local road projects.
Sec. 2. The authority shall finance local road projects in
accordance with this article.
Sec. 3. The authority may exercise any powers provided under
this article in participation or cooperation with any governmental
entity and enter into any contracts to facilitate that participation
or cooperation without compliance with any other statute. This
article constitutes complete authority for the authority to carry out
its powers and duties under this article. No law, procedure,
proceedings, publications, notices, consents, approvals, orders, or
acts by the authority or any other officer, department, agency, or
instrumentality of the state or any political subdivision are
required for the authority to carry out its powers and duties,
except as prescribed in this article.
Sec. 4. The authority may pay the cost of construction of a local
road project from any funds available to the authority under this
article or any other law.
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 this article, including disposal of unused or surplus
property.
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 local road 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.
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.
Sec. 8. The authority may employ and fix the compensation of
financial advisors and underwriters, bond counsel, other attorneys
with the approval of the attorney general, and other employees,
independent contractors, and agents as necessary in its judgment
to carry out this article. The authority is subject to the provisions
of 25 IAC 5 concerning equal opportunities for minority business
enterprises and women's business enterprises to participate in
procurement and contracting processes.
Sec. 9. 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.
Sec. 10. The authority may accept the transfer of any local road
project to the authority.
Sec. 11. (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 local road 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 local road 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.
Sec. 12. The authority may do all things necessary or proper to
carry out this article.
Sec. 13. A local unit 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 local unit, to the authority, without being required
to advertise or solicit bids or proposals, in order to accomplish the
governmental purposes of this article.
Sec. 14. 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.
Chapter 4. Contracts With Local Units
Sec. 1. The authority is responsible for the construction, leasing,
and ownership of local road projects. With respect to each local
road project, the authority and one (1) or more local units may
enter into a contract for the purposes set forth in this chapter. If
the authority and the local unit or units decide to enter into a
contract under this chapter, the authority and the local unit or
units may enter into a separate contract for each local road project
or a master contract for several local road projects.
Sec. 2. A contract under this chapter must:
(1) provide for the construction and ownership of the local
road project; and
(2) describe the local road project or local road 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 roads,
streets, and highways.
Sec. 3. The contract may include the following:
(1) Provisions for payment by the authority to the local unit
or units of all costs incurred by the local unit or units in the
performance of the contracts, including all costs of
construction, salaries, wages, and associated costs of
personnel attributable to performance of the contract.
(2) Other terms and conditions that the authority and the
local unit or units consider appropriate.
Sec. 4. Notwithstanding any other law, a local unit may enter
into a contract with the authority by negotiating the contract with
the authority and without complying with the requirements of any
other law. A local unit shall observe any existing contractual
commitments to the holders of bonds or notes or other persons
when entering into a contract.
Chapter 5. Leases With Local Units
Sec. 1. (a) In addition to its other powers, one (1) or more local
units 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. Notwithstanding any other law, a local unit may
enter into a lease with the authority by negotiating the lease with
the authority and without complying with the requirements of any
other law. A local unit shall observe any existing contractual
commitments to the holders of bonds or notes or other persons
when entering into a lease.
(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 one (1) or more local units decide to
enter into a lease under this chapter, the authority and the local
unit or units may enter into a separate lease for each local road
project or may enter into one (1) or more master leases for several
local road projects.
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 local unit or units give 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 or any local unit within
the meaning or application of any constitutional provision or
limitation, and that lease rentals are payable by the local unit
or units solely from the sources described in section 6 of this
chapter, for the actual use or availability for use of local road
projects provided by the authority, with payment
commencing not earlier than the time the use or availability
commences.
(4) Provisions requiring the local unit or units 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 local road 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 the appropriation of money by the local unit or
units to pay lease rentals.
(5) Provisions requiring the local unit or units to operate and
maintain the local road project or local road projects during
the term of the lease.
(6) A provision in each master lease for two (2) or more local
road projects requiring that each local road project added to
the master lease shall be covered by a supplemental lease
describing the particular local road 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 local road 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 local unit or units
consider appropriate.
(c) The fiscal officer (as defined in IC 36-1-2-7) of the local unit
shall request an appropriation from the local unit 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
budgetary process of the local unit.
Sec. 3. (a) A lease entered into under this section must include
the following:
(1) The term of the lease, which may not exceed the weighted
average useful life of the local road project or local road
projects.
financed under this article, if at the time the lease with respect to
the local road project is initially entered into, the weighted average
useful life of the local road project is less than five (5) years.
(b) For purposes of this section and section 5 of this chapter, a
certificate of the local unit, supported by a statement from the local
unit's consulting engineer, as to the weighted average useful life of
the local road 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 local road project or
local road projects leased.
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:
(1) one (1) time in two (2) newspapers published and of
general circulation in the city of Indianapolis; and
(2) one (1) time in one (1) newspaper published and of general
circulation in each local unit that proposes to enter into a
lease of the local road projects to be financed by the bonds or
notes.
(b) No action to contest the validity of:
(1) any contract entered into by one (1) or more local units
and the authority before the bonds or notes are issued;
(2) any lease entered into by one (1) or more local units 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 against the authority after the fifteenth day
following publication of the notice required by subsection (a)(1) or
against a local unit after the fifteenth day following publication of
the notice under subsection (a)(2).
(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 against the authority to
contest the validity of such a lease or contract may be brought after
the fifteenth day following publication of the notice under
subsection (a)(1) or against a local unit after the fifteenth day
following publication of the notice under subsection (a)(2).
(d) If an action against the authority or a local unit challenging
a lease, a 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.
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 and 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) the 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 local road project or
local road projects to be financed from the proceeds of the
bonds or notes; plus
(2) the period of construction of the local road project or local
road projects.
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 secretary-treasurer or assistant secretary-treasurer of the
authority;
(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, secretary-treasurer, or
assistant secretary-treasurer whose manual or facsimile
signature appears on the bonds or notes no longer holds that
office.
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.
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 local road project, a refunding, or the issuance
of the bonds or notes.
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.
Sec. 10. The bonds or notes:
(1) constitute the corporate obligations of the authority;
(2) do not constitute an indebtedness of the state or any local
unit 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 one (1) or more local units,
if any;
(B) proceeds of bonds or notes, if any; or
(C) investment earnings on proceeds of bonds or notes.
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.
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 or a state inheritance tax imposed under IC 6-4.1.
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.
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.
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 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.
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.
Chapter 7. Reserve Fund for Bonds and Notes
Sec. 1. (a) The authority 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 3(a) of this
chapter;
(2) all proceeds of bonds or notes required to be deposited in
the fund under the terms of:
(A) a contract between the authority and the holders of the
bonds or notes; or
(B) a resolution of the authority with respect to the
proceeds of bonds or notes;