CHAPTER 4. USE AND MANAGEMENT OF OFFICE BUILDINGS
IC 4-13.5-4
Chapter 4. Use and Management of Office Buildings
IC 4-13.5-4-1
Use and occupancy agreements; negotiation; approval; contents;amount of payment
Sec. 1. (a) Before or after the award of construction contracts, orthe arranging of financing, the commission and the department maynegotiate a use and occupancy agreement. The state budget agency,after consulting with the state budget committee, must approve anyuse and occupancy agreement before the department may execute theagreement. The use and occupancy agreement:
(1) must set forth the terms and conditions of the use andoccupancy;
(2) must set forth the amounts agreed to be paid at statedintervals for the use and occupancy;
(3) must provide that the department is not obligated tocontinue to pay for the use and occupancy but is insteadrequired to vacate the facility if it is shown that the terms andconditions of the use and occupancy and the amount to be paidfor the use and occupancy are unjust and unreasonableconsidering the value of the services and facilities therebyafforded;
(4) must provide that the department is required to vacate thefacility if funds have not been appropriated or are not availableto pay any sum agreed to be paid for use and occupancy whendue;
(5) may provide for such costs as maintenance, operations,taxes, and insurance to be paid by the department;
(6) may contain an option to renew the agreement;
(7) may contain an option to purchase the facility for an amountequal to the amount required to pay the principal and interest ofindebtedness of the commission incurred on account of thefacility and expenses of the commission attributable to thefacility;
(8) may not provide for payment of sums for use and occupancyuntil the construction of the facility has been completed and thefacility is available for use and occupancy by the department;and
(9) may contain any other provisions agreeable to thecommission and the department.
(b) In determining just and reasonable amounts to be paid for theuse and occupancy of the facility under subsection (a)(3), thecommission shall impose and collect amounts that in the aggregatewill be sufficient to:
(1) pay the expenses of operation, maintenance, and repair ofthe facility, to the extent that the expenses are not otherwiseprovided; and
(2) leave a balance of revenues from the facility to pay theprincipal and interest (including any reserve or sinking funds)
on bonds or loans as they become due and retire them at orbefore maturity.
(c) The department may negotiate and execute a use andoccupancy agreement for all or any state agencies or branches ofstate government.
As added by Acts 1977, P.L.31, SEC.1. Amended by P.L.27-1985,SEC.9; P.L.15-1986, SEC.2.
IC 4-13.5-4-2
Operation, maintenance, and repair of facilities under use andoccupancy agreements
Sec. 2. Unless the use and occupancy agreement providesotherwise, the department shall provide for the operation,maintenance, and repair of each facility.
As added by Acts 1977, P.L.31, SEC.1. Amended by P.L.27-1985,SEC.10; P.L.240-1991(ss2), SEC.39.
IC 4-13.5-4-3
Borrowing money; loan contracts
Sec. 3. (a) The commission may borrow money from the publicdeposits insurance fund, a bank, an insurance company, aninvestment company, or any other person.
(b) The commission may negotiate the terms of a loan contract.The contract must provide for repayment of the money in not morethan forty (40) years.
(c) The loan contract must provide that the loan may be prepaid.
(d) The loan contract must plainly state that it is not anindebtedness of the state but constitutes a corporate obligation solelyof the commission and is payable solely from revenues of thecommission from the use and occupancy agreement, the proceeds offuture loan contracts or bonds, or any appropriations from the statethat might be made to the commission for that purpose.
As added by P.L.27-1985, SEC.11. Amended by P.L.15-1986, SEC.3.
IC 4-13.5-4-4
Revenue bonds; issuance; sale; use of proceeds
Sec. 4. (a) For the purpose of providing funds to carry out theprovisions of this article with respect to:
(1) the construction and equipment of facilities;
(2) acquiring or providing a site or sites; or
(3) the refunding of any bonds or payment of any loan contractof the commission;
the commission may, by resolution, issue and sell interest-bearingrevenue bonds of the commission.
(b) The bonds must indicate, on the face of each bond:
(1) the maturity date or dates, not exceeding forty (40) yearsfrom the date of issue;
(2) the interest rate or rates (whether fixed, variable, or acombination of fixed or variable);
(3) the registration privileges, and where payable at a certain
place; and
(4) the conditions and terms under which the bonds may beredeemed before maturity.
(c) The bonds issued under subsection (a):
(1) shall be executed by the manual or facsimile signature of thechairman of the commission;
(2) shall be attested by the manual or facsimile signature of thepublic finance director;
(3) shall be imprinted or impressed with the seal of thecommission;
(4) may be authenticated by a trustee, registrar, or paying agent;and
(5) constitute valid and binding obligations of the commission,even if the chairman or the public finance director, or both,whose manual or facsimile signature appears on the bond, nolonger holds those offices.
(d) The bonds, when issued, have all the qualities of negotiableinstruments under IC 26 and are incontestable in the hands of a bonafide purchaser or holder of the bonds for value.
(e) The bonds may be sold by the commission at a public orprivate sale at a time or times determined by the commission. Thecommission may negotiate the sale, but any discount may not exceedthree percent (3%). In determining the amount of bonds to be issuedand sold, there may be included the costs of:
(1) construction;
(2) all land and clearing of the site;
(3) improvements to the site, such as walks, drives, and otherappurtenances;
(4) material and labor;
(5) equipment;
(6) financing charges, discounts, and interest accruing on thebonds before and during the construction period and for areasonable period of time after construction;
(7) expenses such as legal fees, engineers' fees, and architects'fees;
(8) all other expenses necessary or incident to the constructionand equipment of the facility and the acquisition of a site orsites for the facility; and
(9) reimbursement of the state general fund and the postwarconstruction fund for payments made from those funds for anyof the purposes described in subdivisions (1) through (8).
(f) The proceeds of the bonds are appropriated for the purpose forwhich the bonds may be issued under this article and the proceedsshall be deposited and disbursed in accordance with any provisionsand restrictions that the commission may provide in the resolution ortrust indenture authorizing the issuance of the bonds in the firstinstance and the issuance of any refunding bonds, or in a trustindenture authorized and approved by resolution of the commission.The maturities of the bonds, the rights of the holders, and the rights,duties, and obligations of the commission are governed in all respects
by this article.
(g) The bonds issued under this article constitute the corporateobligations only of the commission and are payable solely from andsecured exclusively by pledge of the income and revenues of thefacility that remain after payment or provisions for payment of theexpenses of operation, maintenance, and repair of the facility, to theextent that expenses of operation, maintenance, and repair are nototherwise provided. The commission shall plainly state on the faceof each bond that the bond does not constitute an indebtedness of thestate within the meaning or application of any constitutionalprovision or limitation but that it is payable solely as to bothprincipal and interest from the net revenues of the facility. Theprovisions of this article and the covenants and undertakings of thecommission as expressed in any proceedings preliminary to or inconnection with the issuance of the bonds may be enforced by a bondholder by action for injunction or mandamus against the commissionor any officer, agent, or employee of the commission, but no actionfor monetary judgment may be brought against the state for anyviolations of this article.
As added by P.L.27-1985, SEC.12. Amended by P.L.15-1986, SEC.4;P.L.240-1991(ss2), SEC.40; P.L.162-2007, SEC.14.
IC 4-13.5-4-5
Allocation of space in facilities
Sec. 5. Except with respect to a correctional facility, thedepartment shall allocate space in each facility to state agencies andbranches of state government. The department of correction shallallocate space in correctional facilities under IC 11.
As added by P.L.27-1985, SEC.13. Amended by P.L.240-1991(ss2),SEC.41.
IC 4-13.5-4-6
Tax exemptions; property of commission; bonds; loan contracts
Sec. 6. (a) All property of the commission is public propertydevoted to an essential public and governmental function andpurpose and is exempt from all taxes and special assessments of thestate or a political subdivision of the state.
(b) All bonds or loan contracts issued under this article are issuedby a body corporate and politic of this state, but not a state agency,and for an essential public and governmental purpose, and the bondsand loan contracts, the interest thereon, the proceeds received by aholder from the sale of the bonds or loan contracts to the extent ofthe holder's cost of acquisition, proceeds received upon redemptionbefore maturity, proceeds received at maturity, and the receipt of theinterest and proceeds are exempt from taxation for all purposesexcept the financial institutions tax imposed under IC 6-5.5 or a stateinheritance tax imposed under IC 6-4.1.
As added by P.L.27-1985, SEC.14. Amended by P.L.21-1990, SEC.1;P.L.254-1997(ss), SEC.3.