CHAPTER 2. CONSTRUCTION AND OPERATION OF FIELDHOUSES, GYMNASIUMS, STUDENT UNIONS, AND HALLS OF MUSIC; REVENUE BONDS
IC 21-35-2
Chapter 2. Construction and Operation of Fieldhouses,Gymnasiums, Student Unions, and Halls of Music; Revenue Bonds
IC 21-35-2-1
Applicability of chapter
Sec. 1. This chapter applies to the following state educationalinstitutions:
(1) Ball State University.
(2) Indiana University.
(3) Indiana State University.
(4) Purdue University.
(5) University of Southern Indiana.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-2
Applicable properties
Sec. 2. This chapter applies to the following property:
(1) Athletic field houses.
(2) Gymnasiums.
(3) Student unions.
(4) Halls of music.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-3
Supplemental effect of chapter
Sec. 3. This chapter may not be construed to repeal, modify, oramend any Indiana law in effect on March 8, 1929, but shall beconstrued to be supplemental to any Indiana law in effect on March8, 1929.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-4
Prior contracts validated
Sec. 4. (a) Sections 20 through 23 of this chapter may not beconstrued to affect the validity of:
(1) any contracts executed before March 9, 1965; or
(2) any bonds contracted to be sold before March 9, 1965.
(b) Sections 20 through 23 of this chapter do not apply to:
(1) any facilities:
(A) approved by:
(i) the budget agency or any predecessor to the budgetagency; and
(ii) the governor;
before March 9, 1965; or
(B) for which temporary or interim financing commitmentswere made before March 9, 1965; or
(2) the issuance of bonds for any facilities described insubdivision (1).
As added by P.L.2-2007, SEC.276.
IC 21-35-2-5
Effect of Acts 1977, P.L. 250
Sec. 5. (a) Acts 1977, P.L.250 does not affect the issuance ofbonds for projects approved by the budget committee and thegovernor before July 1, 1977.
(b) The termination of bonding authority under Acts 1977,P.L.250 does not prevent, limit, or affect the issuance of bonds underIC 5-1-5.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-6
Authority to erect, construct, complete, equip, furnish, operate,control, and manage property
Sec. 6. The board of trustees of a state educational institutionmay, as the board of trustees finds necessary, erect, construct,complete, equip, furnish, operate, control, and manage property withanother state educational institution for the purposes of the stateeducational institution.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-7
Authority to acquire real and personal property
Sec. 7. The board of trustees of a state educational institution mayacquire under this chapter or any other law, by:
(1) purchase;
(2) lease;
(3) condemnation;
(4) gift; or
(5) other means;
any property, real or personal, that in the judgment of the board oftrustees is necessary for the state educational institution's purposes.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-8
Authority to use real or personal property acquired
Sec. 8. The board of trustees may use for the state educationalinstitution's purposes any real or personal property acquired by thestate educational institution.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-9
Title to acquired property
Sec. 9. Title to all property acquired by the state educationalinstitution, including the improvements on the property, shall betaken and held in the name of the board of trustees in their corporatecapacity for purposes of this chapter.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-10
Acquisition of real property; approval of governor; conveyance
and execution of deed
Sec. 10. (a) If:
(1) a state educational institution receives by gift, benefaction,or other means any structures or equipment:
(A) located on real estate, title to which is in the name of thestate, for the use and benefit of:
(i) the state educational institution; or
(ii) the board of trustees of the state educationalinstitution; and
(B) that:
(i) is incomplete; or
(ii) in the judgment of its board of trustees, is insufficientfor the needs of the state educational institution; or
(2) the board of trustees of a state educational institutiondecides to locate and construct any structures or equipment onreal estate, title to which is in the name of the state for the useand benefit of:
(A) the state educational institution; or
(B) the board of trustees of the state educational institution;
the parcel of real estate on which the structures or equipment islocated or on which it is proposed to locate the structures andequipment and reasonably required by the state educationalinstitution for any of the purposes enumerated in this chapter may,upon request in writing of the board of trustees of the stateeducational institution to the governor and the approval of thegovernor, be conveyed by deed from the state to the board of trusteesof the state educational institution in their corporate capacity for thepurposes, or any of the purposes, of this chapter.
(b) The governor may execute and deliver the deed:
(1) in the name of the state of Indiana;
(2) signed on behalf of the state by the governor;
(3) attested by the auditor of state; and
(4) with the seal of the state affixed to the deed.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-11
Issuance and sale of bonds
Sec. 11. To raise funds for the acquisition of property and theerection, construction, remodeling, renovation, furnishing, andequipping of property, the board of trustees of a state educationalinstitution may issue and sell bonds of the state educationalinstitution.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-12
Bonds and interest on bonds secured by pledges or mortgages
Sec. 12. Bonds, and the interest on the bonds, may be secured bypledge or mortgage of:
(1) any property, real or personal, used or acquired or to beacquired and used for the purposes described under this chapter
and the improvements made or to be made on the property;
(2) the net income from the property;
(3) the property and the net income from the property; or
(4) any unobligated net income of any property financed underthis chapter;
as the board of trustees determines.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-13
Liens
Sec. 13. The lien of the pledge or mortgage, to the extent of thelien, as:
(1) determined and provided by the board of trustees; and
(2) authorized under this chapter;
is a first and primary lien for the payment of the bonds secured andthe interest on the bonds.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-14
Maximum amount of bonds
Sec. 14. Bonds may be issued for the amount or amounts as theboard of trustees determines. However, these amounts may notexceed:
(1) the total estimated cost of acquiring, erecting, constructing,remodeling, renovating, completing, equipping, and furnishingany property as the respective trustees determine the cost to be;plus
(2) incidental expenses, financing costs, underwriter's discount,funded or capitalized interest, municipal bond insurancepremiums, or funding debt service reserve funds from bondproceeds.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-15
Determination of denomination and maturation of bonds; rates ofinterest
Sec. 15. (a) Bonds may be issued in the denominations and withthe maturities as the respective trustees determine, and, in thediscretion of the respective trustees, the bonds may be sold either atpublic or negotiated sale as provided by IC 21-32-3.
(b) The rate or rates of interest on the bonds may be fixed orvariable. Variable rates shall be determined in the manner and inaccordance with the procedures set forth in the resolution orindenture authorizing the issuance of the bonds. Bonds bearing avariable rate of interest may be converted to bonds bearing a fixedrate or rates of interest to the extent and in the manner set forth in theresolution or indenture under which the bonds are issued.
(c) The interest may be:
(1) payable semiannually, annually, or at any other interval orintervals provided in the resolution; or (2) compounded and paid at maturity or at any other time asspecified in the resolution or indenture.
(d) The bonds may be made subject to redemption by the stateeducational institution at the times and under the circumstances setforth in the authorizing resolution or indenture.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-16
Bonds and pledges or mortgages made in the name of the stateeducational institution
Sec. 16. Bonds and the pledge or mortgage securing the bonds,shall be issued, and made in the name, and on behalf of the stateeducational institution by the officer or officers that the board oftrustees designates.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-17
Liability of state or institutions for indebtedness limited
Sec. 17. Indebtedness, a bond, or an obligation incurred or createdunder the authority of this chapter may not be or become:
(1) an indebtedness of or liability against the state of Indiana ora state educational institution; or
(2) a lien or charge against the property or funds of a stateeducational institution;
except to the extent of the property or income pledged or mortgagedas authorized.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-18
Authority to furnish heat, light, power, and other like facilities orservices with or without charge
Sec. 18. The board of trustees may furnish heat, light, power, andother like facilities or service to any or all of the buildings,structures, or improvements contemplated by this chapter from theplant or plants or facilities of the state educational institution with orwithout charge.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-19
Tax exemption
Sec. 19. All:
(1) property acquired under authority of this chapter or used forthe purposes provided in this chapter; and
(2) bonds issued under the authority of this chapter, togetherwith the interest on the bonds;
are exempt from taxation.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-20
Contracts; approval of the budget agency and governor Sec. 20. (a) Except as provided in this section, contracts to acquireland for or to construct, purchase, lease, sublease, or otherwiseacquire, or to engage architectural or engineering services inconnection with any buildings, structures, equipment, andimprovements to be financed in whole or in part by the issuance ofbonds under this chapter may not be made by the board of trustees ofa state educational institution without the specific approval of thebudget agency and the governor.
(b) This section does not apply to any contract relating to afacility, the cost of which does not exceed fifty thousand dollars($50,000).
As added by P.L.2-2007, SEC.276.
IC 21-35-2-21
Issuance of bonds; approval of the budget agency, budgetcommittee, and governor; recommendations; refunds
Sec. 21. (a) Bonds may not be issued by the board of trustees ofa state educational institution under this chapter without the specificapproval of:
(1) the budget agency if:
(A) the bonds are issued for the refunding or advancerefunding of any outstanding bonds approved as required bythis chapter; and
(B) the board of trustees of the state educational institutionmakes the findings described in subsection (b); and
(2) the budget committee, budget agency, and the governor, ifsubdivision (1) does not apply.
The budget agency may request and consider the recommendation ofthe staff of the Indiana finance authority with respect to the approvalof a bond issue under this section.
(b) The board of trustees of a state educational institution mayprovide for refunding or advance refunding of any outstanding bondsunder subsection (a)(1) whenever the board of trustees of the stateeducational institution finds that the refunding or advance refundingwill benefit the state educational institution because:
(1) a net savings to the state educational institution will result;or
(2) the net present value of principal and interest payments onthe bonds is less than the net present value of the principal andinterest payments on the outstanding bonds to be refunded.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-22
Bond issuance; limitations
Sec. 22. Bonds may not be issued by any of the institutions underthis chapter unless the general assembly has provided for the bondsby establishing in the appropriation act the amount of bonds that theinstitutions may issue for the purposes described in section 14(1) ofthis chapter. However, the bonds, regardless of when theappropriation law was enacted, may be issued in an amount not
exceeding:
(1) the amount of bonds approved in the appropriation lawtogether with the amounts described in section 14(2) of thischapter; plus
(2) the amount of the discount below par value, if the bonds aresold at a price below par value under IC 21-32-3-2.
As added by P.L.2-2007, SEC.276.
IC 21-35-2-23
Actions to contest validity of bonds
Sec. 23. An action to contest the validity of any bonds issuedunder this chapter may not be brought after the fifteenth dayfollowing:
(1) the first publication of notice of the sale or intent to sell thebonds under IC 21-32-3 if the bonds are sold at public sale; or
(2) the publication one (1) time in newspapers described inIC 21-32-3-3 of notice of the execution and delivery of thecontract of sale for the bonds if the bonds are sold at negotiatedsale.
The state educational institution shall publish notice undersubdivision (2) if it sells bonds at negotiated sale no later than thirty(30) days after the execution of the contract of sale for the bonds.
As added by P.L.2-2007, SEC.276.