authority's investment policy, in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment under this subsection may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture referred to in this subsection may permit disbursements by the trustee to the authority, the department, the budget agency, a participant, or any other person as provided in the trust agreement or indenture.
(d) The fund consists of the following:
(1) Fees and other amounts received by the state, paid by the treasurer of state to the authority upon warrants issued by the state comptroller, and deposited in the fund.
(2) Appropriations to the fund from the general assembly.
(3) Grants and gifts of money to the fund.
(4) Proceeds of the sale of gifts to the fund.
(5) Repayments of loans and other financial assistance from the fund.
(e) Fees and other amounts received by the state pursuant to law concerning the funding of the water infrastructure grant fund shall be paid by the treasurer of state to the authority upon the authority's request with warrants issued by the state comptroller and deposited in the fund.
(f) The expenses of administering the fund shall be paid from money in the fund.
(g) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(h) All:
(1) money accruing to the fund; and
(2) money allotted to the state under federal law for the purposes of the fund;
is continuously appropriated for the purposes specified in this chapter.
As added by P.L.154-2021, SEC.8. Amended by P.L.9-2024, SEC.117.
IC 5-1.2-14.5-4Uses of money in water infrastructure grant fund Sec. 4. Money in the water infrastructure grant fund may be used to do the following:
(1) Provide grants, loans, and other financial assistance to or for the benefit of participants for:
(A) the planning, designing, acquisition, construction, renovation, improvement, or expansion of water systems; and
(B) other activities necessary or convenient to complete the tasks referred to in clause (A), regardless of whether the other activities are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
(2) Provide grants, loans, or other financial assistance to or for the benefit of participants for:
(A) the planning, designing, acquisition, construction, renovation, improvement, or expansion of wastewater or storm water collection and treatment systems; and
(B) other activities necessary or convenient to complete the tasks referred to in clause (A), regardless of whether the other activities are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
(3) Provide grants, loans, or other financial assistance to or for the benefit of participants for the planning, designing, acquisition, construction, renovation, improvement, or expansion of septic relief systems in accordance with guidelines of the authority.
(4) Provide grants, loans, or other financial assistance to or for the benefit of participants for any eligible activity (as defined in IC 5-1.2-2-23).
(5) Provide grants to political subdivisions for tasks associated with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses; and
(C) storm water management programs.
(6) Undertake tasks associated with the development and preparation of water, wastewater, and storm water infrastructure and resource analyses.
(7) Conduct all other activities that are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
As added by P.L.154-2021, SEC.8. Amended by P.L.18-2022, SEC.9.
IC 5-1.2-14.5-5Allocation of grants, loans, and other financial assistance; uses; conditions Sec. 5. (a) The authority shall adopt guidelines to establish criteria for the making of grants, loans (including parameters for establishing interest rates, if any, on such loans), and other financial assistance from the water infrastructure grant fund.
(b) The making of grants, the making of loans, and the providing of other financial assistance from the water infrastructure grant fund to or for the benefit of participants under this chapter are subject to the following conditions:
(1) A grant, loan, or other financial assistance may be used:
(A) for:
(i) the planning, designing, acquiring, constructing, renovating, improving, or expanding of water systems; and
(ii) other activities necessary or convenient to the completion of the tasks referred to in item (i); or
(B) to pay the following:
(i) Consultant, advisory, and legal fees.
(ii) Other costs or expenses necessary or incident to the making of grants, loans, or other financial assistance or the administration of the fund or the program.
(2) A grant may be used for tasks associated with the development and preparation of water infrastructure and resource analyses.
(3) The authority must establish the terms and conditions that the authority considers necessary or convenient to the making of grants or loans or the providing of other financial assistance under this chapter.
(c) In addition to exercising the authority's powers under subsection (b), the authority may also make grants, make loans, or provide other financial assistance from the fund to or for the benefit of a participant under the following conditions:
(1) A grant, loan, or other financial assistance may be used:
(A) for planning, designing, acquiring, constructing, renovating, improving, or expanding wastewater or storm water collection and treatment systems or for any eligible activity (as defined in IC 5-1.2-2-23), and for other activities necessary or convenient to the completion of these tasks; or
(B) to pay:
(i) consultant, advisory, and legal fees; and
(ii) other costs or expenses necessary or incident to the grant, loan, or other financial assistance or the administration of the water infrastructure grant fund or the infrastructure program.
(2) A grant may be used for tasks associated with the development and preparation of:
(A) long term control plans;
(B) use attainability analyses;
(C) storm water management programs; or
(D) other wastewater or storm water infrastructure and resource analyses.
(3) The authority must establish the terms and conditions that the authority considers necessary or convenient to the making of grants, the making of loans, or the providing of other financial assistance under this chapter.
As added by P.L.154-2021, SEC.8.
IC 5-1.2-14.5-6Application for grant, loan, or other financial assistance Sec. 6. (a) An application for a grant, loan, or other financial assistance from the water infrastructure grant fund must be accompanied by all papers and opinions required by the authority.
(b) The authority may require that an application for a grant, a loan, or other financial assistance from the water infrastructure grant fund be accompanied by the following:
(1) A certification and guarantee of signatures.
(2) A certification that, as of the date of the grant, loan, or other financial assistance, no litigation is pending challenging the validity of or entry into the grant, loan, or other financial assistance.
(3) Any other certifications, agreements, security, or requirements that the authority requests.
(4) An approving opinion of nationally recognized bond counsel.
As added by P.L.154-2021, SEC.8.
IC 5-1.2-14.5-7Asset management program, estimate of life cycle management costs, reports, and other requirements for loan or grant recipients Sec. 7. (a) To receive a loan, grant, or other financial assistance from the water infrastructure grant fund, a participant:
(1) must demonstrate that it has developed or is in the process of developing an asset management program, as defined in the guidelines of the authority, in the case of a loan, grant, or other financial assistance awarded before July 1, 2023;
(2) must:
(A) demonstrate that it has developed:
(i) an asset management program, as defined in the guidelines of the authority; and
(ii) an estimate of the life cycle management costs, as defined in the guidelines of the authority, that will be incurred over the useful life of the asset to be financed with the loan, grant, or other financial assistance;
not later than the time of submission of the participant's preliminary engineering report for any project for which the loan, grant, or other financial assistance would be provided;
(B) report to the authority on an ongoing basis, at such times as the authority shall prescribe, the actual life cycle management costs incurred by the participant over the useful life of the asset; and
(C) in the case of a participant that is not under the jurisdiction of the Indiana utility regulatory commission, must regularly report, at such times and in such manner as the authority shall prescribe, to all:
(i) customers;
(ii) counties; and
(iii) municipalities;
within the participant's service territory such information concerning the participant's asset management program and utility asset life cycle management costs as the authority may require;
in the case of a loan, grant, or other financial assistance awarded after June 30, 2023; and
(3) must demonstrate to the authority that it has a plan to participate with one (1) or more other participants in cooperative activities, which may include using the proceeds of the loan or grant to pay a part of the costs associated with a cooperative activity.
(b) To receive a loan or grant from the water infrastructure grant fund for purposes of cybersecurity, a participant must satisfy the same requirements that are established under this chapter for loans or grants for projects for other purposes.
(c) A participant receiving a grant, loan, or other financial assistance from the water infrastructure grant fund shall enter into an agreement with the authority. An agreement entered into under this section is a valid, binding, and enforceable agreement of the participant.
(d) After receiving a loan or grant from the water infrastructure grant fund, a participant must maintain its asset management program during the useful life of the asset financed with the loan or grant.
(e) In addition to meeting the other requirements established under this section, a participant must, if appropriate, conduct or participate in efforts to determine and eliminate the causes of non-revenue water in its water distribution system.
(f) Notwithstanding any other law, the authority may establish and implement requirements that:
(1) apply to grants, loans, and other financial assistance to be made to participants that are not political subdivisions; and
(2) are different from, or in addition to, requirements that apply to grants, loans, and financial assistance made to political subdivisions.
As added by P.L.154-2021, SEC.8. Amended by P.L.18-2022, SEC.10.
IC 5-1.2-14.5-8Project prioritization system for awarding loans and grants; variables to be included Sec. 8. (a) The authority shall establish a project prioritization system for the purposes of awarding loans and grants from the water infrastructure grant fund. The project prioritization system must be based on a model that includes at least the following variables:
(1) The effect of a project on the environment and public health and safety.
(2) The effect upon, and the affordability of, the user rates and charges of participants.
(3) The existence of plans for collaboration with other entities.
(4) The existence of a plan to measure and manage non-revenue water.
(5) Whether an applicant is employing other best practices as determined by the authority.
(6) Whether the project includes an expansion of storm water collection and treatment systems.
(b) The authority shall use the results of the project prioritization system established under subsection (a) to create a project priority list, and shall use the project priority list in awarding grants, loans, and other financial assistance under this chapter. The authority may adjust the project priority list established under this section:
(1) if the authority determines that unforeseen circumstances require an adjustment; or
(2) in case of an emergency.
As added by P.L.154-2021, SEC.8. Amended by P.L.18-2022, SEC.11.
IC 5-1.2-14.5-9Advisory services in connection with grant, loan, or other financial assistance Sec. 9. The authority may provide services to a participant in connection with a grant, a loan, or other financial assistance from the water infrastructure grant fund, including advisory services and other services.
As added by P.L.154-2021, SEC.8.
IC 5-1.2-14.5-10Report Sec. 10. Not later than August 1 of each odd-numbered year through 2023, the public finance director shall prepare for the budget committee established by IC 4-12-1-3 and the legislative council a report that includes the following:
(1) Information concerning grants, loans, or other financial assistance made available to participants from the water infrastructure grant fund during the two (2) most recent fiscal years.
(2) Any other information requested by the budget committee and the legislative council.
The report must be submitted in an electronic format under IC 5-14-6.
As added by P.L.154-2021, SEC.8.
IC 5-1.2-14.5-11Requirement to maintain sufficient user charges Sec. 11. The authority shall, if appropriate, require a participant receiving a loan or other financial assistance from the water infrastructure grant fund to establish under applicable law and maintain sufficient user charges or other charges, fees, taxes, special assessments, or revenues available to the participant to:
(1) operate and maintain its water system or wastewater collection and treatment system; and
(2) pay the obligations of its water system or wastewater collection and treatment system, including all debt service associated with financial assistance from the water infrastructure grant fund.
As added by P.L.154-2021, SEC.8.
IC 5-1.2-15Chapter 15. Local Transportation Infrastructure Program
5-1.2-15-1Request 5-1.2-15-2Funds 5-1.2-15-3Fund administration 5-1.2-15-4Powers 5-1.2-15-5Default; withholding of distributions 5-1.2-15-6Financial assistance agreement 5-1.2-15-7Allocation of money to projects; procedure 5-1.2-15-8Loans or other financial assistance; uses; condition 5-1.2-15-9Loans or other financial assistance; interest rates 5-1.2-15-10Loans or other financial assistance; necessary documents 5-1.2-15-11Expenses 5-1.2-15-12Investment 5-1.2-15-13Reversion 5-1.2-15-14Other statutes 5-1.2-15-15Compensation 5-1.2-15-16Fees
IC 5-1.2-15-1Request Sec. 1. At the request of the Indiana department of transportation, the authority shall carry out this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-2Funds Sec. 2. The authority may establish local transportation infrastructure revolving funds for the purpose of providing funds to participants for local transportation infrastructure projects. A separate fund may be established for any purpose listed in section 8(a) of this chapter. Each fund shall be administered by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-3Fund administration Sec. 3. (a) In administering a fund, the authority shall do the following:
(1) Monitor applicable infrastructure finance needs and the availability and cost of capital.
(2) Provide financial management of investment pools and financial services associated with loans.
(3) Explore and evaluate capital financing techniques.
(4) Explore methods for the state to enhance the credit quality of bond issues of participants at a minimum cost to the state.
(b) The Indiana department of transportation, the department of environmental management, and any other appropriate state agency, department, or instrumentality, in consultation with the authority, shall advise participants on methods for financing infrastructure.
(c) The authority shall annually present a report to the budget committee and the budget agency that describes the projects funded under this chapter during the year.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-4Powers Sec. 4. Subject to the written procedures developed by the authority under section 7 of this chapter, the authority may do the following:
(1) Accept money from any agency, department, or instrumentality of the United States, the state, or another state for deposit in a fund.
(2) Issue bonds and deposit proceeds in a fund.
(3) Loan money to a participant.
(4) Use the money in a fund:
(A) for debt financing;
(B) for grants;
(C) for loan guarantees;
(D) to manage leveraged loan programs for new construction of local transportation infrastructure projects through recapitalization of funds;
(E) to refinance and purchase participant debt;
(F) to guarantee participant loans;
(G) to make bond and debt service reserve insurance payments;
(H) to guarantee debt service reserve funds; and
(I) to provide other financial assistance;
to or for a participant.
(5) Deposit loan repayments by a participant in a fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-5Default; withholding of distributions Sec. 5. (a) If the authority uses bond proceeds to loan money to or purchase bonds of a participant, the authority may, by the resolution approving the bonds, provide that subsection (b) is applicable to the participant.
(b) Notwithstanding any other law, to the extent that any department or agency of the state, including the treasurer of state, is the custodian of money payable to the participant (other than for goods or services provided by the participant), at any time after written notice to the department or agency head from the authority that the participant is in default on the payment of principal of or interest on the bonds then held or owned by or arising from an agreement with the authority, the department or agency shall withhold the payment of that money from that participant and pay over the money to the authority for the purpose of paying the principal of and interest on the related bonds. However, the withholding of payment from the participant and payment to the authority under this section must not adversely affect the validity of the bonds in default.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-6Financial assistance agreement Sec. 6. (a) If the authority finds that the local transportation infrastructure project:
(1) will be of benefit to the health, safety, morals, and general welfare of the area where the local transportation infrastructure project is to be located; and
(2) complies with the purposes and provisions of this chapter;
the authority may by resolution approve the proposed financial assistance agreement.
(b) A financial assistance agreement approved under this section in connection with bonds must provide for payments in an amount sufficient to pay the principal of, premium on (if any), and interest on the bonds issued for the financing of the local transportation infrastructure project. Interest payments for the anticipated construction period, plus a period of not more than one (1) year, may be funded in the bond issue. The term of a financial assistance agreement may not exceed twenty (20) years from the date of any bonds issued under the financial assistance agreement. However, a financial assistance agreement does not terminate after twenty (20) years if a default under that financial assistance agreement remains uncured, unless the termination is authorized by the terms of the financial assistance agreement.
(c) The authority may do any of the following:
(1) Establish eligibility standards for a participant and local transportation infrastructure projects, 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 given by publication under IC 5-3-1.
(2) Contract with any entity securing, in whole or in part, the payment of bonds issued under this chapter and authorizing the entity to approve the participant that can finance or refinance local transportation infrastructure projects with proceeds from the bond issue secured by that entity.
(3) Finance for participants in connection with their local transportation infrastructure projects:
(A) the cost of their local transportation infrastructure projects, including costs of planning, designing, feasibility studies, construction, expansion, renovation, or improvement;
(B) capitalized interest for the anticipated construction period plus one (1) year; and
(C) in the case of a program funded from the proceeds of taxable bonds or sources other than tax exempt bonds, working capital associated with the operation of such local transportation infrastructure projects;
in amounts determined to be appropriate by the authority.
(d) The authority may provide financial assistance to participants in the form of forgiveness of principal of a loan.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.25.
IC 5-1.2-15-7Allocation of money to projects; procedure Sec. 7. (a) The authority shall establish a written procedure, in coordination with a state agency, department, or instrumentality providing funds under section 4(1) of this chapter and for allocating money to projects described in section 8 of this chapter.
(b) The procedure established under this section must include at least the following:
(1) An application procedure to identify projects that qualify for funding.
(2) Criteria for establishing priority of projects.
(3) Procedures for selecting projects.
(4) Procedures for reporting the results of the selection process and the status of projects to the budget committee.
(c) To apply for a loan or other financial assistance from a fund, a participant must submit an application that contains at least the following information:
(1) A description of the infrastructure for which the loan or other financial assistance is sought.
(2) An estimate of the cost of constructing or improving the infrastructure, including the cost of designing the infrastructure.
(3) Any other information required by the authority in accordance with the procedure established under this section.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-8Loans or other financial assistance; uses; condition Sec. 8. (a) A loan of proceeds of the authority's bonds or a loan or other financial assistance from a fund must be used by a participant to establish or improve highways, roads, streets, bridges, or any other public way, and public mass transportation systems.
(b) Financial assistance from the fund must be made in conjunction with the adoption of a resolution by a participant that sets forth the participant's commitment of revenues or other money or property to the local transportation infrastructure project for which the financial assistance is made.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-9Loans or other financial assistance; interest rates Sec. 9. (a) A loan from a fund may:
(1) not have a term of more than twenty (20) years;
(2) provide for amortization to begin not later than one (1) year after construction of the project ends; and
(3) have an interest rate established by the authority in accordance with subsection (c).
(b) Unless otherwise provided by the procedure established by the authority under section 7 of this chapter, a participant that receives financial assistance from the fund shall enter into a financial assistance agreement. A financial assistance agreement is a valid, binding, and enforceable agreement of the participant.
(c) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:
(1) Credit risk.
(2) Affordability.
(3) Other fiscal factors the authority considers relevant, including the program's cost of funds.
Based on the factors set forth in subdivisions (1) through (3), more than one (1) interest rate may be established and used for loans to different participants or for different loans or other financial assistance to the same participants.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-10Loans or other financial assistance; necessary documents Sec. 10. A loan or other financial assistance from the fund must be accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of the authority, the following:
(A) An approving opinion of nationally recognized bond counsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or other financial assistance:
(i) no litigation is pending challenging the validity of or entry into the loan or other financial assistance or any security for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have a material adverse effect on the validity of the loan or other financial assistance or any security for the loan or other financial assistance.
(D) If litigation is pending, as an alternative to the certification described in clause (C), an opinion of legal counsel that the litigation will not have a material adverse effect on the validity of the loan or other financial assistance.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-11Expenses Sec. 11. The expenses of administering a fund shall be paid from money in that fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-12Investment Sec. 12. The authority may invest money in funds as provided in IC 5-1.2-4-1(a)(17) and IC 5-1.2-4-1(a)(40).
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.26.
IC 5-1.2-15-13Reversion Sec. 13. Money in any fund at the end of a state fiscal year does not revert to the state general fund.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-14Other statutes Sec. 14. The following apply to bonds issued under this chapter for local transportation infrastructure projects:
(1) IC 5-1.2-1-2.
(2) IC 5-1.2-4-7 through IC 5-1.2-4-16.
(3) IC 5-1.2-4-19 through IC 5-1.2-4-20.
(4) IC 5-1.2-4-23.
(5) IC 5-1.2-4-24.
(6) IC 5-1.2-4-26 through IC 5-1.2-4-29.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-15Compensation Sec. 15. The authority may fix and pay the compensation of persons employed for purposes of this chapter from money:
(1) available in a fund; or
(2) otherwise made available for the program.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15-16Fees Sec. 16. A participant may pay fees charged by the authority to carry out this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-15.5Chapter 15.5. Residential Housing Infrastructure Assistance Program
5-1.2-15.5-1Implementation 5-1.2-15.5-2"Eligible project" 5-1.2-15.5-3"Fund" 5-1.2-15.5-4"Housing infrastructure" 5-1.2-15.5-4.5"Political subdivision" 5-1.2-15.5-5"Program" 5-1.2-15.5-6"Public infrastructure" 5-1.2-15.5-7"Residential housing" 5-1.2-15.5-8Residential housing infrastructure assistance program; establishment 5-1.2-15.5-9Residential housing infrastructure assistance revolving fund; use of money 5-1.2-15.5-10Allocation of loans 5-1.2-15.5-11Investment of money 5-1.2-15.5-12Discretion of authority 5-1.2-15.5-13Duties 5-1.2-15.5-14Priority ranking system for awarding loans; criteria 5-1.2-15.5-15Loan terms and conditions 5-1.2-15.5-16Loan application; necessary documents 5-1.2-15.5-17Financial assistance agreement 5-1.2-15.5-18Pledging of loans 5-1.2-15.5-19Guidelines; interest rate or parameters 5-1.2-15.5-20Alternative of providing leveraged loan program 5-1.2-15.5-21Use of money in fund to establish leveraged loan program 5-1.2-15.5-22Guidelines 5-1.2-15.5-23Report
IC 5-1.2-15.5-1Implementation Sec. 1. The authority shall carry out the program established under this chapter.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-2"Eligible project" Sec. 2. As used in this chapter, "eligible project" means a project for housing infrastructure.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-3"Fund" Sec. 3. As used in this chapter, "fund" refers to the residential housing infrastructure assistance revolving fund established by section 9 of this chapter.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-4"Housing infrastructure" Sec. 4. As used in this chapter, "housing infrastructure" means the installation, replacement, upgrade, or improvement of public infrastructure for the support of residential housing.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-4.5"Political subdivision" Sec. 4.5. As used in this chapter, "political subdivision" has the meaning set forth in IC 5-1.2-2-57.
As added by P.L.90-2024, SEC.1.
IC 5-1.2-15.5-5"Program" Sec. 5. As used in this chapter, "program" refers to the residential housing infrastructure assistance program established by section 8 of this chapter.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-6"Public infrastructure" Sec. 6. (a) As used in this chapter, "public infrastructure" means any of the following infrastructure that is or will be owned, maintained, or provided by a political subdivision:
(1) A water distribution system.
(2) A water treatment plant.
(3) A wastewater treatment plant.
(4) A sanitary sewer system.
(5) A storm sewer system.
(6) A lift station.
(7) A street, road, or bridge.
(8) A curb, gutter, or sidewalk.
(9) A traffic signal.
(10) A street light.
(11) An electric or gas distribution line.
(b) The term includes the purchase of land necessary to accommodate a project listed in this section, including any excavation and compaction.
(c) For purposes of subsection (a)(1) through (a)(4), a political subdivision is providing the infrastructure notwithstanding that, after completion of construction, the infrastructure is contributed by the political subdivision to a:
(1) public utility (as defined in IC 8-1-2-1(a));
(2) municipally owned utility (as defined in IC 8-1-2-1(h));
(3) not-for-profit utility (as defined in IC 8-1-2-125(a));
(4) cooperatively owned corporation;
(5) conservancy district established under IC 14-33; or
(6) regional water or sewer district established under IC 13-26.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-7"Residential housing" Sec. 7. As used in this chapter, "residential housing" means single family or multifamily housing for rent or sale. The term includes condominiums and townhouses located within an economic development target area that is designated under IC 6-1.1-12.1-7.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-8Residential housing infrastructure assistance program; establishment Sec. 8. The residential housing infrastructure assistance program is established.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-9Residential housing infrastructure assistance revolving fund; use of money Sec. 9. (a) The residential housing infrastructure assistance revolving fund is established. The fund is a revolving fund to provide money for loans under this chapter to or for the benefit of participants.
(b) The fund consists of:
(1) appropriations from the general assembly;
(2) grants and other gifts of money; and
(3) loan repayments, including interest, premiums, and penalties.
(c) The authority shall administer, hold, and manage the fund.
(d) The cost of administering the fund shall be paid from money in the fund.
(e) Money in the fund shall be used to make loans for public infrastructure for the support of residential housing.
(f) Money in the fund may not be used for any of the following purposes:
(1) Repayment of any debt incurred for a project other than an eligible project.
(2) Routine maintenance and repair projects.
(3) Upgrading utility poles.
(4) Fees for studies, reports, designs, or analyses prepared by consultants or engineers for an eligible project.
(g) Money in the fund is continuously appropriated for the purposes of this chapter.
(h) Money in the fund does not revert to the state general fund at the end of a state fiscal year.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-10Allocation of loans Sec. 10. The authority shall set aside seventy percent (70%) of the money in the fund for housing infrastructure benefitting political subdivisions with a population of less than fifty thousand (50,000).
As added by P.L.204-2023, SEC.5. Amended by P.L.90-2024, SEC.2; P.L.73-2026, SEC.1.
IC 5-1.2-15.5-11Investment of money Sec. 11. (a) The authority shall invest the money in the fund in accordance with an investment policy adopted by the authority. Interest, premiums, gains, or other earnings from the investments shall be credited to and deposited in the fund.
(b) As an alternative to subsection (a), the authority may invest or cause to be invested all or a part of the fund in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture may permit disbursements by the trustee to:
(1) a participant;
(2) the authority; or
(3) any person to which the authority or a participant is obligated, as provided in the trust agreement or indenture.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-12Discretion of authority Sec. 12. This chapter does not require the authority to provide a loan to any participant to the extent the authority determines the loan is not in the best interests of the program and the authority.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-13Duties Sec. 13. The authority shall do the following under this chapter:
(1) Manage the program.
(2) Prepare and provide program information to participants.
(3) Negotiate the negotiable aspects of each financial assistance agreement.
(4) Prepare or cause to be prepared each financial assistance agreement.
(5) Sign each financial assistance agreement.
(6) Conduct or cause to be conducted an evaluation as to the financial ability of each participant to pay the loan and other obligations evidencing the loans, if required to be paid, and comply with the financial assistance agreement.
(7) Review each proposed eligible project and financial assistance agreement to determine if the project meets the credit, economic, or fiscal criteria established by guidelines of the authority.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-14Priority ranking system for awarding loans; criteria Sec. 14. (a) The authority shall develop and use a priority ranking system in making loans from the fund.
(b) The ranking system must prioritize making loans for eligible projects to participants that have adopted and implemented a majority of the following policies for residential housing:
(1) Have:
(A) invested in a housing study within the last five (5) years;
(B) had a housing study performed by a region's local economic development organization; or
(C) demonstrated the need for housing inventory as indicated by the Indiana state housing dashboard.
(2) Have voluntarily revised unified development ordinances, zoning regulations, or other land development rules to allow for:
(A) higher density development of duplexes, triplexes, and fourplexes in areas designated for single family homes;
(B) construction of other housing types including accessory dwelling units and manufactured and modular housing;
(C) adaptive reuse of commercial buildings for residential use such as allowing multifamily development in retail, office, and light manufacturing zones;
(D) increasing the allowable floor area ratio in multifamily housing areas; or
(E) waiver or elimination of regulations such as requirements for:
(i) garage size and placement;
(ii) steeper roof pitch;
(iii) minimum lot size and square footage;
(iv) greater setbacks;
(v) off-street parking;
(vi) design standards that restrict or prohibit the use of code compliant products; or
(vii) property height limitations.
(3) Have streamlined or shortened the permitting processes and timelines, including through one stop and parallel process permitting.
(4) Do not have impact fee ordinances.
(5) Have secured private, local, state, or federal funds to contribute to the eligible project.
(6) Have secured a letter of support from an employer stipulating that the public infrastructure will support residential housing that is in reasonable proximity to employment.
(7) Assist homeowners to age in place through restoration or renovation of existing homes.
(8) Have established density bonuses.
(9) Use property tax abatements to enable higher density and mixed income communities.
(10) Have donated vacant land for affordable housing development.
As added by P.L.204-2023, SEC.5. Amended by P.L.90-2024, SEC.3; P.L.146-2025, SEC.1.
IC 5-1.2-15.5-15Loan terms and conditions Sec. 15. The authority shall establish the terms and conditions that the authority considers necessary or convenient to make loans under this chapter.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-16Loan application; necessary documents Sec. 16. (a) An application for a loan from the fund must be accompanied by all papers and opinions required by the authority.
(b) The authority may require that an application for a loan from the fund be accompanied by the following:
(1) A certification and guarantee of signatures.
(2) A certification that, as of the date of the loan, no litigation is pending challenging the validity of or entry into:
(A) the loan; or
(B) any security for the loan.
(3) Any other certifications, agreements, security, or requirements that the authority requests.
(4) An approving opinion of nationally recognized bond counsel.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-17Financial assistance agreement Sec. 17. A participant receiving a loan from the fund shall enter into a financial assistance agreement. A financial assistance agreement related to the program is a valid, binding, and enforceable agreement of the participant.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-18Pledging of loans Sec. 18. (a) The authority may pledge loans and other obligations of participants evidencing the loans from the fund to secure other loans from the fund to or for the benefit of participants.
(b) The authority must approve the terms of a pledge under this section.
(c) Notwithstanding any other law, a pledge of property made by the authority under this section is binding from the time the pledge is made. Revenues, other money, or other property pledged and that is received after the pledge is immediately subject to the lien of the pledge without any other act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against:
(1) the fund; or
(2) the authority;
regardless of whether the parties have notice of any lien.
(d) A resolution, an indenture, or another instrument by which a pledge is created does not have to be filed or recorded, except in the records of the authority.
(e) Action taken to:
(1) enforce a pledge under this section; and
(2) realize the benefits of the pledge;
is limited to the property pledged.
(f) A pledge under this section does not create a liability or indebtedness of the state.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-19Guidelines; interest rate or parameters Sec. 19. (a) The authority shall establish the interest rate or parameters for establishing the interest rate on each loan made under this chapter, including parameters for establishing the amount of interest subsidies.
(b) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:
(1) Credit risk.
(2) Affordability.
(3) Other fiscal factors the authority considers relevant, including the program's cost of funds and whether the financial assistance provided to a particular participant is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (3), more than one (1) interest rate may be established and used for loans to different participants or for different loans to the same participants.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-20Alternative of providing leveraged loan program Sec. 20. (a) As an alternative to making loans to participants, the authority may use the money in the fund to provide a leveraged loan program to or for the benefit of participants, including using money in the fund to enhance the obligations of participants issued for the purposes of this chapter by:
(1) granting money to:
(A) be deposited in:
(i) a capital fund or reserve fund established under IC 5-1.2-4 or another statute or a trust agreement or indenture as contemplated by this chapter; or
(ii) an account established within a fund described in item (i); or
(B) provide interest subsidies;
(2) paying bond insurance premiums, reserve insurance premiums, or credit enhancement, liquidity support, remarketing, or conversion fees, or other similar fees or costs for obligations of a participant or for bonds issued by the authority, if credit market access is improved or interest rates are reduced; or
(3) guaranteeing all or a part of obligations issued by participants or bonds issued by the authority.
(b) A guarantee of obligations or bonds under subsection (a)(3) must be limited to money in the fund. A guarantee under subsection (a)(3) does not create a liability or indebtedness of the state.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-21Use of money in fund to establish leveraged loan program Sec. 21. Notwithstanding any other law, money in the fund, together with loan repayments to be deposited in the fund, may be used to establish a leveraged loan program in connection with the fund.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-22Guidelines Sec. 22. The authority may adopt guidelines, without complying with IC 4-22-2, to govern the administration of this chapter.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-15.5-23Report Sec. 23. Not later than August 1 of each year, the public finance director shall prepare for the budget committee established by IC 4-12-1-3 and the legislative council a report that includes the following:
(1) Information concerning the loans made available to participants from the fund during each fiscal year.
(2) Any other information requested by the budget committee and the legislative council.
The report to the legislative council must be submitted in an electronic format under IC 5-14-6.
As added by P.L.204-2023, SEC.5.
IC 5-1.2-16Chapter 16. Bond Ceiling
5-1.2-16-1Purpose 5-1.2-16-2Alternative allocation formula 5-1.2-16-3Categories 5-1.2-16-4Annual allocation 5-1.2-16-5Special volume cap 5-1.2-16-6Year end; unused amounts 5-1.2-16-7Forms; guidelines 5-1.2-16-8Application requirements 5-1.2-16-9Application procedure 5-1.2-16-10Selection criteria 5-1.2-16-11Grant termination; conditions
IC 5-1.2-16-1Purpose Sec. 1. The purpose of this chapter is to allocate the volume cap under Section 146 of the Internal Revenue Code.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-2Alternative allocation formula Sec. 2. (a) The allocation formula established by Section 146(b) and Section 146(c) of the Internal Revenue Code for the volume cap established for Indiana is supplanted under the authority granted by Section 146(e) of the Internal Revenue Code.
(b) All amounts of the volume cap are annually allocated to the state. Thereafter all amounts of the volume cap are assigned from the state to other issuers as provided in this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-3Categories Sec. 3. (a) The volume cap shall be allocated annually among categories of bonds in accordance with section 4 of this chapter. Those categories are as follows:
(1) Bonds issued by the authority.
(2) Bonds issued by the IHCDA.
(3) Bonds issued by the ISMEL.
(4) Bonds issued by local units or any other issuers not specifically referred to in this section whose bonds are or may become subject to the volume cap for projects described in:
(A) Division A - Agricultural, Forestry, and Fishing;
(B) Division B - Mining;
(C) Division C - Construction;
(D) Division D - Manufacturing;
(E) Division E - Transportation; and
(F) Division F - Wholesale Trade;
of the SIC Manual (or corresponding sector in the NAICS Manual), and any projects described in Section 142(a)(3), 142(a)(4), 142(a)(5), 142(a)(6), 142(a)(8), 142(a)(9), or 142(a)(10) of the Internal Revenue Code.
(5) Bonds issued by local units or any other issuers not specifically referred to in this section whose bonds are or may become subject to the volume cap for projects described in:
(A) Division G - Retail Trade;
(B) Division H - Finance, Insurance, and Real Estate;
(C) Division I - Services;
(D) Division J - Public Administration; and
(E) Division K - Miscellaneous;
of the SIC Manual (or corresponding sector in the NAICS Manual), and any projects described in Section 142(a)(7) or 144(c) of the Internal Revenue Code.
(b) For purposes of determining the SIC category of a facility, the determination shall be based upon the type of activity engaged in by the user of the facility within the facility in question, rather than upon the ultimate enterprise in which the developer or user of the facility is engaged.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-4Annual allocation Sec. 4. (a) On or before January 1 of each year, the authority shall determine the dollar amount of the volume cap for that year.
(b) Each year the volume cap shall be allocated among the categories specified in section 3 of this chapter as follows:
Percentage of
Type of Bonds
Volume Cap
Bonds issued by the authority
Bonds issued by the IHCDA
28%
Bonds issued by the ISMEL
Bonds issued by local units or other
issuers under section 3(a)(4)
of this chapter
42%
Bonds issued by local units or other
issuers under section 3(a)(5)
of this chapter
20%
(c) Except as provided in subsection (d), the amount allocated to a category represents the maximum amount of the volume cap that will be reserved for bonds included within that category.
(d) The authority may adopt a resolution to alter the allocations made by subsection (b) for a year if the authority determines that the change is necessary to allow maximum usage of the volume cap and to promote the health and well-being of the residents of Indiana by promoting the public purposes served by the bond categories then subject to the volume cap.
(e) The governor may, by executive order, establish for a year a different dollar amount for the volume cap, different bond categories, and different allocations among the bond categories than those set forth in or established under this section and section 3 of this chapter if it becomes necessary to adopt a different volume cap and bond category allocation system in order to allow maximum usage of the volume cap among the bond categories then subject to the volume cap and to promote the health, welfare, and well-being of the residents of Indiana by promoting the public purposes served by the bond categories then subject to the volume cap.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.27.
IC 5-1.2-16-5Special volume cap Sec. 5. The authority shall determine the allocation of any special volume cap in accordance with the federal act authorizing the special volume cap.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-6Year end; unused amounts Sec. 6. (a) At 5 p.m. on December 20 of each year, all categories established by section 3 of this chapter are eliminated and any remaining amounts in those categories shall be placed in a single noncategorized state pool.
(b) After 5 p.m. on December 20 of each year, applications for a grant of volume cap shall be granted from the single noncategorized state pool. These applications shall be granted in the order of priority established in the guidelines adopted under section 7 of this chapter.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-7Forms; guidelines Sec. 7. (a) Notwithstanding IC 5-15-5.1, the authority has the sole authority to prescribe and furnish forms used in the administration of this chapter.
(b) The authority may adopt guidelines, without complying with IC 4-22-2, to govern the administration of this chapter. The guidelines may establish procedures, criteria, and conditions for each category of bonds identified in sections 3 and 4 of this chapter. However, the guidelines may not be inconsistent with the requirements of Section 146 of the Internal Revenue Code.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-8Application requirements Sec. 8. To qualify for a grant of volume cap, an applicant must do the following:
(1) Apply for the grant in conformity with the procedures established by the authority.
(2) Provide the information reasonably requested by the authority to carry out this chapter.
(3) Meet the criteria established by the authority for the category of bond for which the application is filed.
(4) Pay the fees established by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-9Application procedure Sec. 9. The authority shall establish a written:
(1) application procedure for the granting of a portion of the volume cap to an applicant; and
(2) procedure for filing carryforward elections.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-10Selection criteria Sec. 10. The authority shall establish written criteria for the selection of grant applications from among the applicants that qualify for the grant under section 8 of this chapter. The criteria must promote the health and well-being of the residents of Indiana by promoting the public purposes served by each of the bond categories subject to the volume cap.
As added by P.L.189-2018, SEC.25.
IC 5-1.2-16-11Grant termination; conditions Sec. 11. The authority may establish conditions for the termination of a grant of volume cap. The conditions may include requirements such as the following:
(1) That the amount of volume cap granted may not be substantially higher than the amount of actual bonds issued.
(2) That the issuer issue bonds within the time specified by the authority.
As added by P.L.189-2018, SEC.25.
IC 5-1.3ARTICLE 1.3. LEASE FINANCING FOR RAIL PROJECTS FOR THE NORTHWEST INDIANA REGIONAL DEVELOPMENT AUTHORITY AND THE NORTHERN INDIANA COMMUTER TRANSPORTATION DISTRICT
Ch. 1.Legislative Findings of Fact Ch. 2.Definitions Ch. 3.General Provisions Ch. 4.Contracts Ch. 5.Leases Ch. 6.Bonds and Notes
IC 5-1.3-1Chapter 1. Legislative Findings of Fact
5-1.3-1-0.5Obligations legalized and validated 5-1.3-1-1Findings; declaration 5-1.3-1-2Supplemental and additional powers 5-1.3-1-3Conflicting provisions 5-1.3-1-4Leases; authorization 5-1.3-1-5Applicability 5-1.3-1-6Conflicting requirements 5-1.3-1-7Authorization 5-1.3-1-8Contesting the validity of an action
IC 5-1.3-1-0.5Obligations legalized and validated Sec. 0.5. (a) All bonds, notes, evidences of indebtedness, leases, or other written obligations issued or executed under this article by or in the name of the:
(1) IFA;
(2) NWIRDA; and
(3) NICTD;
before April 30, 2019, are hereby legalized and declared valid.
(b) Any pledge, dedication or designation of revenues, conveyance, or mortgage securing the bonds, notes, evidences of indebtedness, leases, or other written obligations issued or executed under this article by or in the name of the:
(1) IFA;
(2) NWIRDA; and
(3) NICTD;
before April 30, 2019, are hereby legalized and declared valid.
(c) Any resolutions adopted, proceedings had, and actions taken under this article by the:
(1) IFA;
(2) NWIRDA; and
(3) NICTD;
before April 30, 2019, under which the bonds, notes, evidences of indebtedness, leases, or other written obligations were or will be issued or under which the pledge, dedication or designation of revenues, conveyance, or mortgage was or will be granted are hereby legalized and declared valid.
As added by P.L.259-2019, SEC.2.
IC 5-1.3-1-1Findings; declaration Sec. 1. (a) The general assembly makes the following findings of fact:
(1) The communities in northwest Indiana face unique and distinct challenges and opportunities related to transportation and economic development that are different in scope and type than those faced by other communities in Indiana.
(2) The general assembly routinely appropriates money to communities throughout the state based on its policy determinations with regard to local need, and has previously authorized appropriations for the development and improvement of the commuter rail system in northwest Indiana.
(3) It is necessary to serve the public interest and to provide for the public welfare by adopting this article for the purposes described in this article.
(b) Any bonds, leases, or obligations entered into under this article by the IFA do not constitute an indebtedness of the state within the meaning or application of any constitutional or statutory provision, prohibition, or limitation.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-1-2Supplemental and additional powers Sec. 2. This article provides an additional and alternative method for doing the things authorized by this article, and is supplemental and additional to powers conferred by other laws and not in derogation of any other powers.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-1-3Conflicting provisions Sec. 3. This article is necessary for the welfare of the state and its inhabitants and shall be liberally construed to effect the purposes of this article. If any other law or rule is inconsistent with this article, this article is controlling as to the financing, acquisition, or construction undertaken under this article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-1-4Leases; authorization Sec. 4. This article contains full and complete authorization for leases between the IFA and:
(1) the NWIRDA;
(2) the NICTD;
(3) a unit;
(4) a political subdivision; or
(5) a governmental entity;
for a rail project. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the IFA, the NWIRDA, or the NICTD or any other officer, department, agency, or instrumentality of the state, any unit, political subdivision, or governmental entity is required to enter into any lease, except as prescribed in this article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-1-5Applicability Sec. 5. (a) This article:
(1) applies to:
(A) the IFA;
(B) the NWIRDA; and
(C) the NICTD;
only when acting for the purposes set forth in this article; and
(2) does not apply to:
(A) the IFA;
(B) the NWIRDA; or
(C) the NICTD;
when acting under any other statute for any other purpose.
(b) This article does not apply to a transit development district established by the NWIRDA under IC 36-7.5-4.5.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-1-6Conflicting requirements Sec. 6. When acting pursuant to powers specifically granted in this article, the IFA, the NWIRDA, and the NICTD are not required to comply with any other state statute or law unless it is required by this article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-1-7Authorization Sec. 7. The IFA, the NWIRDA, and the NICTD may do all things necessary or proper to carry out this article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-1-8Contesting the validity of an action Sec. 8. (a) An action to contest the validity of any action taken under this article may not be brought after the fifteenth day following the date the resolution of:
(1) the IFA;
(2) the NWIRDA; or
(3) the NICTD;
is adopted approving the action taken, provided the applicable statutory procedures have been completed.
(b) If an action challenging an action taken under this article is not brought within the time prescribed by this section, the lease, contract, bonds, notes, obligations, or other action taken shall be conclusively presumed to be fully authorized and valid under the laws of the state and any person is estopped from further questioning the authorization, validity, execution, delivery, or issuance of the lease, contract, bonds, notes, obligations, or other action.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2Chapter 2. Definitions
5-1.3-2-1Applicability 5-1.3-2-2"Bonds" 5-1.3-2-3"Capitalized interest" 5-1.3-2-4"Construction" 5-1.3-2-5"Costs" 5-1.3-2-6"IFA" 5-1.3-2-7"NICTD" 5-1.3-2-8"Notes" 5-1.3-2-9"NWIRDA" 5-1.3-2-10"Obligations" 5-1.3-2-11"Person" 5-1.3-2-12"Political subdivision" 5-1.3-2-13"Property owner" 5-1.3-2-14"Rail project" 5-1.3-2-15"Unit"
IC 5-1.3-2-1Applicability Sec. 1. The definitions in this chapter apply throughout this article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-2"Bonds" Sec. 2. "Bonds" refers to bonds of:
(1) the IFA issued under IC 5-1.3-6; or
(2) the NWIRDA issued under IC 5-1.3-6.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-3"Capitalized interest" Sec. 3. "Capitalized interest" means interest cost on bonds or notes before and during the period of construction of the rail project for which the bonds or notes were issued, and for a period not to exceed two (2) years after completion of construction.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-4"Construction" Sec. 4. "Construction" means constructing, acquiring, renovating, rehabilitating, reconstructing, improving, extending, and equipping a rail project.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-5"Costs" Sec. 5. "Costs" as applied to any rail project, includes any item or cost incurred in the construction of a rail project, including:
(1) the cost of construction;
(2) the cost of acquisition of all land, rights-of-way, property, rights, easements, and any other legal or equitable interests acquired by the IFA for the construction, including the cost of any relocations incident to the acquisition;
(3) the cost of demolishing or removing any buildings, structures, or improvements on property acquired by the IFA, including the cost of:
(A) acquiring any property to which the buildings, structures, or improvements may be moved; or
(B) acquiring any property that may be exchanged for property acquired by the IFA, the NWIRDA, or the NICTD;
(4) financing charges;
(5) costs of issuance of bonds or notes, including costs of credit enhancement, such as bond or note insurance;
(6) remarketing or conversion fees;
(7) discounts resulting from the purchase price of the bonds or notes being less than par;
(8) capitalized interest;
(9) the cost of funding any reserves to secure the payment of bonds or notes;
(10) engineering, financial, trust and legal expenses, costs of plans, specifications, surveys, estimates, and any necessary feasibility studies;
(11) administrative expenses of the IFA, the NWIRDA, or the NICTD relating to any rail project financed by bonds or notes;
(12) refunding any interim financing entered into by the IFA, the NWIRDA, or the NICTD;
(13) reimbursement of the IFA, the NWIRDA, or the NICTD for:
(A) any cost, obligation, or expense incurred by the IFA, the NWIRDA, or the NICTD relating to a rail project;
(B) advances relating to a rail project from the IFA to the NWIRDA or the NICTD or from the NWIRDA to the NICTD for surveys, borings, preparation of plans and specifications, or engineering services; or
(C) any other cost of construction incurred by the NWIRDA or the NICTD that was paid from advances;
(14) other expenses necessary or incident to determining the feasibility or practicability of constructing, operating, and maintaining any rail project; and
(15) other expenses the IFA finds necessary or incident to the construction of the rail project, the financing of the construction, and the placing of the rail project in operation.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-6"IFA" Sec. 6. "IFA" refers to the Indiana finance authority established by IC 5-1.2-3.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-7"NICTD" Sec. 7. "NICTD" refers to the northern Indiana commuter transportation district established under IC 8-5-15.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-8"Notes" Sec. 8. "Notes" refers to notes of the IFA or the NWIRDA issued under IC 5-1.3-6 and includes any evidences of indebtedness of the IFA or the NWIRDA, including notes issued in anticipation of the receipt of grant proceeds from the federal government, but does not include bonds.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-9"NWIRDA" Sec. 9. "NWIRDA" refers to the northwest Indiana regional development authority established under IC 36-7.5-2-1.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-10"Obligations" Sec. 10. "Obligations" means bonds, loan contracts, notes, bond anticipation notes, commercial paper, leases, lease-purchases, installment purchases, certificates of participation in agreements or programs, other evidences of indebtedness, or other agreements or purchasing programs.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-11"Person" Sec. 11. "Person" means any individual, entity, or organization of any kind.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-12"Political subdivision" Sec. 12. "Political subdivision" has the meaning set forth in IC 36-1-2-13, but does not include a township.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-13"Property owner" Sec. 13. "Property owner" means all individuals, copartnerships, associations, governmental units or entities, corporations, limited liability companies, or other legal entities having any title or interest in any land, rights-of-way, property, rights, easements, or legal or equitable interests that may be acquired by the IFA, the NWIRDA, or the NICTD. The term includes the NWIRDA, the NICTD, a unit, or a political subdivision.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-14"Rail project" Sec. 14. "Rail project" refers only to a rail project as defined in IC 36-7.5-1-13.5 and includes all land, rights-of-way, property, rights, easements, materials, and legal or equitable interests that may be acquired by the IFA, the NWIRDA, or the NICTD for the construction of the rail project. The term includes, but is not limited to, any construction, equipment, rail track, embankments, rights of way, sidings, passenger stations or platforms, parking lots, overpasses, railroad bridges, ancillary structures and related safety systems equipment and technology, or other item that the IFA, the NWIRDA, or the NICTD considers necessary or desirable for the construction and operation of a rail project under this article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-2-15"Unit" Sec. 15. "Unit" has the meaning set forth in IC 36-1-2-23, but does not include a township.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3Chapter 3. General Provisions
5-1.3-3-1Contracting; authorization 5-1.3-3-2Financing; authorization 5-1.3-3-3Cooperative efforts; authorization 5-1.3-3-4Authorized payment; sources of money 5-1.3-3-5Property transactions; general authorization 5-1.3-3-6Property transactions involving a rail project; authorization 5-1.3-3-7Contracting; authorization 5-1.3-3-8Grants; authorization 5-1.3-3-9Gifts; authorization 5-1.3-3-10Transfers of rail projects; authorization 5-1.3-3-11Eminent domain; authorization 5-1.3-3-12Lease or transfer of property without competitive bidding; authorization 5-1.3-3-13Exemption from taxation 5-1.3-3-14Exemption from public purchasing and public works statutes
IC 5-1.3-3-1Contracting; authorization Sec. 1. (a) The IFA may contract with the NWIRDA or the NICTD for construction, ownership, maintenance, and operation of rail projects.
(b) The NWIRDA may contract with the NICTD for construction, ownership, maintenance, and operation of rail projects.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-2Financing; authorization Sec. 2. The IFA and the NWIRDA may finance rail projects in accordance with this article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-3Cooperative efforts; authorization Sec. 3. (a) The IFA may exercise any powers provided under this article in participation or cooperation with any governmental entity, including the NWIRDA, the NICTD, a unit, or a political subdivision, and enter into any contracts to facilitate that participation or cooperation.
(b) The NWIRDA may exercise any powers provided under this article in participation or cooperation with any governmental entity, including the IFA, the NICTD, a unit, or a political subdivision, and enter into any contracts to facilitate that participation or cooperation.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-4Authorized payment; sources of money Sec. 4. (a) The IFA may pay or reimburse the cost of construction of a rail project or of owning or leasing a rail project from any money available to the IFA under this article or any other law, including, without limitation, the proceeds of notes and bonds, grant proceeds from the federal government, state appropriations, money on deposit in the next generation trust fund established under IC 8-14-15.2, and state or local revenues from the IFA, NWIRDA, NICTD or any political subdivision.
(b) The NWIRDA may pay or reimburse the cost of construction of a rail project or of owning or leasing a rail project from any money available to the NWIRDA under this article or any other law.
(c) The NICTD may pay or reimburse the cost of construction of a rail project or of owning or leasing a rail project from any funds available to the NICTD under this article or any other law.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-5Property transactions; general authorization Sec. 5. The IFA, the NWIRDA, or the NICTD may sell, transfer, lease as lessor, or otherwise convey any land, rights-of-way, property, rights, easements, or legal or equitable interest the IFA, the NWIRDA, or the NICTD considers necessary or convenient for carrying out the provisions of this article, including disposal of unused or surplus property.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-6Property transactions involving a rail project; authorization Sec. 6. The IFA, the NWIRDA, or the NICTD may acquire by purchase, whenever the IFA, the NWIRDA, or the NICTD considers a purchase expedient, or lease as lessee, any land, rights-of-way, property, rights, easements, or other legal or equitable interests as the IFA, the NWIRDA, or the NICTD considers necessary or convenient for the construction and operation of any rail project. A purchase or lease under this section shall be made upon the terms and at the price agreed upon between the purchaser or lessee, the IFA, and the property owner. The purchaser shall take title to the property, unless the purchaser is the IFA, in which case the IFA shall take title to the property in the name of the state.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-7Contracting; authorization Sec. 7. The IFA, the NWIRDA, or the NICTD (each entity referred to in this section as the "contracting party") may make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this article. These contracts or agreements are not subject to any approvals other than the approval of the contracting party and may be for any term of years and contain any terms that are considered reasonable by the contracting party.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-8Grants; authorization Sec. 8. The IFA, the NWIRDA, or the NICTD (each entity referred to in this section as the "grantee") may receive and accept from any federal or state agency grants for or in aid of the construction of any rail project and repay any grant to the grantee from a federal agency if the repayment is necessary to free the grantee from restrictions that the grantee determines to be in the public interest to remove, or otherwise required by the terms of the grant. Any repayment under this section shall be made from funds available to the grantee at the time the repayment is required and shall be made in a way that does not impair any contract between the grantee and the owners of its bonds or notes or any lease of the grantee.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-9Gifts; authorization Sec. 9. The IFA, the NWIRDA, or the NICTD may accept gifts, devises, bequests, grants, appropriations, revenue sharing, other financing and assistance, and any other aid from any source and agree to and comply with conditions attached to the aid.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-10Transfers of rail projects; authorization Sec. 10. The IFA, the NWIRDA, or the NICTD may accept the transfer of any rail project to it.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-11Eminent domain; authorization Sec. 11. The IFA, the NWIRDA, or the NICTD may:
(1) in the manner provided by IC 32-24; or
(2) as otherwise required for a railroad federal aid project funded in any part under 49 U.S.C. 103, et seq.;
acquire by appropriation any land, rights-of-way, property, rights, easements, or other legal or equitable interests necessary or convenient for the construction or the efficient operation of any rail project. However, compensation for the property taken shall first be made in money as provided by IC 32-24 or as otherwise required for a railroad federal aid project funded in any part under 49 U.S.C. 103, et seq.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-12Lease or transfer of property without competitive bidding; authorization Sec. 12. (a) The state, acting through the governor, may convey, transfer, lease, or sell, with or without consideration, real property of any nature (including buildings, structures, improvements, land, rights-of-way, easements, and legal or equitable interests), title to which is held in the name of the state, to the IFA, without being required to advertise or solicit bids or proposals, in order to accomplish the governmental purposes of this article.
(b) A unit, acting through the unit's executive, may convey, transfer, lease, or sell, with or without consideration, real property of any nature (including buildings, structures, improvements, land, rights-of-way, easements, and legal or equitable interests), title to which is held in the name of the unit, to the IFA, without being required to advertise or solicit bids or proposals in order to accomplish the governmental purposes of this article.
(c) A political subdivision, acting through the political subdivision's legislative body, may convey, transfer, lease, or sell, with or without consideration, real property of any nature (including buildings, structures, improvements, land, rights-of-way, easements, and legal or equitable interests), title to which is held in the name of the political subdivision, to the IFA, without being required to advertise or solicit bids or proposals in order to accomplish the governmental purposes of this article.
(d) The NICTD, acting through its board of trustees, may convey, transfer, lease, or sell, with or without consideration, real property of any nature (including buildings, structures, improvements, land, rights-of-way, easements, and legal or equitable interests), title to which is held in the name of the NICTD, to the IFA, without being required to advertise or solicit bids or proposals in order to accomplish the governmental purposes of this article.
(e) The NWIRDA, acting through its board, may convey, transfer, lease, or sell, with or without consideration, real property of any nature (including buildings, structures, improvements, land, rights-of-way, easements, and legal or equitable interests), title to which is held in the name of the NWIRDA, to the IFA, without being required to advertise or solicit bids or proposals in order to accomplish the governmental purposes of this article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-13Exemption from taxation Sec. 13. All property of the IFA, the NWIRDA, or the NICTD constituting a rail project is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments of the state or any political subdivision.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-3-14Exemption from public purchasing and public works statutes Sec. 14. (a) Notwithstanding IC 36-7.5-2-8, the NWIRDA and the NICTD may utilize and may comply with the provisions of:
(1) IC 5-16;
(2) IC 5-23;
(3) IC 5-30;
(4) IC 5-32;
(5) IC 36-1-12; or
(6) any combination of the statutes listed in subdivisions (1) through (5) as determined by the NWIRDA or the NICTD, whichever is appropriate;
when financing, acquiring and constructing a rail project under this article.
(b) The NWIRDA and the NICTD may contract to finance, acquire, and construct a rail project in accordance with this section.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-4Chapter 4. Contracts
5-1.3-4-1Contracts for rail projects 5-1.3-4-2Contract provisions
IC 5-1.3-4-1Contracts for rail projects Sec. 1. (a) The IFA, the NWIRDA, and the NICTD are responsible for the construction, leasing, and ownership of rail projects. With respect to and for the construction of each rail project, the IFA and the NWIRDA or the NICTD may enter into a contract for the purposes set forth in this chapter. The IFA, the NWIRDA, and the NICTD may enter into a separate contract for each rail project or a master contract for several rail projects.
(b) The IFA, the NWIRDA, and the NICTD have all the powers necessary and incidental to carry out the terms and conditions of contracts under this chapter.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-4-2Contract provisions Sec. 2. A contract may include the following:
(1) Provisions for payment by the IFA to the NWIRDA and the NICTD of all costs incurred by the NWIRDA or the NICTD in the performance of the contract, including all costs of construction, salaries, wages, and associated costs of NWIRDA or NICTD personnel attributable to performance of the contract.
(2) Other terms and conditions that the IFA, the NWIRDA, and the NICTD consider appropriate.
As added by P.L.189-2018, SEC.26. Amended by P.L.10-2019, SEC.28.
IC 5-1.3-5Chapter 5. Leases
5-1.3-5-1Authorization to enter into leases 5-1.3-5-2Lease provisions 5-1.3-5-3Transfers, leases, and leasebacks 5-1.3-5-4Payment of lease rentals and securing bonds 5-1.3-5-5Lease terms 5-1.3-5-6Complete authority 5-1.3-5-7Additional authorization 5-1.3-5-8Financing upon termination of lease 5-1.3-5-9Ground, operating, and maintenance leases 5-1.3-5-10Transfer of rail project upon payment of obligation in full
IC 5-1.3-5-1Authorization to enter into leases Sec. 1. (a) In addition to its other powers, the IFA may enter into a lease or leases with the NWIRDA under this chapter for any or all of the purposes set forth in this article.
(b) The IFA and the NWIRDA have all the powers necessary and incidental to carry out the terms and conditions of leases under this chapter.
(c) If the IFA and the NWIRDA decide to enter into a lease under this chapter, the IFA and the NWIRDA may enter into a separate lease for each rail project or may enter into one (1) or more master leases for several rail projects.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-2Lease provisions Sec. 2. (a) If lease rental payments under a lease from the IFA to the NWIRDA are payable in whole or in part from state appropriations, a lease entered into under this chapter must include the following:
(1) A statement that the term of the lease is for a period coextensive with the biennium used for state budgetary and appropriation purposes with a fractional period when the lease begins, if necessary.
(2) A statement that the term of the lease may be extended from biennium to biennium, with the extensions not to exceed a cumulative lease term of forty (40) years, unless either the IFA or the NWIRDA gives notice of no extension at least six (6) months before the end of a biennium, in which event the lease expires at the end of the biennium in which the notice is given.
(3) A provision stating plainly that the lease does not constitute an indebtedness of the state within the meaning or application of any constitutional or statutory provision, prohibition, or limitation, and if lease rental payments are payable in whole or in part from state appropriations, that lease rentals are payable by the NWIRDA solely from biennial appropriations, and that the lease is for the actual use or availability for use of rail projects provided by the IFA, with payment commencing no earlier than the time the use or availability or partial use or availability commences.
(4) Provisions requiring the NWIRDA to pay rent at times and in amounts sufficient to pay in full:
(A) the debt service payable under the terms of any bonds or notes issued by the IFA and outstanding with respect to any rail project, including any required additions to reserves for the bonds or notes maintained by the IFA; and
(B) additional rent as provided by the lease.
(5) Provisions requiring the NWIRDA to operate and maintain the rail project or rail projects or to cause the rail project or rail projects to be operated and maintained during the term of the lease.
(6) A provision in each master lease for two (2) or more rail projects requiring that each rail project added to the master lease shall be covered by a supplemental lease describing the particular rail project, stating the additional rent payable, and providing that all lease covenants, including the obligation to pay the original and additional rent under any supplement, shall be unitary and include all rail projects covered, whether by the master lease or a supplemental lease.
(7) Provisions permitting the NWIRDA to pay lease rentals solely from available revenues from the fund established under IC 36-7.5-4-1 without providing for consideration of state appropriations.
(b) A lease entered into under this chapter may contain other terms and conditions that the IFA and the NWIRDA consider appropriate.
(c) If lease rental payments under a lease from the IFA to the NWIRDA are payable in whole or in part from state appropriations, the NWIRDA shall request an appropriation for payment of lease rentals on any lease entered into under this chapter in writing at a time sufficiently in advance of the date for payment of the lease rentals.
(d) If lease rental payments under a lease from the IFA to the NWIRDA are payable in whole or in part from state appropriations, and the NWIRDA fails at any time to pay to the IFA when due any lease rentals on any lease under this section, the chairperson of the IFA shall immediately:
(1) report the unpaid amount in writing to the governor and, in an electronic format under IC 5-14-6, to the general assembly; and
(2) notify the treasurer of state that the NWIRDA has failed to pay lease rentals when due.
The treasurer of state, upon being notified of the failure, shall pay the unpaid lease rental obligations that are due from money in the possession of the state that would otherwise be available for distribution to the NWIRDA under any other law, deducting the payment from the amount distributed.
(e) A lease entered into under this chapter must state the term of the lease, which may not exceed forty (40) years.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-3Transfers, leases, and leasebacks Sec. 3. The NWIRDA may sell, transfer, or convey by any means any rail project to the IFA through negotiation of a lease. The NWIRDA may lease any existing rail project system or property under its control to the IFA for construction of a rail project. The rail project may be leased back to the NWIRDA.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-4Payment of lease rentals and securing bonds Sec. 4. The NWIRDA shall pay lease rentals for leases entered into under this chapter and securing bonds issued under IC 5-1.3-6 from revenues deposited in a separate fund established under IC 36-7.5-4-1.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-5Lease terms Sec. 5. (a) Before a lease may be entered into by the NWIRDA under this chapter, the NWIRDA must find that the lease rental provided for is fair and reasonable.
(b) A lease of a rail project from the IFA to the NWIRDA:
(1) may not have a term exceeding forty (40) years;
(2) may not require payment of lease rentals for a newly constructed rail project or for improvements to an existing rail project until the rail project or improvements to the rail project have been completed and are ready for availability or use or for partial availability or use;
(3) may contain provisions:
(A) allowing the NWIRDA to continue to operate an existing rail project or cause an existing rail project to be operated until completion of the acquisition, improvements, reconstruction, or renovation of that rail project or any other rail project; and
(B) requiring payment of lease rentals for land, for an existing rail project being used, reconstructed, or renovated, or for any other existing rail project;
(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 NWIRDA to purchase the rail project upon the terms stated in the lease during the term of the lease for a price equal to the amount required to pay all indebtedness incurred on account of the rail project, including indebtedness incurred for the refunding of that indebtedness;
(6) may be entered into before acquisition or construction of a rail project;
(7) may provide that the NWIRDA must agree to:
(A) pay or cause to be paid, any taxes and assessments on the rail project;
(B) maintain or cause to be maintained, insurance on the rail project for the benefit of the NWIRDA;
(C) assume or cause to be assumed, responsibility for utilities, repairs, alterations, and any costs of operation; and
(D) pay or cause to be paid, a deposit or series of deposits to the IFA from any funds legally available to the NWIRDA before the commencement of the lease to secure the performance of the NWIRDA's obligations under the lease;
(8) must provide that the lease rental payments by the NWIRDA shall be made from the fund established under IC 36-7.5-4-1 and may provide that the lease rental payments by the NWIRDA shall be made from:
(A) net revenues of the rail project;
(B) any other funds available to the NWIRDA; or
(C) both sources described in clauses (A) and (B);
(9) must provide that the IFA is not responsible for the operation and maintenance of the rail project or rail projects upon completion of construction; and
(10) does not create a debt of the:
(A) IFA;
(B) NWIRDA; or
(C) state;
within the meaning or application of any constitutional or statutory provision, prohibition, or limitation.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-6Complete authority Sec. 6. This chapter contains full and complete authority for leases between the IFA and the NWIRDA. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the IFA or the NWIRDA 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 article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-7Additional authorization Sec. 7. (a) The NWIRDA may lease for a nominal lease rental, or sell to the IFA, one (1) or more rail projects or portions of a rail project or land upon which a rail project is located or is to be constructed.
(b) Any lease of all or a portion of a rail project by the NWIRDA to the IFA must be for a term equal to the term of the lease of that rail project back to the NWIRDA.
(c) The NWIRDA may sell property to the IFA for the amount the NWIRDA determines to be in the best interest of the NWIRDA. The IFA may pay that amount from the proceeds of bonds of the IFA.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-8Financing upon termination of lease Sec. 8. If the NWIRDA exercises its option to purchase leased property, the NWIRDA may issue its bonds as authorized by statute.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-9Ground, operating, and maintenance leases Sec. 9. This chapter contains full and complete authority for ground, operating, or maintenance leases of any kind between the NWIRDA and the NICTD. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the NWIRDA or the NICTD 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 article.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-5-10Transfer of rail project upon payment of obligation in full Sec. 10. The IFA shall certify to the NWIRDA and the NICTD that all bonds, notes issued, and leases or other obligations entered into with respect to the rail project or rail projects have been paid to their final maturity. At that time, the rail project or rail projects shall be transferred to the NICTD and neither the IFA or the NWIRDA shall have any further obligation with respect to the rail project or rail projects.
As added by P.L.189-2018, SEC.26. Amended by P.L.10-2019, SEC.29.
IC 5-1.3-6Chapter 6. Bonds and Notes
5-1.3-6-1Authorization to issue and sell bonds and notes 5-1.3-6-2Requirements 5-1.3-6-3Notice; action to contest validity 5-1.3-6-4Execution 5-1.3-6-5Attributes of bonds and notes 5-1.3-6-6Sale 5-1.3-6-7Proceeds; appropriation 5-1.3-6-8Declaration concerning liability; sources or repayment 5-1.3-6-9Enforcement 5-1.3-6-10Exemption from taxation 5-1.3-6-11Authorization to invest 5-1.3-6-12Exemption from registration requirements 5-1.3-6-13Pledges 5-1.3-6-14Insurance; guaranty 5-1.3-6-15Agreements for credit enhancement or liquidity support 5-1.3-6-16Contracts for handling securities and money 5-1.3-6-17Trust agreement 5-1.3-6-18Bonds and notes; purchasing; holding; canceling; reselling 5-1.3-6-19Investment; authorization
IC 5-1.3-6-1Authorization to issue and sell bonds and notes Sec. 1. (a) Except as provided in sections 2 and 6 of this chapter, the IFA may, by resolution, issue and sell bonds or notes of the IFA to provide funding to carry out the provisions of this article with respect to the construction of a rail project or rail projects or the refunding of any bonds or notes, together with any reasonable costs associated with a refunding.
(b) Except as provided in sections 2 and 6 of this chapter, the NWIRDA may, by resolution, issue and sell bonds or notes of the NWIRDA to provide funding to carry out the provisions of this article with respect to the construction of a rail project or rail projects or the refunding of any bonds or notes, together with any reasonable costs associated with a refunding.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-2Requirements Sec. 2. (a) Before the issuance of bonds or notes, the IFA must:
(1) receive the approval of the budget agency; and
(2) receive budget committee review of a financial plan if the bonds or notes are payable from lease rental payments to be made from:
(A) state appropriations; or
(B) money on deposit in the next generation trust fund established under IC 8-14-15.2.
(b) Before the issuance of bonds or notes, the IFA or the NWIRDA shall identify the rail project or rail projects to be financed from the proceeds of the bonds or notes.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-3Notice; action to contest validity Sec. 3. (a) Before issuing a series of bonds or notes, the IFA or the NWIRDA shall publish a notice of its determination to issue the bonds or notes. The notice shall be published one (1) time in two (2) newspapers published and of general circulation in the area where the rail project is located.
(b) An action to contest the validity of:
(1) any contract related to the bonds or notes entered into by or among the IFA, the NWIRDA, or the NICTD before the bonds or notes are issued;
(2) any lease related to the bonds or notes entered into by or among the IFA, the NWIRDA, or the NICTD before the bonds or notes are issued to secure a series of bonds or notes;
(3) a series of bonds or notes issued by the IFA or the NWIRDA; or
(4) any pledge of financial support for the bonds or notes;
may not be brought after the fifteenth day following publication of the notice required by subsection (a).
(c) If a lease or contract is entered into under this chapter after bonds or notes relating to the lease or contract are issued, the IFA may publish notice of execution of the lease or contract as set forth in subsection (a). An action to contest the validity of such a lease or contract, or any pledge of financial support for such a lease or contract, may not be brought after the fifteenth day following publication of the notice.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-4Execution Sec. 4. (a) The bonds or notes of the IFA:
(1) shall be executed by the manual or facsimile signature of the chairperson or vice chairperson of the IFA;
(2) shall be attested by the manual or facsimile signature of the public finance director for the IFA;
(3) shall be imprinted or impressed with the seal of the IFA by any means;
(4) may be authenticated by a trustee, registrar, or paying agent; and
(5) constitute valid and binding obligations of the IFA, even if the chairperson, vice chairperson, or public finance director whose manual or facsimile signature appears on the bonds or notes no longer holds that office.
(b) The bonds or notes of the NWIRDA:
(1) shall be executed by the manual or facsimile signature of the chairperson or vice chairperson of the NWIRDA;
(2) shall be attested by the manual or facsimile signature of the secretary-treasurer of the NWIRDA;
(3) may be authenticated by a trustee, registrar, or paying agent; and
(4) constitute valid and binding obligations of the NWIRDA, even if the chairperson, vice chairperson, or secretary-treasurer whose manual or facsimile signature appears on the bonds or notes no longer holds that office.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-5Attributes of bonds and notes Sec. 5. The bonds or notes, when issued, have all the qualities of negotiable instruments, subject to provisions for registration, under IC 26 and are incontestable in the hands of a bona fide purchaser or owner of the bonds or notes for value.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-6Sale Sec. 6. The bonds or notes may be sold by the IFA or the NWIRDA at a public or a negotiated sale at a time or times determined by the IFA or the NWIRDA and at a premium or discount as determined by the IFA or NWIRDA. In determining the amount of bonds or notes to be issued and sold, the IFA or the NWIRDA may include the costs of construction or of refunding bonds or notes, including reasonable debt service reserves, and all other expenses necessary or incident to the construction of the rail project, a refunding, or the issuance of the bonds or notes.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-7Proceeds; appropriation Sec. 7. The proceeds of the bonds or notes are appropriated for the purpose for which the bonds or notes may be issued and the proceeds shall be deposited and disbursed in accordance with any provisions and restrictions that the IFA or the NWIRDA may provide in the resolution or trust agreement authorizing the issuance of the bonds or notes. The maturities of the bonds or notes, the rights of the owners, and the rights, duties, and obligations of the IFA and the NWIRDA, as applicable, are governed in all respects by this article and the resolution or trust agreement.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-8Declaration concerning liability; sources or repayment Sec. 8. The bonds or notes:
(1) constitute the corporate obligations of the IFA or the NWIRDA;
(2) do not constitute an indebtedness of the state within the meaning or application of any constitutional provision, prohibition, or limitation; and
(3) are payable solely as to both principal and interest from:
(A) the revenues from a lease to the NWIRDA, if any;
(B) other available revenues, if any;
(C) proceeds of bonds or notes, if any; or
(D) investment earnings on proceeds of bonds or notes.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-9Enforcement Sec. 9. The provisions of this article and the covenants and undertakings of the IFA or the NWIRDA as expressed in any proceedings preliminary to or in connection with the issuance of the bonds or notes may be enforced, subject to the provisions of any resolution or trust agreement, by a bond or note owner by action for injunction or mandamus against the IFA or the NWIRDA or any officer, agent, or employee of the IFA or the NWIRDA. However, no action for monetary judgment may be brought against the state for any violations of this article or for payment of the bonds or notes of the IFA or the NWIRDA.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-10Exemption from taxation Sec. 10. (a) All bonds or notes issued under this article by the IFA are issued by a body corporate and politic of this state, but not a state agency, and for an essential public and governmental purpose. The bonds and notes, the interest on the bonds and notes, the proceeds received by an owner from the sale of the bonds or notes to the extent of the owner's cost of acquisition, proceeds received upon redemption for maturity, proceeds received at maturity, and the receipt of the interest and proceeds are exempt from taxation for all purposes except the financial institutions tax imposed under IC 6-5.5.
(b) All bonds or notes issued under this article by the NWIRDA are issued by a body corporate and politic. The bonds and notes, the interest on the bonds and notes, the proceeds received by an owner from the sale of the bonds or notes to the extent of the owner's cost of acquisition, proceeds received upon redemption for maturity, proceeds received at maturity, and the receipt of the interest and proceeds are exempt from taxation for all purposes except the financial institutions tax imposed under IC 6-5.5.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-11Authorization to invest Sec. 11. Notwithstanding any other law, all financial institutions, investment companies, insurance companies, insurance associations, executors, administrators, guardians, trustees, and other fiduciaries may legally invest sinking funds or other money belonging to them or within their control in bonds or notes issued under this chapter.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-12Exemption from registration requirements Sec. 12. Bonds or notes issued under this chapter are exempt from the registration requirements of IC 23-19 and any other state securities registration statutes.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-13Pledges Sec. 13. A pledge of lease rentals, proceeds of bonds or notes, investment earnings on those proceeds, or other money pledged by the IFA or the NWIRDA is binding from the time the pledge is made. Lease rentals, proceeds of bonds or notes, investment earnings on those proceeds, or other money pledged by the IFA or the NWIRDA and received after the pledge by the IFA or the NWIRDA or its trustee or fiduciary is immediately subject to the lien of the pledge without any further act, and the lien of the pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the IFA, regardless of whether the parties have notice of the lien. A resolution, trust agreement, or any other instrument by which a pledge is created is required to be filed or recorded only in the records of the IFA.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-14Insurance; guaranty Sec. 14. (a) The IFA may obtain from the NWIRDA or an agency of the state or of the United States, or from a nongovernmental insurer, available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal, or any debt service reserve funds, on bonds or notes issued by the IFA, or on securities purchased or held by the IFA.
(b) The NWIRDA may obtain from the IFA or an agency of the state or of the United States, or from a nongovernmental insurer, available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal, or any debt service reserve funds, on bonds or notes issued by the NWIRDA, or on securities purchased or held by the NWIRDA.
As added by P.L.189-2018, SEC.26. Amended by P.L.10-2019, SEC.30.
IC 5-1.3-6-15Agreements for credit enhancement or liquidity support Sec. 15. The IFA or the NWIRDA may enter into agreements with an entity to provide credit enhancement or liquidity support for any bonds or notes issued by the IFA or the NWIRDA, or for any debt service reserves securing any bonds or notes, with terms that are reasonable and proper, in the discretion of the IFA or the NWIRDA, and not in violation of law. The IFA or the NWIRDA may execute and deliver notes to evidence its obligation to make payments under such an agreement, but these notes must conform to this article in all respects.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-16Contracts for handling securities and money Sec. 16. The IFA or the NWIRDA may enter into agreements or contracts with any financial institution as may be necessary, desirable, or convenient in the opinion of the IFA or the NWIRDA for rendering services in connection with:
(1) the care, custody, or safekeeping of securities or other investments held or owned by the IFA or the NWIRDA;
(2) the payment or collection of amounts payable as to principal or interest; and
(3) the delivery to the IFA or the NWIRDA of securities or other investments purchased or sold by it.
The IFA or the NWIRDA may also, in connection with any of the services rendered by a financial institution as to custody and safekeeping of its securities or investments, require security in the form of collateral bonds, surety agreements, or security agreements as, in the opinion of the IFA or the NWIRDA, is necessary or desirable.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-17Trust agreement Sec. 17. (a) In the discretion of the IFA or the NWIRDA, any bonds and notes issued under this chapter may be secured by a trust agreement by and between the IFA or the NWIRDA and a corporate trustee, which may be any trust company or bank having the powers of a trust company in Indiana. Such a trust agreement may also provide for a co-trustee, which may be any trust company or bank in the United States.
(b) The trust agreement or the resolution providing for the issuance of the bonds or notes may contain provisions for protecting and enforcing the rights and remedies of the owners of bonds or notes as may be reasonable and proper, in the discretion of the IFA or the NWIRDA, and not in violation of law.
(c) The trust agreement or resolution may set forth the rights and remedies of the owners of any bonds or notes of the trustee and may restrict the individual right of action by the owners.
(d) Any trust agreement or resolution may contain other provisions that the IFA or the NWIRDA considers reasonable and proper for the security of the owners of bonds or notes.
(e) All expenses incurred in carrying out the provisions of the trust agreement or resolution may be paid from money pledged or assigned to the payment of the principal of and interest on bonds or notes or from funds available to the IFA or the NWIRDA.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-18Bonds and notes; purchasing; holding; canceling; reselling Sec. 18. (a) The IFA may purchase bonds or notes of the IFA or the NWIRDA out of its funds or money available for the purchase of its own bonds or notes. The IFA may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with owners of its bonds or notes. Unless canceled, bonds or notes so held shall be considered to be held for resale or transfer and the obligation evidenced by the bonds or notes shall not be considered to be extinguished.
(b) The NWIRDA may purchase bonds or notes of the IFA or the NWIRDA out of its funds or money available for the purchase of its own bonds or notes. The NWIRDA may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with owners of its bonds or notes. Unless canceled, bonds or notes so held shall be considered to be held for resale or transfer and the obligation evidenced by the bonds or notes shall not be considered to be extinguished.
As added by P.L.189-2018, SEC.26.
IC 5-1.3-6-19Investment; authorization Sec. 19. Funds or money held by the IFA, the NWIRDA, or the NICTD under any trust agreement or resolution may be invested pending disbursement as provided in the trust agreement or the resolution. Such an investment is not restricted by or subject to the provisions of any other law.
As added by P.L.189-2018, SEC.26.
IC 5-1.4ARTICLE 1.4. LOCAL PUBLIC IMPROVEMENT BOND BANKS
Ch. 1.Definitions Ch. 2.Establishment and Organization Ch. 3.Powers and Duties Ch. 4.Issuance of Obligations Ch. 5.Reserve Fund Ch. 6.Other Funds and Accounts Ch. 7.Default of the Bank Ch. 8.Purchase of Securities of Qualified Entities Ch. 9.Miscellaneous Provisions
IC 5-1.4-1Chapter 1. Definitions
5-1.4-1-1Application 5-1.4-1-2"Bank" 5-1.4-1-3"Board" 5-1.4-1-4"Bond" 5-1.4-1-5"City" 5-1.4-1-6"County" 5-1.4-1-7"Financial institution" 5-1.4-1-8"Holder" 5-1.4-1-9"Note" 5-1.4-1-10"Qualified entity" 5-1.4-1-11"Reserve fund" 5-1.4-1-12"Security"
IC 5-1.4-1-1Application Sec. 1. The definitions in this chapter apply throughout this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-2"Bank" Sec. 2. "Bank" refers to the local public improvement bond bank established under IC 5-1.4-2-1.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-3"Board" Sec. 3. "Board" refers to the board of directors established under IC 5-1.4-2-2.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-4"Bond" Sec. 4. "Bond" refers to a bond of the bank issued under this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-5"City" Sec. 5. "City" refers to any of the following:
(1) A consolidated city.
(2) A second class city.
(3) A city having a population of more than five thousand (5,000) and less than five thousand one hundred thirty (5,130).
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.1; P.L.255-1997(ss), SEC.1; P.L.170-2002, SEC.13; P.L.119-2012, SEC.12; P.L.104-2022, SEC.14.
IC 5-1.4-1-6"County" Sec. 6. "County" refers to the county in which the bank is located.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-7"Financial institution" Sec. 7. "Financial institution" means a financial institution as defined in IC 28-1-1-3.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-8"Holder" Sec. 8. "Holder" means a person who is:
(1) the bearer of any outstanding bond or note registered to bearer or not registered; or
(2) the registered owner of any outstanding bond or note that is registered other than to bearer.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-9"Note" Sec. 9. "Note" refers to a note of the bank issued under this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-10"Qualified entity" Sec. 10. "Qualified entity" means the following:
(1) A city.
(2) A county.
(3) A special taxing district located wholly within a county.
(4) Any entity whose tax levies are subject to review and modification by a city-county legislative body under IC 36-3-6-9.
(5) A political subdivision (as defined in IC 36-1-2-13) that is located wholly within any of the following counties:
(A) A county that has a population of more than four hundred thousand (400,000) and less than seven hundred thousand (700,000).
(B) A county having a population of more than two hundred fifty thousand (250,000) and less than three hundred thousand (300,000).
(C) A county containing a city that:
(i) is described in section 5(3) of this chapter; and
(ii) has a public improvement bond bank under this article.
(6) A charter school established under IC 20-24 that is sponsored by the mayor of the consolidated city.
(7) Any authority created under IC 36 that leases land or facilities to any qualified entity listed in subdivisions (1) through (6).
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.2; P.L.46-1987, SEC.1; P.L.12-1992, SEC.15; P.L.255-1997(ss), SEC.2; P.L.127-2002, SEC.1 and P.L.179-2002, SEC.1; P.L.1-2005, SEC.71; P.L.119-2012, SEC.13; P.L.104-2022, SEC.15.
IC 5-1.4-1-11"Reserve fund" Sec. 11. "Reserve fund" refers to the reserve fund established under IC 5-1.4-5-1.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-1-12"Security" Sec. 12. "Security" means a bond, note, or evidence of indebtedness issued by a qualified entity and payable from taxes, revenues, rates, charges, assessments, proceeds of funding or refunding bonds or notes, or any combination of the foregoing.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2Chapter 2. Establishment and Organization
5-1.4-2-1Local public improvement bond bank; establishment; nature; purpose 5-1.4-2-1.5Public purpose 5-1.4-2-2Board of directors; establishment; membership; appointment; vacancy 5-1.4-2-3Duties of board 5-1.4-2-4Quorum 5-1.4-2-5Action by affirmative vote of three directors; effect of vacancy 5-1.4-2-6Surety bonds; issuer; cost 5-1.4-2-7Disclosure of interest in contract; abstention; validity of contract 5-1.4-2-8Liability of director or issuer of bonds or notes 5-1.4-2-9Executive director; duties
IC 5-1.4-2-1Local public improvement bond bank; establishment; nature; purpose Sec. 1. (a) In a city there is established a local public improvement bond bank, to be known as "The ____________ (name of city) __________ Local Public Improvement Bond Bank", for:
(1) the public purposes set out in this article; and
(2) in the case of a city described in IC 5-1.4-1-5(3), the additional public purposes of:
(A) developing infrastructure;
(B) promoting education and tourism; and
(C) assisting economic development.
(b) The bank is a body corporate and politic separate from the city in its corporate capacity.
(c) The purpose of the bank is to buy and sell securities of qualified entities.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.3; P.L.11-1987, SEC.9; P.L.255-1997(ss), SEC.3.
IC 5-1.4-2-1.5Public purpose Sec. 1.5. The general assembly finds that the establishment of a local public improvement bond bank in a city described in IC 5-1.4-1-5(3):
(1) is necessary as a result of:
(A) unique sources of revenues available to the city in relation to its budget;
(B) extraordinary needs for infrastructure improvements in the city and in the county in which the city is located;
(C) unprecedented opportunities for economic development, including tourism development; and
(D) unique demands for education and workforce development, including facilities for providing education and training;
(2) will afford the city the necessary flexibility to address the extraordinary demands and opportunities in a manner that will best serve the interests of the city and the state; and
(3) constitutes an important public purpose and will protect and improve the health, safety, and welfare of the people of the city and the state.
As added by P.L.255-1997(ss), SEC.4.
IC 5-1.4-2-2Board of directors; establishment; membership; appointment; vacancy Sec. 2. (a) There is established a board of directors to govern the bank. The powers of the bank are vested in this board.
(b) The board is composed of five (5) directors appointed by the mayor of the city.
(c) Each of the five (5) directors appointed by the mayor:
(1) must be a resident of the county;
(2) serves for a term of three (3) years and until a successor is appointed and qualified;
(3) is eligible for reappointment;
(4) shall serve without compensation, but is entitled to reimbursement for traveling expenses and other expenses, actually incurred in connection with the director's duties;
(5) may be removed for cause by the mayor; and
(6) may not be an officer or employee of:
(A) the city;
(B) the county; or
(C) any qualified entity.
(d) Any vacancy on the board, other than by expiration of term, shall be filled by appointment of the mayor for the unexpired term only.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-3Duties of board Sec. 3. The board shall do the following:
(1) Elect from its membership a chairman and a vice chairman.
(2) Appoint and fix the duties and compensation of an executive director, who shall serve as both secretary and treasurer. The executive director may be the fiscal officer of the city, in which case the executive director will receive no compensation for services performed as the executive director.
(3) Establish and maintain the office of the bank in the city.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-4Quorum Sec. 4. Three (3) directors constitute a quorum at any meeting of the board.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-5Action by affirmative vote of three directors; effect of vacancy Sec. 5. Action may be taken by the board at a meeting by the affirmative vote of at least three (3) directors. A vacancy on the board does not impair the right of a quorum of directors to exercise the powers and perform the duties of the board.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-6Surety bonds; issuer; cost Sec. 6. (a) Each director and the executive director must execute a surety bond in an amount specified by the legislative body of the city. Each surety bond shall be conditioned upon the faithful performance of the duties of the office of director and executive director, respectively. In lieu of these surety bonds, the bank may execute a blanket surety bond covering each director, the executive director, and any officers or employees of the bank.
(b) The surety bonds required by this section must be issued by a surety company authorized to transact business in Indiana.
(c) The cost of the surety bonds required by this section shall be paid by the bank.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.4.
IC 5-1.4-2-7Disclosure of interest in contract; abstention; validity of contract Sec. 7. (a) Notwithstanding any other law to the contrary, a director does not violate any law, civil or criminal, if the director:
(1) has, or to the director's knowledge may have or may later acquire, a direct or indirect pecuniary interest in a contract with the bank; or
(2) is an officer, member, manager, director, or employee of, or has an ownership interest in, any firm, limited liability company, or corporation that is or may be a party to the contract;
if the director discloses in writing to the bank the nature and extent of the interest as soon as the director has knowledge of the interest and abstains from discussion, deliberation, action, and voting with respect to the contract.
(b) Notwithstanding any provision of this article or any other law, a contract or transaction is not void or voidable because of the existence of an interest described in subsection (a), if the provisions of subsection (a) have been satisfied.
As added by P.L.42-1985, SEC.1. Amended by P.L.8-1993, SEC.50.
IC 5-1.4-2-8Liability of director or issuer of bonds or notes Sec. 8. Neither a director nor a person executing bonds or notes issued under this article is liable personally on the bonds or notes.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-9Executive director; duties Sec. 9. (a) The executive director appointed under section 3 of this chapter shall, in addition to other duties fixed by the directors:
(1) administer, manage, and direct the employees of the bank;
(2) approve all amounts for salaries, allowable expenses of the bank or of any employee or consultant of the bank, and expenses incidental to the operation of the bank; and
(3) attend the meetings of the board, keep a record of the proceedings of the board, and maintain all books, documents, and papers filed with the bank, the minutes of the board, and the bank's official seal.
(b) The executive director may:
(1) cause copies to be made of all minutes and other records and documents of the bank; and
(2) give certificates under seal of the bank to the effect that those copies are true copies, and all persons dealing with the bank may rely upon those certificates.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-3Chapter 3. Powers and Duties
5-1.4-3-1Powers 5-1.4-3-2Additional powers 5-1.4-3-3Investments 5-1.4-3-4Prohibited acts 5-1.4-3-5Audit of books and accounts; annual report to mayor 5-1.4-3-6Annual budget; amendment 5-1.4-3-7Expenses 5-1.4-3-8Open meetings; records
IC 5-1.4-3-1Powers Sec. 1. The bank is granted all powers necessary, convenient, or appropriate to carry out and effectuate its public and corporate purposes, including the following:
(1) Have a perpetual existence as a body politic and corporate and an independent instrumentality, but not a city or county agency, exercising essential public functions.
(2) Sue and be sued.
(3) Adopt and alter an official seal.
(4) Make and enforce bylaws and rules for the conduct of its business and for the use of its services and facilities.
(5) Acquire, hold, use, and dispose of its income, revenues, funds, and money.
(6) Acquire, rent, lease, hold, use, and dispose of other personal property for its purposes.
(7) Make contracts and incur liabilities, borrow money, issue its negotiable bonds or notes, subject to provisions for registration of negotiable bonds and notes, and provide for and secure their payment and provide for the rights of their holders, and purchase, hold, and dispose of any of its bonds or notes.
(8) Fix and revise from time to time and charge and collect fees and charges for the use of its services or facilities.
(9) Accept gifts or grants of property, funds, money, materials, labor, supplies, or services from the United States, the state, any governmental unit, or any person, carry out the terms or provisions of or make agreements with respect to the gifts or grants, and do all things necessary, useful, desirable, or convenient in connection with procuring, accepting, or disposing of the gifts or grants.
(10) Do anything authorized by this article, through its officers, agents, or employees or by contracts with a person.
(11) Procure insurance against any losses in connection with its property, operations, or assets in amounts and from insurers as it considers desirable.
(12) Cooperate with and exchange services, personnel, and information with any federal, state, or local government agency.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.5.
IC 5-1.4-3-2Additional powers Sec. 2. The bank may:
(1) make, enter into, and enforce all contracts necessary, convenient, or desirable for the purposes of the bank or pertaining to:
(A) a purchase or sale of securities or other investments; or
(B) the performance of its duties and execution of any of its powers under this article;
(2) purchase or hold securities at prices and in a manner the bank considers advisable and sell securities acquired or held by it at prices without relation to cost and in a manner the bank considers advisable;
(3) prescribe the form of application or procedure required of a qualified entity for a purchase of its securities, fix the terms and conditions of the purchase, and enter into agreements with qualified entities with respect to purchases;
(4) render services to a qualified entity in connection with a public or private sale of its securities, including advisory and other services, and charge for services rendered;
(5) charge for its costs and services in review or consideration of a proposed purchase by the bank of securities, whether the securities are purchased;
(6) fix and establish terms and provisions with respect to:
(A) a purchase of securities by the bank, including date and maturities of the securities;
(B) redemption or payment before maturity; and
(C) any other matters that in connection with the purchase are necessary, desirable, or advisable in the judgment of the bank;
(7) to the extent permitted under its contracts with the holders of bonds or notes of the bank, consent to modification of the rate of interest, time for payment of any installment of principal or interest, security, or any other term of a bond or note, contract, or agreement of any kind to which the bank is a party; and
(8) appoint and employ general or special counsel, accountants, financial advisors or experts, and all such other or different officers, agents, and employees as it requires and determine their qualifications, duties, and compensation, all in order to effectuate the purposes of this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-3-3Investments Sec. 3. Money not being used to purchase securities may be invested as provided in a resolution, agreement, or trust agreement of the bank.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.6.
IC 5-1.4-3-4Prohibited acts Sec. 4. The bank may not:
(1) purchase securities other than from a qualified entity or other than for investment under section 3 of this chapter;
(2) deal in securities within the meaning of or subject to any securities law, securities exchange law, or securities dealers law of the United States, of the state, or of any other state or jurisdiction, domestic or foreign, except as authorized in this article;
(3) emit bills of credit, accept deposits of money for time or demand deposit, administer trusts, engage in any form or manner, or in the conduct of, any private or commercial banking business, or act as a savings bank, savings association, or any other kind of financial institution;
(4) engage in any form of private or commercial banking business; or
(5) purchase securities from a qualified entity located in a county other than the county in which the bank is located.
As added by P.L.42-1985, SEC.1. Amended by P.L.79-1998, SEC.5.
IC 5-1.4-3-5Audit of books and accounts; annual report to mayor Sec. 5. (a) The bank shall have an audit of its books and accounts made at least once each year by either the state board of accounts or by an auditor or auditing firm to be appointed by the board upon review of the firm's proposal by the state board of accounts. The cost of the audit shall be considered an expense of the bank, and a copy of the audit shall be made available to the public.
(b) The bank shall submit a report of its activities for each fiscal year to the mayor not more than forty-five (45) days after the end of each fiscal year. Each report shall set forth a complete operating and financial statement covering its operations during that fiscal year.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.7.
IC 5-1.4-3-6Annual budget; amendment Sec. 6. The board shall adopt an annual budget on either a calendar or fiscal year basis. The annual budget may be amended from time to time during the year.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.8.
IC 5-1.4-3-7Expenses Sec. 7. All expenses incurred in carrying out this article are payable solely from revenues of the bank or funds appropriated under this chapter, and nothing in this article authorizes the bank to incur an indebtedness or liability on behalf of or payable by the city or county.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.9.
IC 5-1.4-3-8Open meetings; records Sec. 8. All meetings of the bank shall be open to the public in accordance with and subject to IC 5-14-1.5. All records of the bank shall be subject to the requirements of IC 5-14-3.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4Chapter 4. Issuance of Obligations
5-1.4-4-1Bonds or notes; purposes; general obligation of bank; additional security 5-1.4-4-2Nature of bonds or notes; state pledge and agreement 5-1.4-4-3Negotiability of bonds and notes 5-1.4-4-4Authorization; issuance in series; requirements; consent of city or state agency 5-1.4-4-5Resolution authorizing issuance; adoption; action to set aside resolution 5-1.4-4-6Public or private sale; notice 5-1.4-4-7Issuance of notes; payment of principal or interest 5-1.4-4-8Trust agreement as security; provisions of trust agreement or resolution; expenses 5-1.4-4-9Purchase of bonds or notes of bank; disposition 5-1.4-4-10Purchase of securities; documentation
IC 5-1.4-4-1Bonds or notes; purposes; general obligation of bank; additional security Sec. 1. (a) The bank may issue its bonds or notes in principal amounts that it considers necessary to provide funds for any purposes under this article, including:
(1) the purchase of securities;
(2) the payment, funding, or refunding of the principal of, or interest or redemption premiums on, bonds or notes issued by it whether the bonds or notes or interest to be paid, funded, or refunded have or have not become due; and
(3) the establishment or increase of reserves to secure or to pay bonds or notes or interest on bonds or notes and all other costs or expenses of the bank incident to and necessary or convenient to carry out its corporate purposes and powers.
(b) Except as otherwise provided in this article or by the board, every issue of bonds or notes shall be general obligations of the bank payable out of the revenues or funds of the bank, subject only to agreements with the holders of a particular series of bonds or notes pledging a particular revenue or fund. Bonds or notes may be additionally secured by a pledge of a grant or contributions from the United States, the state, a qualified entity, or a person or a pledge of income or revenues, funds, or money of the bank from any source.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.10.
IC 5-1.4-4-2Nature of bonds or notes; state pledge and agreement Sec. 2. (a) A bond or note of the bank:
(1) is not a debt, liability, loan of the credit, or pledge of the faith and credit of any qualified entity;
(2) is payable solely from the money pledged or available for its payment under this article, unless funded or refunded by bonds or notes of the bank; and
(3) must contain on its face a statement that the bank is obligated to pay principal and interest, and redemption premiums if any, and that the faith, credit, and taxing power of any qualified entity is not pledged to the payment of the bond or note.
(b) The state pledges to and agrees with the holders of the bonds or notes issued under this article that the state will not:
(1) limit or restrict the rights vested in the bank to fulfill the terms of any agreement made with the holders of its bonds or notes; or
(2) in any way impair the rights or remedies of the holders of the bonds or notes;
until the bonds or notes, together with the interest on the bonds or notes and interest on unpaid installments of interest and all costs and expenses in connection with an action or proceeding by or on behalf of the holders, are fully met, paid, and discharged.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.11.
IC 5-1.4-4-3Negotiability of bonds and notes Sec. 3. The bonds and notes of the bank are negotiable instruments for all purposes of the Uniform Commercial Code (IC 26-1), subject only to the provisions of the bonds and notes for registration.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4-4Authorization; issuance in series; requirements; consent of city or state agency Sec. 4. (a) Bonds or notes of the bank must be authorized by resolution of the board, may be issued in one (1) or more series, and must:
(1) bear the date;
(2) mature at the time or times;
(3) bear interest at the rate or rates of interest or within a maximum rate or specify the method by which the interest rate or rates may be determined;
(4) be in the denomination;
(5) be in the form;
(6) carry the conversion or registration privileges;
(7) have the rank or priority;
(8) be executed in the manner;
(9) be payable from the sources in the medium of payment at the place inside or outside the state; and
(10) be subject to the terms of redemption;
as the resolution of the board or the trust agreement securing the bonds or notes provides.
(b) Bonds or notes may be issued under this article without obtaining the consent of any agency of the state or city and without any other proceeding or condition other than the proceedings or conditions specified in this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4-5Resolution authorizing issuance; adoption; action to set aside resolution Sec. 5. Upon the adoption of a resolution authorizing the issuance of bonds or notes, any action or proceeding in any court to set aside the resolution authorizing the issuance of bonds or notes of the bank under this article or to obtain any relief upon the ground that the resolution is invalid must be filed within fifteen (15) days following the adoption of the resolution. After the expiration of this fifteen (15) day period, no right of action shall be asserted nor shall the validity of the resolution or any of its provisions be open to question in any court or agency upon any grounds whatsoever.
As added by P.L.42-1985, SEC.1. Amended by P.L.2-1989, SEC.12.
IC 5-1.4-4-6Public or private sale; notice Sec. 6. Bonds or notes of the bank may be sold at public or private sale at the price the board determines. If bonds or notes of the bank are to be sold at public sale, the bank shall follow IC 5-1-11 and shall publish notice of the sale as required by IC 5-3-1 for the sale of bonds or notes of the city.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.12.
IC 5-1.4-4-7Issuance of notes; payment of principal or interest Sec. 7. The bank may from time to time issue its notes under this article and pay and retire the principal of the notes or pay the interest due thereon or fund or refund the notes from proceeds of bonds or of other notes or from other funds or money of the bank available for that purpose in accordance with a contract between the bank and the holders of the notes.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4-8Trust agreement as security; provisions of trust agreement or resolution; expenses Sec. 8. (a) Any bonds or notes issued under this chapter may be secured by the board by a trust agreement by and between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the state.
(b) The trust agreement or the resolution providing for the issuance of the bonds or notes may contain provisions for protecting and enforcing the rights and remedies of the holders of any such bonds or notes as may be reasonable and proper and not in violation of law.
(c) The trust agreement or resolution may set forth the rights and remedies of the holders of any bonds or notes and of the trustee and may restrict the individual right of action by the holders.
(d) In addition to subsections (a), (b), and (c), any trust agreement or resolution may contain other provisions that the board considers reasonable and proper for the security of the holders of any bonds or notes.
(e) All expenses incurred in carrying out the provisions of the trust agreement or resolution may be paid from revenues or assets pledged or assigned to the payment of the principal of and the interest on bonds and notes or from any other funds available to the bank.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4-9Purchase of bonds or notes of bank; disposition Sec. 9. The bank may purchase bonds or notes of the bank out of its funds or money available for the purchase of its own bonds and notes. The bank may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with holders of its bonds or notes. Unless cancelled, bonds or notes so held shall be deemed to be held for resale or transfer and the obligation evidenced by the bonds or notes shall not be deemed to be extinguished.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.13.
IC 5-1.4-4-10Purchase of securities; documentation Sec. 10. All securities purchased, held, or owned by the bank, upon delivery to the bank, must be accompanied by all documentation required by the board.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-5Chapter 5. Reserve Fund
5-1.4-5-1Establishment and maintenance of reserve fund; application of funds; required debt service reserve; excess money 5-1.4-5-2Investment of funds 5-1.4-5-3Valuation of investments 5-1.4-5-4Required debt service reserve; appropriation to assure maintenance; application of funds; excess money 5-1.4-5-5Combining reserve funds
IC 5-1.4-5-1Establishment and maintenance of reserve fund; application of funds; required debt service reserve; excess money Sec. 1. (a) The board may establish and maintain a reserve fund for each issue of bonds or notes in which there shall be deposited or transferred:
(1) all proceeds of bonds or notes required to be deposited in the fund by terms of a contract between the bank and its holders or a resolution of the bank with respect to the proceeds of bonds or notes;
(2) all other money appropriated to the reserve fund; and
(3) any other money or funds of the bank that it decides to deposit in the fund.
(b) Subject to subsection (c) and section 4(b) of this chapter, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds or notes of the bank as the interest and principal become due and payable and for the retirement of bonds or notes. The money may not be withdrawn if a withdrawal would reduce the amount in the reserve fund to an amount less than the required debt service reserve, except for payment of interest then due and payable on bonds or notes and the principal of bonds or notes then maturing and payable, whether by reason of maturity or mandatory redemption, for which payments other money of the bank is not then available. As used in this subsection, "required debt service reserve" means, as of the date of computation, the amount required to be on deposit in the reserve fund as provided by resolution or trust agreement of the bank. As used in this subsection, "interest" includes any payments so designated in any contract or agreement between the bank and, or for the benefit of, any holder.
(c) Money in any reserve fund in excess of the required debt service reserve as defined in subsection (b), whether by reason of investment or otherwise, may be withdrawn at any time by the bank and transferred to another fund or account of the bank, subject to the provisions of any agreement with the holders of any bonds or notes.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.14.
IC 5-1.4-5-2Investment of funds Sec. 2. Money in any reserve fund may be invested in the manner provided by IC 5-1.4-3-3.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.15.
IC 5-1.4-5-3Valuation of investments Sec. 3. For purposes of valuation, investments in the reserve fund shall be valued at par or, if purchased at less than par, at cost unless otherwise provided by resolution or trust agreement of the bank. Valuation on a particular date shall include the amount of interest then earned or accrued to that date on the money or investments in the reserve fund.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-5-4Required debt service reserve; appropriation to assure maintenance; application of funds; excess money Sec. 4. (a) In order to assure the maintenance of the required debt service reserve in any reserve fund, the legislative body of the city may annually appropriate to the bank for deposit in one (1) or more of the funds the sum, certified by the chairman of the board to the legislative body, that is necessary to restore one (1) or more of the funds to an amount equal to the required debt service reserve. The chairman annually, before December 1, shall make and deliver to the legislative body a certificate stating the sum required to restore the funds to that amount. Nothing in this subsection creates a debt or liability of the city to make any appropriation.
(b) All amounts received on account of money appropriated by the legislative body of the city to any reserve fund shall be held and applied in accordance with section 1(b) of this chapter. However, at the end of each fiscal year, if the amount in any reserve fund exceeds the required debt service reserve, any amount representing earnings or income received on account of any money appropriated to the reserve fund that exceeds the expenses of the bank for that fiscal year may be transferred to the general fund of the city.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.16.
IC 5-1.4-5-5Combining reserve funds Sec. 5. Subject to the provisions of any agreement with its holders, the bank may combine the reserve fund established for each issue of bonds or notes into one (1) or more reserve funds.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.17.
IC 5-1.4-6Chapter 6. Other Funds and Accounts
5-1.4-6-1General fund; establishment; use; creation of subaccounts or special accounts 5-1.4-6-2Additional reserves; other funds or accounts 5-1.4-6-3Money or investments held for payment of bonds or notes; application
IC 5-1.4-6-1General fund; establishment; use; creation of subaccounts or special accounts Sec. 1. (a) The bank shall establish and maintain a fund called the general fund into which there shall be deposited all money received by the bank, unless otherwise provided by resolution or trust agreement of the bank, and any money that the bank shall transfer to the fund from any reserve fund under IC 5-1.4-5-1(c). Money in the general fund shall be used for operating expenses of the bank and, subject to any contract between the bank and its holders, may be:
(1) used to pay principal of or interest on bonds or notes of the bank to prevent a default;
(2) transferred to any reserve fund to prevent a default or to make up any deficiency in that reserve fund;
(3) used to purchase securities; and
(4) used to purchase or redeem the bank's bonds or notes.
(b) No amount shall be paid or expended out of the general fund, or from any account established by the bank in the general fund for the purpose of paying operating expenses, for the payment of operating expenses of the bank in any year in excess of the amount provided for operating expenses in the annual budget then in effect for that year or any amendment of the annual budget in effect at the time of the payment or expenditure.
(c) The bank is authorized and empowered to create and establish in the general fund accounts, subaccounts, or special accounts that in the opinion of the board are necessary, desirable, or convenient for the purposes of the bank under this chapter.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.18; P.L.136-2018, SEC.25.
IC 5-1.4-6-2Additional reserves; other funds or accounts Sec. 2. The board may establish additional reserves or other funds or accounts as may be necessary, desirable, or convenient to further the accomplishment of its purposes or to comply with the provisions of any of its agreements or resolutions.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-6-3Money or investments held for payment of bonds or notes; application Sec. 3. Unless the resolution or trust agreement authorizing the bonds or notes provides otherwise, money or investments in a fund or account of the bank established or held for the payment of bonds or notes shall be applied to the payment or retirement of the bonds or notes, and to no other purpose.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-7Chapter 7. Default of the Bank
5-1.4-7-1Achievement of purpose of article without jeopardizing holders of bonds or notes 5-1.4-7-2Default; appointment of trustee to represent holders of bonds or notes 5-1.4-7-3Trustee; duties; powers; venue; notice
IC 5-1.4-7-1Achievement of purpose of article without jeopardizing holders of bonds or notes Sec. 1. In order to:
(1) carry out its purpose under this article by purchasing securities of qualified entities and by receipt of its income from service charges and from payments of interest on and the maturing principal of securities purchased and held by it; and
(2) produce revenues or income to the bank sufficient at all times to meet its costs and expenses of operation under this article and to pay the principal of and interest on its outstanding bonds and notes when due;
the bank must at all times, and to the greatest extent possible, plan to issue its bonds and notes and purchase securities of qualified entities so that the purpose is achieved without in any way jeopardizing any rights of the holders of bonds or notes of the bank or adversely affecting other matters under this article.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.19.
IC 5-1.4-7-2Default; appointment of trustee to represent holders of bonds or notes Sec. 2. If the bank:
(1) defaults in the payment of principal or interest on an issue of notes or bonds after they become due, whether at maturity or upon call for redemption; or
(2) fails or refuses to comply with this article or defaults in an agreement made with the holders of an issue of notes or bonds;
and there is no trustee under a trust agreement, then the holders of twenty-five percent (25%) in the aggregate principal amount of the outstanding notes or bonds of that issue, by instrument filed in the office of the clerk of the county and executed in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of those notes or bonds for the purposes provided in this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-7-3Trustee; duties; powers; venue; notice Sec. 3. (a) A trustee appointed under section 2 of this chapter shall, in the trustee's name, upon written request of the holders of twenty-five percent (25%) in principal amount of the outstanding notes or bonds:
(1) by civil action enforce all rights of the holders, including the right to require the bank to:
(A) collect rates, charges, and other fees and to collect interest and principal payments on securities held by it adequate to carry out an agreement as to, or pledge of, the rates, charges, and other fees and of the interest and principal payments; and
(B) carry out any other agreements with the holders of the notes or bonds and to perform its duties under this article;
(2) bring a civil action upon the notes or bonds;
(3) by civil action require the bank to account as if it were the trustee of an express trust for the holders of the notes or bonds;
(4) by civil action enjoin anything that may be unlawful or in violation of the rights of the holders of the notes or bonds; and
(5) declare all the notes or bonds due and payable, and if all defaults are made good, then with the consent of the holders of twenty-five percent (25%) of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences.
(b) The trustee also has all the powers necessary for the exercise of functions specifically set out or incident to the general representation of holders in the enforcement and protection of their rights.
(c) The venue of any suit, action, or proceeding brought by the trustee on behalf of the holders shall be laid in the county in which the bank is located.
(d) Before declaring the principal of notes or bonds due and payable, the trustee must first give not less than thirty (30) days notice in writing to the chairman of the board and the board's attorney.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.20.
IC 5-1.4-8Chapter 8. Purchase of Securities of Qualified Entities
5-1.4-8-1Purchase of securities offered by qualified entity; private sale; issuance of bonds or notes for purpose of purchase 5-1.4-8-2Securities to be purchased and held in name of bank; required documentation 5-1.4-8-3Contracts with bank for purchase of securities; terms and conditions; fees and charges; denomination; prices; private sale 5-1.4-8-4Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank 5-1.4-8-5Bond anticipation notes of qualified entities; purchase by bank; renewal or extension; maturity; terms and conditions 5-1.4-8-6Notes of qualified entities; purchase by bank; renewal or extension; maturity; compliance with other laws; terms and conditions
IC 5-1.4-8-1Purchase of securities offered by qualified entity; private sale; issuance of bonds or notes for purpose of purchase Sec. 1. The bank, to carry out the purposes and policies of this article, may purchase securities offered by a qualified entity. Notwithstanding any law to the contrary, a qualified entity may sell its securities to the bank at a negotiated, private sale. The bank, for this purpose, may issue its bonds and notes payable solely from the revenues or funds available to the bank for such payment and may otherwise assist qualified entities as provided in this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-2Securities to be purchased and held in name of bank; required documentation Sec. 2. (a) All securities at any time purchased, held, or owned by the bank shall at all times be purchased and held in the name of the bank.
(b) All securities at any time purchased by the bank, upon delivery to the bank, shall be accompanied by all documentation required by the board. The documentation must include an approving opinion of recognized bond counsel, certification and guarantee of signatures, and certification as to no litigation pending as of the date of delivery of the securities challenging the validity or issuance of the securities.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-3Contracts with bank for purchase of securities; terms and conditions; fees and charges; denomination; prices; private sale Sec. 3. Every qualified entity is authorized and empowered to contract with the bank with respect to the purchase of its securities, and the contracts shall contain the terms and conditions of the purchase and may be in any form agreed to by the bank and the qualified entity, including a customary form of bond ordinance or resolution. Every qualified entity is authorized and empowered to pay fees and charges required to be paid to the bank for its services. Notwithstanding any statute applicable to or constituting any limitation on the sale of bonds or notes, any qualified entity may sell its securities to the bank, without limitation as to denomination, at a private sale at such price or prices as may be determined by the bank and the qualified entity.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-4Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank Sec. 4. Upon the sale and delivery by a qualified entity of any securities to the bank, the qualified entity shall be deemed to have agreed that upon its failure to pay interest or principal on the securities owned or held by the bank when payable, all statutory defenses to nonpayment are waived. Upon nonpayment and demand on the qualified entity for payment, if the securities are payable from property taxes and funds are not available in the treasury of the qualified entity to make payment, an action in mandamus for the levy of a tax to pay the interest and principal on the securities shall lie, and the bank shall be constituted a holder or owner of the securities as being in default. The bank may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the qualified entity. The bank may carry out this section and exercise all the rights, remedies, and provisions of law provided or referred to in this section.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-5Bond anticipation notes of qualified entities; purchase by bank; renewal or extension; maturity; terms and conditions Sec. 5. (a) Notwithstanding any law applicable to a qualified entity concerning the issuance of bonds, a qualified entity that has complied with all statutory requirements for the issuance of its bonds may (in lieu of issuing bonds at that time and without complying with any other law applicable to the issuance of bonds, notes, or other evidences of indebtedness) issue to the bank the qualified entity's notes in anticipation of the issuance of bonds, and the bank may purchase these bond anticipation notes. The bond anticipation notes may be issued on terms set forth in a resolution authorizing their issuance and in any amount equal to or less than the amount of bonds authorized to be issued.
(b) The qualified entity may renew or extend the bond anticipation notes from time to time on terms agreed to with the bank, and the bank may purchase these renewals or extensions. The amount of the accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended so long as the aggregate principal amount of bond anticipation notes outstanding at any time does not exceed the maximum principal amount permitted by this section.
(c) The bond anticipation notes of the qualified entity, including any renewals or extensions, must mature in the amounts and at the times (not exceeding five (5) years from the date of the original issuance of the bond anticipation notes) as are agreed to by the qualified entity and the bank. The bond anticipation notes shall be, and interest thereon may be, finally paid with the proceeds of the bonds issued by the qualified entity. In connection with the issuance of bonds part or all of the proceeds of which shall be used to retire the bond anticipation notes, the qualified entity is not required to repeat the procedures for the issuance of bonds because the procedures followed before the issuance of the bond anticipation notes are for all purposes sufficient to authorize the issuance of such bonds.
(d) In connection with the purchase of bond anticipation notes, the bank may by agreement with the qualified entity impose any terms, conditions, and limitations as in its opinion are proper for the security of the bank and the holders of its bonds or notes. If the qualified entity fails to comply with the agreement or to issue its bonds to retire its bond anticipation notes, the bank may enforce all rights and remedies provided in the agreement or at law, including an action in mandamus to compel the issuance of bonds by the qualified entity.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.21.
IC 5-1.4-8-6Notes of qualified entities; purchase by bank; renewal or extension; maturity; compliance with other laws; terms and conditions Sec. 6. (a) Notwithstanding any other law applicable to a qualified entity as to borrowing money, a qualified entity may issue and sell its notes to the bank, and the bank may purchase these notes. The notes must be issued pursuant to a resolution of the qualified entity, and the proceeds must be applied to costs for which the qualified entity may issue bonds.
(b) The qualified entity may renew or extend the notes from time to time on terms agreed to with the bank, and the bank may purchase these renewals or extensions. The amount of accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended.
(c) The notes of the qualified entity, including any renewals or extensions, must mature in the amounts and at the times (not exceeding two (2) years from the date of original issuance) as are agreed to by the qualified entity and the bank. However, the legislative body of the city in the case of a qualified entity defined in IC 5-1.4-1-10(1) through (3) or the governing body of the qualified entity in the case of a qualified entity defined in IC 5-1.4-1-10(4) through (6), by resolution, may authorize an extension of the maturity beyond two (2) years for an additional period of no more than three (3) years. Any such extension may be authorized in the resolution originally authorizing issuance of the notes. The notes of the qualified entity and accrued interest thereon shall be paid with proceeds from the issuance of its bonds, when and if the bonds are issued, or other money available to the qualified entity, which money the qualified entity may pledge to the payment of its notes.
(d) Compliance with this section constitutes full authority for a qualified entity to issue its notes and sell them to the bank, and the qualified entity is not required to comply with any other law applicable to the authorization, approval, issuance, and sale of bonds, notes, or other evidences of indebtedness. However, if the qualified entity decides to issue bonds, neither the provisions of this section nor the actual issuance by a qualified entity of its notes shall relieve the qualified entity of completing the requirements for the issuance of its bonds all or part of the proceeds of which will be used to retire the notes.
(e) In connection with the purchase of notes, the bank may by agreement with the qualified entity impose any terms, conditions, and limitations as in its opinion are proper for the security of the bank and the holders of its bonds or notes. If the qualified entity fails to comply with the agreement or to retire its notes, the bank may enforce all rights and remedies provided in the agreement or at law.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.22; P.L.46-1987, SEC.2.
IC 5-1.4-9Chapter 9. Miscellaneous Provisions
5-1.4-9-1Limitation of actions 5-1.4-9-2Bank property exempt from levy and sale; judgment against bank not charge or lien on property; rights of holders of bonds or notes 5-1.4-9-3Pledge of revenues or money 5-1.4-9-4Insurance or guaranty for payment 5-1.4-9-5Authority to receive appropriations or grants from federal government; disposition 5-1.4-9-6Undertaking by financial institution to keep and pay over funds deposited with it 5-1.4-9-7Agreements with financial institutions; care and custody of securities or other investments 5-1.4-9-8Financial institutions and fiduciaries; investment in bonds or notes 5-1.4-9-9Nature of bank property; bonds and notes; exemption from taxation 5-1.4-9-10Officers and departments of state; rendering of services to bank; costs and expenses 5-1.4-9-11Dissolution of bank; assets and property of bank
IC 5-1.4-9-1Limitation of actions Sec. 1. (a) No action to contest the validity of any bonds or notes of the bank may be brought after the fifteenth day following the adoption of the resolution authorizing the sale of the bonds or notes. No action to contest the validity of any bond sale under this chapter may be brought after the fifth day following the bond sale.
(b) If an action challenging the bonds or notes of the bank is not brought within the time prescribed by subsection (a), all bonds or notes of the bank shall be conclusively presumed to be fully authorized and issued under the laws of Indiana, and a person or a qualified entity is estopped from questioning their authorization, sale, issuance, execution, or delivery by the bank.
(c) Insofar as this article is inconsistent with the provisions of any other law, general, special, or local, this article shall be controlling.
As added by P.L.42-1985, SEC.1. Amended by P.L.2-1989, SEC.13.
IC 5-1.4-9-2Bank property exempt from levy and sale; judgment against bank not charge or lien on property; rights of holders of bonds or notes Sec. 2. All property of the bank is exempt from levy and sale by virtue of an execution and no execution or other judicial process may issue against the property. A judgment against the bank may not be a charge or lien upon its property. However, nothing in this section applies to or limits the rights of the holder of bonds or notes to pursue a remedy for the enforcement of a pledge or lien given by the bank on its revenues or other money.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-3Pledge of revenues or money Sec. 3. A pledge of revenues or other money made by the bank is binding from the time the pledge is made. Revenues or other money pledged and thereafter received by the bank are immediately subject to the lien of the pledge without any further act, and the lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the bank, regardless of whether the parties have notice of the lien. Neither the resolution nor any other instrument by which a pledge is created needs to be filed or recorded except in the records of the bank.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-4Insurance or guaranty for payment Sec. 4. The bank may obtain from a department or agency of the United States or a nongovernmental insurer available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal, on bonds or notes issued by the bank or on securities purchased or held by the bank.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-5Authority to receive appropriations or grants from federal government; disposition Sec. 5. The chairman of the board of the bank is authorized to receive from the United States or any department or agency thereof any amount of money as and when appropriated, allocated, granted, turned over, or in any way provided for the purposes of the bank or this article. Those amounts shall, unless otherwise directed by the federal authority, be credited to and deposited in the general fund and be available to the bank.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-6Undertaking by financial institution to keep and pay over funds deposited with it Sec. 6. (a) A financial institution may give to the bank a good and sufficient undertaking, with such sureties as are approved by the bank, to the effect that the financial institution shall faithfully keep and pay over to the order of or upon the warrant of the bank or its authorized agent all those funds deposited with it by the bank and agreed interest, at such times or upon such demands as may be agreed with the bank. However, in lieu of these sureties, the financial institution may deposit with the bank or its authorized agent or a trustee for the holders of bonds, as collateral, those securities as the board may approve.
(b) The deposits of the bank may be evidenced by an agreement in the form and upon the terms and conditions that may be agreed upon by the bank and the financial institution.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-7Agreements with financial institutions; care and custody of securities or other investments Sec. 7. The board may enter into agreements or contracts with a financial institution inside or outside the state as may be necessary, desirable, or convenient in the opinion of the board for rendering services in connection with the care, custody, or safekeeping of securities or other investments held or owned by the bank, for rendering services in connection with the payment or collection of amounts payable as to principal or interest, and for rendering services in connection with the delivery to the bank of securities or other investments purchased by it or sold by it and to pay the cost of those services. The board may also, in connection with any of the services to be rendered by a financial institution as to the custody and safekeeping of its securities or investments, require security in the form of collateral bonds, surety agreements, or security agreements in such form and amount as, in the opinion of the board, is necessary or desirable.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-8Financial institutions and fiduciaries; investment in bonds or notes Sec. 8. Notwithstanding the restrictions of any other law, all financial institutions, investment companies, insurance companies, insurance associations, executors, administrators, guardians, trustees, and other fiduciaries may legally invest sinking funds, money, or other funds belonging to them or within their control in bonds or notes issued under this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-9Nature of bank property; bonds and notes; exemption from taxation Sec. 9. All property of the bank is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments of the state or a political subdivision of the state. All bonds or notes issued under this article are issued by a body corporate and public of this state, but not a state, city, or county agency, and for an essential public and governmental purpose. The bonds and notes, the interest thereon, the proceeds received by a holder from the sale of the bonds or notes to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of the interest and proceeds shall be exempt from taxation in the state for all purposes except the financial institutions tax imposed under IC 6-5.5.
As added by P.L.42-1985, SEC.1. Amended by P.L.21-1990, SEC.5; P.L.254-1997(ss), SEC.5; P.L.79-2017, SEC.8.
IC 5-1.4-9-10Officers and departments of state; rendering of services to bank; costs and expenses Sec. 10. All officers, departments, boards, agencies, divisions, and commissions of the city shall render services to the bank that are within the area of their respective governmental functions and that may be requested by the board and must comply promptly with any reasonable request by the board relating to the making of a study or review as to desirability, need, cost, expense, or financial feasibility with respect to a public project, purpose, or improvement, or the financial or fiscal responsibility or ability of a qualified entity making application for the purchase by the bank of securities to be issued by that qualified entity. The cost and expense of a service requested by the board, at the request of the officer, department, board, agency, division, or commission rendering the service, shall be paid by the bank.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-11Dissolution of bank; assets and property of bank Sec. 11. Upon the dissolution of the bank, all interest in the assets and property of the bank reverts to the city.
As added by P.L.42-1985, SEC.1.
IC 5-1.5ARTICLE 1.5. INDIANA BOND BANK
Ch. 1.Definitions Ch. 2.Establishment and Organization Ch. 3.Powers and Duties Ch. 4.Issuance of Obligations Ch. 5.Reserve Fund Ch. 6.Other Funds and Accounts Ch. 6.5.Capital Funds Ch. 7.Default by the Bond Bank Ch. 8.Loans to Qualified Entities Ch. 9.Miscellaneous Provisions
IC 5-1.5-1Chapter 1. Definitions
5-1.5-1-1Application 5-1.5-1-2"Bank" 5-1.5-1-3"Board" 5-1.5-1-4"Bond" 5-1.5-1-5"Financial institution" 5-1.5-1-6"Holder" 5-1.5-1-7"Note" 5-1.5-1-8"Qualified entity" 5-1.5-1-9"Reserve fund" 5-1.5-1-10"Security"
IC 5-1.5-1-1Application Sec. 1. The definitions in this chapter apply throughout this article.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-1-2"Bank" Sec. 2. "Bank" refers to the Indiana bond bank established under IC 5-1.5-2-1.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-1-3"Board" Sec. 3. "Board" refers to the board of directors established under IC 5-1.5-2-2.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-1-4"Bond" Sec. 4. "Bond" means a bond of the bank issued under this article.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-1-5"Financial institution" Sec. 5. "Financial institution" means a financial institution as defined in IC 28-1-1.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-1-6"Holder" Sec. 6. "Holder" means a person who is:
(1) the bearer of any outstanding bond or note registered to bearer or not registered; or
(2) the registered owner of any outstanding bond or note that is registered other than to bearer.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-1-7"Note" Sec. 7. "Note" refers to a note of the bank issued under this article.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-1-8"Qualified entity" Sec. 8. "Qualified entity" means:
(1) a political subdivision (as defined in IC 36-1-2-13);
(2) a state educational institution;
(3) a leasing body (as defined in IC 5-1-1-1(a));
(4) a not-for-profit utility (as defined in IC 8-1-2-125);
(5) any rural electric membership corporation organized under IC 8-1-13;
(6) any corporation that was organized in 1963 under Acts 1935, c. 157 and that engages in the generation and transmission of electric energy;
(7) any communications cooperative corporation formed under IC 8-1-17;
(8) any commission, authority, or authorized body of any qualified entity;
(9) any organization, association, or trust with members, participants, or beneficiaries that are all individually qualified entities;
(10) any commission, authority, or instrumentality of the state;
(11) any other participant (as defined in IC 5-1.2-2-54);
(12) a charter school established under IC 20-5.5 (before its repeal) or IC 20-24;
(13) a volunteer fire department (as defined in IC 36-8-12-2); or
(14) a development authority (as defined in IC 36-7.6-1-8).
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.1; P.L.46-1987, SEC.3; P.L.48-1989, SEC.1; P.L.37-1991, SEC.1; P.L.132-1999, SEC.1; P.L.179-2002, SEC.2; P.L.50-2003, SEC.1; P.L.2-2007, SEC.70; P.L.232-2007, SEC.1; P.L.189-2018, SEC.27; P.L.81-2020, SEC.1; P.L.189-2023, SEC.1.
IC 5-1.5-1-9"Reserve fund" Sec. 9. "Reserve fund" means a reserve fund established under IC 5-1.5-5-1.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.2.
IC 5-1.5-1-10"Security" Sec. 10. "Security" means:
(1) a bond, note, or evidence of indebtedness issued by a qualified entity;
(2) a lease or certificate or other evidence of participation in the lessor's interest in and rights under a lease with a qualified entity;
(3) an obligation of a qualified entity under an agreement between the qualified entity and the bank;
(4) an agreement executed by a qualified entity under IC 20-49-4 or IC 20-49-10; or
(5) an assignment agreement executed by a qualified entity under IC 5-1.5-8-5.1(b)(1).
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.3; P.L.30-1986, SEC.1; P.L.46-1987, SEC.4; P.L.28-1992, SEC.1; P.L.2-2006, SEC.9; P.L.259-2019, SEC.3.
IC 5-1.5-2Chapter 2. Establishment and Organization
5-1.5-2-1Indiana bond bank; establishment; nature; purpose 5-1.5-2-2Board of directors; establishment; powers; membership; appointment; vacancy 5-1.5-2-2Board of directors; establishment; powers; membership; appointment; vacancy 5-1.5-2-2.5Repealed 5-1.5-2-3Duties of board 5-1.5-2-4Quorum 5-1.5-2-5Action by affirmative vote of four directors; effect of vacancy 5-1.5-2-6Surety bonds; issuer; cost 5-1.5-2-7Disclosure of interest in contracts; abstention with respect to contract; validity of contract 5-1.5-2-8Liability on bonds or notes 5-1.5-2-9Executive director; duties 5-1.5-2-10Repealed
IC 5-1.5-2-1Indiana bond bank; establishment; nature; purpose Sec. 1. There is established the Indiana bond bank, a separate body corporate and politic, constituting an instrumentality of the state for the public purposes set out in this article, but not a state agency. The bank is separate from the state in its corporate and sovereign capacity. The purpose of the bank as described in IC 5-1.5-4 is to buy and sell securities and to make loans to qualified entities.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.4.
IC 5-1.5-2-2Board of directors; establishment; powers; membership; appointment; vacancy Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027.
Sec. 2. (a) There is established a board of directors to govern the bank. The powers of the bank are vested in this board.
(b) The board is composed of:
(1) the treasurer of state, who shall be the chairman ex officio, or the treasurer of state's designee;
(2) the public finance director appointed under IC 5-1.2-3-6, who shall be the director ex officio, or the public finance director's designee; and
(3) five (5) directors appointed by the governor.
(c) Each of the five (5) directors appointed by the governor:
(1) must be a resident of Indiana;
(2) must have substantial expertise in the buying, selling, and trading of municipal securities, in municipal administration or in public facilities management;
(3) serves for a term of three (3) years and until the director's successor is appointed and qualified;
(4) is eligible for reappointment;
(5) is entitled to receive the same minimum salary per diem as is provided in IC 4-10-11-2.1(b) while performing the director's duties. Such a director is also entitled to the same reimbursement for traveling expenses and other expenses, actually incurred in connection with the director's duties as is provided in the state travel policies and procedures, established by the department of administration and approved by the budget agency; and
(6) may be removed by the governor for cause.
(d) Any vacancy on the board, other than by expiration of term, shall be filled by appointment of the governor for the unexpired term only.
As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.5; P.L.235-2005, SEC.75; P.L.189-2018, SEC.28; P.L.259-2019, SEC.4.
IC 5-1.5-2-2Board of directors; establishment; powers; membership; appointment; vacancy Note: This version of section effective 7-1-2027. See also preceding version of this section, effective until 7-1-2027.
Sec. 2. (a) There is established a board of directors to govern the bank. The powers of the bank are vested in this board.
(b) The board is composed of:
(1) the treasurer of state, who shall be the chairman ex officio, or the treasurer of state's designee;
(2) the public finance director appointed under IC 5-1.2-3-6, who shall be the director ex officio, or the public finance director's designee;
(3) one (1) director appointed by the governor;
(4) two (2) directors appointed by the president pro tempore of the senate; and
(5) two (2) directors appointed by the speaker of the house of representatives.
(c) Each of the five (5) directors appointed under subsection (b)(3) through (b)(5):
(1) must be a resident of Indiana;
(2) must have substantial expertise in the buying, selling, and trading of municipal securities, in municipal administration or in public facilities management;
(3) serves for a term of three (3) years and until the director's successor is appointed and qualified;
(4) is eligible for reappointment;
(5) is entitled to receive the same minimum salary per diem as is provided in IC 4-10-11-2.1(b) while performing the director's duties. Such a director is also entitled to the same reimbursement for traveling expenses and other expenses, actually incurred in connection with the director's duties as is provided in the state travel policies and procedures, established by the department of administration and approved by the budget agency; and
(6) may be removed for cause by the appropriate appointing authority.
(d) Any vacancy on the board, other than by expiration of term, shall be filled by the appropriate appointing authority for the unexpired term only.
As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.5; P.L.235-2005, SEC.75; P.L.189-2018, SEC.28; P.L.259-2019, SEC.4; P.L.152-2026, SEC.38.
IC 5-1.5-2-2.5RepealedAs added by P.L.38-1988, SEC.2. Repealed by P.L.134-2012, SEC.5.
IC 5-1.5-2-3Duties of board Sec. 3. The board shall:
(1) elect one (1) of its members vice chairman;
(2) appoint and fix the duties and compensation of an executive director, who shall serve as both secretary and treasurer; and
(3) establish and maintain the office of the bank in Indianapolis.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-2-4Quorum Sec. 4. Four (4) directors constitute a quorum at any meeting of the board.
As added by P.L.25-1984, SEC.1. Amended by P.L.38-1988, SEC.3.
IC 5-1.5-2-5Action by affirmative vote of four directors; effect of vacancy Sec. 5. Action may be taken by the board at a meeting by the affirmative vote of at least four (4) directors. A vacancy on the board does not impair the right of a quorum of directors to exercise the powers and perform the duties of the board.
As added by P.L.25-1984, SEC.1. Amended by P.L.38-1988, SEC.4.
IC 5-1.5-2-6Surety bonds; issuer; cost Sec. 6. (a) Each director and the executive director must execute a surety bond in an amount specified by the treasurer of state. Each surety bond shall be conditioned upon the faithful performance of the duties of the office of director and executive director, respectively. In lieu of these surety bonds, the bank may execute a blanket surety bond covering each director, the executive director, and any officers or employees of the bank.
(b) The surety bonds required by this section must be issued by a surety company authorized to transact business in Indiana.
(c) The cost of the surety bonds required by this section shall be paid by the bank.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.5.
IC 5-1.5-2-7Disclosure of interest in contracts; abstention with respect to contract; validity of contract Sec. 7. (a) Notwithstanding any other law to the contrary, a director does not violate any law, civil or criminal, if he:
(1) has, or to his knowledge, may have or may later acquire a direct or indirect pecuniary interest in a contract with the bank; or
(2) is an officer, member, manager, director, or employee of or has an ownership interest in any firm, limited liability company, or corporation that is or may be a party to the contract;
if he discloses in writing to the bank the nature and extent of his interest as soon as he has knowledge of the interest and abstains from discussion, deliberation, action, and voting with respect to the contract.
(b) Notwithstanding any provision of this article or any other law, a contract or transaction shall not be void or voidable because of the existence of an interest described in subsection (a), if the provisions of subsection (a) have been satisfied.
As added by P.L.25-1984, SEC.1. Amended by P.L.8-1993, SEC.51.
IC 5-1.5-2-8Liability on bonds or notes Sec. 8. Neither a director nor a person executing bonds or notes issued under this article is liable personally on the bonds or notes.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-2-9Executive director; duties Sec. 9. The executive director appointed under section 3 of this chapter shall, in addition to other duties fixed by the directors, administer, manage, and direct the employees of the bank. The executive director shall approve all amounts for salaries, allowable expenses of the bank or of any employee or consultant of the bank, and expenses incidental to the operation of the bank. The executive director shall attend the meetings of the board, keep a record of the proceedings of the board, and maintain all books, documents, and papers filed with the bank, the minutes of the board, and the bank's official seal. The executive director may cause copies to be made of all minutes and other records and documents of the bank and may give certificates under seal of the bank to the effect that those copies are true copies, and all persons dealing with the bank may rely upon those certificates.
As added by P.L.25-1984, SEC.1. Amended by P.L.1-2010, SEC.10.
IC 5-1.5-2-10RepealedAs added by P.L.5-1996, SEC.5. Repealed by P.L.177-2011, SEC.5.
IC 5-1.5-3Chapter 3. Powers and Duties
5-1.5-3-1Powers 5-1.5-3-2Duties 5-1.5-3-3Investments 5-1.5-3-4Prohibited acts 5-1.5-3-5Audit of books and accounts; costs; copy; annual report to governor 5-1.5-3-6Annual budget 5-1.5-3-7Expenses 5-1.5-3-8Public meetings; records
IC 5-1.5-3-1Powers Sec. 1. (a) The bank is granted all powers necessary, convenient, or appropriate to carry out and effectuate its public and corporate purposes, including, but not limited to, the following:
(1) Have a perpetual existence as a body politic and corporate, and an independent instrumentality, but not a state agency, exercising essential public functions.
(2) Sue and be sued.
(3) Adopt and alter an official seal.
(4) Make and enforce bylaws and rules for the conduct of its business and for the use of its services and facilities, which bylaws and rules may be adopted by the bank without complying with IC 4-22-2.
(5) Acquire, hold, use, and dispose of its income, revenues, funds, and money.
(6) Acquire, rent, lease, hold, use, and dispose of property for its purposes.
(7) Make contracts and incur liabilities, borrow money, issue its negotiable bonds or notes, subject to provisions for registration of negotiable bonds and notes, and provide for and secure their payment and provide for the rights of their holders, and purchase and hold and dispose of any of its bonds or notes.
(8) Fix and revise from time to time and charge and collect fees and charges for the use of its services or facilities.
(9) Accept gifts or grants of property, funds, money, materials, labor, supplies, or services from the United States, any governmental unit, or any person, carry out the terms or provisions or make agreements with respect to the gifts or grants, and do all things necessary, useful, desirable, or convenient in connection with procuring, accepting, or disposing of the gifts or grants.
(10) Do anything authorized by this article, through its officers, agents, or employees or by contracts with a person.
(11) Procure insurance against any losses in connection with its property, operations, or assets in amounts and from insurers as it considers desirable.
(12) Cooperate with and exchange services, personnel, and information with any federal, state, or local government agency.
(13) 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 bank'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 bank lacks that power. The bank 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.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.6; P.L.46-1987, SEC.6; P.L.259-2019, SEC.5.
IC 5-1.5-3-2Duties Sec. 2. The bank may:
(1) make, enter into, and enforce all contracts necessary, convenient, or desirable for the purposes of the bank or pertaining to:
(A) a loan to or a lease or an agreement with a qualified entity;
(B) a purchase, acquisition, or sale of securities or other investments; or
(C) the performance of its duties and execution of any of its powers under this article;
(2) purchase, acquire, or hold securities or other investments for the bank's own account or for a qualified entity at prices and in a manner the bank considers advisable, and sell or otherwise dispose of those securities or investments at prices without relation to cost and in a manner the bank considers advisable;
(3) prescribe the form of application or procedure required of a qualified entity for a loan or purchase of its securities, fix the terms and conditions of the loan or purchase, and enter into agreements with qualified entities with respect to loans or purchases;
(4) render services to a qualified entity in connection with a public or private sale of its securities, including advisory and other services, and charge for services rendered;
(5) charge for its costs and services in review or consideration of a proposed loan to a qualified entity or purchase by the bank of securities, whether the loan is made or the securities purchased;
(6) fix and establish terms and provisions with respect to:
(A) a purchase of securities by the bank, including date and maturities of the securities;
(B) redemption or payment before maturity; and
(C) any other matters that in connection with the purchase are necessary, desirable, or advisable in the judgment of the bank;
(7) to the extent permitted under its contracts with the holders of bonds or notes of the bank, consent to modification of the rate of interest, time, and payment of installment of principal or interest, security, or any other term of a bond or note, contract, or agreement of any kind to which the bank is a party;
(8) appoint and employ general or special counsel, accountants, financial advisors or experts, and all such other or different officers, agents, and employees as it requires and determine their qualifications, duties, and compensation, all in order to effectuate the purposes of this article;
(9) in connection with the purchase of any securities, consider the need, desirability, or eligibility of the securities, the ability of the qualified entity to secure financing from other sources and the costs thereof, and the particular public improvement or purpose to be financed or refinanced with the proceeds of the securities to be purchased by the bank; and
(10) acquire, hold, and lease or sell property to a qualified entity. The lease or sale under this subdivision may be made under a financing lease, lease with option to purchase, conditional sales contract, or any other form of agreement, upon the terms and conditions that the board considers advisable in order to promote the purpose of this article.
The bank shall not be considered to have engaged in any acts prohibited by this chapter in performing any duty or exercising any power described in this section.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.7; P.L.46-1987, SEC.7; P.L.29-1992, SEC.1.
IC 5-1.5-3-3Investments Sec. 3. Money not being used to purchase securities may be temporarily invested and reinvested pending the disbursements of that money as provided in a resolution of the bank or in a trust agreement entered into by the bank under IC 5-1.5-4-8.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.8.
IC 5-1.5-3-4Prohibited acts Sec. 4. The bank may not:
(1) lend money other than to a qualified entity;
(2) purchase securities other than:
(A) a security to which a qualified entity is a party as issuer, borrower, or lessee; or
(B) an investment under section 3 of this chapter;
(3) deal in securities within the meaning of or subject to any securities law, securities exchange law, or securities dealers law of the United States of America or of the state or of any other state or jurisdiction, domestic or foreign, except as authorized in this article;
(4) emit bills of credit, or accept deposits of money for time or demand deposit, or administer trusts, or engage in any form or manner, or in the conduct of, any private or commercial banking business, or act as a savings bank or savings association, or any other kind of financial institution; or
(5) engage in any form of private or commercial banking business.
As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.8; P.L.79-1998, SEC.6.
IC 5-1.5-3-5Audit of books and accounts; costs; copy; annual report to governor Sec. 5. (a) The bank shall have an audit of its books and accounts made at least once in each year by a certified public accounting firm or the state board of accounts. If the audit is to be conducted by a certified public accounting firm, the firm may not be selected without a review of the firm's proposal and approval of the firm by the state board of accounts. The cost of the audit shall be considered an expense of the bank, and a copy of the audit shall be made available to the public.
(b) The bank shall submit a report of its activities for each fiscal year to the governor before November 1 of the calendar year in which the bank's fiscal year ends. Each report shall set forth a complete operating and financial statement covering its operations during that fiscal year.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.9; P.L.46-1987, SEC.9.
IC 5-1.5-3-6Annual budget Sec. 6. The board shall adopt, on either a calendar or fiscal year basis, an annual budget, which may be amended from time to time during the year.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.10.
IC 5-1.5-3-7Expenses Sec. 7. All expenses incurred in carrying out this article are payable solely from revenues of the bank or funds appropriated under this article and nothing in this article authorizes the bank to incur an indebtedness or liability on behalf of or payable by the state.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.11.
IC 5-1.5-3-8Public meetings; records Sec. 8. All meetings of the bank shall be open to the public in accordance with and subject to the limitations of IC 5-14-1.5. All records of the bank shall be subject to the requirements of IC 5-14-3.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-4Chapter 4. Issuance of Obligations
5-1.5-4-1Purposes; bonds to be general obligations of bank payable out of revenues or funds of bank; limitation on amount outstanding; exception to limitation 5-1.5-4-2Nature of bond or note; state pledge and agreement 5-1.5-4-3Negotiability of bonds and notes 5-1.5-4-4Issuance; resolution; consent, proceedings, or conditions; rates of interest; redemption; prior approval 5-1.5-4-5Resolution authorizing issuance; adoption; publication of notice; action to set aside resolution 5-1.5-4-6Public or private sale; notice 5-1.5-4-7Issuance of notes; payment of principal or interest thereon; funding or refunding 5-1.5-4-8Trust agreement or resolution; provisions; expenses 5-1.5-4-9Purchase of bonds or notes of bank; disposition; bonds or notes held considered held for resale or transfer 5-1.5-4-10Purchase of securities; documentation
IC 5-1.5-4-1Purposes; bonds to be general obligations of bank payable out of revenues or funds of bank; limitation on amount outstanding; exception to limitation Sec. 1. (a) The bank may issue its bonds or notes in principal amounts that it considers necessary to provide funds for any purposes under this article, including:
(1) the purchase or acquisition of securities;
(2) the making of loans to or agreements with qualified entities through the purchase of securities;
(3) the payment, funding, or refunding of the principal of, or interest or redemption premiums on, bonds or notes issued by it whether the bonds or notes or interest to be paid, funded, or refunded have or have not become due;
(4) the establishment or increase of reserves to secure or to pay bonds or notes or interest on bonds or notes and all other costs or expenses of the bank incident to and necessary or convenient to carry out its corporate purposes and powers; and
(5) the acquisition of school buses to be leased or sold to school corporations (as defined in IC 36-1-2-17).
(b) Except as otherwise provided in this article or by the board, every issue of bonds or notes shall be general obligations of the bank payable out of the revenues or funds of the bank, subject only to agreements with the holders of a particular series of bonds or notes pledging a particular revenue or fund. Bonds or notes may be additionally secured by a pledge of a grant or contributions from the United States, a qualified entity, or a person or a pledge of income or revenues, funds, or money of the bank from any source.
(c) Notwithstanding subsections (a) and (b), the total amount of bank bonds and notes outstanding at any one (1) time, except:
(1) bonds or notes issued to fund or refund bonds or notes; and
(2) bonds or notes issued for the purpose of purchasing an agreement executed by a qualified entity under IC 20-49-4;
may not exceed one billion dollars ($1,000,000,000) for qualified entities described in IC 5-1.5-1-8(1) through IC 5-1.5-1-8(4), IC 5-1.5-1-8(8) through IC 5-1.5-1-8(11), and IC 5-1.5-1-8(14).
(d) Notwithstanding subsections (a) and (b), the total amount of bank bonds and notes outstanding at any one (1) time, except bonds or notes issued to fund or refund bonds or notes, may not exceed two hundred million dollars ($200,000,000) for qualified entities described in IC 5-1.5-1-8(5) through IC 5-1.5-1-8(6).
(e) Notwithstanding subsections (a) and (b), the total amount of bank bonds and notes outstanding at any one (1) time, except bonds or notes issued to fund or refund bonds or notes, may not exceed thirty million dollars ($30,000,000) for qualified entities described in IC 5-1.5-1-8(7).
(f) The limitations contained in subsections (c), (d), and (e) do not apply to bonds, notes, or other obligations of the bank if:
(1) the bonds, notes, or other obligations are not secured by a reserve fund under IC 5-1.5-5; or
(2) funds and investments, and the anticipated earned interest on those funds and investments, are irrevocably set aside in amounts sufficient to pay the principal, interest, and premium on the bonds, notes, or obligations at their respective maturities or on the date or dates fixed for redemption.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.12; P.L.30-1986, SEC.2; P.L.46-1987, SEC.10; P.L.37-1991, SEC.2; P.L.29-1992, SEC.2; P.L.28-1992, SEC.2; P.L.1-1993, SEC.22; P.L.132-1999, SEC.2; P.L.192-2006, SEC.1; P.L.2-2006, SEC.10; P.L.1-2007, SEC.21; P.L.232-2007, SEC.2.
IC 5-1.5-4-2Nature of bond or note; state pledge and agreement Sec. 2. (a) A bond or note of the bank:
(1) is not a debt, liability, loan of the credit, or pledge of the faith and credit of the state or of any qualified entity;
(2) is payable solely from the money pledged or available for its payment under this article, unless funded or refunded by bonds or notes of the bank; and
(3) must contain on its face a statement that the bank is obligated to pay principal and interest, and redemption premiums if any, and that the faith, credit, and taxing power of the state are not pledged to the payment of the bond or note.
(b) The state pledges to and agrees with the holders of the bonds or notes issued under this article that the state will not:
(1) limit or restrict the rights vested in the bank to fulfill the terms of any agreement made with the holders of its bonds or notes; or
(2) in any way impair the rights or remedies of the holders of the bonds or notes;
until the bonds or notes, together with the interest on the bonds or notes, and interest on unpaid installments of interest, and all costs and expenses in connection with an action or proceeding by or on behalf of the holders, are fully met, paid, and discharged.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.13; P.L.46-1987, SEC.11.
IC 5-1.5-4-3Negotiability of bonds and notes Sec. 3. The bonds and notes of the bank are negotiable instruments for all purposes of the Uniform Commercial Code, IC 26-1, subject only to the provisions of the bonds and notes for registration.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-4-4Issuance; resolution; consent, proceedings, or conditions; rates of interest; redemption; prior approval Sec. 4. (a) Bonds or notes of the bank must be authorized by resolution of the board, may be issued in one (1) or more series, and must:
(1) bear the date;
(2) mature at the time or times;
(3) be in the denomination;
(4) be in the form;
(5) carry the conversion or registration privileges;
(6) have the rank or priority;
(7) be executed in the manner;
(8) be payable from the sources in the medium of payment at the place inside or outside the state; and
(9) be subject to the terms of redemption;
as the resolution of the board or the trust agreement securing the bonds or notes provides.
(b) Except as provided in subsection (e), bonds or notes may be issued under this article without obtaining the consent of any agency of the state and without any other proceeding or condition other than the proceedings or conditions specified in this article.
(c) The rate or rates of interest on the bonds or notes may be fixed or variable. Variable rates shall be determined in the manner and in accordance with the procedures set forth in the resolution authorizing the issuance of the bonds or notes. Bonds or notes bearing a variable rate of interest may be converted to bonds or notes bearing a fixed rate or rates of interest, and bonds or notes bearing a fixed rate or rates of interest may be converted to bonds or notes bearing a variable rate of interest, to the extent and in the manner set forth in the resolution pursuant to which the bonds or notes are issued. The interest on bonds or notes may be payable semiannually or annually or at any other interval or intervals as may be provided in the resolution, or the interest may be compounded and paid at maturity or at any other times as may be specified in the resolution.
(d) The bonds or notes may be made subject, at the option of the holders, to mandatory redemption by the bank at the times and under the circumstances set forth in the authorizing resolution.
(e) The bank may not issue bonds for qualified entities described in IC 5-1.5-1-8(5) through IC 5-1.5-1-8(7) or IC 5-1.5-1-8(11) that are subject to the volume cap (as defined in IC 5-1.2-2) without obtaining the prior approval of the Indiana finance authority.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.14; P.L.46-1987, SEC.12; P.L.37-1991, SEC.3; P.L.10-1996, SEC.16; P.L.132-1999, SEC.3; P.L.235-2005, SEC.76; P.L.189-2018, SEC.29.
IC 5-1.5-4-5Resolution authorizing issuance; adoption; publication of notice; action to set aside resolution Sec. 5. (a) Upon the adoption of a resolution authorizing the issuance of bonds or notes, the bank may publish notice of the adoption once each week for two (2) weeks in two (2) newspapers published and of general circulation in the city of Indianapolis.
(b) If notice is published as provided in subsection (a), any action or proceeding in any court to set aside the resolution authorizing the issuance of bonds or notes of the bank under this article or to obtain any relief upon the ground that the resolution is invalid must be filed within thirty (30) days following the first publication of notice of the adoption of the resolution. After the expiration of this thirty (30) day period, no right of action shall be asserted nor shall the validity of the resolution or any of its provisions be open to question in any court or agency upon any grounds whatsoever.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-4-6Public or private sale; notice Sec. 6. Bonds or notes of the bank may be sold at public or private sale at the price the board determines. If bonds or notes of the bank are to be sold at public sale, the bank shall follow the provisions of IC 5-1-11 and shall publish notice of the sale in accordance with IC 5-3-1-2 in two (2) newspapers published and of general circulation in the city of Indianapolis.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.15.
IC 5-1.5-4-7Issuance of notes; payment of principal or interest thereon; funding or refunding Sec. 7. The bank may from time to time issue its notes under this article and pay and retire the principal of the notes or pay the interest due thereon or fund or refund the notes from proceeds of bonds or of other notes, or from other funds or money of the bank available for that purpose in accordance with a contract between the bank and the holders of the notes.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-4-8Trust agreement or resolution; provisions; expenses Sec. 8. (a) In the discretion of the board, any bonds or notes issued under this chapter may be secured by a trust agreement by and between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the state.
(b) The trust agreement or the resolution providing for the issuance of the bonds or notes may contain provisions for protecting and enforcing the rights and remedies of the holders of any such bonds or notes as may be reasonable and proper and not in violation of law.
(c) The trust agreement or resolution may set forth the rights and remedies of the holders of any bonds or notes and of the trustee and may restrict the individual right of action by the holders.
(d) In addition to the provisions of subsections (a), (b), and (c), any trust agreement or resolution may contain such other provisions as the board may deem reasonable and proper for the security of the holders of any bonds or notes.
(e) All expenses incurred in carrying out the provisions of the trust agreement or resolution may be paid from revenues or assets pledged or assigned to the payment of the principal of and the interest on bonds and notes or from any other funds available to the board.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-4-9Purchase of bonds or notes of bank; disposition; bonds or notes held considered held for resale or transfer Sec. 9. The bank may purchase bonds or notes of the bank out of its funds or money available for the purchase of its own bonds and notes. The bank may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with holders of its bonds or notes. Unless cancelled, bonds or notes so held shall be deemed to be held for resale or transfer and the obligation evidenced by the bonds or notes shall not be deemed to be extinguished.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.16.
IC 5-1.5-4-10Purchase of securities; documentation Sec. 10. Subject to IC 5-1.5-8-2, all securities purchased, held, or owned by the bank, upon delivery to the bank, must be accompanied by all documentation required by the board.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.17.
IC 5-1.5-5Chapter 5. Reserve Fund
5-1.5-5-1Establishment; application of funds; required debt service reserve; excess money 5-1.5-5-2Investment of funds 5-1.5-5-3Valuation of investments 5-1.5-5-4Required debt service reserve; resolution concerning appropriations; excess funds; budget committee review; default 5-1.5-5-5Combining reserve funds 5-1.5-5-6Certain qualified entities; debt service reserve appropriations not available
IC 5-1.5-5-1Establishment; application of funds; required debt service reserve; excess money Sec. 1. (a) The board may establish and maintain a reserve fund for each issue of bonds or notes in which there shall be deposited or transferred:
(1) all money appropriated by the general assembly for the purpose of the fund in accordance with section 4(a) of this chapter;
(2) all proceeds of bonds or notes required to be deposited in the fund by terms of a contract between the bank and its holders or a resolution of the bank with respect to the proceeds of bonds or notes;
(3) all other money appropriated by the general assembly to a reserve fund; and
(4) any other money or funds of the bank that it decides to deposit in the fund.
(b) Subject to section 4(b) of this chapter, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds or notes of the bank as the interest and principal become due and payable and for the retirement of bonds or notes. The money may not be withdrawn if a withdrawal would reduce the amount in the reserve fund to an amount less than the required debt service reserve, except for payment of interest then due and payable on bonds or notes and the principal of bonds or notes then maturing and payable, whether by reason of maturity or mandatory redemption, for which payments other money of the bank is not then available. As used in this chapter, "required debt service reserve" means, as of the date of computation, the amount required to be on deposit in the reserve fund as provided by resolution or trust agreement of the bank.
(c) Money in any reserve fund in excess of the required debt service reserve, whether by reason of investment or otherwise, may be withdrawn at any time by the bank and transferred to another fund or account of the bank, subject to the provisions of any agreement with the holders of any bonds or notes.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.18; P.L.46-1987, SEC.13.
IC 5-1.5-5-2Investment of funds Sec. 2. Money in any reserve fund may be invested in the manner provided in IC 5-1.5-3-3.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.19.
IC 5-1.5-5-3Valuation of investments Sec. 3. For purposes of valuation, investments in the reserve fund shall be valued at par, or if purchased at less than par, at cost unless otherwise provided by resolution or trust agreement of the bank. Valuation on a particular date shall include the amount of interest then earned or accrued to that date on the money or investments in the reserve fund.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.20.
IC 5-1.5-5-4Required debt service reserve; resolution concerning appropriations; excess funds; budget committee review; default Sec. 4. (a) Except as provided in subsection (c), and in order to assure the maintenance of the required debt service reserve in any reserve fund, a resolution authorizing the bank to issue bonds or notes may include a provision stating that:
(1) the general assembly may annually appropriate to the bank for deposit in one (1) or more of the funds the sum, certified by the chairman of the board to the general assembly, that is necessary to restore one (1) or more of the funds to an amount equal to the required debt service reserve; and
(2) the chairman annually, before December 1, shall make and deliver to the general assembly a certificate stating the sum required to restore the funds to that amount.
Nothing in this subsection creates a debt or liability of the state to make any appropriation.
(b) All amounts received on account of money appropriated by the state to any reserve fund shall be held and applied in accordance with section 1(b) of this chapter. However, at the end of each fiscal year, if the amount in any reserve fund exceeds the required debt service reserve, any amount representing earnings or income received on account of any money appropriated to the reserve fund that exceeds the expenses of the bank for that fiscal year may be transferred to the general fund of the state.
(c) Notwithstanding any other law, and except as provided by subsection (d), after June 30, 2005, the:
(1) issuance by the bank of any indebtedness that incorporates the provisions set forth in subsection (a) or otherwise establishes a procedure for the bank or a person acting on behalf of the bank to certify to the general assembly the amount needed to restore a reserve fund or another fund to required levels; or
(2) execution by the bank of any other agreement that creates a reserve fund subject to subsection (a) to pay all or part of any indebtedness issued by the bank;
is subject to the conditions set forth in subsection (e) and review by the budget committee and approval by the budget director as required by subsection (f).
(d) If the budget committee does not conduct a review of a proposed transaction under subsection (c) within twenty-one (21) days after a request by the bank, the review is considered to have been conducted. If the budget director does not approve or disapprove a proposed transaction under subsection (c) within twenty-one (21) days after a request by the bank, the transaction is considered to have been approved.
(e) Issuance by the bank of any indebtedness that establishes a reserve fund under subsection (a), the establishment of a procedure for certification, or the execution by the bank of any other agreement that creates a reserve fund subject to subsection (a) may be extended only for a project or a purpose that:
(1) can be financed by a qualified entity under the law applying to financing by the qualified entity; or
(2) is specifically authorized by the general assembly.
A reserve fund established under subsection (a) may be used only to finance the purchase of securities (as defined in IC 5-1.5-1-10) issued by entities described in IC 5-1.5-1-8.
(f) The budget director may approve establishing a reserve fund under subsection (a) only if the following conditions are satisfied:
(1) The project or purpose qualifies under subsection (e).
(2) The documentation required by subsection (g) has been provided by the bank.
(3) The bank has provided the budget agency with a written finding that revenues available to the qualified entity to pay annual debt service exceed the annual debt service requirements by at least twenty percent (20%).
(4) If the financing is for a project or purpose that will produce ongoing revenue from fees or user charges, the qualified entity agrees to include a provision in the instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) that the qualified entity will first increase the rate of the fees or user charges, or both, by an amount sufficient to satisfy any shortfall in the reserve fund established under subsection (a) before subsection (a) is to be applied.
(5) A qualified entity seeking the benefit of a reserve fund established under subsection (a) agrees to include a provision in the instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) that the qualified entity will pledge sufficient property taxes, user fees, hook up fees, connection fees, or any other available local revenues or any combination of those revenues that will be sufficient to satisfy any shortfall in the reserve fund established under subsection (a) before subsection (a) is to be applied.
(6) A qualified entity seeking the benefit of a reserve fund established under subsection (a) agrees to include a provision in the instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) requiring that the qualified entity establish and maintain its own separate reserve fund or account under the governing instrument, in an amount to be determined by the budget director, upon the recommendation of the bank, in order to provide an additional margin of security for the security before subsection (a) is to be applied.
(g) Notwithstanding any other law, if any amounts are appropriated by the general assembly and transferred to the bank for deposit in a reserve fund under subsection (a) as a result of a default by a qualified entity on its security, to the extent that any department or agency of the state, including the treasurer of state, is the custodian of money payable to such qualified entity (other than for goods or services provided by the qualified entity), at any time after written notice to the department or agency head from the bank that the qualified entity is in default on the payment of principal of or interest on the securities of the qualified entity then held or owned by or arising from an agreement with the bank, the applicable department or agency shall recover any amounts appropriated by the general assembly for deposit in a reserve fund under subsection (a) by:
(1) making deductions and withholding from any future amounts that would otherwise be available for distribution to the qualified entity under any other law, until an amount equal to the appropriation has been deducted and withheld; and
(2) transferring any amounts so deducted and withheld from time to time to the treasurer of state for the purpose of allowing the treasurer of state to reimburse the fund or account of the state from which the appropriation was made.
A deduction under this subsection must be made, first, from local income tax distributions under IC 6-3.6-9, and, second, from any other undistributed funds of the qualified entity in the possession of the state. However, the deduction and withholding of payment from a qualified entity and reimbursement to the fund or account of the state from which the appropriation was made under this section must not adversely affect the validity of the security in default.
(h) If the bank proposes that a reserve fund be established under subsection (a) for a project or purpose, the bank shall provide to the budget committee and the budget agency at or before the time of the bank's request, the following information in writing:
(1) A description of the project or purpose.
(2) How the project or purpose satisfies the requirements of subsection (e).
(3) The qualified entity's application for financing that was filed with the bank.
(4) The estimated relative savings that can be achieved by establishing a reserve fund under subsection (a).
(5) The finding required by subsection (f)(3) and proposed language for those instrument provisions required by subsection (f)(4) through (f)(6), if applicable.
(6) Any other information required by the budget committee or budget agency.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.21; P.L.235-2005, SEC.77; P.L.229-2011, SEC.67; P.L.259-2019, SEC.6.
IC 5-1.5-5-5Combining reserve funds Sec. 5. Subject to the provisions of any agreement with its holders, the bank may combine a reserve fund established for an issue of bonds or notes into one (1) or more reserve funds.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.22.
IC 5-1.5-5-6Certain qualified entities; debt service reserve appropriations not available Sec. 6. The provisions of section 4(a) of this chapter are not available to any bonds or notes issued by the bank to purchase securities of, or fund loans to, any qualified entity described in IC 5-1.5-1-8(5) or IC 5-1.5-1-8(6).
As added by P.L.37-1991, SEC.4.
IC 5-1.5-6Chapter 6. Other Funds and Accounts
5-1.5-6-1General fund; establishment; use; creation of subaccounts or special accounts 5-1.5-6-2Additional reserves; other funds or accounts 5-1.5-6-3Money or investments in fund or account established for specific purpose; application
IC 5-1.5-6-1General fund; establishment; use; creation of subaccounts or special accounts Sec. 1. (a) The bank shall establish and maintain a fund called the general fund into which there shall be deposited all money received by the bank and any money that the bank shall transfer to the fund from any reserve fund under IC 5-1.5-5-1(c). Money in the general fund shall be used for operating expenses of the bank and, subject to any contract between the bank and its holders, may be:
(1) used to pay principal of or interest on bonds or notes of the bank to prevent a default;
(2) transferred to any reserve fund to prevent a default or to make up any deficiency in that reserve fund;
(3) used to purchase securities; and
(4) used to purchase or redeem the bank's bonds or notes.
(b) No amount shall be paid or expended out of the general fund, or from any account established by the bank in the general fund for the purpose of paying operating expenses, for the payment of operating expenses of the bank in any year in excess of the amount provided for operating expenses in the annual budget then in effect for that year or any amendment of the annual budget in effect at the time of the payment or expenditure.
(c) The bank is authorized and empowered to create and establish in the general fund accounts, subaccounts, or special accounts that in the opinion of the board are necessary, desirable, or convenient for the purposes of the bank under this chapter.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.23; P.L.136-2018, SEC.26.
IC 5-1.5-6-2Additional reserves; other funds or accounts Sec. 2. The board may establish additional reserves or other funds or accounts as may be in its discretion necessary, desirable, or convenient to further the accomplishment of its purposes or to comply with the provisions of any of its agreements or resolutions.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-6-3Money or investments in fund or account established for specific purpose; application Sec. 3. Unless the resolution or trust agreement authorizing the bonds or notes provides otherwise, money or investments in a fund or account of the bank established or held for the payment of bonds or notes shall be applied to the payment or retirement of the bonds or notes, and to no other purpose.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-6.5Chapter 6.5. Capital Funds
5-1.5-6.5-1Capital principal fund and capital interest fund; programs for qualified entities 5-1.5-6.5-2Investments; credit of earnings 5-1.5-6.5-3Capital principal fund; debt service; agreement; recovery 5-1.5-6.5-4Required debt service reserves; budget committee review 5-1.5-6.5-5Capital interest fund; purposes for use
IC 5-1.5-6.5-1Capital principal fund and capital interest fund; programs for qualified entities Sec. 1. (a) The bank shall establish and maintain:
(1) a capital principal fund, to be funded from appropriations made to the fund by the general assembly and any other money that the bank transfers to the fund; and
(2) a capital interest fund, to be funded from investment earnings on the capital principal fund.
(b) The bank may use the funds only for programs for qualified entities issuing securities for any of the following purposes:
(1) Sewage works.
(2) Waterworks.
(3) Parking facilities.
(4) Redevelopment projects financed with allocated property tax proceeds under IC 36-7-14-39 or IC 36-7-15.1-26.
As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-2Investments; credit of earnings Sec. 2. Money in the funds may be invested in the manner provided in IC 5-1.5-3-3. However, all earnings on the funds shall be credited to the capital interest fund.
As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-3Capital principal fund; debt service; agreement; recovery Sec. 3. (a) The capital principal fund may be used only to guarantee payment of debt service on:
(1) securities issued by a qualified entity for a purpose specified in section 1(b) of this chapter; or
(2) bonds or notes issued to purchase securities issued for a purpose specified in section 1(b) of this chapter.
(b) The bank and the qualified entity must enter into an agreement before a guarantee under subsection (a)(1) is effective. This agreement may contain any provisions the bank considers appropriate and may specify which funds held by a state agency are subject to recovery under subsection (c).
(c) If debt service on securities of a qualified entity is paid by the bank to a qualified entity or owners of its securities under a guarantee under subsection (a)(1), the amount paid from the capital principal fund may be recovered from funds held by a state agency or department that are payable to the qualified entity as set forth in subsection (b).
As added by P.L.38-1988, SEC.5.
IC 5-1.5-6.5-4Required debt service reserves; budget committee review Sec. 4. (a) Except as provided in subsection (d), whenever a reserve fund for an issue of bonds or notes issued to purchase securities specified in section 1(b) of this chapter does not contain the required debt service reserve (as defined in IC 5-1.5-5-1(b)), the chairman of the board shall immediately:
(1) transfer to the reserve fund the amount needed to restore the required debt service reserve first from the capital interest fund and, to the extent necessary, from the capital principal fund; and
(2) certify the amounts transferred to the general assembly.
(b) The general assembly may appropriate to the bank for deposit in the capital principal fund the amount transferred from the fund to restore required debt service reserves. Nothing in this subsection creates a debt or a liability of the state to make any appropriation.
(c) Appropriations made to the capital principal fund do not revert to the state general fund at the end of any fiscal year.
(d) Notwithstanding any other law, and except as provided by subsection (e), after June 30, 2005, the:
(1) issuance by the bank of any indebtedness that incorporates the provisions set forth in subsection (a) or otherwise establishes a procedure for the bank or a person acting on behalf of the bank to certify to the general assembly the amount needed to restore a reserve fund or another fund to required levels; or
(2) execution by the bank of any other agreement that creates a moral obligation of the state to pay all or part of any indebtedness issued by the bank;
is subject to review by the budget committee and approval by the budget director.
(e) If the budget committee does not conduct a review of a proposed transaction under subsection (d) within twenty-one (21) days after a request by the bank, the review is considered to have been conducted. If the budget director does not approve or disapprove a proposed transaction under subsection (d) within twenty-one (21) days after a request by the bank, the transaction is considered to have been approved.
As added by P.L.38-1988, SEC.5. Amended by P.L.235-2005, SEC.78.
IC 5-1.5-6.5-5Capital interest fund; purposes for use Sec. 5. With respect to the programs specified in section 1(b) of this chapter, the capital interest fund may be used for the following purposes in addition to the purpose specified in section 4 of this chapter:
(1) To guarantee payment of debt service on bonds or notes.
(2) To pay premiums for bond insurance or debt service reserve insurance for bonds or notes.
(3) To pay credit enhancement, liquidity support, remarketing, or conversion fees for bonds or notes.
(4) To pay other costs of issuance of a bank transaction.
As added by P.L.38-1988, SEC.5.
IC 5-1.5-7Chapter 7. Default by the Bond Bank
5-1.5-7-1Achievement of purpose of article 5-1.5-7-2Default; appointment of trustee to represent holders of notes or bonds 5-1.5-7-3Trustees; duties; powers; venue; notice
IC 5-1.5-7-1Achievement of purpose of article Sec. 1. In order to:
(1) carry out its purpose under this article of making loans to qualified entities by purchase of the securities and by receipt of its income from service charges and from payments of interest on and the maturing principal of securities purchased and held by it; and
(2) produce revenues or income to the bank sufficient at all times to meet its costs and expenses of operation under this article and to pay the principal of and interest on its outstanding bonds and notes when due;
the bank must at all times, and to the greatest extent possible, plan to issue its bonds and notes and lend money to qualified entities so that the purpose is achieved without in any way jeopardizing any rights of the holders of bonds or notes of the bank or adversely affecting other matters under this article.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.24.
IC 5-1.5-7-2Default; appointment of trustee to represent holders of notes or bonds Sec. 2. If the bank:
(1) defaults in the payment of principal or interest on an issue of notes or bonds after they become due, whether at maturity or upon call for redemption, and the default continues for thirty (30) days; or
(2) fails or refuses to comply with this article or defaults in an agreement made with the holders of an issue of notes or bonds;
and there is no trustee under a trust agreement, then the holders of twenty-five percent (25%) in the aggregate principal amount of the outstanding notes or bonds of that issue, by instrument filed in the office of the clerk of Marion County and executed in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of those notes or bonds for the purposes provided in this article.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-7-3Trustees; duties; powers; venue; notice Sec. 3. (a) A trustee appointed under section 2 of this chapter shall, in his name, upon written request of the holders of twenty-five percent (25%) in principal amount of the outstanding notes or bonds:
(1) by civil action enforce all rights of the holders, including the right to require the bank to:
(A) collect rates, charges, and other fees and to collect interest and principal payments on securities held by it adequate to carry out an agreement as to, or pledge of, the rates, charges, and other fees and of the interest and principal payments; and
(B) carry out any other agreements with the holders of the notes or bonds and to perform its duties under this article;
(2) bring a civil action upon the notes or bonds;
(3) by civil action require the bank to account as if it were the trustee of an express trust for the holders of the notes or bonds;
(4) by civil action enjoin anything that may be unlawful or in violation of the rights of the holders of the notes or bonds; and
(5) declare all the notes or bonds due and payable, and if all defaults are made good, then with the consent of the holders of twenty-five percent (25%) of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences.
(b) The trustee also has all the powers necessary for the exercise of functions specifically set out or incident to the general representation of holders in the enforcement and protection of their rights.
(c) The venue of any suit, action, or proceeding brought by the trustee on behalf of the holders shall be laid in Marion County, Indiana.
(d) Before declaring the principal of notes or bonds due and payable, the trustee must first give not less than thirty (30) days notice in writing to the chairman of the board and the attorney general.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.25.
IC 5-1.5-8Chapter 8. Loans to Qualified Entities
5-1.5-8-1Purchase of securities offered by qualified entity; private sale; issuance of bonds and notes for purpose of purchase 5-1.5-8-2Securities to be purchased and held in name of bank; required documentation 5-1.5-8-3Contracts with bank; terms and conditions; fees and charges; denomination and prices 5-1.5-8-4Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank 5-1.5-8-5Department or agency of state as custodian of money payable to qualified entity; duty on default on payment of principal or interest by qualified entity 5-1.5-8-5.1Authorization to convey revenue or taxes to issuing entity 5-1.5-8-6Repealed 5-1.5-8-6.1Anticipation notes; issuance and purchase 5-1.5-8-7Investment and reinvestment; securities sold to bank
IC 5-1.5-8-1Purchase of securities offered by qualified entity; private sale; issuance of bonds and notes for purpose of purchase Sec. 1. The bank, to carry out the purposes and policies of this article, may purchase securities of the qualified entity, including any securities issued by a school corporation to refund bonds or other obligations that were issued or entered into by a school corporation before that school corporation completed a consolidation or merger under IC 20-23 or any other law. Notwithstanding any law to the contrary, a qualified entity may sell its securities to the bank at a negotiated, private sale. The bank, for this purpose, may issue its bonds and notes payable solely from the revenues or funds available to the bank for such payment and may otherwise assist qualified entities as provided in this article.
As added by P.L.25-1984, SEC.1. Amended by P.L.28-1992, SEC.3; P.L.140-2014, SEC.1.
IC 5-1.5-8-2Securities to be purchased and held in name of bank; required documentation Sec. 2. (a) All securities at any time purchased, held, or owned by the bank shall at all times be purchased and held in the name of the bank.
(b) Except for agreements described in IC 5-1.5-1-10(4), all securities at any time purchased by the bank, upon delivery to the bank, shall, unless waived by the board, be accompanied by all documentation required by the board that shall include an approving opinion of recognized bond counsel, certification and guarantee of signatures, and certification as to no litigation pending as of the date of delivery of the securities challenging the validity or issuance of such securities.
As added by P.L.25-1984, SEC.1. Amended by P.L.44-1990, SEC.3; P.L.28-1992, SEC.4.
IC 5-1.5-8-3Contracts with bank; terms and conditions; fees and charges; denomination and prices Sec. 3. (a) Every qualified entity is authorized and empowered to contract with the bank with respect to the loan or purchase of its securities, and the contracts shall contain the terms and conditions of the loan or purchase and may be in any form agreed to by the bank and the qualified entity, including a customary form of bond ordinance or resolution. Every qualified entity is authorized and empowered to pay fees and charges required to be paid to the bank for its services.
(b) Notwithstanding any statute applicable to or constituting any limitation on the sale of bonds or notes or on entry into an agreement, any qualified entity may sell its securities to the bank, without limitation as to denomination, at a private sale at such price or prices as may be determined by the bank and the qualified entity.
(c) Notwithstanding any law that applies to or constitutes a limitation on the leasing or disposition of materials or other property, and subject to subsection (d), any qualified entity, or any purchasing agency (as defined in IC 5-22-2-25) of a qualified entity, may:
(1) assign or sell a lease or purchase contract for property to the bank;
(2) enter into a lease or purchase contract for property with the bank; or
(3) buy property from or sell property to the bank;
at any price and under any other terms and conditions as may be determined by the bank and the qualified entity.
(d) This subsection does not apply to a school corporation that buys or leases a school bus from the bank under IC 5-1.5-4-1(a)(5). Before taking an action described under subsection (c)(1) through (c)(3) that would otherwise be subject to IC 5-22, a qualified entity or its purchasing agent must obtain or cause to be obtained a purchase price for the property to be subject to the sale, purchase contract, or lease from the lowest responsible and responsive bidder in accordance with the requirements for the purchase of supplies under IC 5-22.
As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.14; P.L.48-1989, SEC.2; P.L.49-1997, SEC.25; P.L.192-2006, SEC.2.
IC 5-1.5-8-4Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank Sec. 4. Upon the sale and delivery by a qualified entity of any securities to the bank, the qualified entity shall be deemed to have agreed that upon its failure to pay interest or principal on the securities owned or held by or arising from an agreement with the bank when payable, all statutory defenses to nonpayment are waived. Upon nonpayment and demand on the qualified entity for payment, if the securities are payable from property taxes and funds are not available in the treasury of the qualified entity to make payment, an action in mandamus for the levy of a tax to pay the interest and principal on the securities shall lie, and the bank shall be constituted a holder or owner of the securities as being in default. The bank may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the qualified entity. The bank may carry out this section and exercise all the rights, remedies, and provisions of law provided or referred to in this section.
As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.15.
IC 5-1.5-8-5Department or agency of state as custodian of money payable to qualified entity; duty on default on payment of principal or interest by qualified entity Sec. 5. (a) Notwithstanding any other provision of law, to the extent that any department or agency of the state, including the treasurer of state, is the custodian of money payable to the qualified entity (other than for goods or services provided by the qualified entity), at any time after written notice to the department or agency head from the bank that the qualified entity is in default on the payment of principal or interest on the securities of the qualified entity then held or owned by or arising from an agreement with the bank, the department or agency shall withhold the payment of that money from that qualified entity and pay over the money to the bank for the purpose of paying principal of and interest on bonds of the bank. However, the withholding of payment from the qualified entity and payment to the bank under this section must not adversely affect the validity of the security in default.
(b) This subsection applies to securities of a qualified entity acquired by the bank, or arising from an agreement entered into with the bank, on or after March 1, 2016. Upon receiving notice from the bank that a qualified entity has failed to pay when due the principal or interest on the securities of the qualified entity then held or owned by or arising from an agreement with the bank, the fiscal officer (as defined in IC 36-1-2-7) of the county, for any county in which the qualified entity is wholly or partially located, shall do the following:
(1) Reduce the amount of any revenues or other money or property that:
(A) is held, possessed, maintained, controlled, or otherwise in the custody of the county or a department, an agency, or an instrumentality of the county; and
(B) would otherwise be available for distribution to the qualified entity under any other law;
by an amount equal to the amount of the qualified entity's unpaid securities.
(2) Pay the amount by which the revenues or other money or property is reduced under subdivision (1) to the bank to pay the principal of and interest on bonds or other obligations of the bank.
(3) Notify the qualified entity that the revenues or other money or property, which would otherwise be available for distribution to the qualified entity, has been reduced by an amount necessary to satisfy all or part of the qualified entity's unpaid securities to the bank.
(c) This subsection applies to securities of a qualified entity acquired by the bank, or arising from an agreement with the bank, that is covered by subsection (b). A reduction under subsection (b) must be made as follows:
(1) First, from local income tax distributions under IC 6-3.6-9 that would otherwise be distributed to the qualified entity under the schedules in IC 6-3.6-9-12 and IC 6-3.6-9-16.
(2) Second, from any other revenues or other money or property that:
(A) is held, possessed, maintained, or controlled by, or otherwise in the custody of, the county or a department, an agency, or an instrumentality of the county; and
(B) would otherwise be available for distribution to the qualified entity under any other law.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.26; P.L.46-1987, SEC.16; P.L.47-2016, SEC.1.
IC 5-1.5-8-5.1Authorization to convey revenue or taxes to issuing entity Sec. 5.1. (a) The following definitions apply throughout this section:
(1) "Assignment agreement" means an agreement between a qualified entity and the issuing entity for the conveyance of all or part of any revenues or taxes received by the qualified entity from a disbursement agent.
(2) "Conveyance" means an assignment, sale, transfer, or other conveyance.
(3) "Deposit account" means a designated escrow account established by the issuing entity at a trust company or bank having trust powers for the deposit of transferred receipts under an assignment agreement.
(4) "Disbursement agent" means a state disbursement agent or local disbursement agent.
(5) "Issuing entity" means:
(A) the bank;
(B) a corporation, trust, or other entity that has been established by the bank for the limited purpose of issuing obligations for the benefit of the bank and any qualified entity; or
(C) a bank or trust company in its capacity as trustee for obligations issued by an entity identified in clause (A) or (B).
(6) "Local disbursement agent" means:
(A) the fiscal officer (as defined in IC 36-1-2-7) of the county for any county in which a qualified entity is wholly or partially located;
(B) the fiscal officer for a qualified entity; or
(C) the treasurer of a school corporation.
(7) "State disbursement agent" means the state treasurer, the state comptroller, or the state department of revenue.
(8) "Transferred receipts" means all or part of any revenues or taxes received from a disbursement agent that have been conveyed by a qualified entity under an assignment agreement.
(9) "Statutory lien" has the meaning given to that term under 11 U.S.C. 101(53) of the federal bankruptcy code.
(b) Subject to approval from the board under subsection (j), any qualified entity that receives revenues or taxes from a disbursement agent may (to the extent not prohibited by any applicable statute, regulation, rule, resolution, ordinance, or agreement governing the use of the revenues or taxes) authorize, by ordinance or resolution, the conveyance of all or any portion of the revenues or taxes to an issuing entity. Any conveyance of transferred receipts shall:
(1) be made pursuant to an assignment agreement in exchange for the net proceeds of obligations issued by the issuing entity for the benefit of the qualified entity and shall, for all purposes, constitute an absolute conveyance of all right, title, and interest therein;
(2) not be deemed a pledge or other security interest for any borrowing by the qualified entity;
(3) be valid, binding, and enforceable in accordance with the terms thereof and of any related instrument, agreement, or other arrangement, including any pledge, grant of security interest, or other encumbrance made by the issuing entity to secure any obligations issued by the issuing entity for the benefit of the qualified entity; and
(4) not be subject to disavowal, disaffirmance, cancellation, or avoidance by reason of insolvency of any party, lack of consideration, or any other fact, occurrence, or state law or rule. On and after the effective date of the conveyance of the transferred receipts:
(A) the qualified entity shall have no right, title, or interest in or to the transferred receipts conveyed; and
(B) the transferred receipts conveyed shall be the property of the issuing entity to the extent necessary to pay the obligations issued by the issuing entity for the benefit of the qualified entity, and shall be received, held, and disbursed by the issuing entity in a trust fund outside the treasury of the qualified entity.
An assignment agreement may provide for the periodic reconveyance to the qualified entity of amounts of transferred receipts remaining after the payment of the obligations issued by the issuing entity for the benefit of the qualified entity.
(c) In connection with any conveyance of transferred receipts, the qualified entity is authorized to direct the applicable disbursement agent to deposit or cause to be deposited any amount of the transferred receipts into a deposit account in order to secure the obligations issued by the issuing entity for the benefit of the qualified entity. If the qualified entity states that the direction is irrevocable, the direction shall be treated by the applicable disbursement agent as irrevocable with respect to the transferred receipts described in the direction. Notwithstanding any other law, each disbursement agent shall comply with the terms of any such direction received from a qualified entity and shall execute and deliver the acknowledgments and agreements, including escrow and similar agreements, as the qualified entity may require to effectuate the deposit of transferred receipts in accordance with the direction of the qualified entity. Notwithstanding any other law, the disbursement agent shall distribute the transferred receipts to the deposit account in accordance with the written authorization and direction from the qualified entity set forth in the assignment agreement and any related escrow and similar agreements, and upon each distribution of transferred receipts in accordance with the direction from the qualified entity, the disbursement agent shall have no further duty or responsibility with respect to the distribution of transferred receipts.
(d) Not later than the date of issuance by an issuing entity of any obligations secured by collections of transferred receipts, a certified copy of the ordinance or resolution authorizing the conveyance of the right to receive the transferred receipts, executed copies of the applicable assignment agreement, the agreement providing for the establishment of the deposit account, and a notice designating the dates that the disbursement agent's duty to distribute transferred receipts to the deposit account shall begin and end shall be filed with:
(1) the disbursement agent having custody of the transferred receipts;
(2) if the conveyance of transferred receipts consists of all or a portion of local income tax revenues under IC 6-3.6, the adopting body (as defined in IC 6-3.6-3-1) having jurisdiction over the applicable tax rate and allocations affecting such local income tax revenues; and
(3) the Indiana transparency website established under IC 5-14-3.8 in a manner prescribed by the state examiner. The state examiner shall make the information available to the department of local government finance.
(e) Any obligations of an issuing entity issued or incurred to provide funds to purchase any transferred receipts from a qualified entity under this chapter shall be entitled to the following benefits and protections:
(1) The obligations issued by an issuing entity shall be secured by a statutory lien on the transferred receipts received, or entitled to be received, by the issuing entity that are designated as pledged for such obligations of the issuing entity. The statutory lien shall automatically attach from the time the obligations of the issuing entity are issued without further action or authorization by the issuing entity or any other entity, person, governmental authority, or officer. The statutory lien shall be valid and binding from the time the obligations of the issuing entity are executed and delivered without any physical delivery thereof or further act required, and shall be a first priority lien, unless the obligations, or the documents authorizing the obligations or providing a source of payment or security for those obligations, shall otherwise provide.
(2) The transferred receipts received or entitled to be received shall be immediately subject to the statutory lien from the time the obligations of the issuing entity are issued, and the statutory lien shall automatically attach to the transferred receipts (whether received or entitled to be received by the issuing entity) and be effective, binding, and enforceable against the issuing entity, the qualified entity, the disbursement agent, the state, and their agents, successors, transferees and creditors, and all others asserting rights therein or having claims of any kind in tort, contract, or otherwise, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further act.
(3) The statutory lien imposed by this section is automatically released and discharged with respect to amounts of transferred receipts reconveyed to the qualified entity pursuant to subsection (b)(4), effective upon the reconveyance.
(4) The statutory lien provided in this section is separate from and shall not affect any special revenues lien or other protection afforded to special revenue obligations under the federal Bankruptcy Code.
(f) The state covenants with each qualified entity, the issuing entity, each disbursement agent, and the purchasers or owners of the issuing entity's obligations that the state will not limit or alter the rights and powers vested in the qualified entity, the issuing entity, and the state entities by this section with respect to the disposition of transferred receipts so as to impair the terms of any contract, including any assignment agreement, made by the qualified entity with the issuing entity or any contract executed by the issuing entity in connection with the issuance of obligations by the issuing entity for the benefit of the qualified entity, until all requirements with respect to the deposit by the disbursement agent of transferred receipts for the benefit of the issuing entity have been fully met and the obligations of the issuing entity related thereto have been discharged and satisfied. In addition, the state covenants with each qualified entity, the issuing entity, each disbursement agent, and the purchasers or owners of the issuing entity's obligations that the state will not limit or alter the basis on which the qualified entity's share or percentage of transferred receipts is derived, or the use of the funds, so as to impair the terms of any such contract. Nothing contained in this chapter shall be construed or interpreted as creating a debt of the state within the meaning of the limitation on or prohibition against state indebtedness under the Constitution of the State of Indiana or interpreted to construe the state as a guarantor of any debt or obligation subject to an assignment agreement under this section.
(g) In the case of a qualified entity that has authorized the conveyance of all or a portion of its local income tax revenues imposed under IC 6-3.6 and executed an assignment agreement with respect thereto, obligations of the issuing entity issued for the benefit of the qualified entity, together with the debt service owed each year thereon, shall be:
(1) included as part of the outstanding debt service of the qualified entity solely for purposes of calculating the minimum coverage ratio under IC 6-3.6-4-3; and
(2) treated as outstanding obligations of the qualified entity payable from the revenues solely for purposes of limiting the reduction of the proportional allocation of revenues under IC 6-3.6-6-3 and IC 6-3.6-6-5.
This subsection shall not be construed as a pledge of the transferred receipts or the granting of a security interest therein by the qualified entity, and is included solely for the purpose of computing the limitations on the reductions to the tax rate and allocations set forth under IC 6-3.6-4-3, IC 6-3.6-6-3, and IC 6-3.6-6-5.
(h) The bank is authorized to create one (1) or more nonprofit corporations in order to effectuate the purposes of this chapter and the bank may grant or delegate to any such nonprofit corporation powers of the bank as may be necessary, convenient, or appropriate to carry out and effectuate the public and corporate purposes of this article.
(i) A qualified entity may not enter into assignment agreements in a manner inconsistent with the provisions of this chapter. This chapter constitutes the specific manner for exercising the power to enter into assignment agreements for purposes of IC 20-26-3, IC 36-1-3, or any other statute granting home rule power to a qualified entity.
(j) Before a qualified entity may adopt an ordinance or resolution described in subsection (b), the board must have adopted a resolution approving the qualified entity's proposed conveyance of transferred receipts to the issuing body. The resolution of the board may be preliminary in nature and may contain such terms and conditions that the board deems advisable. If, after receiving approval from the board, the qualified entity adopts an ordinance or resolution described in subsection (b), the qualified entity shall provide a certified copy of the ordinance or resolution to the bank. The bank shall notify the distressed unit appeal board of each qualified entity that adopts an ordinance or resolution under this section.
As added by P.L.259-2019, SEC.7. Amended by P.L.156-2020, SEC.11; P.L.9-2024, SEC.118.
IC 5-1.5-8-6RepealedAs added by P.L.25-1984, SEC.1. Repealed by P.L.43-1985, SEC.28.
IC 5-1.5-8-6.1Anticipation notes; issuance and purchase Sec. 6.1. (a) Notwithstanding any law applicable to a qualified entity concerning the issuance of bonds, a qualified entity that has complied with all statutory requirements for the issuance of its bonds may, in lieu of issuing bonds at that time and without the need for complying with any other law applicable to the issuance of bonds, notes, or other evidences of indebtedness, issue its notes in anticipation of the issuance of bonds to the bank, and the bank may purchase the bond anticipation notes. The bond anticipation notes may be issued on terms set forth in a resolution authorizing their issuance and in any amount equal to or less than the amount of bonds authorized to be issued. The qualified entity may renew or extend the bond anticipation notes from time to time on terms agreed to with the bank, and the bank may purchase the renewals or extensions. The amount of the accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended so long as the aggregate principal amount of bond anticipation notes outstanding at any time does not exceed the maximum principal amount permitted by this section. The bond anticipation notes of the qualified entity, including any renewals or extensions, must mature in the amounts and at the times (not exceeding five (5) years from the date of the original issuance of the bond anticipation notes) agreed to by the qualified entity and the bank. The bond anticipation notes must be finally paid, and interest on the bond anticipation notes may be finally paid, with the proceeds of the bonds issued by the qualified entity. In connection with the issuance of bonds part or all of the proceeds of which will be used to retire the bond anticipation notes, it is not necessary for the qualified entity to repeat the procedures for the issuance of bonds, as the procedures followed before the issuance of the bond anticipation notes are for all purposes sufficient to authorize the issuance of the bonds.
(b) In connection with the purchase of bond anticipation notes, the bank may by agreement with the qualified entity impose any terms, conditions, and limitations as in its opinion are proper for the security of the bank and the holders of its bonds or notes. If the qualified entity fails to comply with the agreement or to issue its bonds to retire its bond anticipation notes, the bank may enforce all rights and remedies provided in the agreement or at law, including an action in mandamus to compel the issuance of bonds by the qualified entity.
As added by P.L.43-1985, SEC.27.
IC 5-1.5-8-7Investment and reinvestment; securities sold to bank Sec. 7. Notwithstanding any statute applicable to or constituting any limitation on the investment or reinvestment of funds by or on behalf of political subdivisions, a qualified entity selling securities to the bank in connection with a program established by the bank may invest and reinvest funds that constitute, replace, or substitute for the proceeds of securities sold to the bank under an established bank program in any instrument or other investment authorized under a resolution of the bank.
As added by P.L.29-1992, SEC.3.
IC 5-1.5-9Chapter 9. Miscellaneous Provisions
5-1.5-9-1Limitation of actions 5-1.5-9-2Property of bank exempt from levy and sale; judgment against bank not charge or lien on property; rights of holders of bonds or notes 5-1.5-9-3Repealed 5-1.5-9-4Insurance or guaranty for payment or repayment of interest or principal, or both 5-1.5-9-5Authority to receive money; disposition 5-1.5-9-6Financial institution to keep and pay over funds deposited with it 5-1.5-9-7Contracts or agreements with financial institutions; care, custody, or safekeeping of securities; services connected with payment or collection of interest or principal 5-1.5-9-8Financial institutions and fiduciaries; investment in bonds and notes 5-1.5-9-9Nature of bank property; bonds or notes issued; interest and proceeds received; tax exemption 5-1.5-9-10Officers, departments, etc., of the state to render services to bank; costs and expenses 5-1.5-9-11Pledges of revenues or other money 5-1.5-9-12Securities; registration requirements; exemption
IC 5-1.5-9-1Limitation of actions Sec. 1. (a) No action to contest the validity of any bonds or notes of the bank to be sold at public sale may be brought after the fifteenth day following the first publication of notice of the sale of the bonds or notes. No action to contest the validity of any bond sale under this chapter may be brought after the fifth day following the bond sale.
(b) If bonds or notes are sold at private sale, the bank may publish notice of the execution of the contract of sale of the bonds or notes one (1) time in two (2) newspapers published and of general circulation in the city of Indianapolis. If notice is published as permitted in this subsection, no action to contest the validity of such bonds or notes sold at private sale may be brought after the fifteenth day following the publication of notice of the execution of the contract of sale pertaining to the bonds or notes.
(c) If an action challenging the bonds or notes of the bank is not brought within the time prescribed by subsection (a) or (b), whichever is applicable, all bonds or notes of the bank shall be conclusively presumed to be fully authorized and issued under the laws of the state, and a person or a qualified entity is estopped from questioning their authorization, sale, issuance, execution, or delivery by the bank.
(d) Insofar as the provisions of this article are inconsistent with the provisions of any other law, general, special, or local, the provisions of this article shall be controlling.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-9-2Property of bank exempt from levy and sale; judgment against bank not charge or lien on property; rights of holders of bonds or notes Sec. 2. All property of the bank is exempt from levy and sale by virtue of an execution and no execution or other judicial process may issue against the property. A judgment against the bank may not be a charge or lien upon its property. However, nothing in this section applies to or limits the rights of the holder of bonds or notes to pursue a remedy for the enforcement of a pledge or lien given by the bank on its revenues or other money.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-9-3RepealedAs added by P.L.25-1984, SEC.1; P.L.48-1989, SEC.3. Repealed by P.L.1-1990, SEC.46.
IC 5-1.5-9-4Insurance or guaranty for payment or repayment of interest or principal, or both Sec. 4. The bank may obtain from a department or agency of the United States, or a nongovernmental insurer, available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal, on bonds or notes issued by the bank, or on securities purchased or held by the bank.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-9-5Authority to receive money; disposition Sec. 5. The treasurer of the state, as chairman of the board of the bank, is authorized to receive from the United States of America or any department or agency thereof any amount of money as and when appropriated, allocated, granted, turned over, or in any way provided for the purposes of the bank or this article, and those amounts shall, unless otherwise directed by the federal authority, be credited to and deposited in the general fund, and be available to the bank.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-9-6Financial institution to keep and pay over funds deposited with it Sec. 6. A financial institution may give to the bank a good and sufficient undertaking with such sureties as are approved by the bank to the effect that the financial institution shall faithfully keep and pay over to the order of or upon the warrant of the bank or its authorized agent all those funds deposited with it by the bank and agreed interest under or by reason of this article, at such times or upon such demands as may be agreed with the bank or in lieu of these sureties, deposit with the bank or its authorized agent or a trustee or for the holders of bonds, as collateral, those securities as the board may approve. The deposits of the bank may be evidenced by an agreement in the form and upon the terms and conditions that may be agreed upon by the bank and the financial institution.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-9-7Contracts or agreements with financial institutions; care, custody, or safekeeping of securities; services connected with payment or collection of interest or principal Sec. 7. The board may enter into agreements or contracts with a financial institution inside or outside the state as may be necessary, desirable, or convenient in the opinion of the board for rendering services in connection with the care, custody, or safekeeping of securities or other investments held or owned by the bank, for rendering services in connection with the payment or collection of amounts payable as to principal or interest, and for rendering services in connection with the delivery to the bank of securities or other investments purchased by it or sold by it, and to pay the cost of those services. The board may also, in connection with any of the services to be rendered by a financial institution as to the custody and safekeeping of its securities or investments, require security in the form of collateral bonds, surety agreements, or security agreements in such form and amount as, in the opinion of the board, is necessary or desirable.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-9-8Financial institutions and fiduciaries; investment in bonds and notes Sec. 8. Notwithstanding the restrictions of any other law, all financial institutions, investment companies, insurance companies, insurance associations, executors, administrators, guardians, trustees, and other fiduciaries may legally invest sinking funds, money, or other funds belonging to them or within their control in bonds or notes issued under this article.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-9-9Nature of bank property; bonds or notes issued; interest and proceeds received; tax exemption Sec. 9. All property of the bank is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments, direct or indirect, of the state or a political subdivision of the state. All bonds or notes issued under this article are issued by a body corporate and public of this state, but not a state agency, and for an essential public and governmental purpose and the bonds and notes, the interest thereon, the proceeds received by a holder from the sale of the bonds or notes to the extent of the holder's cost of acquisition proceeds received upon redemption prior to maturity, and proceeds received at maturity and the receipt of the interest and proceeds shall be exempt from taxation in the state for all purposes except the financial institutions tax imposed under IC 6-5.5.
As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.17; P.L.21-1990, SEC.6; P.L.254-1997(ss), SEC.6; P.L.79-2017, SEC.9.
IC 5-1.5-9-10Officers, departments, etc., of the state to render services to bank; costs and expenses Sec. 10. All officers, departments, boards, agencies, divisions, and commissions of the state shall render services to the bank that are within the area of their respective governmental functions and that may be requested by the board and must comply promptly with any reasonable request by the board relating to the making of a study or review as to desirability, need, cost, or expense, or financial feasibility with respect to a public project, purpose, or improvement, or the financial or fiscal responsibility or ability of a qualified entity making application for loan to the bank and for the purchase by the bank of securities to be issued by that qualified entity. The cost and expense of a service requested by the board, at the request of the officer, department, board, agency, division, or commission rendering the service, shall be paid by the bank.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-9-11Pledges of revenues or other money Sec. 11. A pledge of revenues or other money made by the bank is binding from the time the pledge is made. Revenues or other money so pledged and thereafter received by the bank are immediately subject to the lien of the pledge without any further act, and the lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the bank, regardless of whether the parties have notice of the lien. Neither the resolution nor any other instrument by which a pledge is created needs to be filed or recorded except in the records of the bank.
As added by P.L.1-1990, SEC.47.
IC 5-1.5-9-12Securities; registration requirements; exemption Sec. 12. All securities issued under this article are exempt from the registration requirements of IC 23-19 and other securities registration statutes.
As added by P.L.1-1990, SEC.48. Amended by P.L.27-2007, SEC.4.
IC 5-2ARTICLE 2. LAW ENFORCEMENT
Ch. 1.Mandatory Training for Law Enforcement Officers Ch. 1.5.Reimbursement of Law Enforcement Officer Employment and Training Costs Ch. 1.6.Contract for Reimbursement of Law Enforcement Officer Employment and Training Costs Ch. 2.Law Enforcement Academy Building Commission Ch. 2.Repealed Ch. 3.Repealed Ch. 4.Criminal Intelligence Information Ch. 5.Repealed Ch. 5.1.Repealed Ch. 6.Indiana Criminal Justice Institute Ch. 6.1.Compensation for Victims of Violent Crimes Ch. 6.2.Project IMPACT Ch. 6.3.Broadcast or Publication of Crime Stories of Accused or Convicted Felons Ch. 6.5.Expired Ch. 6.6.Repealed Ch. 6.7.Domestic Violence Prevention and Treatment Fund Ch. 6.8.Family Violence and Victim Assistance Fund Ch. 6.9.Repealed Ch. 7.Filing of Fingerprint Samples Ch. 8.Law Enforcement Training and Continuing Education Ch. 9.Protective Order Depositories Ch. 10.State Drug Free Communities Fund Ch. 10.1.Repealed Ch. 10.5.Repealed Ch. 11.County Drug Free Community Fund Ch. 11.5.Expired Ch. 12.Repealed Ch. 13.Law Enforcement Assistance Fund Ch. 14.Repealed Ch. 15.Methamphetamine Lab Reporting Ch. 16.Repealed Ch. 17.Missing Persons Ch. 18.Requirement to Notify Parent, Guardian, or Custodian of a Child Ch. 18.2.Citizenship and Immigration Status Information and Enforcement of Federal Immigration Laws Ch. 20.Prohibit Verification of Citizenship or Immigration Status Ch. 21.2.Indiana Technical Assistance Center for Crisis Intervention Teams Ch. 22.Child Abuse Registry Ch. 23.Restitution for Wrongfully Incarcerated Persons Ch. 24.Tribal Law Enforcement Ch. 25.Expired Ch. 26.Protocols for Notification of Property Owners After Accident Ch. 26.1.Towing Rotation Requirements Ch. 27.4.Advanced DNA Testing for Cold Cases
IC 5-2-1Chapter 1. Mandatory Training for Law Enforcement Officers
5-2-1-1Establishment; purposes 5-2-1-2Definitions 5-2-1-3Law enforcement training board created; membership 5-2-1-4Appointments; terms; vacancies; removal 5-2-1-5Membership on board not to constitute public office 5-2-1-6Meetings 5-2-1-7Repealed 5-2-1-8Compensation 5-2-1-9Rules; basic training; pre-basic training; inservice training; town marshal and executive training programs; fire investigators; handgun safety; refresher course; gaming agents; securities enforcement 5-2-1-9Rules; basic training; pre-basic training; inservice training; town marshal and executive training programs; fire investigators; handgun safety; refresher course; gaming agents; securities enforcement 5-2-1-10Authority to enter into agreements 5-2-1-10.5Southwest Indiana law enforcement training academy 5-2-1-11Powers; establishing training programs 5-2-1-12Further powers 5-2-1-12.5Revocation of diploma, certificate, or document; immunity for report of cause for revocation; investigation of cause for revocation; hearing on cause for revocation; application for reinstatement 5-2-1-13Law enforcement academy fund; creation; deposits; disposition 5-2-1-14Executive director 5-2-1-15Facilities of law enforcement academy; availability; cost schedule 5-2-1-15.1Medicaid fraud control unit investigator training 5-2-1-15.2Board certified training center 5-2-1-16Powers and duties of board as criminal justice agency 5-2-1-17Police officers; enforcement powers; duties; oath; training 5-2-1-18Assistance to law enforcement officers or agencies; powers; supervision; compensation 5-2-1-19Northern Indiana Law Enforcement Academy; criminal justice agency; board certified training center 5-2-1-20Indiana technical assistance center for crisis intervention teams
Frequently Asked Questions About Indiana § 5-1-18-12
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Section 5-1-18-12 ("Rulemaking power") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
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