CHAPTER 14.5. REDEVELOPMENT AUTHORITY
IC 36-7-14.5
Chapter 14.5. Redevelopment Authority
IC 36-7-14.5-1
Application of chapter
Sec. 1. This chapter applies to each unit having a commission.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-2
"Authority" defined
Sec. 2. As used in this chapter, "authority" refers to aredevelopment authority created by this chapter.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-3
"Board" defined
Sec. 3. As used in this chapter, "board" refers to the board ofdirectors of the authority.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-4
"Bonds" defined
Sec. 4. As used in this chapter, "bonds" means bonds, notes, orother evidence of indebtedness issued by the authority.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-5
"Commission" defined
Sec. 5. As used in this chapter, "commission" refers to aredevelopment commission established under IC 36-7-14 or amilitary base reuse authority established under IC 36-7-30 andlocated outside the boundaries of a county with a consolidated city.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.2-1989,SEC.29; P.L.26-1995, SEC.3.
IC 36-7-14.5-6
"Local public improvement" defined
Sec. 6. As used in this chapter, "local public improvement" meansany of the following:
(1) A redevelopment project.
(2) A purpose of a commission under IC 36-7-14 or IC 36-7-30.
(3) A purpose of an authority under this chapter.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.2-1989,SEC.30; P.L.26-1993, SEC.2; P.L.26-1995, SEC.4.
IC 36-7-14.5-7
Creation of redevelopment authority
Sec. 7. (a) A ____________ Redevelopment Authority (the blankto be filled in with a name designated by the legislative body of theunit) may be created in the unit as a separate body corporate and
politic and as an instrumentality of the unit to exercise any powergranted to the authority under this chapter.
(b) An authority may be created by ordinance of the legislativebody of the unit.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,SEC.3.
IC 36-7-14.5-8
Composition of board; term of office; vacancy; removal for cause;oath of office; compensation
Sec. 8. (a) The board is composed of three (3) members, who mustbe residents of the unit appointed by the executive of the unit.
(b) A member is entitled to serve a three (3) year term. A membermay be reappointed to subsequent terms.
(c) If a vacancy occurs on the board, the executive of the unit shallfill the vacancy by appointing a new member for the remainder of thevacated term.
(d) A board member may be removed for cause by the executiveof the unit.
(e) Each member, before entering upon the duties of office, musttake and subscribe an oath of office under IC 5-4-1, which shall beendorsed upon the certificate of appointment and filed with therecords of the board.
(f) A member may not receive a salary, and no profit or money ofthe authority inures to the benefit of a member.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-9
Annual organizational meeting; election of officers; specialmeetings; quorum
Sec. 9. (a) Immediately after January 15 of each year, the boardshall hold an organizational meeting. It shall elect one (1) of themembers president, another vice president, and anothersecretary-treasurer to perform the duties of those offices. Theseofficers serve from the date of their election and until theirsuccessors are elected and qualified. The board may elect an assistantsecretary-treasurer.
(b) Special meetings may be called by the president of the boardor any two (2) members of the board.
(c) A majority of the members constitutes a quorum, and theconcurrence of a majority of the members is necessary to authorizeany action.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-10
Bylaws; rules
Sec. 10. The board may adopt such bylaws and rules as itconsiders necessary for the proper conduct of its duties and thesafeguarding of the funds and property entrusted to its care.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-11
Purposes of authority
Sec. 11. The authority is organized for the following purposes:
(1) Financing, constructing, and leasing local publicimprovements to the commission.
(2) Financing and constructing additional improvements to localpublic improvements owned by the authority and leasing themto the commission.
(3) Acquiring all or a portion of one (1) or more local publicimprovements from the commission by purchase or lease andleasing these local public improvements back to thecommission, with any additional improvements that may bemade to them.
(4) Acquiring all or a portion of one (1) or more local publicimprovements from the commission by purchase or lease tofund or refund indebtedness incurred on account of those localpublic improvements to enable the commission to make asavings in debt services obligations or lease rental obligationsor to obtain relief from covenants that the commission considersto be unduly burdensome.
(5) In a county having a United States government military basethat is scheduled for closing or is completely or partiallyinactive or closed and if specified in the ordinance creating theauthority or in another ordinance adopted by the executive bodyof the unit, an authority may exercise any of the powers of aredevelopment commission established under IC 36-7-14,including the establishment, in accordance with IC 36-7-14, ofone (1) or more economic development areas in the county inaddition to an economic development area established undersection 12.5 of this chapter. However, an economicdevelopment area that includes any part of a military basedescribed in section 12.5(a) of this chapter is subject to therequirements of section 12.5 of this chapter. An action taken byan authority under this subdivision shall be treated as if theaction were taken under the law granting the power to theredevelopment commission.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,SEC.4; P.L.190-2005, SEC.10; P.L.1-2006, SEC.566.
IC 36-7-14.5-12
Powers and duties of authority; dissolution of authority
Sec. 12. (a) In order to accomplish the purposes set forth insection 11(a) of this chapter, the authority may do the following:
(1) Finance, improve, construct, reconstruct, renovate,purchase, lease, acquire, or equip local public improvements.
(2) Lease those local public improvements to the commission.
(3) Sue, be sued, plead, or be impleaded, but all actions againstthe authority must be brought in the circuit or superior court ofthe county in which the authority is located.
(4) Condemn, appropriate, lease, rent, purchase, or hold any
real or personal property needed or considered useful inconnection with local public improvements.
(5) Acquire real or personal property by gift, devise, or bequestand hold, use, or dispose of that property for the purposesauthorized by this chapter.
(6) Enter upon any lots or lands for the purpose of surveying orexamining them to determine the location of a local publicimprovement.
(7) Design, order, contract for, or construct, reconstruct, orrenovate any local public improvements or improvementsthereto.
(8) Employ managers, superintendents, architects, engineers,attorneys, auditors, clerks, construction managers, or otheremployees necessary for construction of local publicimprovements or improvements to them.
(9) Make and enter into all contracts or agreements necessaryor incidental to the performance of its duties or the execution ofits powers under this chapter.
(10) Take any other action necessary to implement theauthority's purposes as set forth in section 11(a) of this chapter.
(b) Whenever the board determines that:
(1) the purposes for which the authority was formed have beensubstantially fulfilled; and
(2) all bonds issued and all other obligations incurred by theauthority have been fully paid or satisfied or provision for thepayment of the bonds and obligations has been made inaccordance with the terms of the resolution or trust indenturesecuring them;
the board may declare the authority dissolved. On the effective dateof the resolution of dissolution, the title to all funds and otherproperty owned by the authority at the time of the dissolution vestsin the commission on behalf of the unit creating the commission.However, if the commission is not in existence, the title vests in theunit.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,SEC.5.
IC 36-7-14.5-12.3
Powers that may be exercised by county executive
Sec. 12.3. (a) This section applies to a redevelopment commissionin a county having a United States government military base that isscheduled for closing or is completely or partially inactive or closed.
(b) The county executive body may adopt an ordinance to elect toallow the authority for the county to exercise the powers describedin section 11(5) of this chapter. An ordinance adopted under thissection may also do any of the following:
(1) Establish or change the:
(A) number of members on the board of the authority; or
(B) name of the authority;
that would otherwise apply under this chapter. (2) Provide for any other matter that is necessary or appropriateto carry out the powers described in section 11(5) or 12.5 of thischapter.
The county executive may amend or rescind an ordinance adoptedunder this section if the rights of holders of bonded indebtedness,leases, or other obligations (as defined under 5-1-3-1) of theauthority are not adversely affected.
As added by P.L.190-2005, SEC.11.
IC 36-7-14.5-12.5
Economic development area in counties with military baseclosings; powers; allocation areas; distribution of taxes
Sec. 12.5. (a) This section applies only to an authority in a countyhaving a United States government military base that is scheduled forclosing or is completely or partially inactive or closed.
(b) In order to accomplish the purposes set forth in section 11 ofthis chapter, an authority may create an economic development area:
(1) by following the procedures set forth in IC 36-7-14-41 forthe establishment of an economic development area by aredevelopment commission; and
(2) with the same effect as if the economic development areawas created by a redevelopment commission.
The area established under this section shall be established only inthe area where a United States government military base that isscheduled for closing or is completely or partially inactive or closedis or was located.
(c) In order to accomplish the purposes set forth in section 11 ofthis chapter, an authority may do the following in a manner thatserves an economic development area created under this section:
(1) Acquire by purchase, exchange, gift, grant, condemnation,or lease, or any combination of methods, any personal propertyor interest in real property needed for the redevelopment ofeconomic development areas located within the corporateboundaries of the unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract,or other instrument), exchange, lease, rent, or otherwise disposeof property acquired for use in the redevelopment of economicdevelopment areas on the terms and conditions that theauthority considers best for the unit and the unit's inhabitants.
(3) Sell, lease, or grant interests in all or part of the realproperty acquired for redevelopment purposes to any otherdepartment of the unit or to any other governmental agency forpublic ways, levees, sewerage, parks, playgrounds, schools, andother public purposes on any terms that may be agreed on.
(4) Clear real property acquired for redevelopment purposes.
(5) Repair and maintain structures acquired for redevelopmentpurposes.
(6) Remodel, rebuild, enlarge, or make major structuralimprovements on structures acquired for redevelopmentpurposes. (7) Survey or examine any land to determine whether the landshould be included within an economic development area to beacquired for redevelopment purposes and to determine the valueof that land.
(8) Appear before any other department or agency of the unit,or before any other governmental agency in respect to anymatter affecting:
(A) real property acquired or being acquired forredevelopment purposes; or
(B) any economic development area within the jurisdictionof the authority.
(9) Institute or defend in the name of the unit any civil action,but all actions against the authority must be brought in thecircuit or superior court of the county where the authority islocated.
(10) Use any legal or equitable remedy that is necessary orconsidered proper to protect and enforce the rights of andperform the duties of the authority.
(11) Exercise the power of eminent domain in the name of andwithin the corporate boundaries of the unit subject to the sameconditions and procedures that apply to the exercise of thepower of eminent domain by a redevelopment commissionunder IC 36-7-14.
(12) Appoint an executive director, appraisers, real estateexperts, engineers, architects, surveyors, and attorneys.
(13) Appoint clerks, guards, laborers, and other employees theauthority considers advisable, except that those appointmentsmust be made in accordance with the merit system of the unit ifsuch a system exists.
(14) Prescribe the duties and regulate the compensation ofemployees of the authority.
(15) Provide a pension and retirement system for employees ofthe authority by using the public employees' retirement fund ora retirement plan approved by the United States Department ofHousing and Urban Development.
(16) Discharge and appoint successors to employees of theauthority subject to subdivision (13).
(17) Rent offices for use of the department or authority, oraccept the use of offices furnished by the unit.
(18) Equip the offices of the authority with the necessaryfurniture, furnishings, equipment, records, and supplies.
(19) Design, order, contract for, and construct, reconstruct,improve, or renovate the following:
(A) Any local public improvement or structure that isnecessary for redevelopment purposes or economicdevelopment within the corporate boundaries of the unit.
(B) Any structure that enhances development or economicdevelopment.
(20) Contract for the construction, extension, or improvementof pedestrian skyways (as defined in IC 36-7-14-12.2(c)). (21) Accept loans, grants, and other forms of financialassistance from, or contract with, the federal government, thestate government, a municipal corporation, a special taxingdistrict, a foundation, or any other source.
(22) Make and enter into all contracts and agreements necessaryor incidental to the performance of the duties of the authorityand the execution of the powers of the authority under thischapter.
(23) Take any action necessary to implement the purpose of theauthority.
(24) Provide financial assistance, in the manner that best servesthe purposes set forth in section 11 of this chapter, includinggrants and loans, to enable private enterprise to develop,redevelop, and reuse military base property or otherwise enableprivate enterprise to provide social and economic benefits to thecitizens of the unit.
(d) An authority may designate all or a portion of an economicdevelopment area created under this section as an allocation area byfollowing the procedures set forth in IC 36-7-14-39 for theestablishment of an allocation area by a redevelopment commission.The allocation provision may modify the definition of "propertytaxes" under IC 36-7-14-39(a) to include taxes imposed underIC 6-1.1 on the depreciable personal property located and taxable onthe site of operations of designated taxpayers in accordance with theprocedures applicable to a commission under IC 36-7-14-39.3.IC 36-7-14-39.3 applies to such a modification. An allocation areaestablished by an authority under this section is a special taxingdistrict authorized by the general assembly to enable the unit toprovide special benefits to taxpayers in the allocation area bypromoting economic development that is of public use and benefit.For allocation areas established for an economic development areacreated under this section after June 30, 1997, and to the expandedportion of an allocation area for an economic development area thatwas established before June 30, 1997, and that is expanded under thissection after June 30, 1997, the net assessed value of property that isassessed as residential property under the rules of the department oflocal government finance, as finally determined for any assessmentdate, must be allocated. All of the provisions of IC 36-7-14-39 applyto an allocation area created under this section, except that theauthority shall be vested with the rights and duties of a commissionas referenced in those sections, and except that, notwithstandingIC 36-7-14-39(b)(2), property tax proceeds paid into the allocationfund may be used by the authority only to do one (1) or more of thefollowing:
(1) Pay the principal of and interest and redemption premium onany obligations incurred by the special taxing district or anyother entity for the purpose of financing or refinancing militarybase reuse activities in or serving or benefiting that allocationarea.
(2) Establish, augment, or restore the debt service reserve for
obligations payable solely or in part from allocated tax proceedsin that allocation area or from other revenues of the authority(including lease rental revenues).
(3) Make payments on leases payable solely or in part fromallocated tax proceeds in that allocation area.
(4) Reimburse any other governmental body for expendituresmade by it that benefits or provides for local publicimprovements or structures in or serving or benefiting thatallocation area.
(5) Pay expenses incurred by the authority that benefit orprovide for local public improvements or structures that are inthe allocation area or serving or benefiting the allocation area.
(6) Reimburse public and private entities for expenses incurredin training employees of industrial facilities that are located:
(A) in the allocation area; and
(B) on a parcel of real property that has been classified asindustrial property under the rules of the department of localgovernment finance.
However, the total amount of money spent for this purpose inany year may not exceed the total amount of money in theallocation fund that is attributable to property taxes paid by theindustrial facilities described in clause (B). The reimbursementsunder this subdivision must be made within three (3) years afterthe date on which the investments that are the basis for theincrement financing are made.
(e) In addition to other methods of raising money for propertyacquisition, redevelopment, or economic development activities inor directly serving or benefitting an economic development areacreated by an authority under this section, and in anticipation of thetaxes allocated under subsection (d), other revenues of the authority,or any combination of these sources, the authority may, byresolution, issue the bonds of the special taxing district in the nameof the unit. Bonds issued under this section may be issued in anyamount without limitation. The following apply if such a resolutionis adopted:
(1) The authority shall certify a copy of the resolutionauthorizing the bonds to the municipal or county fiscal officer,who shall then prepare the bonds. The seal of the unit must beimpressed on the bonds, or a facsimile of the seal must beprinted on the bonds.
(2) The bonds must be executed by the appropriate officer ofthe unit and attested by the unit's fiscal officer.
(3) The bonds are exempt from taxation for all purposes.
(4) Bonds issued under this section may be sold at public salein accordance with IC 5-1-11 or at a negotiated sale.
(5) The bonds are not a corporate obligation of the unit but arean indebtedness of the taxing district. The bonds and interestare payable, as set forth in the bond resolution of the authority:
(A) from the tax proceeds allocated under subsection (d);
(B) from other revenues available to the authority; or (C) from a combination of the methods stated in clauses (A)and (B).
(6) Proceeds from the sale of bonds may be used to pay the costof interest on the bonds for a period not to exceed five (5) yearsfrom the date of issuance.
(7) Laws relating to the filing of petitions requesting theissuance of bonds and the right of taxpayers and voters toremonstrate against the issuance of bonds do not apply to bondsissued under this section.
(8) If a debt service reserve is created from the proceeds ofbonds, the debt service reserve may be used to pay principal andinterest on the bonds as provided in the bond resolution.
(9) If bonds are issued under this chapter that are payable solelyor in part from revenues to the authority from a project orprojects, the authority may adopt a resolution or trust indentureor enter into covenants as is customary in the issuance ofrevenue bonds. The resolution or trust indenture may pledge orassign the revenues from the project or projects. The resolutionor trust indenture may also contain any provisions for protectingand enforcing the rights and remedies of the bond owners asmay be reasonable and proper and not in violation of law,including covenants setting forth the duties of the authority. Theauthority may establish fees and charges for the use of anyproject and covenant with the owners of any bonds to set thosefees and charges at a rate sufficient to protect the interest of theowners of the bonds. Any revenue bonds issued by the authoritythat are payable solely from revenues of the authority shallcontain a statement to that effect in the form of bond.
(f) Notwithstanding section 8(a) of this chapter, an ordinanceadopted under section 11 of this chapter may provide, or be amendedto provide, that the board of directors of the authority shall becomposed of not fewer than three (3) nor more than eleven (11)members, who must be residents of or be employed at a place ofemployment located within the unit. The members shall be appointedby the executive of the unit.
(g) The acquisition of real and personal property by an authorityunder this section is not subject to the provisions of IC 5-22,IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing thepurchase of property by public bodies or their agencies.
(h) An authority may negotiate for the sale, lease, or otherdisposition of real and personal property without complying with theprovisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any otherstatute governing the disposition of public property.
(i) Notwithstanding any other law, utility services provided withinan economic development area established under this section aresubject to regulation by the appropriate regulatory agencies unlessthe utility service is provided by a utility that provides utility servicesolely within the geographic boundaries of an existing or a closedmilitary installation, in which case the utility service is not subjectto regulation for purposes of rate making, regulation, service
delivery, or issuance of bonds or other forms of indebtedness.However, this exemption from regulation does not apply to utilityservice if the service is generated, treated, or produced outside theboundaries of the existing or closed military installation.
As added by P.L.26-1993, SEC.6. Amended by P.L.26-1995, SEC.5;P.L.255-1997(ss), SEC.16; P.L.49-1997, SEC.78; P.L.2-1998,SEC.85; P.L.90-2002, SEC.477; P.L.192-2002(ss), SEC.179;P.L.190-2005, SEC.12; P.L.185-2005, SEC.25; P.L.1-2006,SEC.567; P.L.219-2007, SEC.127; P.L.146-2008, SEC.742;P.L.182-2009(ss), SEC.405; P.L.104-2010, SEC.1.
IC 36-7-14.5-13
Refunding bonds
Sec. 13. (a) Bonds issued under IC 36-7-14 may be refunded asprovided in this section.
(b) The commission may:
(1) lease all or a portion of a local public improvement orimprovements to the authority, which may be at a nominal leaserental with a lease back to the commission, conditioned uponthe authority assuming bonds issued under IC 36-7-14 andissuing its bonds to refund those bonds; and
(2) sell all or a portion of a local public improvement orimprovements to the authority for a price sufficient to providefor the refunding of those bonds and lease back the local publicimprovement or improvements from the authority.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-14
Lease of local public improvements to commission; provisions
Sec. 14. (a) Before a lease may be entered into, the commissionmust find that the lease rental provided for is fair and reasonable.
(b) A lease of local public improvements from the authority to thecommission:
(1) must comply with IC 36-7-14-25.2 or IC 36-7-30-20;
(2) may not require payment of lease rental for a newlyconstructed local public improvement or for improvements toan existing local public improvement except to the extent thatthe local public improvement or improvements thereto havebeen completed and are ready for occupancy or use;
(3) may contain provisions:
(A) allowing the commission to continue to operate anexisting local public improvement until completion of theimprovements, reconstruction, or renovation; and
(B) requiring payment of lease rentals for an existing localpublic improvement being used, reconstructed, or renovated;
(4) may contain an option to renew the lease for the same orshorter term on the conditions provided in the lease;
(5) must contain an option for the commission to purchase thelocal public improvement upon the terms stated in the leaseduring the term of the lease for a price equal to the amount
required to pay all indebtedness incurred on account of the localpublic improvement, including indebtedness incurred for therefunding of that indebtedness;
(6) may be entered into before acquisition or construction of alocal public improvement;
(7) may provide that the commission shall agree to:
(A) pay all taxes and assessments thereon;
(B) maintain insurance thereon for the benefit of theauthority; and
(C) assume responsibility for utilities, repairs, alterations,and any costs of operation; and
(8) may provide that the lease rental payments by thecommission shall be made from any one (1) or more of thesources set forth in IC 36-7-14-25.2 or IC 36-7-30-20.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.35-1990,SEC.60; P.L.26-1995, SEC.6.
IC 36-7-14.5-15
Legal authority for lease agreements
Sec. 15. This chapter and IC 36-7-14-25.2 or IC 36-7-30-20,contain full and complete authority for leases between the authorityand the commission. No law, procedure, proceedings, publications,notices, consents, approvals, orders, or acts by the board or thecommission or any other officer, department, agency, orinstrumentality of the state or any political subdivision is required toenter into any lease, except as prescribed in this chapter andIC 36-7-14-25.2 or IC 36-7-30-20.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1995,SEC.7.
IC 36-7-14.5-16
Plans and specifications for local public improvements to beconstructed; approval by commission
Sec. 16. If the lease provides for a local public improvement orimprovements thereto to be constructed by the authority, the plansand specifications shall be submitted to and approved by thecommission.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-17
Easement or license agreements between authority andcommission; recordation
Sec. 17. The authority and the commission may enter intocommon wall (party wall) agreements or other agreementsconcerning easements or licenses. These agreements shall berecorded with the recorder of the county.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-18
Lease or sale of property from commission to authority Sec. 18. (a) The commission may lease for a nominal lease rental,or sell to the authority, one (1) or more local public improvements orportions thereof or land upon which a local public improvement islocated or is to be constructed.
(b) Any lease of all or a portion of a local public improvement bythe commission to the authority must be for a term equal to the termof the lease of that local public improvement back to theredevelopment commission.
(c) The commission may sell property to the authority for suchamount as it determines to be in the best interest of the commission,which amount may be paid from the proceeds of bonds of theauthority.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-19
Bonds; procedures; use of revenue
Sec. 19. (a) The authority may issue bonds for the purpose ofobtaining money to pay the cost of:
(1) acquiring property;
(2) constructing, improving, reconstructing, or renovating one(1) or more local public improvements; or
(3) funding or refunding bonds issued under this chapter orIC 36-7-14.
(b) The bonds are payable solely from the lease rentals from thelease of the local public improvement for which the bonds wereissued, insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the board.
(d) The terms and form of the bonds shall either be set out in theresolution or in a form of trust indenture approved by the resolution.
(e) The bonds shall mature within fifty (50) years.
(f) The board shall sell the bonds at public or private sale uponsuch terms as determined by the board.
(g) All money received from any bonds issued under this chaptershall be applied solely to the payment of the cost of the acquisitionor construction, or both, of local public improvements, or the cost ofrefunding or refinancing outstanding bonds, for which the bonds areissued. The cost may include:
(1) planning and development of the local public improvementsand all related buildings, facilities, structures, andimprovements;
(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 local public improvementsthat are necessary or desirable to make the local publicimprovements suitable for use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and saleof bonds;
(6) reserves for principal and interest; (7) interest during construction and for a period thereafterdetermined by the board, but in no event to exceed five (5)years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of theprincipal of, redemption premiums, if any, and interest on, thebonds being refunded or refinanced.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.35-1990,SEC.61.
IC 36-7-14.5-20
Authority for issuance of bonds; legal investment status of bonds
Sec. 20. (a) This chapter contains full and complete authority forthe issuance of bonds. No law, procedure, proceedings, publications,notices, consents, approvals, orders, or acts by the board of any otherofficer, department, agency, or instrumentality of the state or of anypolitical subdivision is required to issue any bonds, except asprescribed in this chapter.
(b) Bonds issued under this chapter are legal investments forprivate trust funds and the funds of banks, trust companies, insurancecompanies, building and loan associations, credit unions, banks ofdiscount and deposit, savings banks, loan and trust and safe depositcompanies, rural loan and savings associations, guaranty loan andsavings associations, mortgage guaranty companies, small loancompanies, industrial loan and investment companies, and otherfinancial institutions organized under Indiana law.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.42-1993,SEC.97.
IC 36-7-14.5-21
Trust indenture securing bonds
Sec. 21. (a) The authority may secure bonds issued under thischapter by a trust indenture between the authority and a corporatetrustee, which may be any trust company or national or state bankwithin Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income fromleased local public improvements, but may not mortgage landor local public improvements;
(2) contain reasonable and proper provisions for protecting andenforcing the rights and remedies of the bondholders, includingcovenants setting forth the duties of the authority and board;
(3) set forth the rights and remedies of bondholders and trustee;and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under thissection is valid and binding in accordance with IC 5-1-14-4 from the
time that the pledge or assignment is made, against all personswhether they have notice of the lien or not. Any trust indenture bywhich a pledge is created or an assignment need not be filed orrecorded. The lien is perfected against third parties in accordancewith IC 5-1-14-4.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-22
Issuance of bonds by commission upon exercise of option topurchase leased property
Sec. 22. If the commission exercises its option to purchase leasedproperty, it may issue its bonds as authorized by statute.
As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-23
Tax-exempt status of authority property and bonds
Sec. 23. All:
(1) property owned by the authority;
(2) revenues of the authority; and
(3) bonds issued by the authority, the interest on the bonds, theproceeds received by a holder from the sale of bonds to theextent of the holder's cost of acquisition, proceeds receivedupon redemption before maturity, proceeds received at maturity,and the receipt of interest in proceeds;
are exempt from taxation in Indiana for all purposes except thefinancial institutions tax imposed under IC 6-5.5 or a stateinheritance tax imposed under IC 6-4.1.
As added by P.L.380-1987(ss), SEC.18. Amended by P.L.21-1990,SEC.53; P.L.254-1997(ss), SEC.30.
IC 36-7-14.5-24
Action contesting validity of bonds
Sec. 24. Any action to contest the validity of bonds to be issuedunder this chapter may not be brought after the fifteenth dayfollowing:
(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 for the sale of bonds;
whichever occurs first.
As added by P.L.380-1987(ss), SEC.18.