Sec. 2. (a) If lease rental payments under a lease from the IFA to the NWIRDA are payable in whole or in part from state appropriations, a lease entered into under this chapter must include the following:
(1) A statement that the term of the lease is for a period coextensive with the biennium used for state budgetary and appropriation purposes with a fractional period when the lease begins, if necessary.
(2) A statement that the term of the lease may be extended from biennium to biennium, with the extensions not to exceed a cumulative lease term of forty (40) years, unless either the IFA or the NWIRDA gives notice of no extension at least six (6) months before the end of a biennium, in which event the lease expires at the end of the biennium in which the notice is given.
(3) A provision stating plainly that the lease does not constitute an indebtedness of the state within the meaning or application of any constitutional or statutory provision, prohibition, or limitation, and if lease rental payments are payable in whole or in part from state appropriations, that lease rentals are payable by the NWIRDA solely from biennial appropriations, and that the lease is for the actual use or availability for use of rail projects provided by the IFA, with payment commencing no earlier than the time the use or availability or partial use or availability commences.
(4) Provisions requiring the NWIRDA to pay rent at times and in amounts sufficient to pay in full:
(A) the debt service payable under the terms of any bonds or notes issued by the IFA and outstanding with respect to any rail project, including any required additions to reserves for the bonds or notes maintained by the IFA; and
(B) additional rent as provided by the lease.
(5) Provisions requiring the NWIRDA to operate and maintain the rail project or rail projects or to cause the rail project or rail projects to be operated and maintained during the term of the lease.
(6) A provision in each master lease for two (2) or more rail projects requiring that each rail project added to the master lease shall be covered by a supplemental lease describing the particular rail project, stating the additional rent payable, and providing that all lease covenants, including the obligation to pay the original and additional rent under any supplement, shall be unitary and include all rail projects covered, whether by the master lease or a supplemental lease.
(7) Provisions permitting the NWIRDA to pay lease rentals solely from available revenues from the fund established under IC 36-7.5-4-1 without providing for consideration of state appropriations.
(b) A lease entered into under this chapter may contain other terms and conditions that the IFA and the NWIRDA consider appropriate.
(c) If lease rental payments under a lease from the IFA to the NWIRDA are payable in whole or in part from state appropriations, the NWIRDA shall request an appropriation for payment of lease rentals on any lease entered into under this chapter in writing at a time sufficiently in advance of the date for payment of the lease rentals.
(d) If lease rental payments under a lease from the IFA to the NWIRDA are payable in whole or in part from state appropriations, and the NWIRDA fails at any time to pay to the IFA when due any lease rentals on any lease under this section, the chairperson of the IFA shall immediately:
(1) report the unpaid amount in writing to the governor and, in an electronic format under IC 5-14-6, to the general assembly; and
(2) notify the treasurer of state that the NWIRDA has failed to pay lease rentals when due.
The treasurer of state, upon being notified of the failure, shall pay the unpaid lease rental obligations that are due from money in the possession of the state that would otherwise be available for distribution to the NWIRDA under any other law, deducting the payment from the amount distributed.
(e) A lease entered into under this chapter must state the term of the lease, which may not exceed forty (40) years.
As added by P.L.189-2018, SEC.26.
