Ind. Code ch. 5-1.2-4

Ind. Code ch. 5-1.2-4
in effect

Ind. Code § 5-1.2-4-1 Powers of Indiana finance authority

Sec. 1. (a) The authority is granted all powers necessary or appropriate to carry out and effectuate its public and corporate purposes under the referenced statutes, including the following: (1) Have perpetual succession as a body politic and corporate and an independent instrumentality exercising essential public functions. (2) Without complying with IC 4-22-2, adopt, amend, and repeal bylaws, rules, guidelines, and policies not inconsistent with the referenced statutes, and necessary or convenient to regulate its affairs and to carry into effect the powers, duties, and purposes of the authority and conduct its business under the referenced statutes. These bylaws, rules, guidelines, and policies must be made by a resolution of the authority introduced at one (1) meeting and approved at a subsequent meeting of the authority. (3) Sue and be sued in its own name. (4) Have an official seal and alter it at will. (5) Maintain an office or offices at a place or places within the state as it may designate. (6) Make, execute, and enforce contracts and all other instruments necessary, convenient, or desirable for the purposes of the authority or pertaining to: (A) a purchase, acquisition, or sale of securities or other investments; or (B) the performance of the authority's duties and execution of any of the authority's powers under the referenced statutes. (7) Employ architects, engineers, attorneys, space planners, construction managers, inspectors, accountants, agriculture experts, silviculture experts, aquaculture experts, health care experts, and financial experts, and any other advisers, consultants, and agents as may be necessary in its judgment and to fix their compensation and contract for the creation of plans and specifications for a facility. (8) Procure insurance against any loss in connection with its property and other assets, including loans and loan notes in amounts and from insurers as it may consider advisable. (9) Borrow money, make guaranties, issue bonds, and otherwise incur indebtedness for any of the authority's purposes, and issue debentures, notes, or other evidence of indebtedness, whether secured or unsecured, to any person, as provided by the referenced statutes. Notwithstanding any other law, the: (A) issuance by the authority of any indebtedness that establishes a procedure for the authority or a person acting on behalf of the authority to certify to the general assembly the amount needed to restore a debt service reserve fund or another fund to required levels; or (B) execution by the authority of any other agreement that creates a moral obligation of the state to pay all or part of any indebtedness issued by the authority; is subject to review by the budget committee and approval by the budget director. (10) Procure insurance or guaranties from any public or private entities, including any department, agency, or instrumentality of the United States, to guarantee, insure, coinsure, and reinsure against political and commercial risk of loss, and any other insurance the authority considers necessary, including insurance to secure payment: (A) on a loan, lease, or purchase payment owed by a participating provider to the authority; and (B) of any bonds issued by the authority, including the power to pay premiums on any insurance, reinsurance, or guarantee. (11) Purchase, receive, take by grant, gift, devise, bequest, or otherwise, and accept, from any source, aid or contributions of money, property, labor, or other things of value to be held, used, and applied to carry out the purposes of the referenced statutes, subject to the conditions upon which the grants or contributions are made, including but not limited to gifts or grants from any department, agency, or instrumentality of the United States, and lease (as lessee or lessor) or otherwise acquire, own, hold, improve, employ, use, or otherwise deal in and with real or personal property or any interest in real or personal property, wherever situated, for any purpose consistent with the referenced statutes. (12) Enter into agreements with any department, agency, or instrumentality of the United States or this state and with lenders and enter into loan agreements, sales contracts, financial assistance agreements, and leases with contracting parties, including participants for any purpose allowed under IC 5-1.2-10, IC 5-1.2-11, IC 5-1.2-14, or IC 5-1.2-14.5, borrowers, lenders, developers, or users, for the purpose of planning, regulating, and providing for the financing and refinancing of any economic development project, for any purpose allowed under IC 5-1.2-10, IC 5-1.2-11, IC 5-1.2-14, or IC 5-1.2-14.5, or intrastate and interstate sales, transactions and business activities or international exports, and distribute data and information concerning the encouragement and improvement of economic development projects, intrastate and interstate sales, transactions and business activities, international exports, and other types of employment in the state undertaken with the assistance of the authority under this article. (13) Enter into contracts or agreements with lenders and lessors for the servicing and processing of loans and leases pursuant to the referenced statutes. (14) Provide technical assistance to local public bodies and to for profit and nonprofit entities in the development or operation of economic development projects. (15) To the extent allowed under its contract with the holders of the bonds of the authority, consent to any modification with respect to the rate of interest, time, and payment of any installment of principal or interest, or any other term of any contract, loan, loan note, loan note commitment, contract, lease, or agreement of any kind to which the authority is a party. (16) To the extent allowed under its contract with the holders of bonds of the authority, enter into contracts with any lender containing provisions enabling it to reduce the rental or carrying charges to persons unable to pay the regular schedule of charges when, by reason of other income or payment by any department, agency, or instrumentality of the United States or of this state, the reduction can be made without jeopardizing the economic stability of the economic development project being financed. (17) Notwithstanding IC 5-13, but subject to the requirements of any trust agreement entered into by the authority, invest: (A) the authority's money, funds, and accounts; (B) any money, funds, and accounts in the authority's custody; and (C) proceeds of bonds or notes; in the manner provided by an investment policy established by resolution of the authority. (18) Fix and revise periodically, and charge and collect, fees and charges as the authority determines to be reasonable in connection with: (A) the authority's loans, guarantees, advances, insurance, commitments, and servicing; and (B) the use of the authority's services or facilities. (19) Cooperate and exchange services, personnel, and information with any federal, state, or local government agency, or instrumentality of the United States or this state. (20) Sell, at public or private sale, with or without public bidding, any loan or other obligation held by the authority. (21) Enter into agreements concerning, and acquire, hold, and dispose of by any lawful means, land or interests in land, building improvements, structures, personal property, franchises, patents, accounts receivable, loans, assignments, guarantees, and insurance needed for the purposes of the referenced statutes. (22) Purchase, lease as lessee, construct, remodel, rebuild, enlarge, or substantially improve economic development projects, including land, machinery, equipment, or any combination of these. (23) Lease economic development projects to users or developers, with or without an option to purchase. (24) Sell economic development projects to users or developers, for consideration to be paid in installments or otherwise. (25) Make direct loans from the proceeds of the bonds to users or developers for: (A) the cost of acquisition, construction, or installation of economic development projects, including land, machinery, equipment, or any combination of these; or (B) eligible expenditures for an educational facility project; with the loans to be secured by the pledge of one (1) or more bonds, notes, warrants, or other secured or unsecured debt obligations of the users or developers. (26) Lend or deposit the proceeds of bonds to or with a lender for the purpose of furnishing funds to the lender to be used for making a loan to a developer or user for the financing of economic development projects under this article. (27) Enter into agreements with users or developers to allow the users or developers, directly or as agents for the authority, to wholly or partially construct economic development projects to be leased from or to be acquired by the authority. (28) Establish reserves from the proceeds of the sale of bonds, other funds, or both, in the amount determined to be necessary by the authority to secure the payment of the principal of and interest on the bonds. (29) Adopt rules and guidelines governing its activities authorized under the referenced statutes. (30) Purchase, discount, sell, and negotiate, with or without guaranty, notes and other evidence of indebtedness. (31) Sell and guarantee securities. (32) Procure letters of credit or other credit facilities or agreements from any national or state banking association or other entity authorized to issue a letter of credit or other credit facilities or agreements to secure the payment of any bonds issued by the authority or to secure the payment of any loan, lease, or purchase payment owed by a participating provider to the authority, including the power to pay the cost of obtaining such letter of credit or other credit facilities or agreements. (33) Accept gifts, grants, or loans from, and enter into contracts or other transactions with, any federal or state agency, municipality, private organization, or other source. (34) Sell, convey, mortgage, pledge, assign, lease, exchange, transfer, or otherwise dispose of property or any interest in property, wherever the property is located. (35) Reimburse from bond proceeds expenditures for economic development projects under this article. (36) Acquire, hold, use, and dispose of the authority's income, revenues, funds, and money. (37) Purchase, acquire, or hold debt securities or other investments for the authority's own account at prices and in a manner the authority considers advisable, and sell or otherwise dispose of those securities or investments at prices without relation to cost and in a manner the authority considers advisable. (38) Fix and establish terms and provisions with respect to: (A) a purchase of securities by the authority, including dates and maturities of the securities; (B) redemption or payment before maturity; and (C) any other matters that in connection with the purchase are necessary, desirable, or advisable in the judgment of the authority. (39) To the extent allowed under the authority's contracts with the holders of bonds or notes, amend, modify, and supplement any provision or term of: (A) a bond, a note, or any other obligation of the authority; or (B) any agreement or contract of any kind to which the authority is a party. (40) Subject to the authority's investment policy, do any act and enter into any agreement pertaining to a swap agreement (as defined in IC 8-9.5-9-4) related to the purposes of the referenced statutes in accordance with IC 8-9.5-9-5 and IC 8-9.5-9-7, whether the action is incidental to the issuance, carrying, or securing of bonds or otherwise. (41) Do any act necessary or convenient to the exercise of the powers granted by the referenced statutes, or reasonably implied from those statutes, including compliance with requirements of federal law imposed from time to time for the issuance of bonds. (42) Contract and collaborate with a state supported college or university to provide the research and extension program authorized by IC 5-1.2-11.5-10. (43) Serve as the executive branch coordinator for funding allocated or made available to the state or local communities from federal, state, and other sources for purposes related to drinking water, wastewater, or storm water infrastructure and systems, as set forth in IC 5-1.2-11.5-9(a)(2). (b) The authority's powers under this article shall be interpreted broadly to effectuate the purposes of this article and may not be construed as a limitation of powers. The omission of a power from the list in subsection (a) does not imply that the authority lacks that power. The authority may exercise any power that is not listed in subsection (a) but is consistent with the powers listed in subsection (a) to the extent that the power is not expressly denied by the Constitution of the State of Indiana or by another statute. (c) This chapter does not authorize the financing of economic development projects for a developer unless any written agreement that may exist between the developer and the user at the time of the bond resolution is fully disclosed to and approved by the authority. (d) The authority shall work with and assist the Indiana housing and community development authority created by IC 5-20-1-3, the ports of Indiana created under IC 8-10-1-3, and the state fair commission established by IC 15-13-2-1 in the issuance of bonds, notes, or other indebtedness. The Indiana housing and community development authority, the ports of Indiana, and the state fair commission shall work with and cooperate with the authority in connection with the issuance of bonds, notes, or other indebtedness. As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.12; P.L.154-2021, SEC.7; P.L.18-2022, SEC.1.

Ind. Code § 5-1.2-4-2 Prohibited activities

Sec. 2. The authority: (1) may not deal in securities within the meaning of or subject to any securities law, securities exchange law, or securities dealers law of the United States or of the state of Indiana or of any other state or jurisdiction, domestic or foreign, except as authorized in the referenced statutes; (2) may not: (A) emit bills of credit; (B) accept deposits of money for time or demand deposit; (C) administer trusts; (D) engage in any form or manner, or in the conduct of, any private or commercial banking business; or (E) act as a savings bank, savings association, or any other kind of financial institution; and (3) may not engage in any form of private or commercial banking business. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-3 Issuance of bonds or notes; failure to pay obligations

Sec. 3. (a) The authority may issue bonds or notes and invest or loan the proceeds of those bonds or notes to a participant for the purposes of one (1) or more programs. (b) If the authority loans money to or purchases debt securities of a political subdivision, the authority may, by the resolution approving the bonds or notes, provide that subsection (c) is applicable to the political subdivision. (c) Notwithstanding any other law or any other right in an agreement with the authority, any state department or state agency, including the treasurer of state, that is the custodian of money payable to a political subdivision, other than money in payment for goods or services provided by the political subdivision, at any time after written notice from the public finance director that the political subdivision is in default on the payment of principal or interest on the obligations then held or owned by or arising from an agreement with the authority, the state department or state agency shall: (1) withhold payment of money from that political subdivision; and (2) pay over the money to the authority for the purpose of paying principal of and interest on the bonds or notes of the authority. However, the withholding of payment from the political subdivision and payment to the authority under this section must not adversely affect the validity of the obligation in default. (d) Upon receiving notice from the authority that the political subdivision has failed to pay when due the principal or interest on the obligations of the political subdivision then held or owned by or arising from an agreement with the authority, the fiscal officer (as defined in IC 36-1-2-7) of the county, for any county in which the political subdivision is wholly or partially located, shall do the following: (1) Reduce the amount of any revenues or other money or property that: (A) is held, possessed, maintained, controlled, or otherwise in the custody of the county or a department, an agency, or an instrumentality of the county; and (B) would otherwise be available for distribution to the political subdivision under any other law; by an amount equal to the amount of the political subdivision's unpaid obligations. (2) Pay the amount by which the revenues or other money or property is reduced under subdivision (1) to the authority to pay the principal of and interest on bonds or other obligations of the authority. (3) Notify the political subdivision that the revenues or other money or property, which would otherwise be available for distribution to the political subdivision, has been reduced by an amount necessary to satisfy all or part of the political subdivision's unpaid obligations to the authority. (e) This subsection applies to securities of a political subdivision acquired by the authority, or arising from an agreement with the authority, that are covered by subsection (d). A reduction under subsection (d) must be made as follows: (1) First, from local income tax distributions under IC 6-3.6-9 that would otherwise be distributed to the political subdivision under the schedules in IC 6-3.6-9-12 and IC 6-3.6-9-16. (2) Second, from any other revenues or other money or property that: (A) is held, possessed, maintained, or controlled by, or otherwise in the custody of, the county or a department, an agency, or an instrumentality of the county; and (B) would otherwise be available for distribution to the political subdivision under any other law. As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.13.

Ind. Code § 5-1.2-4-4 Additional authority powers; capital improvements; northwest Indiana regional development authority; motorsports investment district; local innovation development district

Sec. 4. (a) In addition to the powers listed in section 1 of this chapter, the authority may: (1) enter into leases and issue bonds under terms and conditions determined by the authority and use the proceeds of the bonds to: (A) acquire obligations issued by any entity authorized to acquire, finance, construct, or lease capital improvements under IC 5-1-17, IC 5-1-17.1, or IC 36-10-9.5; (B) acquire any obligations issued by the northwest Indiana regional development authority established by IC 36-7.5-2-1; or (C) carry out the purposes of IC 5-1-17.5 within a motorsports investment district; (2) at the request of the Indiana economic development corporation established by IC 5-28-3-1, and subject to subsections (b), (c), and (d), enter into leases and issue bonds under terms and conditions determined by the authority payable solely from: (A) revenues that are deposited in a local innovation development district fund established under IC 36-7-32.5-19; (B) revenues generated from a project under IC 36-7-32.5-19; and (C) appropriations from the general assembly; and (3) perform any other functions determined by the authority to be necessary or appropriate to carry out the purposes of this section. (b) The proceeds of bonds issued under subsection (a)(2) may be used to pay the costs of projects: (1) described in IC 36-7-32.5-19; and (2) located within or directly serving the innovation development district in which the revenue was generated. (c) Before the authority enters into leases or issues bonds under subsection (a)(2), the proposed lease or issuance of bonds must be reviewed by the budget committee. (d) The authority may not issue more than one billion dollars ($1,000,000,000) of bonds under subsection (a)(2). As added by P.L.189-2018, SEC.25. Amended by P.L.135-2022, SEC.1; P.L.44-2026, SEC.3.

Ind. Code § 5-1.2-4-5 Requirements; establishment of terms governing reserves or funding levels

Sec. 5. (a) This section does not apply to any indebtedness issued by the authority if: (1) the proceeds will be used for a project that has been specifically authorized by the general assembly; or (2) the indebtedness is authorized under the referenced statutes. (b) Notwithstanding any other law in effect before: (1) the authority issues indebtedness that establishes a procedure for the authority or a person acting on behalf of the authority to certify to the general assembly the amount needed to restore a debt service reserve fund or another fund to a required level; or (2) execution by the authority of any other agreement that creates a moral obligation of the state to pay all or any part of any indebtedness issued by the authority; the authority is subject to, and shall comply with, to the extent practicable, the requirements set forth in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(h) as if the authority were specifically named in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(h). (c) In addition: (1) indebtedness described in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(h) is considered a reference to an indebtedness or agreement referred to in this section; and (2) a qualified entity referred to in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(h) is considered a reference to a borrower of any indebtedness and to any other parties referred to in this section. As added by P.L.189-2018, SEC.25. Amended by P.L.259-2019, SEC.1.

Ind. Code § 5-1.2-4-6 Power to borrow money and issue bonds

Sec. 6. (a) The authority has the power to borrow money and to issue its bonds from time to time in the principal amounts as the authority determines are necessary to provide sufficient funds to carry out its purposes, powers, and programs, including: (1) carrying out the purposes, powers, and programs stated in this article; (2) the payment of interest on bonds of the authority; (3) the establishment of reserves to secure the bonds; and (4) all other expenditures of the authority incident to, necessary, and convenient to carry out the authority's purposes, powers, and programs. (b) The authority may also issue bonds in the manner and for the purposes provided by the referenced statutes. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-7 Bonds; liability of authority; pledges as additional security

Sec. 7. Except as may otherwise be expressly provided by the authority, every issue of its bonds shall be obligations of the authority payable solely out of any specified revenue or money of the authority, subject only to any agreements with the holders of particular bonds pledging any particular money or revenue. The bonds may be additionally secured by a pledge of any grant, contribution, or guarantee from the federal government or any corporation, limited liability company, association, institution, or person or a pledge of any money, income, or revenue of the authority from any source. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-8 Bonds; liability of state

Sec. 8. No bonds issued by the authority under this article shall constitute a debt, liability, or obligation of the state, or a pledge of the faith and credit of the state, but shall be payable solely as provided by section 7 of this chapter. Each bond issued under this article shall contain on its face a statement that neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal of or the interest on the bond. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-9 Bonds; issuance; procedure; terms

Sec. 9. The bonds shall be authorized by a resolution of the authority, shall bear the date or dates, and shall mature at a time or times as the resolution may provide, except that no bond shall mature more than fifty (50) years from the date of its issue. The bonds shall be in denominations, be in the form, either coupon or registered, carry the conversion or registration privileges, be executed in the manner, be payable in the medium of payment at the place or places inside or outside Indiana, and be subject to the terms of redemption, including redemption prior to maturity, as the resolution or any trust agreement or indenture of the authority securing the bonds may provide. The bonds shall bear interest at a rate or rates that may be fixed, variable, fixed convertible to variable, variable convertible to fixed, or any combination of these rates. Variable rates shall be determined in the manner and in accordance with the provisions set forth in the resolution or the trust agreement or indenture securing the bonds. The interest on the bonds may be payable at the time or times or at the interval or intervals as may be provided in the resolution or the trust agreement or indenture securing the bonds, including the compounding and payment of interest at maturity or at any other time or times as may be specified in the resolution, trust agreement, or indenture. The bonds and their issuance shall not be subject to the provisions of any other statute concerning bonds or the issuance of bonds. Bonds of the authority may be sold by the authority at public or private sale, and at a price or prices as the authority shall determine. No action to contest the validity of any bonds issued or guarantees entered into by the authority under this article shall be commenced more than thirty (30) days following the adoption of the resolution approving such bonds or guarantees as provided in section 10 of this chapter. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-10 Bonds; authorized provisions

Sec. 10. Any resolution authorizing the issuance of bonds or trust agreement or indenture pursuant to which the bonds are issued may contain provisions, which shall be a part of the contract or contracts with the holders of the bonds, as to the following: (1) Pledging all or any part of the revenue of the authority to secure the payment of the bonds, subject to agreements with bondholders as may then exist. (2) Pledging all or any part of the assets of the authority, including loans and obligations securing the loans and obligations, to secure the payment of the bonds, subject to agreements with bondholders as may then exist. (3) The use and disposition of the gross income from loans owned by the authority and payment of the principal of loans owned by the authority. (4) The setting aside of reserves or sinking funds and the regulation and disposition of these reserves or sinking funds. (5) Limitations on the purposes to which or the investments in which the proceeds from the sale of bonds may be applied and pledging the proceeds to secure the payment of the bonds. (6) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding or other bonds. (7) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders must consent to, and the manner in which the consent may be given. (8) Limitations on the amount of money to be expended by the authority for operating expenses of the authority. (9) Vesting in a trustee or trustee property, rights, powers, and trust as the authority may determine, and limiting or abrogating the right of the bondholders to appoint a trustee or limiting the rights, powers, and duties of the trustee. (10) Defining the acts or omissions that constitute a default and the obligations or duties of the authority to the holders of the bonds, and providing for the rights and remedies of the holders of the bonds in the event of a default, including as a matter of right the appointment of a receiver. However, the rights and remedies shall not be inconsistent with the general laws of this state and this article. (11) The rentals, fees, and other amounts to be charged, and the amounts to be raised in each year and the use, investment, and disposition of these amounts. (12) Any other matter, of like or different character, which in any way affects the security or protection of the holders of the bonds. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-11 Bonds; issue to renew or pay bonds; refund

Sec. 11. (a) The authority has the power to issue, from time to time, bonds to renew or to pay bonds, including the interest on these bonds, whenever the authority considers refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund outstanding bonds and partly for any other of its purposes, powers, and programs. (b) The refunding bonds may be sold and the proceeds applied to the purchase, redemption, or payment of the bonds to be refunded, or exchanged for the bonds to be refunded. (c) A savings to the authority or to the unit issuing the bonds to be refunded is not required for the issuance of the refunding bonds or the issuance of bonds to refund refunding bonds. Refunding bonds issued under this article are payable out of any specified revenue or money of the authority, subject only to any agreements with the holders of particular bonds pledging any particular money or revenue. (d) Refunding bonds issued under this section are not: (1) in any respect a general obligation of the authority; and (2) payable in any manner from revenues raised by taxation. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-12 Pledges

Sec. 12. Any pledge made by the authority is valid and binding from the time when the pledge is made. The revenue, money, or properties so pledged and received by the authority after the pledge is immediately subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice. The resolution or any other instrument by which a pledge is created does not need to be recorded. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-13 Bonds; purchase by authority

Sec. 13. The authority, subject to any agreements with bondholders as may then exist, has the power out of any funds available to purchase bonds of the authority, which, at the option of the authority, shall be canceled after the purchase, at any reasonable price which, if the bonds are then redeemable, shall not exceed the redemption price then applicable plus accrued interest to the next interest payment on the bond. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-14 Bonds; trust agreement or indenture

Sec. 14. The bonds may be secured by a trust agreement or indenture by and between the authority and a corporate trustee, which may be a bank having the power of a trust company or any trust company within or without the state. The trust agreement or indenture may contain provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the exercise of the authority's powers and the custody, safekeeping, and application of all money related to the particular bond financing for which the trust agreement or indenture exists. The authority may provide by the trust agreement or indenture for the payment of the proceeds of the bonds and the revenue to the trustee under the trust agreement or indenture or other depository, and for the method of disbursement of the proceeds, with safeguards and restrictions as the authority may determine. All expenses incurred in carrying out the trust agreement or indenture may be treated as a part of the operating expenses of the authority. If the bonds are secured by a trust agreement or indenture, the bondholders have no authority to appoint a separate trustee to represent them. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-15 Bonds; negotiability

Sec. 15. Whether the bonds are in the form and character of negotiable instruments, the bonds are negotiable instruments, subject only to provisions of the bonds relating to registration. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-16 Bonds; execution; manual or facsimile signatures

Sec. 16. Any bonds issued by the authority under this article shall be executed by the manual or facsimile, except as otherwise provided in this article, signatures of the officers or agents of the authority that the authority designates. If bonds are issued pursuant to a trust indenture, the manual authentication of each bond by the trustee shall be required. If bonds are issued without a trust indenture or trustee, at least one (1) of the officers or agents of the authority shall manually execute each bond. If any of the members or officers of the authority shall cease to be members or officers of the authority before the delivery of any bonds or coupons signed by them, their signatures or facsimiles shall nevertheless be valid and sufficient for all purposes, the same as if the members or officers had remained in office until the delivery. Pending preparation of the definitive bonds, the authority may issue interim receipts or certificates, which must be exchanged for the definitive bonds. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-17 Personal liability for acts authorized by affected statutes

Sec. 17. The members of the authority, the officers and employees of the authority, the public finance director, any agents of the authority, and any other persons executing bonds issued under the referenced statutes are not subject to personal liability or accountability by reason of any act authorized by the referenced statutes, including without limitation the issuance of bonds, the failure to issue bonds, the execution of bonds, and the making of guarantees. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-18 Funds and accounts; establishment

Sec. 18. The authority may create and establish any funds and accounts necessary or desirable for the authority's purposes. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-19 Money; deposit; security; trust funds

Sec. 19. All money received by the authority, except as provided in the referenced statutes, shall be deposited as soon as practical in a separate account or accounts in banks or trust companies organized under the laws of this state or in national banking associations. The money in these accounts shall be paid out on checks signed by the chair or other officers or employees of the authority that the authority authorizes or by wire transfer or other electronic means authorized by the authority. All deposits of money shall, if required by the authority, be secured in a manner that the authority determines to be prudent, and all banks or trust companies are authorized to give security for the deposits. Notwithstanding any other law to the contrary, all money received pursuant to the referenced statutes is a trust fund to be held and applied solely as provided in the referenced statutes. The resolution authorizing any obligations, or trust agreement or indenture securing the same, may provide that any of the money may be temporarily invested pending the disbursement of the money, and shall provide that any officer with whom or any bank or trust company with which the money is deposited shall act as trustee of the money and shall hold and apply the money for the authorized purposes of the authority, subject to the referenced statutes, the authority's investment policy, and the resolution or trust agreement or indenture. As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.14.

Ind. Code § 5-1.2-4-20 Money for the payment of bonds; contracts; security

Sec. 20. Notwithstanding section 19 of this chapter, the authority has the power to contract with the holders of any of its bonds as to the custody, collection, securing, investment, and payment of any money of the authority and of any money held in trust or otherwise for the payment of bonds, and to carry out the contract. Money held in trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of money may be secured in the same manner as money of the authority, and all banks and trust companies are authorized to give security for the deposits. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-21 Bonds; pledge of state

Sec. 21. The state pledges to and agrees with the holder of any bonds issued under this article that the state will not limit or alter the rights vested in the authority to fulfill the terms of any agreements made with bondholders or in any way impair the rights or remedies of bondholders until the bonds, together with the interest, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of bondholders, are fully met and discharged. The authority is authorized to include this pledge and agreement of the state in any agreement with the bondholders. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-22 Bonds; exempt from state taxes

Sec. 22. Bonds issued under this article and: (1) proceeds received from their sale by a holder, to the extent of the holder's costs of acquisition; (2) proceeds received on their redemption before maturity; (3) proceeds received at their maturity; and (4) interest received on them; are exempt from state taxes as provided by IC 6-8-5. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-23 Bonds; legal investments; securities

Sec. 23. The bonds issued under this article by the authority are declared to be legal investments in which all public officers or public bodies of this state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on insurance business, all banks, bankers, banking associations, trust companies, savings associations, including savings and loan associations, building and loan associations, investment companies, and other persons carrying on a banking business, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons who are authorized to invest in bonds or in other obligations of this state, may invest funds, including capital, in their control or belonging to them. The bonds are also made securities that may be deposited with and received by all public officers and bodies of this state or any agency or political subdivisions of this state and all municipalities and public commissions for any purpose for which the deposit of bonds or other obligations of this state is authorized by law. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-24 Application of state laws

Sec. 24. (a) The issuance of bonds and the adoption of rules under the referenced statutes need not comply with the requirements of any other state laws applicable to the issuance of the bonds or adoption of these rules. No proceedings, notice, or approval is required for the issuance of any bonds or any instrument or the security for the bonds or instrument, except as provided in the referenced statutes. (b) All: (1) economic development projects for which funds are advanced, loaned, or otherwise provided by the authority under IC 5-1.2-9; and (2) eligible projects for which funds are loaned by the authority under IC 5-1.2-15.5; must be in compliance with any land use, zoning, subdivision, and other laws of this state applicable to the land upon which the economic development project or eligible project is located or is to be constructed, but a failure to comply with these laws does not invalidate any bonds issued to finance an economic development project under IC 5-1.2-9 or an eligible project under IC 5-1.2-15.5. As added by P.L.189-2018, SEC.25. Amended by P.L.204-2023, SEC.4.

Ind. Code § 5-1.2-4-25 Bonds; exempt for securities registration

Sec. 25. Any bonds issued by the authority pursuant to this article and any other securities issued in connection with a financing under this article are exempt from the registration and other requirements of IC 23-19 and any other securities registration laws. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-26 Bond holders; right to specific performance

Sec. 26. Any holder of bonds or any coupons appertaining to the bonds, and the trustee under any trust agreement or resolution authorizing the issuance of the bonds, except to the extent the rights given in this article may be restricted by the trust agreement or resolution, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of Indiana, or under the trust agreement or resolution, or under any other contract executed by the authority under this article, and enforce and compel the performance of all duties required by this article or by the trust agreement or resolution to be performed by the authority or by any officer of the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-27 Payment of expenses and power to incur indebtedness; limitations; authority budget

Sec. 27. (a) All expenses incurred by the authority in carrying out the referenced statutes are payable solely from funds provided under the referenced statutes, except to the extent payable from grants or advances from participating providers or any other entity, which grants or advances may be reimbursed from bond proceeds, and nothing in the referenced statutes shall be construed to authorize the authority to incur indebtedness or liability of the state or any political subdivision. (b) The authority shall annually prepare a budget that allocates the expenses incurred by the authority in an equitable manner among the programs administered by the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-28 Property; tax exemption

Sec. 28. (a) Except as provided in subsection (b), all property, both tangible and intangible, acquired or held by the authority under the referenced statutes is declared to be public property used for public and governmental purposes, and all the property and income from the property is at all times exempt from all taxes imposed by this state, any county, any city, or any other political subdivision of this state, except for the financial institutions tax imposed under IC 6-5.5. (b) Property owned by the authority and: (1) leased to a person for an economic development project; or (2) financed by a loan; under IC 5-1.2-9 is not public property. The property and the economic development project are subject to all taxes of this state or any county, city, or other political subdivision of this state in the same manner and subject to the same exemptions that apply to all persons. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-29 Annual report

Sec. 29. The authority shall, following the close of each fiscal year, submit an annual report of the authority's activities under the referenced statutes for the preceding year to the governor, the budget committee, and the general assembly. A report submitted to the general assembly must be in an electronic format under IC 5-14-6. Each report shall set forth a complete operating and financial statement for the authority during the fiscal year it covers. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-30 Participants may invest funds

Sec. 30. Notwithstanding any statute applicable to or constituting any limitation on the investment or reinvestment of funds by or on behalf of political subdivisions: (1) a participant receiving financial assistance in connection with a program may invest and reinvest funds that constitute, replace, or substitute for the proceeds of bonds or other evidence of indebtedness sold to the authority under the program, together with any account or reserves of a participant not funded with the proceeds of the bonds or other evidence of indebtedness purchased by the authority but that secure or provide payment for those bonds or other evidence of indebtedness, in any instrument or other investment authorized under a resolution of the authority; and (2) a participant that is obligated to make payments on bonds or other evidence of indebtedness purchased in connection with the operation of a program may invest and reinvest funds that constitute, replace, or substitute for the proceeds of those bonds or other evidence of indebtedness, together with any account or reserves of a participant not funded with the proceeds of the bonds or other evidence of indebtedness purchased under the program but that secure or provide payment for those bonds or other evidence of indebtedness, in any instrument or other investment authorized under a resolution of the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-31 Borrowing money from the authority; issuing and selling bonds to the authority

Sec. 31. (a) Notwithstanding any other law, a participant may borrow money from the authority for any program by negotiating a loan or other financial assistance directly with the authority and without complying with requirements for the competitive sale of bonds, notes, or other obligations or evidence of indebtedness. A participant shall observe any existing contractual commitments to bondholders or other persons when entering into a financial assistance agreement. (b) Notwithstanding any other law, a participant may issue and sell notes, the principal and accrued interest on which shall be paid with proceeds from the issuance of bonds or other available money at the time the notes are due. The notes must be issued under a resolution or ordinance and the proceeds must be used to carry out the purposes allowed by the program. (c) Notwithstanding any other law, a participant may issue and sell bonds to the authority without the requirement of an increase to the user rates and charges of the participant. The bonds must be issued under a resolution or ordinance and the proceeds must be used to carry out the purposes allowed by the program. (d) A participant that issues notes under subsection (b) may renew or extend the notes periodically on terms agreed to with the authority, and the authority may purchase and sell the renewed or extended notes. Accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended. (e) The notes issued by a participant under subsection (b), including any renewals or extensions, must mature: (1) in the amounts; and (2) at the times not exceeding four (4) years from the date of original issuance; that are agreed to by the participant and the authority. (f) Compliance with subsection (b) or (c) constitutes full authority for a participant to issue notes or bonds and sell the notes or bonds to the authority, and the participant is not required to pay any fees or comply with any other law applicable to the authorization, approval, issuance, and sale of the notes or bonds, including, without limitation, IC 8-1-2-79. The notes or bonds are: (1) valid and binding obligations of the participant; (2) enforceable in accordance with the terms of the notes or bonds; and (3) payable solely from the sources specified in the resolution or ordinance authorizing the issuance of the notes or bonds. (g) If the participant issues bonds, all or part of the proceeds of which will be used to pay notes issued under subsection (b), the: (1) provisions of this section; or (2) actual issuance by a participant of notes under subsection (b); do not relieve the participant of the obligation to comply with the statutory requirements for the issuance of bonds. As added by P.L.189-2018, SEC.25. Amended by P.L.224-2023, SEC.1; P.L.9-2024, SEC.113.

Ind. Code § 5-1.2-4-32 Liability

Sec. 32. (a) Notwithstanding any other law, the authority, program, or program related fund, or any person or agent acting on behalf of the authority, the program, or the program related fund, is not liable in damages or otherwise to any participant or party seeking to be a participant for any act or omission in connection with a loan or other financial assistance, or any application, service, or other undertaking, allowed by or taken under this article applicable to any program or any related fund or under any financial assistance agreement or related agreement or understanding. (b) No direction given by or service or other undertaking allowed or taken under this article applicable to any program or related fund or under any financial assistance agreement or related agreement or understanding by the authority is a defense for or otherwise excuses any act or omission of a participant otherwise required or imposed by law upon a participant under any chapter applicable to any program or related fund or under any financial assistance agreement or related agreement or understanding. As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.15.

Ind. Code § 5-1.2-4-33 Financial assistance agreement; default by the participant

Sec. 33. (a) Notwithstanding any other law and if provided in a financial assistance agreement related to any program, any state department or state agency, including the treasurer of state: (1) that is the custodian of money payable to a participant, other than money in payment for goods or services provided by the participant; and (2) after written notice from the public finance director that the participant is in default on the payment of principal of or interest on a loan or evidence of other financial assistance related to any program owed to the authority; may withhold payment of money from that participant and pay over the money to the authority as directed by the public finance director, for the purpose of curing the default. (b) The withholding of payment from the participant and payment to the authority may not adversely affect the validity of the loan or other financial assistance. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-34 Violations; material misstatement in application

Sec. 34. A person who, with intent to defraud, knowingly or intentionally makes a material misstatement in connection with an application for a loan or other financial assistance pursuant to any program commits a Level 6 felony. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-35 Annual report

Sec. 35. The public finance director shall prepare an annual report that provides an update on transportation projects in which the authority is involved. The report must be submitted to the legislative council in an electronic format under IC 5-14-6. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-36 State debt management plan; established by the authority

Sec. 36. The authority, after consulting with the treasurer of state, the Indiana bond bank, the budget agency, and the commission for higher education, shall establish and periodically update a state debt management plan. The plan must include at least the following provisions with respect to debt issued or to be issued by the authority, other bodies corporate and politic of the state, and state educational institutions: (1) An inventory of existing debt. (2) Projections of future debt obligations. (3) Recommended criteria for the appropriate use of debt as a means to finance capital projects. (4) Recommended strategies to minimize costs associated with debt issuance. (5) An analysis of the impact of debt issued by all bodies corporate and politic and state educational institutions on the state budget. (6) Recommended guidelines for the prudent issuance of debt that creates a moral obligation of the state to pay all or part of the debt. (7) Recommended policies for the investment of: (A) proceeds of bonds, notes, or other obligations issued by bodies corporate and politic and state educational institutions; and (B) other money, funds, and accounts owned or held by a body corporate and politic. (8) Recommended policies for the establishment of a system of record keeping and reporting to meet the arbitrage rebate compliance requirements of the Internal Revenue Code. (9) Recommended policies for the preparation of financial disclosure documents, including official statements accompanying debt issues, comprehensive annual financial reports, and continuing disclosure statements. The recommended policies must include a provision for approval by the budget director of any statements or reports that include a discussion of the state's economic and fiscal condition. (10) Potential opportunities to more effectively and efficiently authorize and manage debt. (11) Recommendations to the budget director, the governor, and the general assembly with respect to financing of capital projects. The recommendations to the general assembly under subdivision (11) must be in an electronic format under IC 5-14-6. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-4-37.5 Annual report on drinking water testing for lead

Sec. 37.5. (a) The public finance director shall prepare an annual report that provides information on the programs of the authority under which the drinking water in schools, preschools, and child care facilities is tested for the presence of lead. (b) The report required by this section: (1) must provide information on: (A) the number of schools, preschools, and child care facilities in which the drinking water has been tested for the presence of lead under a program of the authority; (B) the actions taken through a program of the authority to eliminate the danger of lead contamination in the drinking water of schools, preschools, and child care facilities; and (C) the funds available to the authority to conduct further drinking water testing and remediation actions under the programs; and (2) may include other information and recommendations concerning remediation of the exposure of children to lead in drinking water. (c) The report required by this section must be submitted to the general assembly in an electronic format under IC 5-14-6. As added by P.L.125-2023, SEC.1. Amended by P.L.9-2024, SEC.114.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026