AN ACT to amend the Indiana Code concerning transportation.
and
(3) gifts and grants to the fund.
The budget agency shall review each recommendation. The budget
agency, after review by the budget committee, may approve, deny, or
modify grants and loans recommended by the board. Money in the fund
may not be used to provide a recurring source of revenue for the
normal operating expenditures of any project.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(d) The money in the fund at the end of a state fiscal year does not
revert to the state general fund but remains in the fund to be used
exclusively for the purposes of this chapter.
funding of research.
(4) The extent to which the proposal evidences interdisciplinary
or inter-institutional collaboration among two (2) or more Indiana
institutions of higher education or private sector partners, as well
as cost sharing and partnership support from the business
community.
The purposes for which grants and loans may be made include
erecting, constructing, reconstructing, extending, remodeling,
improving, completing, equipping, and furnishing research and
technology transfer facilities.
(d) The peer review panel shall be chosen by and report to the
board. In determining the composition and duties of a peer review
panel, the board shall consider the National Institutes of Health and the
National Science Foundation peer review processes as models. The
members of the panel must have extensive experience in federal
research funding. A panel member may not have a relationship with
any private entity or academic institution in Indiana that would
constitute a conflict of interest for the panel member.
(e) In making a determination on any other application for a grant
or loan from the fund involving a proposal to transfer research results
and technologies into marketable products or commercial ventures, the
board shall consult with experts as necessary to analyze the likelihood
of success of the proposal and the relative merit of the proposal.
exercise of its powers and functions under this chapter, IC 4-4-21,
and IC 15-7-5.
(7) Employ architects, engineers, attorneys, inspectors,
accountants, agriculture experts, silviculture experts, aquaculture
experts, and financial experts, and such other advisors,
consultants, and agents as may be necessary in its judgment and
to fix their compensation.
(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 evidences of indebtedness, whether
secured or unsecured, to any person, as provided by this chapter,
IC 4-4-21, IC 4-4-11.4, and IC 15-7-5.
(10) Procure insurance or guaranties from any public or private
entities, including any department, agency, or instrumentality of
the United States, for payment of any bonds issued by the
authority or for reinsurance on amounts paid from the industrial
development project guaranty fund, including the power to pay
premiums on any insurance or reinsurance.
(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 this chapter, IC 4-4-21,
and IC 15-7-5, 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 or otherwise acquire, own, hold, improve,
employ, use, and otherwise deal in and with real or personal
property or any interest in real or personal property, wherever
situated, for any purpose consistent with this chapter, IC 4-4-21,
or IC 15-7-5.
(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, and leases with
contracting parties, including borrowers, lenders, developers, or
users, for the purpose of planning, regulating, and providing for
the financing and refinancing of any agricultural enterprise (as
defined in IC 15-7-4.9-2), rural development project (as defined
in IC 15-7-4.9-19.5), industrial development project, or
international exports, and distribute data and information
concerning the encouragement and improvement of agricultural
enterprises and agricultural employment, rural development
projects, industrial development projects, international exports,
and other types of employment in the state undertaken with the
assistance of the authority under this chapter.
(13) Enter into contracts or agreements with lenders and lessors
for the servicing and processing of loans and leases pursuant to
this chapter, IC 4-4-21, and IC 15-7-5.
(14) Provide technical assistance to local public bodies and to
profit and nonprofit entities in the development or operation of
agricultural enterprises, rural development projects, and industrial
development projects.
(15) To the extent permitted 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 permitted 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 of America or of
this state, the reduction can be made without jeopardizing the
economic stability of the agricultural enterprise, rural
development project, or industrial development project being
financed.
(17) Invest any funds not needed for immediate disbursement,
including any funds held in reserve, in direct and general
obligations of or obligations fully and unconditionally guaranteed
by the United States, obligations issued by agencies of the United
States, obligations of this state, or any obligations or securities
which may from time to time be legally purchased by
governmental subdivisions of this state pursuant to IC 5-13, or
any obligations or securities which are permitted investments for
bond proceeds or any construction, debt service, or reserve funds
secured under the trust indenture or resolution pursuant to which
bonds are issued.
(18) Collect fees and charges, as the authority determines to be
reasonable, in connection with its loans, guarantees, advances,
insurance, commitments, and servicing.
the purpose of furnishing funds to such lender to be used for
making a loan to a developer or user for the financing of industrial
development projects under this chapter.
(29) 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 industrial development projects to be
leased from or to be acquired by the authority.
(30) 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 and interest on
the bonds.
(31) Adopt rules governing its activities authorized under this
chapter, IC 4-4-21, and IC 15-7-5.
(32) Use the proceeds of bonds to make guaranteed participating
loans.
(33) Purchase, discount, sell, and negotiate, with or without
guaranty, notes and other evidences of indebtedness.
(34) Sell and guarantee securities.
(35) Make guaranteed participating loans under IC 4-4-21-26.
(36) Procure insurance 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 the payment of principal and interest on notes
or other obligations of the authority.
(37) Provide performance bond guarantees to support eligible
export loan transactions, subject to the terms of this chapter or
IC 4-4-21.
(38) Provide financial counseling services to Indiana exporters.
(39) 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.
(40) Sell, convey, lease, exchange, transfer, or otherwise dispose
of property or any interest in property, wherever the property is
located.
(41) Cooperate with other public and private organizations to
promote export trade activities in Indiana.
(42) Make guarantees and administer the agricultural loan and
rural development project guarantee fund established by
IC 15-7-5.
(43) Take assignments of notes and mortgages and security
agreements securing notes and other forms of security, and attach,
seize, or take title by foreclosure or conveyance to any
agricultural enterprise or rural development project when a
guaranteed loan to the enterprise or rural development project is
clearly in default and when in the opinion of the authority the
acquisition is necessary to safeguard the agricultural loan and
rural development project guarantee fund, and sell, or on a
temporary basis, lease or rent the agricultural enterprise or rural
development project for any use.
(44) Expend money, as the authority considers appropriate, from
the agricultural loan and rural development project guarantee
fund created by IC 15-7-5-19.5.
(45) Reimburse from bond proceeds expenditures for industrial
development projects under this chapter.
(46) Do any act necessary or convenient to the exercise of the
powers granted by this chapter, IC 4-4-21, or IC 15-7-5, or
reasonably implied from those statutes, including but not limited
to compliance with requirements of federal law imposed from
time to time for the issuance of bonds.
(b) The authority's powers under this chapter shall be interpreted
broadly to effectuate the purposes of this chapter and may not be
construed as a limitation of powers.
(c) This chapter does not authorize the financing of industrial
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.
bonds; or
(2) in any way impair the rights or remedies of the holders of
the bonds;
until the bonds, together with the interest on the bonds, 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.
Sec. 9. The bonds of the authority are negotiable instruments for
all purposes of the Uniform Commercial Code (IC 26), subject only
to the provisions of the bonds for registration.
Sec. 10. (a) Bonds of the authority must be authorized by
resolution of the authority, 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 Indiana; and
(9) be subject to the terms of redemption;
as the resolution of the authority or the trust agreement securing
the bonds provides.
(b) Bonds may be issued under this chapter without obtaining
the consent of any state agency and without any other proceeding
or condition other than the proceedings or conditions specified in
this chapter. However, the total principal of all outstanding bonds
issued under this chapter may not exceed one billion dollars
($1,000,000,000). Not more than two hundred million dollars
($200,000,000) in bonds may be issued in any state fiscal year.
Bonds issued before July 1, 2007, must provide that debt principal
and other debt service payments are not required before July 1,
2007. Bonds may not be issued under this chapter after June 30,
2011, other than bonds issued to refinance bonds originally issued
before July 1, 2011.
(c) The rate or rates of interest on the bonds 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. Bonds bearing a variable
rate of interest may be converted to bonds bearing a fixed rate or
rates of interest, and bonds bearing a fixed rate or rates of interest
may be converted to bonds bearing a variable rate of interest, to
the extent and in the manner set forth in the resolution pursuant to
which the bonds are issued. The interest on bonds 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 may be made subject to mandatory redemption
by the authority at the times and under the circumstances set forth
in the authorizing resolution.
Sec. 11. Bonds of the authority may be sold at public or private
sale at the price the authority determines. If bonds of the authority
are to be sold at public sale, the authority shall publish notice of the
sale for two (2) weeks in two (2) newspapers published and of
general circulation in Indianapolis.
Sec. 12. The authority may periodically issue its bonds under
this chapter and pay and retire the principal of the bonds or pay
the interest due thereon or fund or refund the bonds from proceeds
of bonds, or from other funds or money of the authority available
for that purpose in accordance with a contract between the
authority and the holders of the bonds.
Sec. 13. (a) In the discretion of the authority, any bonds 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
within or outside Indiana.
(b) The trust agreement or the resolution providing for the
issuance of the bonds may contain provisions for protecting and
enforcing the rights and remedies of the holders of any such bonds
as are 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 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 other provisions the
authority considers reasonable and proper for the security of the
holders of any bonds.
(e) All expenses incurred in carrying out 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 or
from any other funds available to the authority.
assembly may annually or biannually appropriate to the authority
for deposit in one (1) or more of the funds the sum, certified by the
chairman of the authority to the general assembly, that is
necessary to pay the debt service on the bonds or 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 general assembly the chairman's
certificate stating the sum required to pay debt service on the
bonds or to restore one (1) or more of the funds to an amount equal
to the required debt service reserve. This subsection does not
create 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 fund shall be held and applied in accordance with
section 15(b) of this chapter. However, at the end of each fiscal
year, if the amount in any fund exceeds the debt service or
required debt service reserve, any amount representing earnings
or income received on account of any money appropriated to the
funds that exceeds the expenses of the authority for that fiscal year
may be transferred to the Indiana twenty-first century research
and technology fund established by IC 4-4-5.1-3.
Sec. 19. Subject to any agreement with its holders, the authority
may combine a reserve fund established for an issue of bonds into
one (1) or more reserve funds.
Sec. 20. The authority may establish additional reserves or other
funds or accounts as the authority considers necessary, desirable,
or convenient to further the accomplishment of the authority's
purposes or to comply with any of the authority's agreements or
resolutions.
Sec. 21. Unless the resolution or trust agreement authorizing the
bonds provides otherwise, money or investments in a fund or
account of the authority established or held for the payment of
bonds shall be applied to the payment or retirement of the bonds,
and to no other purpose.
Sec. 22. (a) An action to contest the validity of any bonds of the
authority to be sold at public sale may not be brought after the
fifteenth day following the first publication of notice of the sale of
the bonds. An action to contest the validity of any bond sale under
this chapter may not be brought after the fifth day following the
bond sale.
(b) If bonds are sold at private sale, an action to contest the
validity of such bonds may not be brought after the fifteenth day
following the adoption of the resolution authorizing the issuance of
the bonds.
(c) If an action challenging the bonds of the authority is not
brought within the time prescribed by subsection (a) or (b),
whichever is applicable, all bonds of the authority are 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 authority.
(d) If this chapter is inconsistent with any other law (general,
special, or local), this chapter controls.
Sec. 23. All property of the authority 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
authority may not be a charge or lien upon its property. However,
this section does not apply to or limit the rights of the holder of
bonds to pursue a remedy for the enforcement of a pledge or lien
given by the authority on the authority's revenues or other money.
Sec. 24. A pledge of revenues or other money made by the
authority is binding from the time the pledge is made. Revenues or
other money so pledged and thereafter received by the authority
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
authority, 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
authority.
Sec. 25. The chairman of the authority may receive from the
United States of America or any department or agency thereof, or
any state agency any amount of money as and when appropriated,
allocated, granted, turned over, or in any way provided for the
purposes of the authority or this chapter, and those amounts shall,
unless otherwise directed by the federal authority, be credited to
and be available to the authority.
Sec. 26. A financial institution may give to the authority a good
and sufficient undertaking with such sureties as are approved by
the authority to the effect that the financial institution shall
faithfully keep and pay over to the order of or upon the warrant of
the authority or the authority's authorized agent all those funds
deposited with the financial institution by the authority and agreed
interest under or by reason of this chapter, at such times or upon
such demands as may be agreed with the authority or instead of
these sureties, deposit with the authority or the authority's
authorized agent or a trustee or for the holders of bonds, as
collateral, those securities as the authority may approve. The
deposits of the authority may be evidenced by an agreement in the
form and upon the terms and conditions that may be agreed upon
by the authority and the financial institution.
Sec. 27. The authority may enter into agreements or contracts
with a financial institution inside or outside Indiana as the
authority considers necessary, desirable, or convenient for
rendering services in connection with the care, custody, or
safekeeping of securities or other investments held or owned by the
authority, 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 authority
of securities or other investments purchased by or sold by the
authority, and to pay the cost of those services. The authority 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, the authority considers necessary or desirable.
Sec. 28. 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 issued under this chapter.
Sec. 29. 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, direct or indirect,
of the state or a political subdivision of the state. All bonds issued
under this chapter are issued by a body corporate and public of the
state, but not a state agency, and for an essential public and
governmental purpose and the bonds, the interest thereon, the
proceeds received by a holder from the sale of the bonds to the
extent of the holder's cost of acquisition, proceeds received upon
redemption before maturity, and proceeds received at maturity
and the receipt of the interest and proceeds are exempt from
taxation in the state for all purposes except a state inheritance tax
imposed under IC 6-4.1.
Sec. 30. Any bonds issued by the authority under this chapter
are exempt from the registration and other requirements of
IC 23-2-1 and any other securities registration laws.
Sec. 31. This chapter is supplemental to all other statutes
governing the authority.
empowered to transfer and convey any such lands or interest therein as
may be necessary or convenient for the construction and operation of
any port or project, or as otherwise required under the provisions of this
article. However, no such sale shall be made without first obtaining the
approval of the governor, and a sale may not be made at less than the
appraised value established by three (3) independent appraisers
appointed by the governor. The commission shall be authorized to
restrict the use of any land so sold by it and provide for a reversion to
the commission in the event the land shall not be used for the purpose
represented by the purchaser, and such restrictions and reversions shall
be set out in appropriate covenants in the deeds of conveyance, which
deeds shall be subject to the approval of the governor.
(c) The commission shall also be authorized to lease, or grant
options to lease, to others for development any portion of the land
owned by the commission, on such terms as the commission shall
determine to be advantageous. All such leases or options to lease which
leases cover a period of more than four (4) years shall be subject to the
approval of the governor. Leases of lands under the jurisdiction or
control of the commission shall be made only for such uses and
purposes as are calculated to contribute to the growth and development
of ports, terminal facilities, and projects under the jurisdiction or
control of the commission. In the event the commission shall lease to
others a building or structure financed by the issuance of revenue
bonds under IC 8-10-4, the rental shall be in an amount at least
sufficient to pay the interest on and principal of the amount of such
bonds representing the cost of such building or structure to the extent
such interest and principal is payable during the term of the lease, as
well as to pay the cost of maintenance, repair and insurance for such
building and a reasonable portion of the commission's administrative
expense incurred during the term of the lease which is allocable to such
building or structure. transaction must be structured as a
self-liquidating or nonrecourse project (as defined in IC 8-10-4-1).
(d) No tenant, lessee, licensee, owner of real estate located within
a port or project, or other person or entity has any right, claim, title, or
interest in any real estate, personal property, or common property
owned by the commission, a port, a project, or the state, unless a
written agreement entered into by the commission expressly provides:
(1) the exact nature and extent of the right, claim, title, or interest;
(2) all the conditions under which the right, claim, title, or interest
is granted; and
(3) a legal or complete description of the specific property.
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 16. In the discretion of the commission any bonds issued under the provisions of this act may be secured by a trust agreement by and between the commission and a corporate trustee, which may be any trust company or bank having the powers of a trust company within the state, except as provided in IC 8-10-4. Any resolution adopted by the commission providing for the issuance of revenue bonds and any trust agreement pursuant to which such bonds are issued may pledge or assign all or any portion of the revenues received or to be received by the commission except such part as may be necessary to pay the cost of the commission's administrative expenses, operation, maintenance and repair and to provide reserves therefor and depreciation reserves required by any bond resolution adopted or trust agreement executed by the commission, but the commission shall not convey or mortgage any port or project or any part thereof, except for self liquidating or nonrecourse projects under IC 8-10-4. In authorizing the issuance of bonds for any particular port or project, the commission may limit the amount of such bonds that may be issued as a first lien and charge against the revenues pledged to the payment of such bonds or the commission may authorize the issuance from time to time thereafter of additional bonds secured by the same lien to provide funds for the completion of the port or project on account of which the original bonds were issued, or to provide funds to pay the cost of additional projects undertaken in connection with the development of the port or project, or for both such purposes. Such additional bonds shall be issued on such terms and conditions as may be provided in the bond resolution or resolutions adopted by the commission and in the trust agreement or any agreement supplemental thereto and may be secured equally and ratably without preference, priority or distinction with the original issue of bonds or may be made junior thereto. Any pledge or assignment made by the commission pursuant hereto shall be valid and binding from the time that the pledge or assignment is made and the revenues so pledged and thereafter received by the commission shall immediately be subject to the lien of such pledge or assignment without physical delivery thereof or further act. The lien of such pledge or assignment shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the commission irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created or assignment made need be filed or recorded except in the records of the commission. Any such trust agreement or any resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation
of law, including, but not limited to, covenants setting forth the duties
of the commission in relation to the acquisition of property and the
construction, improvement, maintenance, repair, operation and
insurance of the port or project in connection with which such bonds
shall have been authorized, the rates of fees, tolls, rentals or other
charges, to be collected for the use of the project, and the custody,
safeguarding and application of all moneys, and provisions for the
employment of consulting engineers in connection with the
construction or operation of such project. It shall be lawful for any bank
or trust company incorporated under the laws of the state which may
act as depository of the proceeds of bonds or other funds of the
commission, to furnish such indemnifying bonds or to pledge such
securities as may be required by the commission. Any such trust
agreement may set forth the rights and remedies of the bondholders and
of the trustee, and may restrict the individual right of action by
bondholders as is customary in trust agreements or trust indentures
securing bonds or debentures of private corporations. In addition to the
foregoing, any such trust agreement may contain such other provisions
as the commission may deem reasonable and proper for the security of
the bondholders. All expenses incurred in carrying out the provisions
of any such trust agreement may be treated as a part of the cost of the
operation of the port or project.
conferred upon the Indiana port commission by other provisions of this
article, the commission, in connection with any self-liquidating or
nonrecourse project, shall have the following powers notwithstanding
any other provision of this article to the contrary:
(a) (1) The revenue bonds issued by the commission to finance
the cost of such self-liquidating or nonrecourse project may be
issued without regard to any maximum interest rate limitation in
this article or any other law.
(b) (2) The revenue bonds issued by the commission to finance
the cost of such self-liquidating or nonrecourse project may be
sold in such manner, either at public or private sale, as the
commission may determine, and the provisions of IC 4-1-5 shall
not be applicable to such sale.
(c) (3) IC 4-13.6, IC 5-16-1, IC 5-16-2, IC 5-16-3, IC 5-16-5,
IC 5-16-5.5, IC 5-16-6, IC 5-16-6.5, IC 5-16-8, IC 5-16-9,
IC 5-16-10, IC 5-16-11, IC 5-16-11.1, IC 8-10-1-7(12),
IC 8-10-1-29, and IC 36-1-12 do not apply to a self-liquidating
or nonrecourse project. to be leased to a private party whose
payments are expected to be sufficient to pay all debt service on
bonds issued by the commission to finance the project.