CHAPTER 9. MARION COUNTY CAPITAL IMPROVEMENT BOARD
IC 36-10-9
Chapter 9. Marion County Capital Improvement Board
IC 36-10-9-1
Application of chapter
Sec. 1. This chapter applies to each county having a consolidatedcity.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-2
Definitions
Sec. 2. As used in this chapter:
"Board" refers to a capital improvement board of managerscreated under this chapter.
"Bonds" means bonds issued under section 12 or section 15 of thischapter and, except as used in section 12 of this chapter or unless thecontext otherwise requires, lease agreements entered into undersection 6(15) of this chapter.
"Excise taxes" refers to the excise taxes imposed by IC 6-9-8,IC 6-9-12, and IC 6-9-13.
"Issue", "issued", or "issuance" means in the case of leaseagreements "execute", "executed", or "execution" respectively.
"Lease agreements" means lease agreements entered into undersection 6(15) of this chapter.
"Net income" means the gross income from the operation of acapital improvement after deducting the necessary operatingexpenses of the board.
"Notes" means notes issued under section 21 of this chapter.
"Operating expenses" means:
(1) the necessary operational expenses of the board inperforming its duties under this chapter, including maintenance,repairs, replacements, alterations, and costs of services ofarchitects, engineers, accountants, attorneys, and consultants;
(2) the expenses for any other purpose that has been approvedunder section 8 of this chapter; and
(3) the maintenance of reasonable reserves for any of the itemslisted in subdivisions (1) and (2) of this definition or for otherpurposes required under a resolution, ordinance, or trustagreement.
"Principal and interest" or "principal on and interest of" includes,unless the context otherwise requires, payments required by leaseagreements.
"Pre-1981 general obligation bonds" means general obligationbonds issued before January 1, 1981.
"Trust agreements", except as used in section 13 of this chapteror unless the context otherwise requires, includes lease agreements.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.82-1985,SEC.9.
IC 36-10-9-3 Creation of county board of managers; powers of county
Sec. 3. (a) A capital improvement board of managers is created inthe county.
(b) The county may finance, construct, equip, operate, andmaintain a capital improvement under this chapter.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-4
County board of managers; membership; terms; vacancies; oathof office; compensation
Sec. 4. (a) The board is composed of nine (9) members. Six (6)members shall be appointed by the executive of the consolidated city,one (1) member shall be appointed by the board of commissioners ofthe county, one (1) member shall be appointed by the legislativebody of the consolidated city from among the members of thelegislative body, and one (1) member shall be appointed jointly bymajority vote of a body consisting of one (1) member of the board ofcounty commissioners of each county in which a food and beveragetax is in effect under IC 6-9-35 on January 1 of the year of theappointment. The board of county commissioners that has thegreatest population of all counties in which a food and beverage taxis in effect under IC 6-9-35 on January 1 of the year of theappointment shall convene the meeting to make the jointappointment. Each county in which a food and beverage tax is ineffect under IC 6-9-35 on January 1 of the year of the appointmentis entitled to be represented at the meeting by one (1) member of thecounty's board of county commissioner, who shall be selected by thatcounty's board of county commissioners. One (1) of the membersappointed by the executive must be engaged in the hotel or motelbusiness in the county. Not more than four (4) of the membersappointed by the executive may be affiliated with the same politicalparty.
(b) The terms of members are for two (2) years beginning onJanuary 15 and until a successor is appointed and qualified. Amember may be reappointed after the member's term has expired.
(c) If a vacancy occurs on the board, the appointing authority shallappoint a new member. That member serves for the remainder of thevacated term.
(d) A board member may be removed for cause by the appointingauthority who appointed the member.
(e) Each member, before entering upon the duties of office, shalltake and subscribe an oath of office in the usual form. The oath shallbe endorsed upon the member's certificate of appointment, whichshall be promptly filed with the records of the board.
(f) A member does not receive a salary, but is entitled toreimbursement for any expenses necessarily incurred in theperformance of the member's duties.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.116-1995,SEC.8; P.L.182-2009(ss), SEC.454.
IC 36-10-9-5
County board of managers; organizational meetings
Sec. 5. (a) Immediately after January 15 each year, the board shallhold an organizational meeting. It shall elect one (1) of the memberspresident, another vice president, another secretary, and anothertreasurer to perform the duties of those offices. The officers servefrom the date of their election until their successors are elected andqualified.
(b) The board may adopt the bylaws and rules that it considersnecessary for the proper conduct of its duties and the safeguarding ofthe funds and property entrusted to its care. A majority of themembers constitutes a quorum, and the concurrence of a majority ofthe members is necessary to authorize any action.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-6
County board of managers; powers and duties as capitalimprovement board of managers
Sec. 6. The board may, acting under the title "capital improvementboard of managers of __________ County", do the following:
(1) Acquire by grant, purchase, gift, devise, lease,condemnation, or otherwise, and hold, use, sell, lease, ordispose of, real and personal property and all property rightsand interests necessary or convenient for the exercise of itspowers under this chapter.
(2) Construct, reconstruct, repair, remodel, enlarge, extend, oradd to any capital improvement built or acquired by the boardunder this chapter.
(3) Control and operate a capital improvement, including lettingconcessions and leasing all or part of the capital improvement.
(4) Fix charges and establish rules governing the use of a capitalimprovement.
(5) Accept gifts or contributions from individuals, corporations,limited liability companies, partnerships, associations, trusts, orpolitical subdivisions, foundations, and funds, loans, oradvances on the terms that the board considers necessary ordesirable from the United States, the state, and any politicalsubdivision or department of either, including entering into andcarrying out contracts and agreements in connection with thissubdivision.
(6) Exercise within and in the name of the county the power ofeminent domain under general statutes governing the exerciseof the power for a public purpose.
(7) Receive and collect money due for the use or leasing of acapital improvement and from concessions and other contracts,and expend the money for proper purposes.
(8) Receive excise taxes, income taxes, and ad valorem propertytaxes and expend the money for operating expenses, paymentsof principal or interest of bonds or notes issued under thischapter, and for all or part of the cost of a capital improvement. (9) Retain the services of architects, engineers, accountants,attorneys, and consultants and hire employees upon terms andconditions established by the board, so long as any employeesor members of the board authorized to receive, collect, andexpend money are covered by a fidelity bond, the amount ofwhich shall be fixed by the board. Funds may not be disbursedby an employee or member of the board without prior specificapproval by the board.
(10) Provide coverage for its employees under IC 22-3 andIC 22-4.
(11) Purchase public liability and other insurance considereddesirable.
(12) Make and enter into all contracts and agreements necessaryor incidental to the performance of its duties and the executionof its powers under this chapter, including the enforcement ofthem.
(13) Sue and be sued in the name and style of "capitalimprovement board of managers of ___________ County"(including the name of the county), service of process being hadby leaving a copy at the board's office.
(14) Prepare and publish descriptive material and literaturerelating to the facilities and advantages of a capitalimprovement and do all other acts that the board considersnecessary to promote and publicize the capital improvement,including the convention and visitor industry, and serve thecommercial, industrial, and cultural interests of Indiana and itscitizens. The board may assist, cooperate, and fundgovernmental, public, and private agencies and groups for thesepurposes.
(15) Enter into leases of capital improvements and sell or leaseproperty under IC 5-1-17 or IC 36-10-9.1.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.82-1985,SEC.10; P.L.8-1993, SEC.520; P.L.255-1997(ss), SEC.21;P.L.214-2005, SEC.75.
IC 36-10-9-7
Procurement of materials and work; emergency procedure; title toor interest in property
Sec. 7. (a) The purchase or lease of material and work on a capitalimprovement shall be done by the board under statutes governingthese activities by counties. However, if the total cost of constructionor equipping of a capital improvement or of the alteration,maintenance, or repair of any building is estimated to be fiftythousand dollars ($50,000) or less, the board may procure materialsand perform the work by its own employees and with owned orleased equipment without awarding a contract. In addition, in anemergency determined and declared by the board and entered in itsrecords, the board may make emergency alterations, repairs, orreplacements and contract for them without advertising for bids.
(b) Title to or interest in any property acquired shall be held in the
name of the county, and the board has complete and exclusiveauthority to sell, lease, or dispose of it and to execute allconveyances, leases, contracts, and other instruments in connectionwith it. However, real property may not be sold without the approvalof the executive of the consolidated city.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-8
Annual budget; capital improvement; issuance of bonds
Sec. 8. (a) The board shall prepare a budget for each calendar yearcovering the projected operating expenses, projected expendituresfor capital improvements or land acquisition, and estimated incometo pay the operating expenses and capital expenditures, includingamounts, if any, to be received from excise taxes and ad valoremproperty taxes. It shall submit the operating and capital budget forreview, approval, or rejection to the city-county legislative body. Theboard may make expenditures only as provided in the budget asapproved, unless additional expenditures are approved by thelegislative body. However, payments to users of any capitalimprovement that constitute a contractual share of box office receiptsare neither an operating expense nor an expenditure within themeaning of this section.
(b) If the board desires to finance a capital improvement in wholeor in part by the issuance of bonds under section 12 or 15 of thischapter, the board shall submit the following information to thecity-county legislative body at least thirty (30) days before theadoption of a resolution authorizing the issuance of the bonds:
(1) A description of the project to be financed through theissuance of bonds.
(2) The total amount of the project anticipated to be fundedthrough the issuance of bonds.
(3) The total amount of other anticipated revenue sources forthe project.
(4) Any other terms upon which the bonds will be issued.
(c) The city-county legislative body must discuss the informationprovided in subsection (b) in a public hearing held before theresolution may be adopted by the board.
(d) The board shall post the board's proposed budget and adoptedbudget on the board's Internet web site.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.42-1994,SEC.14; P.L.182-2009(ss), SEC.455.
IC 36-10-9-8.1
Long range financial plan
Sec. 8.1. (a) During 2009, the board shall prepare a long rangefinancial plan covering the period beginning with the year 2010 andending with the year 2041. The long range financial plan must setforth the following:
(1) The schedule for the retirement of all debt that isoutstanding as of January 1, 2010. (2) An estimated operating and capital budget for each calendaryear that covers the projected operating expenses, debtobligations, expenditures for capital improvements and landacquisition, and estimated income to pay these items, includingthe source of each type of income.
(b) Before January 1, 2010, the board shall deliver a copy of thelong range financial plan to each member of the city-countylegislative body and to the legislative council in an electronic formatunder IC 5-14-6.
(c) The city-county legislative body shall discuss the long rangefinancial plan in a public hearing.
As added by P.L.182-2009(ss), SEC.456.
IC 36-10-9-9
Treasurer; controller; duties; board of accounts audits
Sec. 9. (a) The treasurer of the board is the official custodian ofall funds and assets of the board and is responsible for theirsafeguarding and accounting. The treasurer shall give bond for thefaithful performance and discharge of all duties required of thetreasurer by law in the amount and with surety and other conditionsthat may be prescribed and approved by the board. All funds andassets in the capital improvement fund and the capital improvementbond fund created by this chapter and all other funds, assets, and taxrevenues held, collected, or received by the treasurer of the countyfor the use of the board shall be promptly remitted and paid over bythe county treasurer to the treasurer of the board, who shall issuereceipts for them.
(b) The treasurer of the board shall deposit all funds coming intothe treasurer's hands as required by this chapter and by IC 6-7-1-30.1,and in accordance with IC 5-13. Money so deposited may be investedand reinvested by the treasurer in accordance with general statutesrelating to the investment of public funds and in securities that theboard specifically directs. All interest and other income earned oninvestments becomes a part of the particular fund from which themoney was invested, except as provided in a resolution, ordinance,or trust agreement providing for the issuance of bonds or notes. Allfunds invested in deposit accounts as provided in IC 5-13-9 must beinsured under IC 5-13-12.
(c) The board shall appoint a controller to act as the auditor andassistant treasurer of the board. The controller shall serve as theofficial custodian of all books of account and other financial recordsof the board and has the same powers and duties as the treasurer ofthe board or the lesser powers and duties that the board prescribes.The controller and any other employee or member of the boardauthorized to receive, collect, or expend money, shall give bond forthe faithful performance and discharge of all duties required of thecontroller in the amount and with surety and other conditions thatmay be prescribed and approved by the board. The controller shallkeep an accurate account of all money due the board and of allmoney received, invested, and disbursed in accordance with
generally recognized governmental accounting principles andprocedure. All accounting forms and records shall be prescribed orapproved by the state board of accounts.
(d) The controller shall issue all warrants for the payment ofmoney from the funds of the board in accordance with proceduresprescribed by the board but a warrant may not be issued for thepayment of a claim until an itemized and verified statement of theclaim has been filed with the controller, who may require evidencethat all amounts claimed are justly due. All warrants shall becountersigned by the treasurer of the board or by the executivemanager. Warrants may be executed with facsimile signatures.
(e) If there are bonds or notes outstanding issued under thischapter, the controller shall deposit with the paying agent or otherpaying officer within a reasonable period before the date that anyprincipal or interest becomes due sufficient money for the paymentof the principal and interest on the due dates. The controller shallmake the deposit with money from the sources provided in thischapter, and he shall make the deposit in an amount that, togetherwith other money available for the payment of the principal andinterest, is sufficient to make the payment. In addition, the controllershall make other deposits for the bonds and notes as is required bythis chapter or by the resolutions, ordinances, or trust agreementsunder which the bonds or notes are issued.
(f) The controller shall submit to the board at least annually areport of the board's accounts exhibiting the revenues, receipts, anddisbursements and the sources from which the revenues and receiptswere derived and the purpose and manner in which they weredisbursed. The board may require that the report be prepared by anindependent certified public accountant designated by the board. Thestate board of accounts shall audit annually the accounts, books, andrecords of the board and prepare a financial report and a complianceaudit report. The board shall submit to the city-county legislativebody financial and compliance reports of the state board of accounts.The board shall post the reports of the state board of accounts on theboard's Internet web site. The city-county legislative body shalldiscuss the financial and compliance reports of the state board ofaccounts in a public hearing. The handling and expenditure of fundsis subject to supervision by the state board of accounts.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.19-1987,SEC.57; P.L.46-1997, SEC.17; P.L.182-2009(ss), SEC.457.
IC 36-10-9-10
Capital improvement fund
Sec. 10. (a) Unless there are bonds or notes outstanding under thischapter and secured in whole or in part by money deposited in thecapital improvement bond fund, the proceeds of excise taxesreceived from the treasurer of the state shall be deposited in aseparate and distinct fund called the "capital improvement fund". Thegross income received by the board from the operation of capitalimprovements under this chapter shall be deposited in the capital
improvement fund, regardless of whether or not there are any bondsor notes outstanding. Any money in the fund may be expended by theboard without the necessity of an appropriation to pay or provide forthe payment of operating expenses. Money in the fund may also beused by the board without appropriation or approval to pay theprincipal on, or interest of, any bonds or notes issued under thischapter that cannot be paid from funds in the capital improvementbond fund or may be used for the payment of the principal of,redemption premium, if any, for, and interest on any bonds or notesissued under this chapter, upon prior redemption, or for all or part ofthe cost of a capital improvement.
(b) The board may covenant in any resolution, ordinance, or trustagreement providing for the issuance of bonds or notes as to theorder of application of money deposited in the capital improvementfund, including the holding or disposing of any surplus in that fund.
(c) The net income from the operation of capital improvementsunder this chapter shall be transferred from the capital improvementfund to the capital improvement bond fund to the extent of anydeficiency in the amount required to be in the capital improvementbond fund.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-11
Capital improvement bond fund
Sec. 11. (a) If there are any outstanding bonds or notes issuedunder this chapter and secured in whole or in part by moneydeposited in the capital improvement bond fund, the treasurer of theboard shall, except as otherwise provided in this section, deposit thefollowing amounts in a separate and distinct fund called the "capitalimprovement bond fund":
(1) Excise tax proceeds received by the treasurer.
(2) Net income transferred to the capital improvement bondfund under section 10 of this chapter.
(3) Any other amounts received for deposit in the capitalimprovement bond fund.
(b) Principal and interest subaccounts shall be maintained in thecapital improvement bond fund. The lesser of the following amountsshall be deposited in the principal and interest subaccounts:
(1) The total of the amounts listed in subsection (a).
(2) The total of the following amounts:
(A) In the principal and interest subaccount for the pre-1981general obligation bonds, the amount required to providesufficient funds to pay the principal of and interest coming duewithin the next twelve (12) months on the pre-1981 generalobligation bonds.
(B) In the principal and interest subaccounts for all outstandingbonds and notes issued under this chapter, other than thepre-1981 general obligation bonds, the amounts required by theresolutions, ordinances, and trust agreements under which thebonds or notes are issued.The deposits shall be made pro rata as between pre-1981 generalobligation bonds, if any, and all other bonds and notes issued underthis chapter. Deposits to principal and interest subaccounts for notesand for bonds, other than pre-1981 general obligation bonds, shall bemade in the manner and in the order of priority that is provided in theresolutions, ordinances, and trust agreements under which the bondsor notes are issued. Amounts in a principal and interest subaccountmay be used solely to pay the principal of and interest on the issueor issues of bonds or notes for which the principal and interestsubaccount was established.
(c) The treasurer of the board shall maintain in the capitalimprovement bond fund a bond reserve subaccount for the pre-1981general obligation bonds. The treasurer shall maintain the subaccountin an amount equal to the maximum amount of principal and interestcoming due on the pre-1981 general obligation bonds in anysubsequent year. Reserve subaccounts shall also be maintained forother bonds and for notes secured in whole or in part by moneydeposited in the capital improvement bond fund; these subaccountsshall be maintained to the extent and in the amount required by theresolutions, ordinances, and trust agreements under which the bondsor notes are issued. Amounts described in subsection (a) that are notrequired to be deposited in principal and interest subaccounts undersubsection (b) shall be deposited in the reserve subaccounts to theextent of any deficiency in those subaccounts. The deposits shall bemade pro rata as between the reserve subaccount for pre-1981general obligation bonds and all other reserve subaccounts. Depositsto the reserve subaccounts for notes and for bonds, other thanpre-1981 general obligation bonds, shall be made in the manner andin the order of priority that is provided in the resolutions, ordinances,and trust agreements under which the bonds or notes are issued.Subject to subsection (e), amounts in a reserve subaccount may beused solely to pay the principal of and interest on the issue or issuesof bonds or notes for which the reserve subaccount was establishedand only to the extent amounts in the principal and interestsubaccount for the issue or issues of bonds or notes are not sufficientfor that purpose.
(d) Amounts described in subsection (a) that are not required tobe deposited in principal and interest subaccounts or bond reservesubaccounts under subsections (b) and (c) shall be deposited in thecapital improvement fund rather than the capital improvement bondfund.
(e) Unless otherwise provided in any resolution, ordinance, ortrust agreement under which bonds or notes are issued, amounts inthe capital improvement bond fund in excess of the amount requiredby this section to be on deposit in that fund shall be transferred to thecapital improvement fund.
(f) The principal and interest subaccount and bond reservesubaccount for the pre-1981 general obligation bonds shall be heldby the treasurer of the board. Other principal and interestsubaccounts and bond reserve subaccounts shall be held by the
treasurer or by an escrow agent, depository, or trustee provided in theresolutions, ordinances, or trust agreements establishing thesubaccounts. One (1) principal and interest subaccount or bondreserve subaccount may be established for two (2) or more issues ofbonds or notes.
(g) Amounts in the capital improvement bond fund on June 1,1981, shall be first used to establish the principal and interestsubaccount for the pre-1981 general obligation bonds in the requiredamount and then to establish the bond reserve subaccount for thosebonds in the required amount. Any excess remaining shall bedeposited in the capital improvement fund.
(h) For purposes of this section and section 10 of this chapter,bonds issued under section 15 of this chapter shall be considered tobe secured by money deposited in the capital improvement bondfund, if provided in the resolution, ordinance, or trust agreementproviding for the issuance of the bonds.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-11.1
Defeased bonds; use of funds in capital improvement bond fundand capital improvement fund
Sec. 11.1. (a) Upon the defeasance of an issue of capitalimprovement board bonds, the board may use funds in its capitalimprovement bond fund for those defeased bonds for the purposesset forth in subsection (b) if the board:
(1) has sold all or part of a capital improvement to a countyconvention and recreation facilities authority and leased it back;or
(2) has leased all or part of a capital improvement to a countyconvention and recreation facilities authority and leased it back.
(b) The board may use the funds in the capital improvement fundfor the defeased bonds for the following:
(1) As payment of lease rental or as a reserve for lease rental.
(2) As a deposit with the county convention and recreationfacilities authority or a trustee for the authority's bond ownersto be used for payment of those bonds or as a reserve for thosebonds.
(3) For any purpose for which the board is authorized to expendor apply funds.
(4) For any combination of the purposes set forth insubdivisions (1), (2), and (3).
As added by P.L.82-1985, SEC.11.
IC 36-10-9-12
Revenue bonds
Sec. 12. (a) A capital improvement may be financed in whole orin part by the issuance of bonds payable, to the extent stated in theresolution or trust agreement providing for the issuance of the bonds,solely from one (1) or more of the following sources:
(1) Net income received from the operation of the capital
improvement and not required to be deposited in the capitalimprovement bond fund under section 11 of this chapter.
(2) Net income received from the operation of any other capitalimprovement or improvements and not required to be depositedin the capital improvement bond fund under section 11 of thischapter.
(3) Money in the capital improvement bond fund available forthat purpose.
(4) Money in the capital improvement fund available for thatpurpose.
(5) Any other funds made available for that purpose.
The resolution or trust agreement may pledge all or part of thoseamounts to the repayment of the bonds and may secure the bonds bya lien on the amounts pledged.
(b) If the board desires to finance a capital improvement in wholeor in part as provided in this section, it shall adopt a resolutionauthorizing the issuance of revenue bonds. The resolution must statethe date or dates on which the principal of the bonds will mature (notexceeding forty (40) years from the date of issuance), the maximuminterest rate to be paid, and the other terms upon which the bondswill be issued.
(c) If the city-county legislative body approves issuance of bondsunder IC 36-3-6-9, the board shall submit the resolution to theexecutive of the consolidated city, who shall review it. If theexecutive approves the resolution, the board shall take all actionsnecessary to issue bonds in accordance with the resolution. Theboard may, under section 13 of this chapter, enter into a trustagreement with a trust company as trustee for the bondholders. Anaction to contest the validity of bonds to be issued under this sectionmay not be brought after the fifteenth day following:
(1) the receipt of bids for the bonds, if the bonds are sold atpublic sale; or
(2) the publication one (1) time in a newspaper of generalcirculation published in the county of notice of the executionand delivery of the contract of sale for the bonds;
whichever occurs first.
(d) Bonds issued under this section may be sold at public orprivate sale for the price or prices that are provided in the resolutionauthorizing the issuance of bonds. All bonds and interest are exemptfrom taxation in Indiana as provided in IC 6-8-5.
(e) When issuing revenue bonds, the board may covenant with thepurchasers of the bonds that any funds in the capital improvementfund may be used to pay the principal on, or interest of, the bondsthat cannot be paid from any other funds.
(f) The revenue bonds may be made redeemable before maturityat the price or prices and under the terms that are determined by theboard in the authorizing resolution. The board shall determine theform of bonds, including any interest coupons to be attached, andshall fix the denomination or denominations of the bonds and theplace or places of payment of the principal and interest, which may
be at any bank or trust company within or outside Indiana. All bondsmust have all the qualities and incidents of negotiable instrumentsunder statute. Provision may be made for the registration of any ofthe bonds as to principal alone or to both principal and interest.
(g) The revenue bonds shall be issued in the name of the countyand must recite on the face that the principal of and interest on thebonds is payable solely from the amounts pledged to their payment.The bonds shall be executed by the manual or facsimile signature ofthe president of the board, and the seal of the county shall be affixedor imprinted on the bonds. The seal shall be attested by the manualor facsimile signature of the auditor of the county. However, one (1)of the signatures must be manual, unless the bonds are authenticatedby the manual signature of an authorized officer or a trustee for thebondholders. Any coupons attached must bear the facsimile signatureof the president of the board.
(h) This chapter constitutes full and complete authority for theissuance of revenue bonds. No law, procedure, proceedings,publications, notices, consents, approvals, orders, acts, or things bythe board or any other officer, department, agency, or instrumentalityof the state or any political subdivision is required to issue anyrevenue bonds except as prescribed in this chapter.
(i) Revenue bonds issued under this section are legal investmentsfor private trust funds and the funds of banks, trust companies,insurance companies, building and loan associations, credit unions,banks of discount and deposit, savings banks, loan and trust and safedeposit companies, rural loan and savings associations, guaranty loanand savings associations, mortgage guaranty companies, small loancompanies, industrial loan and investment companies, and otherfinancial institutions organized under statute.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.42-1993,SEC.100; P.L.182-2009(ss), SEC.458.
IC 36-10-9-13
Revenue bonds; trust agreement; resolution; operating expenses
Sec. 13. (a) Revenue bonds issued under this chapter may besecured by a trust agreement by and between the board and acorporate trustee, which may be any trust company or bank havingthe powers of a trust company in Indiana. Any resolution adopted bythe board providing for the issuance of revenue bonds and any trustagreement under which the revenue bonds are issued may pledge orassign, subject only to valid prior pledges, all or a part of theamounts authorized by this chapter, but the board may not convey ormortgage any capital improvement or any part of a capitalimprovement.
(b) In authorizing the issuance of revenue bonds, the board may:
(1) limit the amount of revenue bonds that may be issued as afirst lien against the amounts pledged to the payment of thoserevenue bonds; or
(2) authorize the issuance from time to time of additionalrevenue bonds secured by the same lien.Additional revenue bonds shall be issued on the terms and conditionsprovided in the bond resolution or resolutions adopted by the boardand in the trust agreement or any agreement supplemental to the trustagreement. Additional revenue bonds may be secured equally andratably without preference, priority, or distinction with the originalissue of revenue bonds or may be made junior to the original issue ofrevenue bonds.
(c) Any pledge or assignment made by the board under thissection is valid and binding from the time that the pledge orassignment is made, and the amounts pledged and received by theboard are immediately subject to the lien of the pledge or assignmentwithout physical delivery of those amounts or further act. The lien ofthe pledge or assignment is valid and binding against all partieshaving claims of any kind in tort, contract, or otherwise against theboard irrespective of whether these parties have notice of the lien.Neither the resolution nor any trust agreement by which a pledge iscreated or an assignment need be filed or recorded in order to perfectthe resulting lien against third parties. However, a copy of the pledgeor assignment shall be filed in the records of the board.
(d) Any trust agreement or resolution providing for the issuanceof revenue bonds may contain provisions for protecting andenforcing the rights and remedies of the bondholders that arereasonable and proper and not in violation of law. The provisionsmay include convenants stating the duties of the board in relation to:
(1) the acquisition of property;
(2) the construction, improvement, maintenance, repair,operation, and insurance of the capital improvement or capitalimprovements in connection with which the bonds have beenauthorized;
(3) the rates of fees, rentals, or other charges to be collected forthe use of the capital improvement or capital improvements;
(4) the custody, safeguarding, investment, and application of allmoney received or to be received by the board or trustee;
(5) the establishment of funds, reserves, and accounts; and
(6) the employment of consulting engineers in connection withthe construction or operation of the capital improvement orcapital improvements.
(e) It is lawful for any bank or trust company incorporated understatute, and any national banking association that may act asdepository of the proceeds of bonds or other funds of the board, tofurnish indemnifying bonds or to pledge securities that are requiredby the board.
(f) Any trust agreement entered into under this section may statethe rights and remedies of the bondholders and of the trustee, andmay restrict the individual right of action by bondholders as iscustomary in trust agreements or trust indentures securing bonds ordebentures of private corporations. In addition, the trust agreementmay contain other provisions that the board considers reasonable andproper for the security of the bondholders.
(g) All expenses incurred in carrying out a trust agreement entered
into under this section may be treated as a part of the necessaryoperating expenses of the board.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-14
Tax covenant with bond purchasers
Sec. 14. (a) The Indiana general assembly covenants with thepurchasers of any bonds or notes issued under this chapter that:
(1) the excise taxes pledged to the payment of those bonds andnotes will not be repealed, amended, or altered in any mannerthat would reduce or adversely affect the levy and collection ofthose taxes; and
(2) it will not reduce the rates or amounts of those taxes;
as long as the principal of, or interest on, any bonds or notes isunpaid.
(b) The board, on behalf of the county, may make a similar pledgeor covenant in any agreement with the purchasers of any bonds ornotes issued under this chapter.
(c) For purposes of this section, the principal of or interest onbonds or notes is considered paid if provision has been made for theirpayment in such a manner that the bonds or notes are not consideredto be outstanding under the resolution, ordinance, or trust agreementunder which the bonds or notes are issued.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-15
General obligation bonds
Sec. 15. (a) A capital improvement may be financed in whole orin part by the issuance of general obligation bonds of the county.
(b) If the board desires to finance a capital improvement in wholeor in part as provided in this section, it shall have prepared aresolution to be adopted by the board of commissioners of the countyauthorizing the issuance of general obligation bonds. The resolutionmust state the date or dates on which the principal of the bonds ispayable, the maximum interest rate to be paid, and the other termsupon which the bonds shall be issued. The board shall submit theproposed resolution to the city-county legislative body for approvalunder IC 36-3-6-9, together with a certificate to the effect that theissuance of bonds in accordance with the resolution will be incompliance with this section. The certificate must also state theestimated annual net income of the capital improvement to befinanced by the bonds, the estimated annual tax revenues, and themaximum amount payable in any year as principal and interest on thebonds issued under this chapter, including the bonds proposed to beissued, at the maximum interest rate set forth in the resolution. Thebonds issued may mature over a period not exceeding forty (40)years from the date of issue.
(c) If the city-county legislative body approves the issuance ofbonds under IC 36-3-6-9, the board shall submit the resolution to theexecutive of the consolidated city, who shall review the resolution.
If the executive approves the resolution, the board shall take allaction necessary to issue the bonds in accordance with the resolution.An action to contest the validity of bonds issued under this sectionmay not be brought after the fifteenth day following the receipt ofbids for the bonds.
(d) The provisions of all general statutes relating to:
(1) the filing of a petition requesting the issuance of bonds andgiving notice;
(2) the right of:
(A) taxpayers and voters to remonstrate against the issuanceof bonds in the case of a proposed bond issue described byIC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of aproposed bond issue described by IC 6-1.1-20-3.5(a);
(3) the giving of notice of the determination to issue bonds;
(4) the giving of notice of a hearing on the appropriation of theproceeds of bonds;
(5) the right of taxpayers to appear and be heard on theproposed appropriation;
(6) the approval of the appropriation by the department of localgovernment finance; and
(7) the sale of bonds at public sale for not less than par value;
are applicable to the issuance of bonds under this section.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.90-2002,SEC.521; P.L.219-2007, SEC.147; P.L.146-2008, SEC.797;P.L.182-2009(ss), SEC.459.
IC 36-10-9-16
Bond revenue; use
Sec. 16. All money received from any bonds issued under thischapter shall be applied solely to the payment of the constructioncost of the capital improvement or capital improvements or the costof refunding or refinancing outstanding bonds or notes, for which thebonds are issued. The cost may include:
(1) planning and development of the capital improvement andall buildings, facilities, structures, and improvements related toit;
(2) acquisition of a site and clearing and preparing the site forconstruction;
(3) equipment, facilities, structures, and improvements that arenecessary or desirable to make the capital improvement suitablefor use and operation;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and saleof bonds;
(6) reserves for principal and interest and for operations,extensions, replacements, renovations, and improvements;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction; (10) municipal bond insurance; and
(11) in the case of refunding or refinancing, payment of theprincipal of, redemption premiums, if any, for, and interest onthe bonds or notes being refunded or refinanced.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.5-1988,SEC.223.
IC 36-10-9-17
Rights of holders of notes or bonds
Sec. 17. Unless their rights are restricted by the appropriate bondresolution, ordinance, or trust agreement, any holder of notes orbonds (except pre-1981 general obligation bonds) issued under thischapter or a trustee under a trust agreement entered into under thischapter may, by any suitable form of legal proceeding, protect andenforce any rights provided under statute or granted by the bondresolution, ordinance, or trust agreement.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-18
Tax exemptions
Sec. 18. All property owned or used and all income and revenuesreceived by the board are exempt from special assessments andtaxation in Indiana for all purposes.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-19
Contracts of board, state, and political subdivisions
Sec. 19. The board and the state, any department, agency, orcommission of the state, or any department, agency, or commissionof municipal or county government, may enter into agreements,contracts, or leases with each other on the terms that are agreed upon,providing for joint and cooperative planning, financing, construction,operation, or maintenance of a capital improvement or of thebuildings, facilities, structures, or improvements that are necessaryor desirable in connection with the use and operation of a capitalimprovement.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-20
State appropriation
Sec. 20. (a) Four million dollars ($4,000,000) has beenappropriated out of money in the general fund of the state nototherwise appropriated for distribution by the auditor and treasurerof state to a board that was in existence on March 11, 1967, to beexpended by the board for the purpose of financing a conventioncenter to be known as the Indiana convention exposition center.However, the four million dollar ($4,000,000) appropriation couldnot be spent by the board until funds and assets, exclusive of realproperty, in addition to this appropriation, had been received by theboard under section 6 of this chapter of a total value of two million
dollars ($2,000,000) in excess of the cost of the funds and assets tothe board. The valuation of the funds and assets shall be conclusivelydetermined by the board and the executive of the consolidated city.This appropriation does not lapse at the end of any biennium.
(b) The four million dollars ($4,000,000), including accruedinterest, shall be repaid to the treasurer of state by December 31,2000, in annual installments. The first payment shall be made on orbefore December 31, 1992. The amount of the payment must includeinterest at two percent (2%) per year The repayment shall be madeby the board from net income received from the operation of theconvention center, from available amounts in the capitalimprovement fund, and from any contributions, bequests, or othersources available to the board for this purpose.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.27-1992,SEC.29.
IC 36-10-9-21
Borrowing in anticipation of funds
Sec. 21. (a) In anticipation of funds to be received from anysource, the board may borrow money and issue notes for a term notexceeding ten (10) years and at a rate or rates of interest determinedby the board. The notes shall be issued in the name of the "capitalimprovement board of managers of __________ county" and may besecured (either on a parity with or junior and subordinate to anyoutstanding bonds or notes) by:
(1) the pledge of income and revenues of any capitalimprovement;
(2) the proceeds of excise taxes; or
(3) any other funds anticipated to be received.
The notes are payable solely from the income, excise taxes, revenues,and anticipated funds.
(b) The financing may be negotiated directly by the board withany bank, insurance company, savings association, or other financialinstitution licensed to do business in Indiana upon the terms andconditions that are agreed upon, except as specifically provided inthis section, and may be consummated without public offering. Thenotes plus interest are exempt from taxation in Indiana as providedfor bonds in IC 6-8-5.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.79-1998,SEC.111.
IC 36-10-9-22
Defense and indemnity of officers and employees in legal actions
Sec. 22. A board established under this chapter may defend anycurrent or former member of the board or its officers, employees, oragents in a claim or suit, at law or in equity, that arises from theexercise of powers or the performance of duties or services for theboard or that arises from official acts as a member of the board. Theboard may indemnify a person for any liability, cost, or damagesrelated to a claim or suit, including the payment of legal fees. Before
taking action authorized by this section, the board must, byresolution, determine that the action or conduct in question wastaken, done, or omitted in good faith.
As added by Acts 1982, P.L.77, SEC.28.