CHAPTER 10. REVENUE BONDS
IC 15-13-10
Chapter 10. Revenue Bonds
IC 15-13-10-1
"Cost of project"
Sec. 1. (a) As used in this chapter, "cost of a project" includes thefollowing:
(1) The cost of construction and purchase.
(2) The cost of acquisition of all land, rights-of-way, property,rights, easements, and other legal or equitable interests acquiredby the commission for construction, including the cost of anyrelocations incidental to the acquisition.
(3) The cost of demolishing or removing any buildings,structures, or improvements on property acquired by thecommission, including the cost of:
(A) acquiring any property to which the buildings,structures, or improvements may be moved; or
(B) acquiring any property that may be exchanged forproperty acquired by the commission.
(4) Financing charges.
(5) The cost of issuance of bonds or notes, including cost ofcredit enhancement, such as bond or note insurance.
(6) Remarketing or conversion fees.
(7) Bond or note discount.
(8) Capitalized interest.
(9) The cost of funding any reserves to secure the payment ofbonds or notes.
(10) Engineering and legal expenses, and the cost of plans,specifications, surveys, estimates, and any necessary feasibilitystudies.
(11) Other expenses necessary or incidental to determining thefeasibility or practicability of constructing any project.
(12) Administrative expenses of the commission relating to anyproject financed by bonds or notes.
(13) Reimbursement of the commission for any cost, obligation,or expense incurred by the commission relating to a project.
(14) Other expenses the commission finds necessary orincidental to the construction or purchase of the project, thefinancing of the construction or purchase of the project, and theplacing of the project in operation.
(b) As used in this chapter, "cost of a project" does not include theconstruction of facilities for pari-mutuel horse racing.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-2
"Project"
Sec. 2. As used in this chapter, "project" means any of thefollowing concerning property at the fairgrounds:
(1) Acquisition.
(2) Construction. (3) Repair.
(4) Refurbishing.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-3
Bond purposes; form; duration; sale
Sec. 3. (a) Subject to the approval of the governor, thecommission may, by resolution, authorize and issue revenue bondsto:
(1) pay all or part of the cost of a project; or
(2) refund outstanding revenue bonds.
(b) The principal of and the interest on bonds must be payablesolely from the revenues specifically pledged to the payment of theprincipal and the interest on the bonds.
(c) The bonds of each issue must:
(1) be dated; and
(2) mature at a time not exceeding thirty (30) years from thedate of the bonds.
(d) The bonds may be made redeemable before maturity, at theoption of the commission, at a price and under terms and conditionsfixed by the commission.
(e) The commission shall:
(1) determine the form of the bonds; and
(2) fix:
(A) the denomination of the bonds; and
(B) the place of payment of principal and interest, whichmay be at any bank or trust company in the United States.
(f) The bonds must be signed in the name of the commission by:
(1) the commission chairperson; or
(2) the facsimile signature of the commission chairperson.
(g) The official seal of the commission, or a facsimile of the seal,must be:
(1) affixed to the bonds; and
(2) attested by the executive director of the commission.
(h) If an officer whose signature or a facsimile of whose signatureappears on a bond ceases to be an officer before the delivery of thebonds, the signature or facsimile is valid and sufficient for allpurposes as if the officer had remained in office until the delivery.
(i) Bonds issued under this chapter have all the qualities andincidents of negotiable instruments under the laws of Indiana.
(j) Bonds may be issued in registered form.
(k) Bonds must be sold in accordance with IC 21-32-3.
(l) The commission shall cooperate with and use the assistance ofthe Indiana finance authority established under IC 4-4-11 in theissuance of the bonds.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-4
Use of bond proceeds; replacement
Sec. 4. (a) The proceeds of the bonds of each issue must be: (1) used solely for the payment of the cost of the project forwhich the bonds were issued; and
(2) disbursed in the manner and under those restrictions that thecommission provides in the resolution authorizing the issuanceof the bonds or in a trust agreement securing the bonds.
(b) If the proceeds of an issue of bonds are less than the cost ofthe project, additional bonds may be issued to provide the amount ofthe deficit. Unless specifically provided in the resolution authorizingthe issuance of the bonds or in a trust agreement securing the bonds,the additional bonds:
(1) are considered to be bonds of the same issue as the initiallyissued bonds; and
(2) are entitled to payment from the fund from which theinitially issued bonds are paid without preference or priority ofthe initially issued bonds.
(c) If the proceeds of the bonds of an issue exceed the cost of theproject for which the bonds were issued, the surplus must bedeposited to the credit of the sinking fund for the bonds. However,if there is not a sinking fund, the surplus must be held for thepayment of the principal of and the interest on the bonds.
(d) The commission may provide for the replacement of bondsthat become mutilated, destroyed, or lost.
(e) Bonds may not be issued under this chapter without theconsent of the governor.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-5
Security for bonds; pledge and assignment; trust agreements
Sec. 5. (a) Bonds issued under this chapter may be secured by atrust agreement between the commission and a corporate trustee,which may be any trust company or bank having the powers of a trustcompany in Indiana.
(b) A resolution adopted by the commission providing for theissuance of bonds, and any trust agreement under which the bondsare issued, may pledge or assign all or any part of the revenuesreceived by the commission except that part necessary:
(1) to pay the cost of the commission's administrative operation,maintenance, and repair expenses, and to provide reserves forthose expenses; and
(2) for depreciation reserves required by a bond resolution ortrust agreement of the commission.
(c) The commission may not mortgage any property.
(d) When authorizing the issuance of bonds for a project, thecommission may:
(1) limit the amount of bonds that may be issued as a first lienand charge against the revenues pledged to the payment of thebonds; or
(2) authorize the later periodic issuance of additional bondssecured by the same lien to provide funds:
(A) for the completion of the project on account of which the
original bonds were issued; or
(B) to pay the cost of additional projects.
The commission may issue additional bonds only on terms andconditions provided in the bond resolution adopted by thecommission, in a trust agreement, or in a supplemental agreement.The additional bonds may be secured equally and ratably withoutpreference, priority, or distinction with the original issue of bonds ormay be made junior to the original issue.
(e) A pledge or an assignment made by the commission is validand binding from the time the pledge or assignment is made.Revenues pledged and received by the commission are immediatelysubject to the lien of the pledge or assignment without physicaldelivery or further act. The lien of the pledge or assignment is validand binding against all parties having claims of any kind against thecommission, whether or not the parties have notice. Neither theresolution nor a trust agreement by which a pledge is created orassignment made need be filed or recorded except in the records ofthe commission.
(f) A trust agreement or a resolution providing for the issuance ofbonds may contain reasonable provisions for protecting andenforcing the rights and remedies of the bondholders.
(g) A bank or trust company incorporated under the laws of thestate and acting as the depository of the proceeds of bonds or otherfunds of the commission may furnish indemnifying bonds or pledgesecurities as required by the commission.
(h) A trust agreement may do the following:
(1) Set forth the rights and remedies of the bondholders and thetrustee.
(2) Restrict the individual right of action by bondholders as iscustomary in trust agreements or trust indentures securingbonds or debentures of private corporations.
(3) Contain other provisions the commission considersreasonable and proper for the security of the bondholders.
(i) All expenses incurred in carrying out the provisions of a trustagreement may be treated as a part of the cost of the operation of theproject.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-6
Investment and use of funds
Sec. 6. (a) All money received under this chapter must be held andapplied solely as provided in this chapter. Until the time the moneyis needed for use, the money may be invested or kept in depositoriesdesignated by the commission in the manner provided by IC 5-13.
(b) The resolution authorizing the issuance of bonds or the trustagreement securing the bonds must provide that any officer or anybank or trust company entrusted with money under this chapter shall:
(1) act as trustee of the money; and
(2) hold and apply the money for the purposes of this chapter,under this chapter and the authorizing resolution or trust
agreement.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-7
Bondholder rights; enforcement
Sec. 7. (a) A holder of a bond issued under this chapter may,subject to the authorizing resolution or trust agreement:
(1) protect and enforce the holder's rights under the laws ofIndiana, the trust agreement, or the resolution authorizing theissuance of the bonds; and
(2) enforce and compel the performance of the duties requiredunder this chapter, by the trust agreement, or by resolution to beperformed by the commission or by any officer of thecommission.
(b) The trust agreement or resolution authorizing the issuance ofthe bonds may include provisions requiring the fixing, charging, andcollecting of fees, rentals, or other charges by the commission.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-8
Bonds; not a state or political subdivision obligation
Sec. 8. (a) Bonds issued under this chapter:
(1) do not constitute:
(A) a debt of the state or of any political subdivision of thestate; or
(B) a pledge of the faith and credit of the state or of anypolitical subdivision; and
(2) are payable solely from the funds pledged for payment ofthe bonds under this chapter.
(b) Each bond must contain on the face of the bond a statement tothe effect that the bonds, as to both principal and interest, are not anobligation of the state or of any political subdivision of the state, butare payable solely from revenues pledged for payment of the bonds.Those revenues may not include:
(1) proceeds or interest derived from funds of the state; or
(2) any proceeds received by the commission derived from thelevy of any tax.
(c) All expenses incurred in carrying out this chapter are payablesolely from funds provided under the authority of this chapter.
(d) This chapter may not be construed to authorize thecommission to incur indebtedness or liability on behalf of or payableby:
(1) the state; or
(2) any political subdivision of the state.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-9
Bonds; legal investment
Sec. 9. Bonds issued by the commission under this chapterconstitute legal investments for: (1) any private trust funds; and
(2) the funds of any banks, trust companies, insurancecompanies, building and loan associations, credit unions, banksof discount and deposit, savings banks, loan and trust and safedeposit companies, rural loan and savings associations,guaranty loan and savings associations, mortgage guarantycompanies, small loan companies, industrial loan andinvestment companies, and any other financial institutionsorganized under the laws of Indiana.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-10
Exemption of interest from taxes
Sec. 10. Interest paid on bonds issued under this chapter is exemptfrom taxation for all purposes, except:
(1) the inheritance tax under IC 6-4.1; and
(2) for determining financial institution tax liabilities underIC 6-5.5.
As added by P.L.2-2008, SEC.4.
IC 15-13-10-11
"Lessor"; leases
Sec. 11. (a) As used in this section, "lessor" has the meaning setforth for "leasing body" in IC 5-1-1-1. The term includes the Indianabond bank.
(b) The commission may enter into a lease of any property thatcould be financed with the proceeds of bonds issued under thischapter with a lessor for a term not to exceed thirty (30) years. Thelease may provide for payments from revenues under this chapter,taxes in the fund, any other funds that may be legally pledged by thecommission, or any combination of these sources. Money in the fundmay be used to make lease payments.
(c) A lease may provide that payments by the commission to thelessor are required only to the extent and only for the period that thelessor is able to provide the leased project in accordance with thelease. The terms of each lease must be based upon the value of theproject leased and may not create a debt of the commission forpurposes of the Constitution of the State of Indiana. Property taxrevenues may not be used to make lease payments unless thoserevenues have been appropriated by the general assembly. A leaseunder this section that is wholly or partly payable from property taxrevenues must include the following:
(1) A statement that the term of the lease is for:
(A) a period coextensive with the biennium used for statebudgetary and appropriation purposes; and
(B) a fractional period when the lease begins, if necessary.
(2) A statement that the term of the lease is extended frombiennium to biennium, with the extensions not to exceed a leaseterm of thirty (30) years, unless either the commission or thelessor gives notice of nonextension at least six (6) months
before the end of a biennium, in which case the lease expires atthe end of the biennium in which the notice is given.
(d) The commission may approve the execution of a lease if thecommission finds that the service to be provided throughout the termof the lease will serve the public purpose of the commission and isin the best interests of the citizens of Indiana. Upon execution of thelease, the commission may publish notice of the adoption one (1)time each week for two (2) weeks in two (2) newspapers publishedand of general circulation in Marion County. If notice is published,any action or proceeding in any court to set aside the lease or toobtain relief upon the ground that the action of the commission inentering into the lease is invalid must be filed not more than thirty(30) days after the first publication of notice of the execution of thelease. After the expiration of the thirty (30) day period, a right ofaction may not be asserted and the validity of the lease or any of theprovisions of the lease may not be questioned in any court or agencyupon any grounds.
(e) If the commission exercises an option to buy a leased projectfrom a lessor, the commission may subsequently sell the leasedproject, without regard to any other statute, to the lessor at the end ofthe lease term at:
(1) a price set forth in the lease; or
(2) the fair market value established at the time of the sale bythe commission through auction, appraisal, or arms lengthnegotiation.
As added by P.L.2-2008, SEC.4.