Indiana § 8-14-17-5 - Uses of fund

§ 8-14-17-5. Uses of fund

Sec. 5. Money in the fund may be used for any of the following purposes:

(1) The payment of any obligation incurred or amounts owed by the authority, the department, or an operator under IC 8-15.7 in connection with the execution and performance of a public-private agreement under IC 8-15.7 for a passenger or freight railroad system as described in IC 8-15.7-2-14(a)(4).

(2) Lease payments to the authority, if money for those payments is specifically appropriated by the general assembly.

As added by P.L.203-2007, SEC.4.

IC 8-14.5ARTICLE 14.5. LEASE FINANCING FOR TRANSPORTATION SYSTEMS

Ch. 1.Legislative Findings of Fact Ch. 2.Definitions Ch. 3.General Provisions Ch. 4.Contracts With the Department Ch. 5.Leases With the Department Ch. 6.Issuance of Bonds and Notes Ch. 7.Grant Anticipation Revenue Bonds and Notes Ch. 8.Railroad Crossing Remediation Projects

IC 8-14.5-1Chapter 1. Legislative Findings of Fact

8-14.5-1-1Findings of fact 8-14.5-1-2Supplemental and additional powers conferred by article 8-14.5-1-3Liberal construction 8-14.5-1-4Application of article to the authority

IC 8-14.5-1-1Findings of fact Sec. 1. The general assembly makes the following findings of fact:

(1) That there exists in Indiana a need for construction, acquisition, reconstruction, improvement, and extension of transportation systems in order to provide for the public welfare and safety by providing safe, dependable, and reliable transportation systems for vehicular traffic.

(2) That the development and maintenance of Indiana's economy requires an adequate transportation system in order to provide for the public welfare and to facilitate the creation and maintenance of jobs, the increase and stabilization of the tax base, and the general economic welfare of the state and its citizens.

(3) That 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.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-1-2Supplemental and additional powers conferred by article 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.68-1988, SEC.12.

IC 8-14.5-1-3Liberal construction 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.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-1-4Application of article to the authority Sec. 4. This article:

(1) applies to the authority only when acting for the purposes set forth in this article; and

(2) does not apply to the authority when acting under any other statute for any other purpose.

As added by P.L.235-2005, SEC.113.

IC 8-14.5-2Chapter 2. Definitions

8-14.5-2-1Applicability of definitions 8-14.5-2-2Authority 8-14.5-2-3Bonds 8-14.5-2-4Capitalized interest 8-14.5-2-5Construction 8-14.5-2-6Costs 8-14.5-2-7Department 8-14.5-2-8Notes 8-14.5-2-9Project 8-14.5-2-10Property owner 8-14.5-2-11Public thoroughfares 8-14.5-2-12Transportation systems 8-14.5-2-13Weighted average life 8-14.5-2-14Weighted average useful life

IC 8-14.5-2-1Applicability of definitions Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-2-2Authority Sec. 2. "Authority" refers to the Indiana finance authority established by IC 5-1.2-3.

As added by P.L.68-1988, SEC.12. Amended by P.L.235-2005, SEC.114; P.L.189-2018, SEC.81.

IC 8-14.5-2-3Bonds Sec. 3. "Bonds" refers to bonds of the authority issued under IC 8-14.5-6 or IC 8-14.5-7.

As added by P.L.68-1988, SEC.12. Amended by P.L.246-2005, SEC.80.

IC 8-14.5-2-4Capitalized interest Sec. 4. "Capitalized interest" means interest cost on bonds or notes before and during the period of construction of the project for which the bonds or notes were issued, and for a period not to exceed one (1) year after completion of construction.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-2-5Construction Sec. 5. "Construction" means the construction, acquisition, reconstruction, improvement, and extension of a project.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-2-6Costs Sec. 6. "Costs" as applied to any project includes any item or cost of a capital nature incurred in the construction of a 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 authority 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 authority including the cost of:

(A) acquiring any property to which the buildings, structures, or improvements may be moved; or

(B) acquiring any property which may be exchanged for property acquired by the authority;

(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) bond or note discount;

(8) capitalized interest;

(9) the cost of funding any reserves to secure the payment of bonds or notes;

(10) engineering and legal expenses, costs of plans, specifications, surveys, estimates, and any necessary feasibility studies;

(11) other expenses necessary or incident to determining the feasibility or practicability of constructing any project;

(12) administrative expenses of the authority or the department relating to any project financed by bonds or notes;

(13) reimbursement of the department for:

(A) any cost, obligation, or expense incurred by the department relating to a project;

(B) advances relating to a project from the department to the authority for surveys, borings, preparation of plans and specifications, or engineering services; or

(C) any other cost of construction incurred by the department or paid from advances; and

(14) other expenses the authority finds necessary or incident to the construction of the project, the financing of the construction, and the placing of the project in operation.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-2-7Department Sec. 7. "Department" refers to the Indiana department of transportation established under IC 8-23-2.

As added by P.L.68-1988, SEC.12. Amended by P.L.18-1990, SEC.125.

IC 8-14.5-2-8Notes Sec. 8. "Notes" refers to notes of the authority issued under IC 8-14.5-6 or IC 8-14.5-7 and includes any evidences of indebtedness of the authority except bonds.

As added by P.L.68-1988, SEC.12. Amended by P.L.246-2005, SEC.81.

IC 8-14.5-2-9Project Sec. 9. "Project" means any:

(1) express highway;

(2) superhighway;

(3) state highway;

(4) public highway;

(5) road;

(6) street;

(7) motorway;

(8) bridge;

(9) tunnel;

(10) overpass;

(11) underpass;

(12) interchange;

(13) entrance;

(14) approach; or

(15) other public way;

that the authority considers necessary or desirable for the operation of transportation systems. "Project" includes all land, rights-of-way, property, rights, easements, materials, and legal or equitable interests that may be acquired by the authority for the construction of the project.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-2-10Property owner Sec. 10. "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 authority.

As added by P.L.68-1988, SEC.12. Amended by P.L.8-1993, SEC.142.

IC 8-14.5-2-11Public thoroughfares Sec. 11. "Public thoroughfares" means any facilities for the movement of vehicular traffic owned by any governmental entity other than the state.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-2-12Transportation systems Sec. 12. "Transportation systems" means any facilities for the movement of vehicular traffic owned, leased, or operated by the state or the authority.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-2-13Weighted average life Sec. 13. "Weighted average life" of an issue of bonds or notes means:

(1) the sum of the products of the face amount of each maturity and the number of years to maturity (determined separately for each maturity and by taking into account mandatory sinking fund redemptions); divided by

(2) the face amount of the entire issue of bonds or notes.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-2-14Weighted average useful life Sec. 14. "Weighted average useful life" of a project or projects means:

(1) the sum of the products of the cost of each asset comprising the project or projects and the useful life of the respective asset; divided by

(2) the total cost of all the assets comprising the project or projects.

For purposes of this computation, the useful life of land is fifty (50) years. The useful life of all other assets comprising the project shall be conclusively evidenced by a certificate of the department based on its experience in maintaining transportation systems. The weighted average useful life of any project shall be determined as of the later of the date on which the project is expected to be placed in service and the date on which the bonds or notes are issued.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3Chapter 3. General Provisions

8-14.5-3-1Project and transportation system contracts 8-14.5-3-2Project financing 8-14.5-3-3Cooperative agreements 8-14.5-3-4Payment of transportation system costs 8-14.5-3-5Transfer of property rights 8-14.5-3-6Acquisition of property rights 8-14.5-3-7Contracts and agreements 8-14.5-3-8Repealed 8-14.5-3-9Grants 8-14.5-3-10Gifts and bequests 8-14.5-3-11Transfer of projects to authority 8-14.5-3-12Appropriation; relocation of appropriated facilities 8-14.5-3-13Necessary and proper acts 8-14.5-3-14Transfers from state to authority; advertising and bids 8-14.5-3-15Tax exemption

IC 8-14.5-3-1Project and transportation system contracts Sec. 1. The authority may contract with the department for construction, ownership, maintenance, and operation of projects and transportation systems.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-2Project financing Sec. 2. The authority may finance projects in accordance with this article.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-3Cooperative agreements Sec. 3. The authority may exercise any powers provided under this article in participation or cooperation with any governmental entity, including the department, and enter into any contracts to facilitate that participation or cooperation without compliance with any other statute.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-4Payment of transportation system costs Sec. 4. The authority may pay the cost of construction of a project or of owning or leasing transportation systems from any funds available to the authority under this article or any other law.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-5Transfer of property rights Sec. 5. The authority may sell, transfer, lease, or otherwise convey any land, rights-of-way, property, rights, easements, or legal or equitable interest it considers necessary or convenient for carrying out the provisions of this article, including disposal of unused or surplus property.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-6Acquisition of property rights Sec. 6. The authority may acquire by purchase, whenever it considers a purchase expedient, any land, rights-of-way, property, rights, easements, or other legal or equitable interests as it considers necessary or convenient for the construction and operation of any project. A purchase under this section shall be made upon the terms and at the price agreed upon between the authority and the property owner. However, the authority shall take title to the property in the name of the state.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-7Contracts and agreements Sec. 7. The authority 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 or any other law. These contracts or agreements are not subject to any approvals other than the approval of the authority and may be for any term of years and contain any terms that are considered reasonable by the authority.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-8RepealedAs added by P.L.68-1988, SEC.12. Repealed by P.L.235-2005, SEC.212.

IC 8-14.5-3-9Grants Sec. 9. The authority may receive and accept from any federal or state agency grants for or in aid of the construction of any project and repay any grant to the authority or to the department from a federal agency if the repayment is necessary to free the authority from restrictions which the authority determines to be in the public interest to remove. Any repayment under this section shall be made from funds available to the authority at the time the repayment is required and shall be made in a way that does not impair any contract between the authority and the owners of its bonds or notes.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-10Gifts and bequests Sec. 10. The authority 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.68-1988, SEC.12.

IC 8-14.5-3-11Transfer of projects to authority Sec. 11. The authority may accept the transfer of any project or transportation system to the authority.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-12Appropriation; relocation of appropriated facilities Sec. 12. (a) Except as provided in subsection (b), the authority may, in the manner provided by IC 8-23-7, 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 project. However, compensation for the property taken shall first be made in money as provided by law.

(b) The authority may take or disturb property or facilities that:

(1) belong to any public utility or to a common carrier engaged in interstate commerce;

(2) are required for the proper and convenient operation of the public utility or common carrier; and

(3) are not located within the limits of existing transportation systems or projects being constructed under this article;

only if provision is made for the restoration, relocation, or duplication of the property or facilities elsewhere at the cost of the authority.

As added by P.L.68-1988, SEC.12. Amended by P.L.18-1990, SEC.126.

IC 8-14.5-3-13Necessary and proper acts Sec. 13. The authority may do all things necessary or proper to carry out this article.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-3-14Transfers from state to authority; advertising and bids Sec. 14. 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 authority, 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.68-1988, SEC.12.

IC 8-14.5-3-15Tax exemption Sec. 15. All property of the authority 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 of the state.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-4Chapter 4. Contracts With the Department

8-14.5-4-1Authorization of contracts 8-14.5-4-2Mandatory contract provisions 8-14.5-4-3Permissive contract provisions

IC 8-14.5-4-1Authorization of contracts Sec. 1. The authority is responsible for the construction, leasing, and ownership of projects. With respect to each project, the authority and the department may enter into a contract for the purposes set forth in this chapter. If the authority and the department decide to enter into a contract under this chapter, the authority and the department may enter into a separate contract for each project or a master contract for several projects.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-4-2Mandatory contract provisions Sec. 2. A contract under this chapter must:

(1) provide for the construction and ownership of the project; and

(2) describe the project or projects, setting forth in general terms principal features such as geographic location, widths of rights-of-way, number of lanes in each direction, width of traffic lanes, widths of shoulders, location and nature of tunnels, overpasses, underpasses, interchanges, bridges, approaches, and connecting highways.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-4-3Permissive contract provisions Sec. 3. The contract may include the following:

(1) Provisions for payment by the authority to the department of all costs incurred by the department in the performance of the contracts, including all costs of construction, salaries, wages, and associated costs of department personnel attributable to performance of the contract.

(2) Other terms and conditions that the authority and the department consider appropriate.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-5Chapter 5. Leases With the Department

8-14.5-5-1Authority and department powers 8-14.5-5-2Mandatory lease provisions 8-14.5-5-3Mandatory lease provisions 8-14.5-5-4Sale or conveyance of transportation system 8-14.5-5-5Payment from revenues; lease rentals; grant anticipation revenue bonds

IC 8-14.5-5-1Authority and department powers Sec. 1. (a) In addition to its other powers, the department may enter into a lease or leases with the authority under section 2 or 3 of this chapter for any or all of the purposes set forth in this article.

(b) The authority has all the powers necessary and incidental to carry out the terms and conditions of leases under this chapter.

(c) If the authority and the department decide to enter into a lease under this chapter, the authority and the department may enter into a separate lease for each project or may enter into one (1) or more master leases for several projects.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-5-2Mandatory lease provisions Sec. 2. (a) A lease entered into under this section 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 is extended from biennium to biennium, with the extensions not to exceed a lease term of twenty-five (25) years, unless either the authority or the department gives notice of nonextension 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 plainly stating that the lease does not constitute an indebtedness of the state within the meaning or application of any constitutional provision or limitation, and that lease rentals are payable by the department solely from biennial appropriations, for the actual use or availability for use of projects provided by the authority, with payment commencing no earlier than the time the use or availability commences.

(4) Provisions requiring the department 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 authority and outstanding with respect to any project, including any required additions to reserves for the bonds or notes maintained by the authority; and

(B) additional rent as provided by the lease;

subject to appropriation of money to pay lease rentals.

(5) Provisions requiring the department to operate and maintain the project or projects during the term of the lease.

(6) A provision in each master lease for two (2) or more projects requiring that each project added to the master lease shall be covered by a supplemental lease describing the particular project, stating the additional rental 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 projects covered, whether by the master lease or a supplemental lease.

(b) A lease entered into under this section may contain other terms and conditions that the authority and the department consider appropriate.

(c) The department shall request an appropriation for payment of lease rentals on any lease entered into under this section in writing at a time sufficiently in advance of the date for payment of the lease rentals so that an appropriation may be made in the normal state budgetary process.

(d) If the department fails at any time to pay to the authority when due any lease rentals on any lease under this section, the chairman of the authority shall immediately report the unpaid amount in writing to the governor and in an electronic format under IC 5-14-6 to the general assembly.

As added by P.L.68-1988, SEC.12. Amended by P.L.28-2004, SEC.73.

IC 8-14.5-5-3Mandatory lease provisions Sec. 3. (a) A lease entered into under this section must include the following:

(1) The term of the lease, which may not exceed weighted average useful life of the project or projects.

(2) A provision plainly stating that the lease does not constitute an indebtedness of the state within the meaning or application of any constitutional provision or limitation, and that lease rentals are payable by the department solely for the annual use or availability for use of projects provided by the authority, with payment commencing no earlier than the time the use or availability commences.

(3) Provisions requiring the department to pay rent at times and in amounts sufficient to pay in full the following:

(A) The debt service payable under the terms of any bonds or notes issued by the authority and outstanding with respect to any project, including any required additions to reserves for the bonds or notes maintained by the authority.

(B) Additional rent as provided by the lease.

(4) Provisions requiring the department to operate and maintain the project or projects during the term of the lease.

(5) A provision in each master lease for two (2) or more projects requiring that each project added to the master lease shall be covered by a supplemental lease describing the particular project, stating the additional rental 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 projects covered, whether by the master lease or a supplemental lease.

(b) A lease entered into under this section may contain other terms and conditions that the authority and the department consider appropriate.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-5-4Sale or conveyance of transportation system Sec. 4. The department may sell, transfer, or convey by any means any transportation system to the authority through negotiation of a lease. The department may lease any existing transportation system or property under its control to the authority for construction of a project, which project may be leased to the department.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-5-5Payment from revenues; lease rentals; grant anticipation revenue bonds Sec. 5. The department shall pay lease rentals for leases entered into under this chapter and securing bonds issued under IC 8-14.5-6 from revenues transferred to the state highway road construction and improvement fund or the crossroads 2000 fund before making any other disbursements from those funds. The department shall pay lease rentals for leases entered into under this chapter and for securing grant anticipation revenue bonds or notes issued under IC 8-14.5-7 from federal highway revenues (as defined in IC 8-14.5-7-2) transferred to the grant anticipation fund before making any other disbursements from the grant anticipation fund.

As added by P.L.68-1988, SEC.12. Amended by P.L.260-1997(ss), SEC.53; P.L.246-2005, SEC.82.

IC 8-14.5-6Chapter 6. Issuance of Bonds and Notes

8-14.5-6-1Bond and note authorization 8-14.5-6-2Approval; identification of funding objectives 8-14.5-6-3Weighted average useful life of project; term of bonds and interest 8-14.5-6-4Notice of bond issue; publication; time for contesting validity; subsequent leases 8-14.5-6-5Bond and note provisions; weighted average life 8-14.5-6-6Manual or facsimile signatures; seal 8-14.5-6-7Negotiable instrument nature of bonds or notes 8-14.5-6-8Public or negotiated sale 8-14.5-6-9Appropriated purpose of proceeds; maturities 8-14.5-6-10Bonds or notes of authority not state indebtedness; funds from which payable 8-14.5-6-11Enforcement of article and undertaking 8-14.5-6-12Tax exemption 8-14.5-6-13Bonds and notes as legal investment 8-14.5-6-14Security registration exemption 8-14.5-6-15Pledges 8-14.5-6-16Insurance or guaranty of payment 8-14.5-6-17Credit enhancement or liquidity support agreements 8-14.5-6-18Service agreements with financial institutions 8-14.5-6-19Trust agreements or resolutions 8-14.5-6-20Authority purchase of its own bonds or notes 8-14.5-6-21Investment of authority funds

IC 8-14.5-6-1Bond and note authorization Sec. 1. Except as provided in sections 2 and 5 of this chapter, the authority may, by resolution, after budget committee review, issue and sell bonds or notes of the authority for the purpose of providing funds to carry out the provisions of this article with respect to the construction of a project or projects or the refunding of any bonds or notes, together with any reasonable costs associated with a refunding. The amount of the bonds or notes issued for a railroad crossing upgrade project described in IC 8-14.5-8 may not cause the annual payments on all the bonds and notes for this purpose to exceed ten million dollars ($10,000,000).

As added by P.L.68-1988, SEC.12. Amended by P.L.260-1997(ss), SEC.54; P.L.218-2017, SEC.67; P.L.173-2025, SEC.14.

IC 8-14.5-6-2Approval; identification of funding objectives Sec. 2. (a) Before the issuance of bonds or notes, the authority must receive the approval of:

(1) the commissioner of the Indiana department of transportation; and

(2) the budget agency.

(b) Before the issuance of bonds or notes, the department shall identify:

(1) the project or projects to be financed from the proceeds of the bonds or notes; or

(2) the project or projects proposed to be financed from the proceeds of the bonds or notes, the projected cost and useful life of which will form a basis upon which the authority may reasonably determine that the limitations in sections 3 and 5(b) of this chapter will be complied with if the proposed project or projects are financed from the bonds or notes.

As added by P.L.68-1988, SEC.12. Amended by P.L.112-1989, SEC.4; P.L.260-1997(ss), SEC.55.

IC 8-14.5-6-3Weighted average useful life of project; term of bonds and interest Sec. 3. (a) The construction of a project may not be financed under this article if at the time the lease with respect to the project is initially entered into the weighted average useful life of the project is less than five (5) years.

(b) For purposes of this section and section 5 of this chapter, a certificate of the department as to the weighted average useful life of the project is conclusive with respect to the matters contained in the certificate.

(c) If any bonds or notes bear interest at a variable or adjustable rate, lease rentals under any lease or leases attributable to debt service shall be fixed over the term of the lease or leases based on the fair and reasonable value of the project or projects leased.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-4Notice of bond issue; publication; time for contesting validity; subsequent leases Sec. 4. (a) Before issuing a series of bonds or notes, the authority 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 city of Indianapolis.

(b) No action to contest the validity of:

(1) any contract entered into by the department and the authority before the bonds or notes are issued;

(2) any lease entered into by the department and the authority before the bonds or notes are issued to secure a series of bonds or notes; or

(3) a series of bonds or notes issued by the authority;

may 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 authority may publish notice of execution of the lease or contract as set forth in subsection (a). No action to contest the validity of such a lease or contract may be brought after the fifteenth day following publication of the notice.

(d) If an action challenging a lease, contract, bonds, or notes is not brought within the time prescribed by this section, the lease, contract, bonds, or notes shall be conclusively presumed to be fully authorized and valid under the laws of the state and any person or entity is estopped from further questioning the authorization, validity, execution, delivery, or issuance of the contract, lease, bonds or notes.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-5Bond and note provisions; weighted average life Sec. 5. (a) The bonds or notes must indicate on their face:

(1) the maturity date or dates, as determined under subsection (b);

(2) the interest rate or rates (whether fixed, variable, or a combination of fixed or variable) or the manner in which the interest rate or rates will be determined if variable or adjustable rates are used;

(3) registration privileges and place of payment, including provisions for book entry obligations as set forth in IC 5-1-15;

(4) the conditions and terms under which the bonds or notes may be redeemed or prepaid before maturity; and

(5) their source of payment as set forth in section 10 of this chapter.

(b) The weighted average life of the bonds or notes may not exceed the sum of:

(1) the weighted average useful life of the project or projects to be financed from the proceeds of the bonds or notes; plus

(2) the period of construction of the project or projects.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-6Manual or facsimile signatures; seal Sec. 6. The bonds or notes:

(1) shall be executed by the manual or facsimile signature of the chairman or vice chairman of the authority;

(2) shall be attested by the manual or facsimile signature of the public finance director;

(3) shall be imprinted or impressed with the seal of the authority by any means;

(4) may be authenticated by a trustee, registrar, or paying agent; and

(5) constitute valid and binding obligations of the authority, even if the chairman, vice chairman, or public finance director whose manual or facsimile signature appears on the bonds or notes no longer holds that office.

As added by P.L.68-1988, SEC.12. Amended by P.L.162-2007, SEC.31.

IC 8-14.5-6-7Negotiable instrument nature of bonds or notes Sec. 7. 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.68-1988, SEC.12.

IC 8-14.5-6-8Public or negotiated sale Sec. 8. The bonds or notes may be sold by the authority at a public or a negotiated sale at a time or times determined by the authority and at a premium or discount as determined by the authority. In determining the amount of bonds or notes to be issued and sold, the authority 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 project, a refunding, or the issuance of the bonds or notes.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-9Appropriated purpose of proceeds; maturities Sec. 9. 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 authority 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 authority are governed in all respects by this article and the resolution or trust agreement.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-10Bonds or notes of authority not state indebtedness; funds from which payable Sec. 10. The bonds or notes:

(1) constitute the corporate obligations of the authority;

(2) do not constitute an indebtedness of the state within the meaning or application of any constitutional provision or limitation; and

(3) are payable solely as to both principal and interest from:

(A) the revenues from a lease to the department, if any;

(B) proceeds of bonds or notes, if any; or

(C) investment earnings on proceeds of bonds or notes.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-11Enforcement of article and undertaking Sec. 11. The provisions of this article and the covenants and undertakings of the authority 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 authority or any officer, agent, or employee of the authority. 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 authority.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-12Tax exemption Sec. 12. All bonds or notes issued under this article 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.

As added by P.L.68-1988, SEC.12. Amended by P.L.21-1990, SEC.40; P.L.254-1997(ss), SEC.14; P.L.79-2017, SEC.55.

IC 8-14.5-6-13Bonds and notes as legal investment Sec. 13. 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, money, or other funds belonging to them or within their control in bonds or notes issued under this chapter.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-14Security registration exemption Sec. 14. 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.68-1988, SEC.12. Amended by P.L.27-2007, SEC.7.

IC 8-14.5-6-15Pledges Sec. 15. A pledge of lease rentals, proceeds of bonds or notes, investment earnings on those proceeds, or other money pledged by the authority 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 authority and thereafter received by the authority 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 authority, 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 authority.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-16Insurance or guaranty of payment Sec. 16. The authority may obtain from a department or 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 authority, or on securities purchased or held by the authority.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-17Credit enhancement or liquidity support agreements Sec. 17. The authority may enter into agreements with an entity to provide credit enhancement or liquidity support for any bonds or notes issued by the authority, or for any debt service reserves securing any bonds or notes, with terms that are reasonable and proper, in the discretion of the authority, and not in violation of law. The authority may execute and deliver notes to evidence its obligation to make payments under such an agreement, but these notes must conform to the provisions of this article in all respects.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-18Service agreements with financial institutions Sec. 18. The authority may enter into agreements or contracts with any financial institution as may be necessary, desirable, or convenient in the opinion of the authority for rendering services in connection with:

(1) the care, custody, or safekeeping of securities or other investments held or owned by the authority;

(2) the payment or collection of amounts payable as to principal or interest; and

(3) the delivery to the authority of securities or other investments purchased or sold by it.

The authority 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 authority, is necessary or desirable.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-19Trust agreements or resolutions Sec. 19. (a) In the discretion of the authority, any bonds and notes issued under this chapter may be secured by a trust agreement by and between the authority 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 cotrustee, which may be any trust company or bank in Indiana or another 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 owners of bonds or notes as may be reasonable and proper, in the discretion of the authority, 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 authority 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 any other funds available to the authority.

As added by P.L.68-1988, SEC.12.

IC 8-14.5-6-20Authority purchase of its own bonds or notes Sec. 20. The authority may purchase bonds or notes of the authority out of its funds or money available for the purchase of its own bonds or notes. The authority may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with owners of its bonds or notes. Unless cancelled, 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.68-1988, SEC.12.

IC 8-14.5-6-21Investment of authority funds Sec. 21. Funds or money held by the authority 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.68-1988, SEC.12.

IC 8-14.5-7Chapter 7. Grant Anticipation Revenue Bonds and Notes

8-14.5-7-1"Authority" 8-14.5-7-2"Federal highway revenues" 8-14.5-7-3"Grant anticipation revenue bond" 8-14.5-7-4"Highway improvement project" 8-14.5-7-5Issuance of grant anticipation revenue bonds or notes 8-14.5-7-6Revenue declaration 8-14.5-7-7Maximum term of bonds and notes 8-14.5-7-8Application of other law 8-14.5-7-9Indebtedness limited to authority

IC 8-14.5-7-1"Authority" Sec. 1. As used in this chapter, "authority" refers to the Indiana finance authority or its successor.

As added by P.L.246-2005, SEC.83. Amended by P.L.1-2006, SEC.155.

IC 8-14.5-7-2"Federal highway revenues" Sec. 2. As used in this chapter, "federal highway revenues" means:

(1) money and obligation authority apportioned or allocated, or anticipated to be apportioned or allocated in the current federal fiscal year or a future federal fiscal year, to Indiana by the United States Department of Transportation under 23 U.S.C., as amended, for use on a highway improvement project; or

(2) other federal money that may be used for a highway improvement project and is available or anticipated to be available in the current federal fiscal year or a future federal fiscal year.

As added by P.L.246-2005, SEC.83.

IC 8-14.5-7-3"Grant anticipation revenue bond" Sec. 3. As used in this chapter, "grant anticipation revenue bond" or "grant anticipation revenue note" means a bond or note, respectively, secured by lease rentals relating to highway improvement projects and anticipated to be paid from federal highway revenues deposited in the grant anticipation fund.

As added by P.L.246-2005, SEC.83.

IC 8-14.5-7-4"Highway improvement project" Sec. 4. As used in this chapter, "highway improvement project" means a highway project for which the department may use federal highway revenues.

As added by P.L.246-2005, SEC.83.

IC 8-14.5-7-5Issuance of grant anticipation revenue bonds or notes Sec. 5. The authority may, by resolution, after budget committee review, issue grant anticipation revenue bonds or notes for any purpose that is authorized by IC 8-14.5-6 and for which the department may use federal highway revenues.

As added by P.L.246-2005, SEC.83. Amended by P.L.173-2025, SEC.15.

IC 8-14.5-7-6Revenue declaration Sec. 6. (a) Before grant anticipation revenue bonds or notes may be issued under this chapter, the department shall prepare a revenue declaration that includes the department's determination that the amount of federal highway revenues received by the state in a particular state fiscal year will exceed the amount specified in subsection (c)(2) by at least eighteen percent (18%). Grant anticipation revenue bonds or notes may not be issued under this chapter unless the department makes the determination required under this subsection.

(b) The revenue declaration prepared under this section must provide a specified amount or percentage of federal highway revenues received by the state during a state fiscal year to be deposited in the grant anticipation fund and the number of years the deposits shall be made. A revenue declaration prepared under this section is subject to approval of the budget agency and the authority.

(c) The total amount of lease rentals securing grant anticipation revenue bonds or notes issued under this chapter and scheduled to be paid during any state fiscal year, determined as of the date of issuance of each series of grant anticipation revenue bonds or notes, may not exceed an amount equal to twenty-five percent (25%) of the remainder of:

(1) the total amount of federal highway revenues apportioned or allocated to the department during the federal fiscal year immediately preceding the state fiscal year in which the series of bonds or notes is issued; minus

(2) seven hundred thirty-four million eight hundred fifty thousand three hundred ninety dollars ($734,850,390), which is the total amount of federal highway revenues apportioned or allocated to the department during the federal fiscal year beginning October 1, 2003, and ending September 30, 2004.

As added by P.L.246-2005, SEC.83.

IC 8-14.5-7-7Maximum term of bonds and notes Sec. 7. The term of grant anticipation revenue bonds or notes may not exceed twelve (12) years.

As added by P.L.246-2005, SEC.83.

IC 8-14.5-7-8Application of other law Sec. 8. All other provisions of IC 8-14.5-6 apply to the issuance of grant anticipation revenue bonds or notes under this chapter.

As added by P.L.246-2005, SEC.83.

IC 8-14.5-7-9Indebtedness limited to authority Sec. 9. Grant anticipation revenue bonds or notes:

(1) constitute the corporate obligations of the authority;

(2) do not constitute an indebtedness of the state within the meaning or application of any constitutional provision or limitation; and

(3) are payable solely as to both principal and interest from:

(A) the revenues from a lease to the department, if any;

(B) proceeds of bonds or notes, if any; or

(C) investment earnings on proceeds of bonds or notes, if any.

As added by P.L.246-2005, SEC.83.

IC 8-14.5-8Chapter 8. Railroad Crossing Remediation Projects

8-14.5-8-1Approval of railroad crossing remediation projects 8-14.5-8-2Requirement 8-14.5-8-3Grade separations 8-14.5-8-4Financing 8-14.5-8-5Authorization to issue bonds or notes 8-14.5-8-6Lease rental payments

IC 8-14.5-8-1Approval of railroad crossing remediation projects Sec. 1. (a) The department may approve railroad crossing remediation projects under this chapter for financing under this article.

(b) The department shall establish a documented policy and procedure consistent with the requirements of IC 8-6-1 for making determinations of whether a project should be approved under this chapter.

As added by P.L.218-2017, SEC.68.

IC 8-14.5-8-2Requirement Sec. 2. To approve a project under this chapter, the department must determine that the crossing is at a stage of critical need.

As added by P.L.218-2017, SEC.68.

IC 8-14.5-8-3Grade separations Sec. 3. A project under this chapter may include building a grade separation of the railroad if the department determines that is the best solution for the crossing.

As added by P.L.218-2017, SEC.68.

IC 8-14.5-8-4Financing Sec. 4. The department may seek financing by the authority under this article for a project approved under this chapter.

As added by P.L.218-2017, SEC.68.

IC 8-14.5-8-5Authorization to issue bonds or notes Sec. 5. The authority may issue bonds or notes to finance a project approved by the department under this chapter using lease rentals for bond or note repayments. However, the annual payments on all the bonds and notes outstanding may not exceed ten million dollars ($10,000,000).

As added by P.L.218-2017, SEC.68.

IC 8-14.5-8-6Lease rental payments Sec. 6. The department shall make lease rental payments from the state highway road construction and improvement fund established by IC 8-14-10.

As added by P.L.218-2017, SEC.68.

IC 8-15ARTICLE 15. TOLL ROADS

Ch. 1.Authorization to Purchase Toll Road Bonds Ch. 2.Operation and Financing of Toll Roads Ch. 3.Tollways

IC 8-15-1Chapter 1. Authorization to Purchase Toll Road Bonds

8-15-1-1Eligibility of bonds 8-15-1-2Definitions 8-15-1-3Construction of act