CHAPTER 6. COUNTY HOSPITAL BUILDING AUTHORITIES
IC 16-22-6
Chapter 6. County Hospital Building Authorities
IC 16-22-6-1
Authority defined
Sec. 1. As used in this chapter, "authority" means the hospitalassociation created by section 2 of this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-2
Resolution for creation of authority; name; purpose
Sec. 2. The county executive of a county owning and operatingonly one (1) county hospital may, upon written request by thegoverning board of the hospital, adopt a resolution for the creationof an authority under this chapter. Upon the adoption of theresolution an authority is created which shall be a body corporate andpolitic known as the "_________ County Hospital Association". Thename includes the name of the county. The authority is created forthe purpose of financing, acquiring, constructing, renovating,equipping, and leasing to the county land and a building, includingan existing building, for hospital purposes. The county auditor shallfile a certified copy of the resolution with the clerk of the circuitcourt of the county in which the authority is created.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-3
Appointment of directors; terms
Sec. 3. (a) Not more than sixty (60) days after the filing of thecertified copy of the resolution described under section 2 of thischapter, the county executive shall appoint five (5) residents of thecounty as directors of the county hospital building authority.
(b) The initial terms of the members of the governing board asfollows:
(1) One (1) member shall be appointed for a term of one (1)year.
(2) One (1) member for a term of two (2) years.
(3) One (1) member for a term of three (3) years.
(4) Two (2) members for terms of four (4) years.
(c) At the expiration of the respective terms of the members of thegoverning board the county executive shall appoint successors forfour (4) year terms. Each member serves until a successor isappointed and qualified.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-4
Vacancies
Sec. 4. If a member dies, resigns, ceases to be a resident of thecounty, or is removed as provided in this chapter, the countyexecutive shall appoint another person as a member of the governingboard for the remainder of the term. If a person appointed as a
member fails to qualify not more than ten (10) days after the mailingof notice of appointment, the county executive shall appoint anotherperson as member.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-5
Director's oath of office
Sec. 5. Each member, before entering office, shall take andsubscribe an oath of office to be endorsed upon the certificate ofappointment. The oath shall be filed with the clerk of the circuitcourt.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-6
Removal of director from office
Sec. 6. (a) A member may be removed from office for neglect ofduty, incompetency, inability to perform duties, or other good causeby an order of the circuit court in the county in which the authorityis located, subject to the procedure set forth in subsection (b).
(b) A complaint may be filed by any person against the directorsetting forth the charges preferred. The cause shall be placed on theadvanced calendar and is tried as other civil causes are tried by thecourt without the intervention of a jury. If the charges are sustained,the court shall declare the office vacant. A change of venue from thejudge shall be granted upon motion, but no change of venue from thecounty may be taken.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-7
Selection of officers; meetings; quorum
Sec. 7. (a) The members originally appointed shall hold anorganizational meeting not more than thirty (30) days afterappointment, at a time and place designated by the county executive.The members of the governing board shall elect from among themembers a president, vice president, secretary, and treasurer. Theofficers serve until the expiration of the first term to expire and themembers shall meet annually to reorganize and elect officers notmore than thirty (30) days after the appointment of each successormember for a full term.
(b) Other regular and special meetings shall be held at the timesand upon the notice that the members determine, by resolution or inaccordance with the bylaws, rules, and regulations adopted.
(c) A majority of the members constitutes a quorum and theconcurrence of a majority is necessary to authorize any action.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-8
Bylaws, rules, and regulations
Sec. 8. The members may adopt bylaws, rules, and regulationsnecessary to conduct proceedings, carry out duties, and safeguard the
funds and property of the authority.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-9
Compensation and reimbursement
Sec. 9. A member serves without pay but is entitled toreimbursement for expenses necessarily incurred in the performanceof the member's duties.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-10
Conflicts of interest
Sec. 10. A member may not have a pecuniary interest in acontract, an employment, a purchase, or a sale made under theprovisions of this chapter. A transaction in which a director has apecuniary interest is void.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-11
Preliminary expenses
Sec. 11. (a) All necessary preliminary expenses actually incurredby the governing board to make surveys, prepare estimates of costsand receipts, employ architects, engineers, attorneys, or otherconsultants, give notices, take options, and all other expenses thatmust be paid before the issue and delivery of bonds under thischapter may be paid by the county from funds on hand or derivedfrom taxes levied that may be appropriated for that purpose or by thegoverning board of the hospital from revenues available for thatpurpose.
(b) The county or the governing board of the hospital shall bereimbursed for the preliminary expenses described under subsection(a) by the governing board of the authority out of the first proceedsof the sale of bonds by the authority provided for in this chapter andbefore any other disbursements are made.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-12
Powers of governing board
Sec. 12. The governing board of the authority may do thefollowing:
(1) Finance and construct or renovate a building for hospital useon land owned by the authority and lease the land and buildingto the county in which the authority has been created.
(2) Sue and be sued and plead and be impleaded. However, anaction against the authority shall be brought in a circuit orsuperior court of the county in which the authority is located.
(3) Condemn, appropriate, purchase, and hold real propertyuseful in connection with a building constructed or renovatedunder this chapter.
(4) Acquire by gift, devise, or bequest real property and
personal property, and hold, use, expend, or dispose of real andpersonal property for the purposes authorized by this chapter.
(5) Enter upon lots or lands to survey or examine the lots orlands and determine the location of a building.
(6) Design, order, contract for, and construct or renovate abuilding and make all necessary or desirable improvements tothe grounds and premises that the board may acquire.
(7) Enter into a lease with the county and collect rentals payableunder the lease.
(8) Make and enter into the contracts and agreements necessaryor incidental to the performance of the board's duties and theexecution of the board's powers under this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-13
Leases
Sec. 13. Each county may lease land and a building from theauthority for hospital purposes. A contract of lease on a particularbuilding may not be entered into for more than forty (40) years butthe contract may be renewed for a like or lesser time.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-14
Anticipatory lease
Sec. 14. A county may, in anticipation of the construction,erection, or renovation of a building, including the necessaryequipment and appurtenances, enter into a contract of lease with theauthority before the acquisition of a site and the construction,erection, or renovation of the building. Rental payments under acontract of lease may not commence until construction is completedand the building is ready for occupancy. However, if a building isacquired and renovated, a county may, in anticipation of theacquisition and renovation, make and enter into a contract of leaseupon terms and conditions agreed upon by the county and theauthority, including terms and conditions permitting the county tocontinue to operate the building until completion of the renovationand the payment of a lease rental by the lessee during the period ofrenovation.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-15
Payment of lease rental; sources
Sec. 15. A lease executed under this chapter may provide for thepayment of the lease rental in one (1) of the following ways:
(1) Entirely from the levy of taxes.
(2) Entirely from the net revenues of the hospital of which theleased building or buildings are a part.
(3) In part from the levy of taxes and in part from the netrevenues as fixed and set forth in the lease.
(4) From a cumulative building fund established by the lessee
under any of the following:
(A) IC 16-12-16 (before its repeal on July 1, 1993).
(B) IC 16-12.1-4-4 (before its repeal on July 1, 1993).
(C) IC 16-22-5.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-16
Payment of lease rentals from hospital net revenues; reserve fund
Sec. 16. (a) If a lease provides for the payment of lease rental inwhole or in part from net revenues of the hospital, the lease mayprovide that the county and the governing board of the hospitalestablish a reserve fund for net revenues in excess of the amountrequired to pay lease rental payable from net revenues. The reservefund:
(1) may not exceed an amount equal to the amount of leaserental payable from net revenues for two (2) years;
(2) shall be held and used only for the purpose of paying leaserental payable from net revenues if the net revenues at any timeare insufficient for that purpose; and
(3) may be invested as provided in the lease and all interest orother income from investment becomes part of the reserve fund.
(b) If the fund contains the maximum amount and a part of thelease rental is payable from taxes, the interest or other income shallbe transferred to the fund described in section 32 of this chapter tobe used for the payment of the lease rental provided to be paid fromtaxes. If none of the rental is payable from taxes, the interest or otherincome becomes a part of the reserve fund.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-17
Payment of lease rentals from a cumulative building fund
Sec. 17. (a) If a lease provides for the payment of lease rentals fora cumulative building fund, part or all of the cumulative buildingfund and the tax levied for the cumulative building fund may becommitted and pledged to the payment of lease rental. To the extentthe amount is insufficient to pay the lease rental, the lease mustprovide that the remaining lease rental be paid entirely from the netrevenues of the hospital. As long as the lease remains in effect:
(1) the amount of the cumulative building fund committed andpledged may not be expended by the lessee for any otherpurpose; and
(2) the tax levy for that cumulative building fund may not bereduced or rescinded by the county council.
(b) If a lease provides for payment of lease rental as provided inthis section, the approval of the county fiscal body is not required forthe lease or the sale of land by the county to the authority undersection 16 of this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-18 Hearing on terms of proposed lease; notice
Sec. 18. When the authority, the governing board of the hospital,the county executive, and a majority of the county fiscal body of thecounty have agreed upon the terms and conditions of a leaseproposed to be entered into under the terms and conditions of thischapter and before the final execution of the lease, the county auditorshall publish notice of a public hearing to be held in the county bythe county executive not less than ten (10) days after the publicationof the notice. The notice of the hearing shall be published one (1)time in a newspaper of general circulation printed in the Englishlanguage and published in the county. The notice must name the day,place, and hour of the hearing and must set forth a brief summary ofthe principal terms of the lease, including a description of theproperty to be leased, the lease rental, the term of the lease, andwhere the proposed lease, drawings, plans, specifications, andestimates may be examined. The proposed lease and the drawings,plans, specifications, and estimates of construction cost for thebuilding shall be open to inspection by the public during the ten (10)day notice period and at the meeting. All persons have a right to beheard at the meeting on the necessity for the lease and whether thelease rental is fair and reasonable. The hearing may be adjourned toa later date or dates and to a place fixed before the adjournment.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-19
Authorization and execution of lease
Sec. 19. Following the hearing the county executive mayauthorize the execution of the lease originally agreed on or makemodifications agreed on with the authority, the governing board, andthe county fiscal body. The authorization must be by an order enteredin the official records of the county executive. The lease shall beexecuted:
(1) on behalf of the county by at least a majority of themembers of the county executive; and
(2) on behalf of the authority by the president or vice presidentand secretary of the governing board of the authority.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-20
Notice of execution of authorized lease; taxpayer objections
Sec. 20. (a) If the execution of the original or a modified lease isauthorized, notice of the signing shall be published on behalf of thecounty one (1) time in a newspaper of general circulation andpublished in the county. Except as provided in subsection (b), at leastten (10) taxpayers in the county whose tax rate will be affected bythe proposed lease may file a petition with the county auditor notmore than thirty (30) days after publication of notice of the executionof the lease. The petition must set forth the objections to the leaseand facts showing that the execution of the lease is unnecessary orunwise or that the lease rental is not fair and reasonable. (b) The authority for taxpayers to object to a proposed leasedescribed in subsection (a) does not apply if the authority complieswith the procedures for the issuance of bonds and other evidences ofindebtedness described in IC 6-1.1-20.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.11;P.L.146-2008, SEC.434.
IC 16-22-6-21
Submission of objections to department of local governmentfinance
Sec. 21. On the filing of the petition the county auditor shallimmediately certify a copy, together with other data necessary topresent the questions involved, to the department of localgovernment finance.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.388.
IC 16-22-6-22
Hearing by department of local government finance; notice
Sec. 22. On receipt of the certified petition and information, thedepartment of local government finance shall fix a time and place inthe county for the hearing that shall be not less than five (5) or morethan fifteen (15) days after receipt. Notice of the hearing shall begiven by the department of local government finance to the countyexecutive and to the first ten (10) taxpayer petitioners by certifiedmail sent to the addresses listed on the petition at least five (5) daysbefore the hearing date.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.389.
IC 16-22-6-23
Time for bringing action to contest or enjoin lease
Sec. 23. An action to contest the validity of the lease or to enjointhe performance of the terms and conditions of the lease may not beinstituted more than thirty (30) days after publication of notice of theexecution of the lease or, if an appeal is taken to the department oflocal government finance, not more than thirty (30) days after thedecision of the board.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.390.
IC 16-22-6-24
Lease options; renewal or purchase
Sec. 24. (a) A lease:
(1) may provide that the lessee has an option to renew the leasefor a like or lesser term; and
(2) must contain an option to purchase at any time after ten (10)years from the execution of the lease and before the expirationof the term of the lease on a date fixed in the lease at a priceequal to the amount required to enable the authority to do thefollowing:
(A) Redeem all outstanding securities payable out of therentals provided for in the lease and all premiums and
accrued and unpaid interest payable on that redemption.
(B) Pay all other indebtedness and obligations of theauthority attributable to the acquisition, construction,renovation, and leasing of the buildings, including any costof liquidation of the authority.
(b) The lease does not create an obligation for the county topurchase a leased building or an obligation to a creditor orbondholder of the authority.
(c) A county exercising an option to purchase may issue generalobligation bonds to procure funds to purchase the building. Thebonds shall be authorized, issued, and sold in accordance with thelaws authorizing the issuance and sale of bonds for other countypurposes.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-25
Plans and specifications; approval
Sec. 25. Before the execution of a lease the governing board of thehospital and the county executive shall approve the plans,specifications, and estimates of cost for the building, equipment, andappurtenances that the authority proposes to lease to a lessee. Theplans and specifications also shall be submitted to and approved bythe state department, the division of fire and building safety, andother state agencies designated by law to pass on plans andspecifications for public buildings.
As added by P.L.2-1993, SEC.5. Amended by P.L.1-2006, SEC.296.
IC 16-22-6-26
Sale of county land or building to authority; procedure
Sec. 26. (a) A county desiring to erect or renovate a building onland owned or to be acquired by the county may sell land or abuilding, or both to the authority. Before the sale may take place, thecounty executive, with the approval of the county fiscal body, shallfile a petition with the circuit court of the county requesting theappointment of:
(1) one (1) disinterested freeholder of the county as anappraiser; and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana to determine the fair market value of theland and buildings. One (1) of the appraisers described undersubdivision (2) must reside not more than fifty (50) miles from theland. The appraisers shall fix the fair market value of the land andbuildings and report not more than two (2) weeks after the date of theappraisers' appointment. The county may sell the land and buildingsto the authority for an amount not less than the amount fixed as thefair market value by the appraisers. The amount shall be paid in cashupon delivery of the deed by the county to the authority.
(b) If a cumulative building fund exists at the time of the saleunder IC 16-12-16 (before its repeal on July 1, 1993), IC 16-12.1-4-4(before its repeal on July 1, 1993), or IC 16-22-5, the proceeds from
the sale shall be placed in the fund. If a cumulative building funddoes not exist at the time of the sale, the proceeds from the sale shallbe paid into the county hospital fund and the principal and interestshall be used for the purposes set forth in IC 16-22-5. A sale of landor buildings, or both, by a county to the authority shall be authorizedby the county executive by an order entered in the official records ofthe county executive. The deed shall be executed on behalf of thecounty by the county executive.
As added by P.L.2-1993, SEC.5. Amended by P.L.113-2006, SEC.10.
IC 16-22-6-27
Contiguous counties; agreements for county without hospital toreimburse county with hospital for portion of lease rental;procedure
Sec. 27. (a) As used in this section, "contributing county" meansa county without a county hospital that is contiguous to a county witha county hospital.
(b) As used in this section, "lessee county" means a county witha county hospital.
(c) A contributing county may enter into an agreement with alessee county to reimburse the lessee county for a part of the leaserental each year that is payable by the lessee county upon compliancewith this section.
(d) If the county executive of the contributing county finds thatthe hospital of the lessee county serves the residents of thecontributing county and provides needed hospital services to suchresidents, the county executive may prepare a contributionagreement. Before final execution of the agreement, the auditor ofthe contributing county shall publish notice of a public hearing to beheld in the contributing county by the county executive not less thanten (10) days after publication of the notice. The notice shall bepublished one (1) time in a newspaper of general circulation andpublished in the contributing county. The notice must name the day,place, and hour of the hearing and must set forth a summary of theprovisions of agreement as to the amount to be paid each year duringthe term of the lease by the contributing county and where a copy ofthe proposed agreement may be examined. All persons interested areentitled to be heard at the time fixed on the necessity for theexecution of the agreement. The hearing may be adjourned to a laterdate at a place fixed before adjournment.
(e) Following the hearing, if a majority of the county fiscal bodyof the contributing county approve the execution of the agreement,the county executive may authorize the execution of the originalagreement or may make the modifications agreed upon with thecounty fiscal body. The authorization shall be by an order entered inthe official records of the county executive. The agreement shall beexecuted:
(1) on behalf of the contributing county by at least a majority ofthe members of the county executive; and
(2) on behalf of the lessee county by at least a majority of the
members of the county executive.
(f) If the execution of the original or modified contributionagreement is authorized, notice of the signing shall be published onbehalf of the contributing county by publication one (1) time in anewspaper of general circulation and published in the contributingcounty. At least ten (10) taxpayers in the contributing county whosetax rate will be affected by the proposed agreement may file apetition with the county auditor of the contributing county not morethan thirty (30) days after publication of notice of the execution ofthe agreement. The petition must set forth the objections to thecontribution agreement and facts showing that the execution of thecontribution agreement is unnecessary and unwise or that the amountof contribution is excessive. On the filing of the petition, the countyauditor shall immediately certify a copy together with other datanecessary to present the questions involved to the department of localgovernment finance. The department of local government financeshall fix a time and place in the county for the hearing not less thanfive (5) or not more than fifteen (15) days after receipt of thecertified petition and information. Notice of the hearing shall begiven by the department of local government finance to the countyexecutive and to the first ten (10) taxpayer petitioners by certifiedmail sent to the addresses listed on the petition, at least five (5) daysbefore the date of the hearing.
(g) An action to contest the validity of the contribution agreementor to enjoin the performance of the agreement may not be institutedlater than thirty (30) days after publication of notice of the executionof the agreement or, if an appeal has been taken to the department oflocal government finance, not more than thirty (30) days after thedecision of the board.
(h) A contribution agreement may extend for the full term of thelease or for any part and may provide for reimbursement by thecontributing county to the lessee county of a part of the lease rentaleach year in an amount and upon terms and conditions agreed onbetween the contributing county and the lessee county. Thecontributing county shall annually levy a tax sufficient to produceeach year the necessary funds sufficient to reimburse the lesseecounty as provided in the contribution agreement. The tax leviesprovided for in this section shall be reviewable by other bodiesvested by law with the authority to ascertain that the levies aresufficient to raise the required payments under the contributionagreement. The annual contribution shall be paid semiannually to thelessee county before the date lease rental payments are due from thelessee county.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.391.
IC 16-22-6-28
Agreements between contiguous counties; rights of county citizens
Sec. 28. The citizens of a contributing county under section 27 ofthis chapter have the same rights and privileges in the hospital as thecitizens of the county where the hospital is located.As added by P.L.2-1993, SEC.5.
IC 16-22-6-29
Revenue bonds; authorization; legal investments; sale
Sec. 29. (a) The governing board may issue revenue bonds of theauthority to procure funds to pay the cost of a building to be built,acquired, renovated, or acquired and renovated under this chapter,and to repay advances for preliminary expenses made to the authorityby the county. The bonds are payable solely from the income andrevenues of the particular building financed from the proceeds of thebonds issued.
(b) The revenue bonds must be authorized by resolution of thegoverning board. The resolution must provide the following:
(1) The rate of interest that the bonds will pay if the rate isfixed, and the manner in which the interest rate will bedetermined if rates are variable.
(2) The maturity date of the bonds, which may not exceed theterm of the lease of the building for which the bonds wereissued.
(3) The extent and the manner that bonds bearing variableinterest rates may be converted to bonds bearing a fixed rate ofinterest.
(4) The terms of redemption, including a provision that bondsmaturing later than ten (10) years after issuance are, at theoption of the authority to be exercised by the board, redeemablebefore maturity at the par value together with premiums.
(5) The form of the bonds, including the interest coupons to beattached, if any.
(6) The denominations of the bonds.
(7) The time and places of payment of principal and interest ofthe bonds, which must be at least one (1) state or national bankor trust company.
(8) That the principal and interest may be paid in any lawfulmedium.
(c) Subject to registration provisions, the bonds have the qualitiesof negotiable instruments under IC 26 and the bonds are legalinvestments for a private trust fund and the funds of any banks, trustcompanies, insurance companies, building and loan associations,credit unions, banks of discount and deposit, savings banks, loan andtrust safe deposit companies, rural loan and savings associations,guaranty loan and savings associations, mortgage guarantycompanies, small loan companies, industrial loan and investmentcompanies, and other financial institutions organized under the lawsof the state.
(d) The bonds may be registered in the name of the owner. Thebonds shall be executed by the president or vice president of theboard of directors. The corporate seal of the authority shall beaffixed and attested by the secretary of the board of directors, and theinterest coupons attached to the bonds, if any, shall be executed byplacing on the coupons the facsimile signature of the treasurer. (e) Except as provided in subsection (f), the bonds shall be soldby the governing board at public sale under IC 5-1-11, but the noticeof sale shall be published in the manner required for bonds of thecounty in which the authority is located. NotwithstandingIC 5-1-11-3(c), bonds bearing a variable rate of interest shall beawarded to the bidder offering the best bid in the judgment of theboard.
(f) If the aggregate principal amount of bonds to be issued at anyone (1) time exceeds ten million dollars ($10,000,000), the bondsmay be sold at public or private sale at a price the governing boarddetermines. If the bonds are sold at public sale, the governing boardshall follow the guidelines set forth in subsection (e). If the bonds aresold at private sale, the governing board shall, before selecting aperson with whom to negotiate the sale of the bonds:
(1) solicit and obtain written proposals from at least three (3)persons regularly engaged in the business of underwritingbonds; or
(2) publish notice of intent to receive written proposals one (1)time in a newspaper or financial journal having generalcirculation in Indianapolis and a newspaper or financial journalhaving national circulation.
(g) The governing board shall allow each person at least fourteen(14) days from the date of solicitation or publication to formulate,prepare, and submit a proposal. The board of directors shall selectthe proposal that the board, in the board's sole discretion, determinesto be in the best interest of the authority.
As added by P.L.2-1993, SEC.5. Amended by P.L.42-1993, SEC.14.
IC 16-22-6-30
Application of bond proceeds
Sec. 30. The proceeds of bonds issued under this chapter, afterreimbursement to the county for preliminary expenses as provided insection 11 of this chapter, shall be applied to the payment of the costsof acquisition, construction, or renovation of the building for whichthe bonds are issued, including incidental expenses and interestbefore acquisition or during construction or renovation. Until theproceeds are applied as required in this section, the proceeds aresubject to a lien in favor of the bondholders or trustees.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-31
Security for bonds; trust indenture
Sec. 31. (a) The governing board may secure the bonds by a trustindenture between the authority and a corporate trustee, which maybe any trust company or national or state bank in Indiana having trustpowers.
(b) The trust indenture may do the following:
(1) Mortgage the land or building, or both, for which the bondsare issued.
(2) Contain reasonable provisions for the following: (A) Protecting and enforcing the rights and remedies of thebondholders, including covenants setting forth the duties ofthe authority and board in relation to the following:
(i) The construction or renovation of the building and thebuilding's insurance.
(ii) The custody, safeguarding, and application of allmoney.
(B) Setting forth the rights and remedies of the bondholdersand trustee.
(C) Restricting the individual right of action of bondholders.
(c) Except as otherwise provided in this chapter, the board ofdirectors may determine by resolution or in the trust indenture thefollowing:
(1) The officer, board, or depositary that shall have custody ofthe proceeds of the sale of the bonds.
(2) The method of disbursement of the proceeds, includingsafeguards and restrictions.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-32
Tax levy
Sec. 32. (a) The county fiscal body of a county that has enteredinto a lease under this chapter shall annually levy a tax sufficient toproduce, with other funds available, funds sufficient to pay the leaserental provided to be paid from taxes.
(b) Net revenues of the hospital of which the leased building is apart shall, if any of the lease rental is payable from taxes, betransferred to a fund used for the payment of the lease rental to bepaid from taxes unless those revenues are required:
(1) to pay lease rental under the lease;
(2) to be retained as a reserve for that purpose; or
(3) by the governing board of the hospital to be kept in reservefor additional construction, equipment, betterment,maintenance, or operation.
(c) In fixing and determining the amount of the levy necessary topay lease rental payable from taxes, the county fiscal body shallconsider the amounts transferred from the net revenues of thehospital as provided in this chapter. This chapter does not relieve thecounty from the obligation to pay from taxes any lease rental payablefrom taxes if other funds are not available. The tax levies providedfor in this chapter are reviewable by other bodies with authority toascertain that the levies, with other funds available, are sufficient tomeet the rental under the lease that is payable from taxes. Leaserental shall be paid semiannually to the authority followingsettlements of tax collections.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-33
Hospital revenues as source of lease rental payments
Sec. 33. (a) If: (1) a county enters into a lease under this chapter, under whichthe lease rental is payable in whole or in part from the netrevenues of the hospital of which the leased buildings are apart; and
(2) the governing board of the hospital covenants in the lease toestablish and maintain rates, fees, and charges for the use of thehospital sufficient in each year to:
(A) pay the proper and reasonable expense of operation,repair, replacements, and maintenance of the hospital;
(B) pay the lease rental payable from the net revenues of thehospital; and
(C) establish the reserve fund provided for in the lease in thefull amount in not less than five (5) years;
revenues collected are the revenues of the hospital. The rates, fees,and charges shall be increased as necessary to comply with thissection.
(b) The authority may protect and enforce the rights granted underthis chapter or under the lease and may enforce and compelperformance of all duties required by this chapter or the lease to beperformed by:
(1) the county executing the lease;
(2) the county executive;
(3) the governing board; or
(4) an officer of the county;
including setting and collecting reasonable and sufficient rates, fees,and charges for the use of the hospital.
(c) If there is a failure to pay lease rental payable solely from thenet revenues of the hospital on the payment date, a court havingjurisdiction of the action may appoint a receiver to administer thehospital on behalf of the county and the authority.
(d) The receiver may charge and collect rates sufficient to do thefollowing:
(1) Pay the proper and reasonable expense of operation, repair,replacements, and maintenance of the hospital.
(2) Pay the lease rental payable from the net revenues of thehospital.
(3) Establish the full amount of the reserve fund provided for inthe lease in not less than five (5) years.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-34
Exemption from state taxation
Sec. 34. The following are exempt from state taxation except forthe financial institutions tax imposed under IC 6-5.5 or a stateinheritance tax imposed under IC 6-4.1:
(1) Property owned by the authority.
(2) Revenues of the authority.
(3) Bonds or other securities and the interest on bonds andsecurities issued by the authority.
(4) Proceeds received by a holder from the sale of the bonds, to
the extent of the holder's cost of acquisition.
(5) Proceeds received upon redemption at or before maturityand the interest on the proceeds.
As added by P.L.2-1993, SEC.5. Amended by P.L.254-1997(ss),SEC.23.
IC 16-22-6-35
Audit of funds; officer and employee bonds; records
Sec. 35. The state board of accounts may supervise and audit thefunds of the authority. An officer or employee of the authorityauthorized to receive, disburse, or in any way handle funds ornegotiable securities of the authority shall execute a bond payable tothe state, with surety to consist of a surety or guaranty corporationqualified to do business in Indiana, in an amount determined by theboard. The bond must be conditioned upon the faithful performanceof the officer's or employee's duties and the accounting for all moneyand property that may come under the officer's or employee's control.The cost of the bonds shall be paid out of funds of the authority. Therecords of the authority are public records.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-36
Liquidation of authority
Sec. 36. An authority may be liquidated after the authority'ssecurities are redeemed, debts are paid, and leases are terminated ifthe board of directors files a report with the judge of the circuit courtshowing the facts and stating that the liquidation is in the best publicinterest. The court shall find the facts and make an order book entryordering the authority liquidated.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-37
Building additions; funding
Sec. 37. (a) A county or the governing board of the hospital mayremodel or construct an addition to a hospital building leased underthis chapter.
(b) To provide funds for that purpose, the county may issuegeneral obligation bonds or appropriate money from the county'sgeneral fund or other funds available for that purpose if the hospitalbuilding is owned by the county. The governing board of a hospitalmay use funds available to the board if the hospital building is ownedby the county.
(c) A contract entered into under this chapter for a public work (asdefined in IC 5-16-7-4) is subject to IC 5-16-7.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-38
Agreements
Sec. 38. A county and an authority that have entered into orpropose to enter into a lease under this chapter may enter into a party
wall agreement or other agreement concerning the attaching of anaddition to a hospital building if the agreement is approved by thegoverning board of the hospital and recorded with the recorder of thecounty in which the hospital is located. The agreement may providefor an easement or a license to construct a part of an addition over orabove the existing hospital building.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-39
Lease approval of county fiscal body
Sec. 39. For the purposes of this chapter, county executive actionor approval for the appropriation and expenditure of county taxmoney includes approval by the county fiscal body. A lease enteredinto by the county executive with the hospital building authority orassociation is not valid or binding on the county unless the lease isapproved by a majority vote of the county fiscal body.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-40
Compliance with other laws
Sec. 40. In proceeding under this chapter, it is not necessary tocomply with any other law except as otherwise expressly providedin this chapter.
As added by P.L.2-1993, SEC.5.