IC 21-35-3
    Chapter 3. Acquisition of Certain Support Facilities and ResearchFacilities; Revenue Bonds

IC 21-35-3-1
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 21-35-3-2
Applicable properties
    Sec. 2. This chapter applies to the following property:
        (1) With respect to any state educational institution to whichthis chapter applies, the following support facilities:
            (A) Dormitories and other housing facilities for single andmarried students and school personnel.
            (B) Food service facilities.
            (C) Student infirmaries and other health service facilities,including revenue producing hospital facilities serving thegeneral public, together with parking facilities and otherappurtenances in connection with student infirmaries andother health service facilities.
            (D) Parking facilities in connection with academic facilities.
        (2) With respect to Indiana University and Purdue Universityonly, the following research facilities:
            (A) Facilities used for clinical, medical, scientific, orengineering research.
            (B) Facilities used for other similar qualitative, quantitative,or experimental research.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-3
Supplemental effect of chapter
    Sec. 3. This chapter does not repeal, modify, or amend anyIndiana law in force on March 9, 1927, but shall be considered assupplemental to that law.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-4
Prior contracts and bonds unaffected; limited applicability ofchapter
    Sec. 4. This chapter may not be construed to affect the validity ofany contracts executed before March 10, 1965, or the validity of anybonds contracted to be sold before March 10, 1965. This chapter

does not apply to any facilities approved by the budget agency or anypredecessor of the budget agency and the governor before March 10,1965, or to any facilities for which temporary or interim financingcommitments were made before March 10, 1965, or to the issuanceof bonds for any such facilities.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-5
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 21-35-3-6
Construction, improvement, operation, and control of variousfacilities; acquisition of real and personal property for facilities;authorized
    Sec. 6. The board of trustees of a state educational institutionmay, if the board of trustees finds that a necessity exists, erect,construct, reconstruct, extend, remodel, improve, complete, equip,furnish, operate, control, and manage support facilities at or inconnection with the state educational institution or another stateeducational institution for purposes of the respective stateeducational institutions.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-7
Indiana University and Purdue University boards; power toconstruct, improve, operate, and control various facilities;limitations on use of fees
    Sec. 7. (a) This section and any other provisions of this chapterrelated to implementing this section apply only to the following stateeducational institutions:
        (1) Indiana University.
        (2) Purdue University.
    (b) The board of trustees of Indiana University and the board oftrustees of Purdue University may, if the boards of trustees of thestate educational institutions find that a necessity exists, erect,construct, reconstruct, extend, remodel, improve, complete, equip,furnish, operate, control, and manage research facilities, if revenuefrom state, federal, local, or private gifts, grants, contractualpayments, or reimbursements is available in an amount that isreasonably expected to at least equal the annual debt servicerequirements of the bonds and the costs to operate the researchfacility for each fiscal year that the bonds are outstanding at or inconnection with any of the following campuses of Indiana University

or Purdue University:
        (1) Purdue University-West Lafayette Campus.
        (2) Indiana University-Purdue University at Indianapolis(IUPUI).
        (3) Indiana University-Bloomington Campus.
    (c) Student fees and money appropriated by the general assemblymay not be used to pay the debt service requirements or themaintenance expenses of a research facility.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-8
Authority to acquire personal and real property
    Sec. 8. A state educational institution may acquire by:
        (1) purchase;
        (2) lease;
        (3) condemnation;
        (4) gift; or
        (5) other means;
any property, real or personal, that in the judgment of the stateeducational institution is necessary for a support facility or a researchfacility.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-9
Authority to improve and use acquired property
    Sec. 9. A state educational institution may improve and use anyproperty acquired for a support facility or a research facility.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-10
Title to acquired property
    Sec. 10. Title to all property acquired by a state educationalinstitution, including the improvements located on the property, shallbe taken and held by and in the name of the state educationalinstitution.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-11
Acquisition of real property; approval of governor; conveyanceand execution of deed
    Sec. 11. (a) If the board of trustees of any state educationalinstitution determines that real estate, the title to which is in the nameof the state, for the use and benefit of the board of trustees or thestate educational institution under the board's control, is reasonablyrequired for use as a support facility or a research facility, the realestate may, upon:
        (1) request in writing of the board of trustees of the stateeducational institution to the governor; and
        (2) the approval of the governor;
be conveyed by deed from the state to the board of trustees of the

state educational institution.
    (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 21-35-3-12
Issuance and sale of bonds
    Sec. 12. To raise funds for the acquisition of property and theerection, construction, reconstruction, extension, remodeling,improvement, completion, equipping, and furnishing of property, theboard of trustees of a state educational institution may issue and sellbonds of the state educational institution.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-13
Bonds and interest on bonds secured by pledge or mortgage
    Sec. 13. The bonds and the interest on the bonds may be securedby pledge or mortgage of:
        (1) any property, real or personal, used or acquired or to beacquired and used for the property and the improvements madeor 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 may determine.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-14
Liens
    Sec. 14. The lien of the pledge or mortgage, to the extent of thelien:
        (1) as determined and provided by the board of trustees; and
        (2) as authorized under this chapter;
is a first and primary lien for the payment of the bonds and theinterest on the bonds.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-15
Maximum bond amounts
    Sec. 15. The bonds may be issued for an amount or amounts as theboard of trustees determines. However, these amounts may notexceed:
        (1) the total estimated cost of acquiring property for anderecting, constructing, reconstructing, extending, remodeling,improving, completing, equipping, furnishing, and financing theproposed property as the board of trustees determines 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 21-35-3-16
Determination of denominations and maturation of bonds; rates ofinterest
    Sec. 16. (a) The bonds may be:
        (1) issued in the denominations and with the maturities as theboard of trustees determines; and
        (2) in the discretion of the board of trustees, sold either atpublic or negotiated sale, as provided by IC 21-32-3-1.
    (b) The rate or rates of interest on the bonds may be fixed orvariable. Variable rates must 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) Interest on bonds 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 21-35-3-17
Bonds and pledges or mortgages made in the name of the stateeducational institution
    Sec. 17. Bonds and the pledge or mortgage securing bonds, shallbe 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 21-35-3-18
Limitation on state or institutional liability for indebtedness
    Sec. 18. Indebtedness, a bond, or an obligation incurred or createdunder the authority of this chapter may not be or become a lien,charge, or liability against:
        (1) the state of Indiana;
        (2) the state educational institution issuing the bonds; or
        (3) the property or funds of the state or the state educationalinstitution issuing the bonds, except to the extent of the

property or income authorized to be pledged or mortgaged.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-19
Authority to furnish heat, light, power, and other like facilities orservices with or without charge
    Sec. 19. The board of trustees of a state educational institutionmay furnish heat, light, power, and other like services to any or allproperty with or without charge.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-20
Tax exemption
    Sec. 20. All:
        (1) property:
            (A) acquired under authority of this chapter; or
            (B) used as a support facility or a research facility; 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 21-35-3-21
Contracts; approval of the budget agency and governor
    Sec. 21. (a) Subject to this section, contracts to:
        (1) acquire land for;
        (2) construct, purchase, lease, sublease, or otherwise acquire; or
        (3) engage architectural or engineering services in connectionwith;
any property to be financed in whole or in part by the issuance ofbonds under this chapter may not be made by any state educationalinstitution without the specific approval of the budget agency and thegovernor.
    (b) This section does not apply to any contract relating toproperty, the cost of which does not exceed fifty thousand dollars($50,000).
As added by P.L.2-2007, SEC.276.

IC 21-35-3-22
Issuance of bonds; approval of the budget agency, budgetcommittee, and governor; recommendations; refunds
    Sec. 22. (a) Bonds may not be issued by a state educationalinstitution under this chapter without the specific approval of:
        (1) the budget agency, if:
            (A) the bonds are issued for the refunding or advancerefunding of any outstanding bonds approved under thischapter; and
            (B) the board of trustees of the issuing state educationalinstitution makes the findings described in subsection (b); or
        (2) the budget committee, the budget agency, and the governor,

if subdivision (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 beeffected; 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 21-35-3-23
Maximum aggregate principal amount of bonds each biennium
    Sec. 23. The general assembly may establish each biennium in theappropriation act the maximum aggregate principal amount of bondsthat any one (1) or more state educational institution may issueduring the ensuing biennium under this chapter.
As added by P.L.2-2007, SEC.276.

IC 21-35-3-24
Actions to contest validity of bonds
    Sec. 24. 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 the state educational institution sells bonds atnegotiated sales no later than thirty (30) days after the execution ofthe contract of sale for the bonds.
As added by P.L.2-2007, SEC.276.