CHAPTER 7. HOSPITAL BUILDING AUTHORITIES IN COUNTY WITH HOSPITAL OPERATED UNDER IC16-23-1
IC 16-22-7
Chapter 7. Hospital Building Authorities in County With HospitalOperated Under IC 16-23-1
IC 16-22-7-1
Authority defined
Sec. 1. As used in this chapter, "authority" means the hospitalassociation created by section 5 of this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-2
Governing body defined
Sec. 2. As used in this chapter, "governing body" means thecounty executive of a county or the legislative and fiscal body of acity.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-3
Net operating revenue defined
Sec. 3. As used in this chapter, "net operating revenue" means therevenues of the hospital, exclusive of any property tax levyremaining after provision for reasonable expenses of operation,repair, replacements, and maintenance of the hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-4
Recording officer defined
Sec. 4. As used in this chapter, "recording officer" when used inreference to a county means the county auditor and when used inreference to a city means the city clerk or clerk-treasurer.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-5
Creation of authority; resolution
Sec. 5. (a) In a county where a city hospital is operated underIC 16-23-1, the county executive may, upon written request of thegoverning board of the city hospital, adopt a resolution for thecreation of an authority under this chapter.
(b) The adoption of a resolution creates an authority, which is abody corporate and politic to be known as the "___________ CountyHospital Association". The authority is created for the purpose offinancing, acquiring, constructing, equipping, and leasing to thecounty or the city in which the authority is created land and buildingsfor the use and benefit of the city hospital.
(c) The county auditor shall file a certified copy of the resolutionwith the judge of the circuit court of the county in which theauthority is created.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-6 Governing board; appointment; terms
Sec. 6. (a) Not more than thirty (30) days after the adoption of theresolution, the county executive shall appoint five (5) residents of thecounty as the governing board of the hospital building authority.Written notice shall be sent to each appointee.
(b) The initial terms are as follows:
(1) One (1) member 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 a term of four (4) years.
(c) At the expiration of the term of a member, the countyexecutive shall appoint a successor for a four (4) year term. Eachmember serves until a successor is appointed and qualified.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-7
Disqualification or removal of appointee; successor
Sec. 7. If a member dies, resigns, ceases to be a resident of thecounty, or is removed, the county executive shall appoint anotherperson as director for the remainder of the term. If a personappointed as a member fails to qualify not more than ten (10) daysafter the mailing of notice of appointment, the county executive shallappoint another person as member for that term.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-8
Oath of office of director
Sec. 8. Each member, before entering upon the director's duties,shall take and subscribe an oath of office in the usual form to beendorsed upon the director's certificate of appointment. The oathshall be filed with the clerk of the circuit court.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-9
Removal of member from office
Sec. 9. (a) A member of the governing board may be removedfrom office for neglect of duty, incompetency, inability to performduties, or other good cause by an order of the circuit court in thecounty in which the authority is located, subject to the procedure insubsection (b).
(b) A complaint may be filed by any person against a membersetting forth the charges preferred. The cause shall be placed on theadvanced calendar and be 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 a change of venue from thecounty may not be taken.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-10 Meetings of the governing board
Sec. 10. (a) The governing board originally appointed shall holdan organizational meeting not more than thirty (30) days afterappointment at a time and place designated by the judge of the circuitcourt. The governing board shall elect a president, vice president,secretary, and treasurer from among the members. The officers serveuntil the expiration of the first term to expire.
(b) The governing board shall meet annually to reorganize notmore than thirty (30) days after the appointment of each successormember for a full term.
(c) Other regular and special meetings shall be held at the timesand on the notice that the governing board determines by resolutionor in accordance with the bylaws, rules, and regulations adopted.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-11
Bylaws, rules, and regulations
Sec. 11. The governing board may adopt bylaws, rules, andregulations to conduct proceedings, carry out duties, and safeguardthe funds and property of the authority.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-12
Quorum; reimbursement of expenses
Sec. 12. A majority of the governing board constitutes a quorumand the concurrence of a majority is necessary to authorize anyaction. Members serve without pay but are entitled to reimbursementfor expenses necessarily incurred in the performance of the members'duties.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-13
Conflicts of interest
Sec. 13. If a member of the governing board has any pecuniaryinterest in a contract, an employment, a purchase, or a sale madeunder this chapter, the director shall disclose that interest and shallnot vote on the matter. If the member fails to disclose the interest, thetransaction is voidable if a suit is filed in circuit court in not less thanthirty (30) days.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-14
Preliminary expenses
Sec. 14. (a) All necessary preliminary expenses actually incurredby the governing board to make surveys, prepare estimates of costand receipts, employ architects, engineers, attorneys, or otherconsultants, give notices, take options, and all other expensesnecessary to be paid before the issue and delivery of bonds under thischapter may be paid by the:
(1) city hospital or city, from funds on hand or derived from
taxes levied that may be appropriated for that purpose; or
(2) board of trustees or board of managers of the hospital fromrevenues available for such purposes.
(b) The city or the governing board of the hospital from which thepayments are made shall be fully reimbursed by the governing boardout of the first proceeds of the sale of bonds by the authority beforeany other disbursements are made.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-15
Authority to finance and construct hospital building
Sec. 15. The governing board of the authority may finance andconstruct a hospital building for use by the city hospital operatingunder IC 16-23-1, on land owned or leased by the authority as setforth in section 28 of this chapter, and lease the land and buildingsto the county or city for the use and benefit of the city hospital inaccordance with this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-16
Powers of governing board
Sec. 16. The governing board, acting in the name of the authority,may do the following:
(1) Sue and be sued and plead and be impleaded. Actionsagainst the authority shall be brought in the circuit or superiorcourts of the county in which the authority is located.
(2) Condemn, appropriate, purchase, and hold real propertyneeded or considered useful in connection with buildingsconstructed under this chapter.
(3) Acquire by gift, devise, or bequest real and personalproperty, and hold, use, expend, or dispose of the real andpersonal property for the purposes authorized by this chapter.
(4) Enter upon real property to survey or examine the realproperty and determine the location of a building.
(5) Design, order, contract for, and construct buildings andmake improvements to the grounds and premises that areacquired.
(6) Enter into a lease with the county or city for the use andbenefit of a city hospital operated under IC 16-23-1 and collectrentals payable under the lease.
(7) Make and enter into contracts and agreements necessary orincidental 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 16-22-7-17
Leasing land and buildings for hospital
Sec. 17. The county or city may lease land and buildings from theauthority for the city hospital. A lease on the buildings may not beentered into for more than forty (40) years but the lease may be
renewed for a like or lesser time.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-18
Time for making leases
Sec. 18. The county or city may, in anticipation of theconstruction and erection of buildings, including necessaryequipment and appurtenances, enter into a lease with the authoritybefore the acquisition of a site and the construction and erection ofthe buildings. Rental payments under the lease may not begin untilconstruction is completed and the building is ready for occupancy.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-19
Source of lease rental payments
Sec. 19. (a) A lease from the authority to the county may providefor the payment of the lease rental from the levy of taxes reduced bynet revenues of the hospital and other funds available as provided insection 37 of this chapter.
(b) A lease from the authority to the city may provide for thepayment of lease rental from the net revenues of the hospital ofwhich the buildings are a part.
(c) A lease from the authority to the city providing for thepayment of a lease rental from net revenues of the hospital mayprovide that the board of trustees or board of directors of the hospitalestablish a reserve for net revenues in excess of the amount requiredto pay the lease rental payable from net revenues. The reserve fundmay not exceed an amount equal to the amount of lease rentalpayable from net revenues for two (2) years. The reserve fund shallbe held and used only for the purpose of paying lease rental payablefrom net revenues if the net revenues are insufficient for thatpurpose. The amount in the reserve fund may be invested as providedin the lease and all interest or other income from the investmentbecomes part of the reserve fund. If the fund contains the maximumamount the interest or income shall be transferred to the city hospitaland be a part of the general revenues of that hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-20
Cumulative building fund as lease rental payment source
Sec. 20. Part or all of the cumulative building fund of the cityhospital in existence at the time of execution of the lease to thelessee, or during the term of the lease, may be used to pay leaserental or may be held as a reserve for the payment of future leaserentals. The reserve fund described in this section is distinct from areserve fund established under section 19 of this chapter. The boardof directors of the hospital may decrease or eliminate the reservefund unless the lease provides otherwise. The reserve fund may notexceed an amount equal to the amount of lease rental payable fromnet revenues for two (2) years. Interest or income on the reserve fund
shall be transferred to the cumulative building fund of the cityhospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-21
Notice and hearing on proposed lease
Sec. 21. (a) When the authority, the governing board of thehospital, the county executive, and the county fiscal body of thecounty or the city fiscal body have agreed on the terms andconditions of a proposed lease and before the final execution of thelease, the recording officer shall publish notice of a public hearing tobe held in the county or city by the governing body of the proposedlessee. The hearing shall be held not earlier than ten (10) days afterthe date of publication of the notice. 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 the character and locationof the property to be leased, the lease rental to be paid, the leaseterm, and where the proposed lease, drawings, plans, specifications,and estimates may be examined.
(b) The proposed lease and the drawings, plans, specifications,and estimates of construction cost for the buildings are open toinspection by the public during the ten (10) days before the meetingand at the meeting.
(c) Interested persons are entitled to be heard at the meetingconcerning the necessity for and fairness of the lease. The hearingmay be adjourned to a later date and to a place fixed beforeadjournment.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-22
Authorization and execution of lease
Sec. 22. Following the hearing the governing body may authorizethe execution of the lease as originally agreed upon or makemodifications as agreed upon with the authority. Authorization shallbe by ordinance, order, or resolution entered in the official record ofthe hospital governing board and the governing body. The lease shallbe executed as follows:
(1) On behalf of the county, by the county executive.
(2) On behalf of the city, by the city executive and the recordingofficer.
(3) On behalf of the city hospital, by the president or vicepresident and secretary of the governing board.
(4) On behalf of the authority, by the president or vice presidentand secretary of the governing board.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-23
Notice of execution of lease; petition of objectors; presentment todepartment of local government finance
Sec. 23. (a) If execution of the original or modified lease is
authorized under section 38 of this chapter, notice of the signingshall be published.
(b) Ten (10) taxpayers in the county whose tax rate will beaffected by the proposed lease and who believe the lease isunnecessary or the lease rental is not fair and reasonable may file apetition in the office of the county auditor not more than thirty (30)days after publication of notice of the execution of the lease, settingforth the objections and stating facts showing that the lease isunnecessary or unwise or that the lease rental is not fair andreasonable.
(c) 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.392.
IC 16-22-7-24
Notice and hearing on objections
Sec. 24. On receipt of the certified petition and information, thedepartment of local government finance shall fix a time and place inthe county for a hearing of the matter, which shall be not less thanfive (5) or more than fifteen (15) days after receipt of the certifiedpetition and information. Notice of the hearing shall be given by thedepartment of local government finance to the city hospital boardand to the first ten (10) taxpayer petitioners on the petition bycertified mail sent to the addresses listed on the petition, at least five(5) days before the date of the hearing.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.393.
IC 16-22-7-25
Time to contest or enjoin lease
Sec. 25. An action to contest the validity of the lease or to enjointhe performance of the terms and conditions of the lease may not beinstituted later 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.394.
IC 16-22-7-26
Terms of lease
Sec. 26. (a) A lease may provide the lessee with an option torenew the lease, with approval of the board of directors of the cityhospital, for a like or lesser term. The lease must contain an optionfor the city hospital to purchase at any time after ten (10) years fromthe execution of the lease and before the expiration of the lease ondates in each year fixed in the lease, at a price equal to the amountrequired to enable the authority to do the following:
(1) Redeem all outstanding securities payable out of the rentalsprovided in the lease and all premiums payable on the
redemption and accrued and unpaid interest.
(2) Pay all other indebtedness and obligations of the authorityattributable to the construction and leasing of the buildings,including the cost of liquidation of the authority.
(b) A lease may not create an obligation for the lessee or cityhospital to purchase the leased buildings or create any obligation tocreditors or bondholders of the authority.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-27
Issuance of bonds
Sec. 27. The county fiscal body may issue general obligationbonds to procure funds to purchase the building. The bonds shall beauthorized, issued, and sold in accordance with the laws authorizingthe issuance and sale of bonds for other county purposes.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-28
Approval of plans and specifications
Sec. 28. Before executing a lease, the governing board of thehospital shall approve the plans, specifications, and estimates of costfor the building, including equipment and appurtenances, that theauthority proposes to lease to a lessee. The plans and specificationsshall be submitted to and approved by the state department, thedivision of fire and building safety, and other state agenciesdesignated by law to pass on plans and specifications for publicbuildings.
As added by P.L.2-1993, SEC.5. Amended by P.L.1-2006, SEC.297.
IC 16-22-7-29
Lease of land to authority by hospital, municipality, or county;option to purchase; price
Sec. 29. (a) The city hospital, city, or county desiring to erectbuildings on land owned or acquired by the city hospital, city, orcounty may lease land to the authority for a nominal rental for thesame period, including renewal periods, that the lessee proposes tolease the particular land or buildings to be constructed from theauthority. The city hospital, city, or county may grant an option tothe authority to purchase the land not more than six (6) months afterthe expiration of the lease from the authority on the land or buildingsif the city hospital or lessee does not exercise an option to purchasethe buildings within the terms of the lease. If the option price on theland is not fixed in the original lease, the price shall be determinedby an appraisal made by:
(1) one (1) disinterested freeholder residing in the county; and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana appointed by the judge of the circuitcourt. One (1) of the appraisers appointed under subdivision (2) mustreside not more than fifty (50) miles from the land.
(b) A lease of land by the city hospital, city, or county must be
authorized by the city legislative body, the county executive, orgoverning board of the hospital, respectively, and a resolution, anorder, or an ordinance must be entered in the official records of thegoverning body. Authorization may be given before or concurrentlywith the authorization of the lease from the authority to the lessee.The authorization to lease land to the authority is contingent upon theauthorization to lease land from the authority. The lease to theauthority shall be executed on behalf of the following:
(1) The city by the city executive and the recording officer.
(2) The county by the county executive and auditor.
(3) The authority by the president or vice president andsecretary of the governing board.
As added by P.L.2-1993, SEC.5. Amended by P.L.113-2006, SEC.11.
IC 16-22-7-30
Sale of land to authority by hospital, municipality, or county
Sec. 30. (a) The city hospital, city, or county desiring to havebuildings erected on land owned or acquired by the city hospital,city, or county may sell the land to the authority. Before the sale maytake place, the legislative body of the city, the governing board of thehospital, or executive of the county having authorized the sale 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. One (1) of the appraisers appointed under subdivision (2) mustreside not more than fifty (50) miles from the land. Uponappointment, the appraisers shall fix the fair market value of the landand shall report not more than two (2) weeks after the date of theappraisers' appointment. The city hospital, city, or county may sellthe land to the authority for an amount not less than the amount fixedas the fair market value by the appraisers. The amount may be paidfrom proceeds of bonds of the authority.
(b) The city legislative body must authorize the sale of landowned by the city by resolution or ordinance and the deed shall beexecuted by the city executive and city clerk.
(c) The governing board must authorize the sale of land owned bythe city hospital by resolution and the deed shall be executed by thepresident or vice president and the secretary of the governing board.
(d) The county executive must authorize the sale of land ownedby the county by resolution or order, and the deed shall be executedby the county executive and the county auditor.
As added by P.L.2-1993, SEC.5. Amended by P.L.113-2006, SEC.12.
IC 16-22-7-31
Issuance of revenue bonds by authority
Sec. 31. (a) The governing board may issue revenue bonds of theauthority to procure funds for buildings to be built or acquired under
this chapter and to repay advances for preliminary expenses. Thebonds are payable from the income and revenues of the buildingsfinanced from the proceeds of the bonds.
(b) The revenue bonds must be authorized by resolution of theboard. The resolution must provide the following:
(1) That the bonds bear interest, payable annually orsemiannually.
(2) The maturity dates of the bonds, which may not exceed theterm of the lease of the buildings for which the bonds areissued.
(3) The terms of redemption, including a provision that bondsmaturing after ten (10) years from the date of issuance are, atthe option of the authority, redeemable before maturity at thebonds' par value together with premiums.
(4) The form of the bonds, including the interest couponsattached, if any.
(5) The denominations of the bonds.
(6) The places of payment of principal and interest, which shallbe at least one (1) state or national bank or trust company.
(7) That the principal and interest may be paid in any lawfulmedium.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-32
Nature of revenue bonds
Sec. 32. The bonds are negotiable instruments under IC 26-1, andlegal investments for private trust funds and the funds of any banks,trust companies, insurance companies, building and loanassociations, credit unions, banks of discount and deposit, savingsbanks, loan and trust safe deposit companies, rural loan and savingsassociations, guaranty loan and savings associations, mortgageguaranty companies, small loan companies, industrial loan andinvestment companies, and other financial institutions organizedunder Indiana law. The bonds may be registered in the name of theowner as to principal alone.
As added by P.L.2-1993, SEC.5. Amended by P.L.42-1993, SEC.15.
IC 16-22-7-33
Execution of bonds
Sec. 33. The bonds shall be executed by signature or facsimilesignature of the president of the governing board. The corporate sealof the authority or a facsimile shall be affixed and attested by thesecretary. The interest coupons attached to the bonds shall beexecuted by facsimile signature of the treasurer.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-34
Terms of bond sale
Sec. 34. The bonds shall be sold by the board at public sale in themanner described under IC 5-1-11-3(c). However, the bonds may not
be sold for less than the bonds' par value. Notice of sale shall bepublished in the manner required for bonds of a county. Anypremium received from the sale of the bonds shall be used solely forthe payment of principal and interest on the bonds.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-35
Disposition of bond proceeds
Sec. 35. The proceeds from bonds issued under this chapter, afterreimbursement for preliminary expenses as provided in section 14 ofthis chapter and payment for land, shall be applied to the payment ofthe costs of the buildings on account of which the bonds are issued,including incidental expenses and interest during construction. Untilthe proceeds are applied as required in this section, the proceeds aresubject to a lien in favor of the bondholders or the trustees.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-36
Security for bonds; trust indenture
Sec. 36. (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 all or part of the land or buildings, or both, forwhich the bonds are issued.
(2) Contain reasonable provisions for protecting and enforcingthe rights and remedies of the bondholders, including covenantsconcerning the following:
(A) Construction of the buildings.
(B) Insurance for the buildings.
(C) Custody, safeguarding, and application of all money.
(3) Set forth the rights and remedies of the bondholders andtrustee.
(4) Restrict the individual right of action of bondholders.
(c) Except as restricted by this chapter, the governing board maydetermine by resolution or in the trust indenture the officer, board,or depositary who shall have custody of the proceeds of the sale ofbonds and the method of disbursement of the proceeds, includingsafeguards and restrictions.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-37
Tax levy for lease rental payments
Sec. 37. (a) The county fiscal body shall annually levy a taxsufficient to produce funds that, with other funds available, aresufficient to pay the lease rental provided to be paid from taxes.
(b) If the lease rental is payable from taxes, net revenues of thehospital of which the leased buildings are a part that are not requiredto be kept in reserve for additional construction, equipment,
betterment, maintenance, or operation shall be transferred to a fundfor the payment of the lease rental. To the extent that the transferredfunds are insufficient to pay the lease rental, cumulative buildingfunds reserved for lease rental payable from taxes under section 20of this chapter shall be transferred.
(c) In fixing and determining the necessary levy to pay leaserentals payable from taxes, the county council shall consider theamounts transferred from the net revenues of the hospital and mayappropriate and pay funds from any available sources, includingrevenues derived under IC 6-3.5. This subsection 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 arereviewable by other bodies vested by law with the authority toascertain that the levies are sufficient to meet the rental under thelease contract that is payable from taxes. The lease rental shall bepaid semiannually to the authority.
(d) A lease by the authority to the county may not provide forrentals payable from the levy of a tax by a county unless the lease isapproved by a majority vote of the county fiscal body.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-38
Lease rentals payable solely from hospital revenues
Sec. 38. (a) A city hospital that enters into a lease under thischapter under which the lease rental is payable solely from the netrevenues of the hospital that contains the leased building shallcovenant in the lease to establish and maintain rates, fees, andcharges sufficient in each year to do the following:
(1) Pay the proper and reasonable expense of operation, repair,replacements, and maintenance of the hospital.
(2) Pay the lease rental.
(3) Establish the reserve fund provided for in the lease in thefull amount within not less than five (5) years.
(b) Revenues collected are revenues of the hospital. Rates, fees,and charges shall be increased as necessary to comply with thissection.
(c) The authority may protect and enforce the rights granted underthis chapter or under the lease and may enforce and compelperformance of all duties required under this chapter or under thelease, including setting and collecting reasonable and sufficient rates,fees, and charges. If there is a failure to pay lease rental on thepayment date named in the lease, any court having jurisdiction of theaction may appoint a receiver to administer the hospital on behalf ofthe city and the authority. The receiver may charge and collect ratessufficient to do the following:
(1) Pay the proper and reasonable expense of operation, repair,replacements, and maintenance of the hospital.
(2) Pay the lease rental payable solely from the net revenues ofthe hospital.
(3) Establish the full amount of reserve fund provided for in the
lease within not less than five (5) years as may be provided inthe lease.
(d) A lease by the authority may not provide for rentals payablefrom net revenues of the city hospital unless the lease is approved bya majority of the board of directors of the city hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-39
Exemptions from state taxation
Sec. 39. The following are exempt from state taxation except thefinancial institutions tax and the state inheritance tax:
(1) All property owned by the authority.
(2) All revenues of the authority.
(3) All bonds or other securities issued by the authority and theinterest on the bonds or other securities, the proceeds receivedby a holder from the sale of bonds to the extent of the holder'scost of acquisition, proceeds received upon redemption at orbefore maturity and the interest on the proceeds.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-40
Audit of funds; bond of officers and employees
Sec. 40. The state board of accounts may supervise and audit thefunds of the authority. Any officer or employee of the authorityauthorized to receive or disburse funds or negotiable securities of theauthority shall execute a bond of a surety or guaranty corporationqualified to do business in Indiana and payable to the state in anamount determined by the board. The bond must be conditionedupon the faithful performance of the officer's or employee's dutiesand the accounting for all money and property under the officer's oremployee's control. The cost of bonds shall be paid by the authority.The records of the authority are public records.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-41
Liquidation of authority
Sec. 41. An authority may be liquidated after redemption of theauthority's securities, payment of the authority's debts, andtermination of the authority's leases if the governing board files areport with the judge of the circuit court showing the facts andstating that liquidation is in the best public interest. If the court findsthe facts, the court shall make an order book entry ordering theauthority liquidated.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-42
Remodeling and additions to hospital
Sec. 42. (a) The governing board of the hospital may remodel orconstruct an addition to a hospital building leased by the hospitalunder this chapter. (b) To provide funds for that purpose, the county may issuegeneral obligation aid bonds or the city hospital or city mayappropriate money from the city hospital's or city's general fund orother funds available for that purpose if the hospital building isowned by the city hospital or city. The governing board of thehospital may use any funds available to the board if the hospitalbuilding is owned by the city.
(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 16-22-7-43
Party wall or other agreements for attaching additions
Sec. 43. A city hospital, city, or county and an authority may enterinto a party wall agreement or other agreements concerning theattaching of an addition to a hospital building. The agreements shallbe recorded in the office of the recorder of the county in which thehospital building is located. The agreements may provide for aneasement or a license to construct a part of an addition over or abovethe existing hospital building.
As added by P.L.2-1993, SEC.5.