CHAPTER 11. INDIANA FINANCE AUTHORITY
IC 4-4-11
Chapter 11. Indiana Finance Authority
IC 4-4-11-1
Title
Sec. 1. This chapter may be cited as "The Indiana financeauthority law".
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.16; P.L.235-2005, SEC.6.
IC 4-4-11-2
Legislative findings of fact; purpose
Sec. 2. (a) The legislature makes the following findings of fact:
(1) That there currently exists in certain areas of the statecritical conditions of unemployment, inadequate drinking water,inadequate wastewater and storm water management, orenvironmental pollution, including water pollution, airpollution, sewage and solid waste, radioactive waste, thermalpollution, radiation contamination, and noise pollution, and thatthese conditions may well exist, from time to time, in otherareas of the state.
(2) That in some areas of the state such conditions are chronicand of long standing and that without remedial measures theymay become so in other areas of the state.
(3) That economic insecurity due to unemployment, inadequatedrinking water, inadequate wastewater and storm watermanagement, or environmental pollution is a menace to thehealth, safety, morals, and general welfare of not only thepeople of the affected areas but of the people of the entire state.
(4) That involuntary unemployment and its resulting burden ofindigency falls with crushing force upon the unemployedworker and ultimately upon the state in the form of publicassistance and unemployment compensation.
(5) That security against unemployment and the resulting spreadof indigency and economic stagnation in the areas affected canbest be provided by:
(A) the promotion, attraction, stimulation, rehabilitation, andrevitalization of industrial development projects, ruraldevelopment projects, mining operations, and agriculturaloperations that involve the processing of agriculturalproducts;
(B) the promotion and stimulation of international exports;and
(C) the education, both formal and informal, of people of allages throughout the state by the promotion, attraction,construction, renovation, rehabilitation, and revitalization ofand assistance to educational facility projects.
(6) That the present and prospective health, safety, morals, rightto gainful employment, and general welfare of the people of thestate require as a public purpose the provision of safe drinking
water, the provision of wastewater and storm watermanagement, the abatement or control of pollution, thepromotion of increased educational enrichment (includingcultural, intellectual, scientific, or artistic opportunities) forpeople of all ages through new, expanded, or revitalizededucational facility projects or through assisting educationalfacility projects, and the promotion of employment creation orretention through development of new and expanded industrialdevelopment projects, rural development projects, miningoperations, and agricultural operations that involve theprocessing of agricultural products.
(7) That there is a need to stimulate a larger flow of privateinvestment funds from commercial banks, investment bankers,insurance companies, other financial institutions, andindividuals into such industrial development projects, ruraldevelopment projects, mining operations, international exports,and agricultural operations that involve the processing ofagricultural products in the state.
(8) That the authority can encourage the making of loans orleases for creation or expansion of industrial developmentprojects, rural development projects, mining operations,international exports, and agricultural operations that involvethe processing of agricultural products, thus putting a largerportion of the private capital available in Indiana for investmentto use in the general economic development of the state.
(9) That the issuance of bonds of the authority to create afinancing pool for industrial development projects and carryingout the purposes of IC 13-18-13 and IC 13-18-21 promoting asubstantial likelihood of opportunities for:
(A) gainful employment;
(B) business opportunities;
(C) educational enrichment (including cultural, intellectual,scientific, or artistic opportunities);
(D) the abatement, reduction, or prevention of pollution;
(E) the provision of safe drinking water;
(F) the provision of wastewater and storm watermanagement;
(G) the removal or treatment of any substances in materialsbeing processed that otherwise would cause pollution whenused; or
(H) increased options for and availability of child care;
will improve the health, safety, morals, and general welfare ofthe people of the state and constitutes a public purpose forwhich the authority shall exist and operate.
(10) That the issuance of bonds of the authority to create afunding source for the making of guaranteed participating loanswill promote and encourage an expanding international exportsmarket and international exports sales and will promote thegeneral welfare of all of the people of Indiana by assistingIndiana businesses through stimulation of the expansion of
international exports sales for Indiana products and services,especially those of small and medium-sized businesses, byproviding financial assistance through the authority.
(b) The Indiana finance authority shall exist and operate for thepublic purposes of:
(1) promoting opportunities for gainful employment andbusiness opportunities by the promotion and development ofindustrial development projects, rural development projects,mining operations, international exports, and agriculturaloperations that involve the processing of agricultural products,in any areas of the state;
(2) promoting the educational enrichment (including cultural,intellectual, scientific, or artistic opportunities) of all the peopleof the state by the promotion, development, and assistance ofeducational facility projects;
(3) promoting affordable farm credit and agricultural loanfinancing at interest rates that are consistent with the needs ofborrowers for farming and agricultural enterprises;
(4) preventing and remediating environmental pollution,including water pollution, air pollution, sewage and solid wastedisposal, radioactive waste, thermal pollution, radiationcontamination, and noise pollution affecting the health andwell-being of the people of the state by:
(A) the promotion and development of industrialdevelopment projects; and
(B) carrying out the purposes of IC 13-18-13 andIC 13-18-21;
(5) promoting the provision of safe and adequate drinking waterand wastewater and storm water management to positivelyaffect the public health and well-being by carrying out thepurposes of IC 13-18-13 and IC 13-18-21;
(6) otherwise positively affecting the public health andwell-being by carrying out the purposes of IC 13-18-13 andIC 13-18-21; and
(7) promoting affordable and accessible child care for thepeople of the state by the promotion and development of childcare facilities.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.24-1983,SEC.1; P.L.20-1985, SEC.2; P.L.25-1987, SEC.4; P.L.20-1988,SEC.7; P.L.11-1990, SEC.17; P.L.24-1995, SEC.9; P.L.227-1999,SEC.6 and P.L.273-1999, SEC.195; P.L.4-2002, SEC.2;P.L.235-2005, SEC.7.
IC 4-4-11-2.5
Legislative findings of fact; purpose
Sec. 2.5. (a) The general assembly makes the following findingsof fact in addition to those set forth in section 2 of this chapter:
(1) There are currently numerous bodies corporate and politicof the state, with separate decision making and borrowingauthority, that may issue bonds, notes, and obligations, and
otherwise access the financial markets.
(2) Consolidation of this decision making and borrowingauthority may provide economic efficiencies and managementsynergies and enable the state to communicate, with a singlevoice, with the various participants in the financial markets,including credit rating agencies, investment bankers, investors,and municipal bond insurers and other credit enhancers.
(b) In addition to the purposes set forth in section 2 of thischapter, the authority is established for the purpose of permitting theconsolidation of certain bodies in a single body of decision makingconcerning access to the capital and financial markets in the name of,or for the benefit of, the state.
(c) The authority is authorized to carry out the public purposesprovided for in the affected statutes through a single entity in orderto achieve the purposes of this section.
As added by P.L.235-2005, SEC.8. Amended by P.L.1-2006, SEC.27.
IC 4-4-11-2.7
Construction of article; priority of definitions
Sec. 2.7. (a) This article and the affected statutes shall be liberallyconstrued to effect the purposes of this article and the affectedstatutes.
(b) To the extent that the definitions in an affected statute areinconsistent with the definitions in this chapter or IC 4-4-10.9, thedefinitions in the affected statute prevail.
(c) Except as otherwise provided by subsection (b), to the extentthat the provisions of this article are inconsistent with the provisionsof any other general, special, or local law, the provisions of thisarticle are controlling and supersede all other laws.
As added by P.L.235-2005, SEC.9. Amended by P.L.162-2007,SEC.5.
IC 4-4-11-3
Repealed
(Repealed by P.L.20-1985, SEC.18(b).)
IC 4-4-11-4
Creation; membership
Sec. 4. (a) There is created for the public purposes set forth insection 2.5 of this chapter a body politic and corporate, not a stateagency but an independent instrumentality exercising essential publicfunctions, to be known as the Indiana finance authority. Theauthority is separate and apart from the state in its corporate andsovereign capacity, and though separate from the state, the exerciseby the authority of its powers constitutes an essential governmental,public, and corporate function.
(b) The authority shall be composed of the following five (5)members:
(1) The budget director, or the budget director's designee, whoshall serve as chairman of the authority. (2) The treasurer of state, or the treasurer of state's designee.
(3) Three (3) members appointed by the governor, no more thantwo (2) of whom may be from the same political party.
(c) All members shall be residents of the state.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.18; P.L.235-2005, SEC.10.
IC 4-4-11-5
Members; terms of office
Sec. 5. Appointments to the authority under section 4(b)(3) of thischapter are for terms of four (4) years. Each member appointed to theauthority under section 4(b)(3) of this chapter:
(1) holds office for the term of this appointment;
(2) continues to serve after expiration of the appointment untila successor is appointed and qualified;
(3) is eligible for reappointment; and
(4) may be removed from office by the governor with orwithout cause and serves at the pleasure of the governor.
The governor shall fill a vacancy for the unexpired term of anymember appointed under section 4(b)(3) of this chapter.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.19; P.L.235-2005, SEC.11.
IC 4-4-11-6
Officers; compensation of members
Sec. 6. (a) The members shall elect from among their number avice chairman and other officers as they may determine.
(b) The members of the authority are entitled to reimbursementfor traveling expenses and other expenses actually incurred inconnection with their duties as provided by law. Members are notentitled to the salary per diem provided by IC 4-10-11-2.1(b) or anyother compensation while performing their duties.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.20-1985,SEC.3; P.L.11-1990, SEC.20; P.L.235-2005, SEC.12.
IC 4-4-11-7
Vesting of powers; quorum; voting
Sec. 7. The powers of the authority are vested in the members.Three (3) members of the authority constitute a quorum for thetransaction of business. The affirmative vote of at least three (3)members is necessary for any action to be taken by the authority.Members may vote by written proxy delivered in advance to anyother member who is present at the meeting. A vacancy in themembership of the authority does not impair the right of a quorum toexercise all rights and perform all duties of the authority.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.21; P.L.235-2005, SEC.13.
IC 4-4-11-8
Meetings Sec. 8. Meetings of the members of the authority shall be held atthe call of the chairman or whenever any three (3) members sorequest. In any event, the members shall meet at least once everythree (3) months to attend to the business of the authority.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.22.
IC 4-4-11-9
Public finance director; powers and duties
Sec. 9. The governor shall appoint the public finance director,who shall serve at the pleasure of the governor. The public financedirector shall:
(1) administer, manage, and direct the affairs and activities ofthe authority and the employees of the authority in accordancewith the policies and under the control and direction of themembers of the authority;
(2) approve all accounts for salaries, allowable expenses of theauthority or of any employee or consultant, and expensesincidental to the operation of the authority; and
(3) perform other duties as may be directed by the members ofthe authority in carrying out the purposes of the affectedstatutes.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.23; P.L.24-1995, SEC.10; P.L.235-2005, SEC.14.
IC 4-4-11-10
Public finance director; attendance; record keeping duties;certification of copies
Sec. 10. The public finance director shall attend the meetings ofthe members of the authority, shall keep a record of the proceedingsof the authority, and shall maintain and be custodian of all books,documents, and papers filed with the authority and its official seal.The public finance director may make copies of all minutes and otherrecords and documents of the authority and may give certificatesunder seal of the authority to the effect that the copies are truecopies. All persons dealing with the authority may rely upon thesecertificates.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.24; P.L.235-2005, SEC.15.
IC 4-4-11-11
Employment; delegation of administrative duties
Sec. 11. (a) The authority may, without the approval of theattorney general or any other state officer, employ bond counsel,other legal counsel, technical experts, and such other officers, agents,and employees, permanent or temporary, as it considers necessary tocarry out the efficient operation of the authority, and shall determinetheir qualifications, duties, compensation, and terms of service. Theauthority shall fix the compensation of the public finance director.
(b) The members of the authority may adopt a resolution
delegating to:
(1) a member of the authority;
(2) the public finance director; or
(3) one (1) or more agents or employees of the authority;
administrative duties that they consider proper, including the powersof the authority set forth in this section.
(c) Employees of the authority shall not be considered employeesof the state.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.25; P.L.18-1992, SEC.2; P.L.235-2005, SEC.16.
IC 4-4-11-12
Members; conflicts of interest; disclosure
Sec. 12. Any member or employee of the authority who has, willhave, or later acquires an interest, direct or indirect, in anytransaction with the authority shall immediately disclose the natureand extent of the interest in writing to the authority as soon as he hasknowledge of the actual or prospective interest. The disclosure shallbe announced in open meeting and entered upon the minutes of theauthority. Upon disclosure, the member or employee shall notparticipate in any action by the authority authorizing the transaction.However, such an interest shall not invalidate actions by theauthority with the participation of the disclosing member prior to thetime when the member became aware of the interest or shouldreasonably have become aware of the interest.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.26.
IC 4-4-11-13
State officers and employees; nonforfeiture of offices andemployment
Sec. 13. Notwithstanding the provisions of any other law, noofficer or employee of the state forfeits his office or employment byreason of his acceptance of membership in the authority or by reasonof his providing services to the authority.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.27.
IC 4-4-11-14
Members; surety bonds
Sec. 14. (a) Each member of the authority, the public financedirector, and any other employee or agent of the authority authorizedby resolution of the authority to handle funds or sign checks, beforebeginning the individual's duties, shall execute a surety bond in thepenal sum of fifty thousand dollars ($50,000). To the extent anindividual described in this section is already covered by a bondrequired by state law, the individual need not obtain another bond solong as the bond required by state law is in at least the penal sumspecified in this section and covers the individual's activities for theauthority. In lieu of a bond, the chairman of the authority may
execute a blanket surety bond covering each member and theemployees or other officers of the authority. Each surety bond shallbe conditioned upon the faithful performance of the individual'sduties and shall be issued by a surety company authorized to transactbusiness in this state as surety. At all times after the issuance of anysurety bonds, each individual described in this section shall maintainthe surety bonds in full force and effect. All costs of the surety bondsshall be borne by the authority.
(b) The public finance director, before beginning the publicfinance director's duties, must:
(1) execute a surety bond as provided in subsection (a); or
(2) be included in the coverage of a blanket surety bonddescribed in subsection (a).
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,SEC.28; P.L.24-1995, SEC.11; P.L.235-2005, SEC.17.
IC 4-4-11-14.5
State debt management plan; requirements
Sec. 14.5. The authority, after consulting with the treasurer ofstate, the Indiana bond bank, the budget agency, and the commissionfor higher education, shall establish and periodically update a statedebt management plan. The plan must include at least the followingprovisions with respect to debt issued or to be issued by theauthority, other bodies corporate and politic of the state, and stateeducational institutions:
(1) An inventory of existing debt.
(2) Projections of future debt obligations.
(3) Recommended criteria for the appropriate use of debt as ameans to finance capital projects.
(4) Recommended strategies to minimize costs associated withdebt issuance.
(5) An analysis of the impact of debt issued by all bodiescorporate and politic and state educational institutions on thestate budget.
(6) Recommended guidelines for the prudent issuance of debtthat creates a moral obligation of the state to pay all or part ofthe debt.
(7) Recommended policies for the investment of:
(A) proceeds of bonds, notes, or other obligations issued bybodies corporate and politic and state educationalinstitutions; and
(B) other money, funds, and accounts owned or held by abody corporate and politic.
(8) Recommended policies for the establishment of a system ofrecord keeping and reporting to meet the arbitrage rebatecompliance requirements of the Internal Revenue Code.
(9) Recommended policies for the preparation of financialdisclosure documents, including official statementsaccompanying debt issues, comprehensive annual financialreports, and continuing disclosure statements. The
recommended policies must include a provision for approval bythe budget director of any statements or reports that include adiscussion of the state's economic and fiscal condition.
(10) Potential opportunities to more effectively and efficientlyauthorize and manage debt.
(11) Recommendations to the budget director, the governor, andthe general assembly with respect to financing of capitalprojects.
The recommendations to the general assembly under subdivision (11)must be in an electronic format under IC 5-14-6.
As added by P.L.235-2005, SEC.18. Amended by P.L.2-2007,SEC.22.
IC 4-4-11-15
Powers
Sec. 15. (a) The authority is granted all powers necessary orappropriate to carry out and effectuate its public and corporatepurposes under the affected statutes, including but not limited to thefollowing:
(1) Have perpetual succession as a body politic and corporateand an independent instrumentality exercising essential publicfunctions.
(2) Without complying with IC 4-22-2, adopt, amend, andrepeal bylaws, rules, guidelines, and policies not inconsistentwith the affected statutes, and necessary or convenient toregulate its affairs and to carry into effect the powers, duties,and purposes of the authority and conduct its business under theaffected statutes. These bylaws, rules, guidelines, and policiesmust be made by a resolution of the authority introduced at one(1) meeting and approved at a subsequent meeting of theauthority.
(3) Sue and be sued in its own name.
(4) Have an official seal and alter it at will.
(5) Maintain an office or offices at a place or places within thestate as it may designate.
(6) Make, execute, and enforce contracts and all otherinstruments necessary, convenient, or desirable for the purposesof the authority or pertaining to:
(A) a purchase, acquisition, or sale of securities or otherinvestments; or
(B) the performance of the authority's duties and executionof any of the authority's powers under the affected statutes.
(7) Employ architects, engineers, attorneys, inspectors,accountants, agriculture experts, silviculture experts,aquaculture experts, and financial experts, and such otheradvisors, consultants, and agents as may be necessary in itsjudgment and to fix their compensation.
(8) Procure insurance against any loss in connection with itsproperty and other assets, including loans and loan notes inamounts and from insurers as it may consider advisable. (9) Borrow money, make guaranties, issue bonds, and otherwiseincur indebtedness for any of the authority's purposes, and issuedebentures, notes, or other evidences of indebtedness, whethersecured or unsecured, to any person, as provided by the affectedstatutes. Notwithstanding any other law, the:
(A) issuance by the authority of any indebtedness thatestablishes a procedure for the authority or a person actingon behalf of the authority to certify to the general assemblythe amount needed to restore a debt service reserve fund oranother fund to required levels; or
(B) execution by the authority of any other agreement thatcreates a moral obligation of the state to pay all or part ofany indebtedness issued by the authority;
is subject to review by the budget committee and approval bythe budget director.
(10) Procure insurance or guaranties from any public or privateentities, including any department, agency, or instrumentality ofthe United States, for payment of any bonds issued by theauthority, including the power to pay premiums on anyinsurance or reinsurance.
(11) Purchase, receive, take by grant, gift, devise, bequest, orotherwise, and accept, from any source, aid or contributions ofmoney, property, labor, or other things of value to be held, used,and applied to carry out the purposes of the affected statutes,subject to the conditions upon which the grants or contributionsare made, including but not limited to gifts or grants from anydepartment, agency, or instrumentality of the United States, andlease or otherwise acquire, own, hold, improve, employ, use,and otherwise deal in and with real or personal property or anyinterest in real or personal property, wherever situated, for anypurpose consistent with the affected statutes.
(12) Enter into agreements with any department, agency, orinstrumentality of the United States or this state and withlenders and enter into loan agreements, sales contracts, andleases with contracting parties, including participants (asdefined in IC 13-11-2-151.1) for any purpose permitted underIC 13-18-13 or IC 13-18-21, borrowers, lenders, developers, orusers, for the purpose of planning, regulating, and providing forthe financing and refinancing of any agricultural enterprise (asdefined in IC 5-28-31-1), rural development project (as definedin IC 5-28-31-20), industrial development project, purposepermitted under IC 13-18-13 and IC 13-18-21, or internationalexports, and distribute data and information concerning theencouragement and improvement of agricultural enterprises andagricultural employment, rural development projects, industrialdevelopment projects, international exports, and other types ofemployment in the state undertaken with the assistance of theauthority under this chapter.
(13) Enter into contracts or agreements with lenders and lessorsfor the servicing and processing of loans and leases pursuant to
the affected statutes.
(14) Provide technical assistance to local public bodies and toprofit and nonprofit entities in the development or operation ofagricultural enterprises, rural development projects, andindustrial development projects.
(15) To the extent permitted under its contract with the holdersof the bonds of the authority, consent to any modification withrespect to the rate of interest, time, and payment of anyinstallment of principal or interest, or any other term of anycontract, loan, loan note, loan note commitment, contract, lease,or agreement of any kind to which the authority is a party.
(16) To the extent permitted under its contract with the holdersof bonds of the authority, enter into contracts with any lendercontaining provisions enabling it to reduce the rental or carryingcharges to persons unable to pay the regular schedule of chargeswhen, by reason of other income or payment by any department,agency, or instrumentality of the United States of America or ofthis state, the reduction can be made without jeopardizing theeconomic stability of the agricultural enterprise, ruraldevelopment project, or industrial development project beingfinanced.
(17) Notwithstanding IC 5-13, but subject to the requirementsof any trust agreement entered into by the authority, invest:
(A) the authority's money, funds, and accounts;
(B) any money, funds, and accounts in the authority'scustody; and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established byresolution of the authority.
(18) Fix and revise periodically, and charge and collect, feesand charges as the authority determines to be reasonable inconnection with:
(A) the authority's loans, guarantees, advances, insurance,commitments, and servicing; and
(B) the use of the authority's services or facilities.
(19) Cooperate and exchange services, personnel, andinformation with any federal, state, or local government agency,or instrumentality of the United States or this state.
(20) Sell, at public or private sale, with or without publicbidding, any loan or other obligation held by the authority.
(21) Enter into agreements concerning, and acquire, hold, anddispose by any lawful means, land or interests in land, buildingimprovements, structures, personal property, franchises,patents, accounts receivable, loans, assignments, guarantees,and insurance needed for the purposes of the affected statutes.
(22) Take assignments of accounts receivable, loans,guarantees, insurance, notes, mortgages, security agreementssecuring notes, and other forms of security, attach, seize, or taketitle by foreclosure or conveyance to any industrial developmentproject when a guaranteed loan thereon is clearly in default and
when in the opinion of the authority such acquisition isnecessary to safeguard the industrial development projectguaranty fund, and sell, or on a temporary basis, lease or rentsuch industrial development project for any use.
(23) Expend money provided to the authority by the Indianaeconomic development corporation from the industrialdevelopment project guaranty fund created by IC 5-28-30,subject to the terms of any agreement with the Indianaeconomic development corporation governing the expenditureof that money.
(24) Purchase, lease as lessee, construct, remodel, rebuild,enlarge, or substantially improve industrial developmentprojects, including land, machinery, equipment, or anycombination thereof.
(25) Lease industrial development projects to users ordevelopers, with or without an option to purchase.
(26) Sell industrial development projects to users or developers,for consideration to be paid in installments or otherwise.
(27) Make direct loans from the proceeds of the bonds to usersor developers for:
(A) the cost of acquisition, construction, or installation ofindustrial development projects, including land, machinery,equipment, or any combination thereof; or
(B) eligible expenditures for an educational facility projectdescribed in IC 4-4-10.9-6.2(a)(2);
with the loans to be secured by the pledge of one (1) or morebonds, notes, warrants, or other secured or unsecured debtobligations of the users or developers.
(28) Lend or deposit the proceeds of bonds to or with a lenderfor the purpose of furnishing funds to such lender to be used formaking a loan to a developer or user for the financing ofindustrial development projects under this chapter.
(29) Enter into agreements with users or developers to allow theusers or developers, directly or as agents for the authority, towholly or partially construct industrial development projects tobe leased from or to be acquired by the authority.
(30) Establish reserves from the proceeds of the sale of bonds,other funds, or both, in the amount determined to be necessaryby the authority to secure the payment of the principal andinterest on the bonds.
(31) Adopt rules and guidelines governing its activitiesauthorized under the affected statutes.
(32) Use the proceeds of bonds to make guaranteedparticipating loans.
(33) Purchase, discount, sell, and negotiate, with or withoutguaranty, notes and other evidences of indebtedness.
(34) Sell and guarantee securities.
(35) Make guaranteed participating loans under IC 4-4-21-26.
(36) Procure insurance to guarantee, insure, coinsure, andreinsure against political and commercial risk of loss, and any
other insurance the authority considers necessary, includinginsurance to secure the payment of principal and interest onnotes or other obligations of the authority.
(37) Provide performance bond guarantees to support eligibleexport loan transactions, subject to the terms of the affectedstatutes.
(38) Provide financial counseling services to Indiana exporters.
(39) Accept gifts, grants, or loans from, and enter into contractsor other transactions with, any federal or state agency,municipality, private organization, or other source.
(40) Sell, convey, lease, exchange, transfer, or otherwisedispose of property or any interest in property, wherever theproperty is located.
(41) Cooperate with other public and private organizations topromote export trade activities in Indiana.
(42) Cooperate with the Indiana economic developmentcorporation in taking any actions necessary for theadministration of the agricultural loan and rural developmentproject guarantee fund established by IC 5-28-31.
(43) In cooperation with the Indiana economic developmentcorporation, take assignments of notes and mortgages andsecurity agreements securing notes and other forms of security,and attach, seize, or take title by foreclosure or conveyance toany agricultural enterprise or rural development project whena guaranteed loan to the enterprise or rural development projectis clearly in default and when in the opinion of the Indianaeconomic development corporation the acquisition is necessaryto safeguard the agricultural loan and rural development projectguarantee fund, and sell, or on a temporary basis, lease or rentthe agricultural enterprise or rural development project for anyuse.
(44) Expend money provided to the authority by the Indianaeconomic development corporation from the agricultural loanand rural development project guarantee fund created byIC 5-28-31, subject to the terms of any agreement with theIndiana economic development corporation governing theexpenditure of that money.
(45) Reimburse from bond proceeds expenditures for industrialdevelopment projects under this chapter.
(46) Acquire, hold, use, and dispose of the authority's income,revenues, funds, and money.
(47) Purchase, acquire, or hold debt securities or otherinvestments for the authority's own account at prices and in amanner the authority considers advisable, and sell or otherwisedispose of those securities or investments at prices withoutrelation to cost and in a manner the authority considersadvisable.
(48) Fix and establish terms and provisions with respect to:
(A) a purchase of securities by the authority, including datesand maturities of the securities; (B) redemption or payment before maturity; and
(C) any other matters that in connection with the purchaseare necessary, desirable, or advisable in the judgment of theauthority.
(49) To the extent permitted under the authority's contracts withthe holders of bonds or notes, amend, modify, and supplementany provision or term of:
(A) a bond, a note, or any other obligation of the authority;or
(B) any agreement or contract of any kind to which theauthority is a party.
(50) Subject to the authority's investment policy, do any act andenter into any agreement pertaining to a swap agreement (asdefined in IC 8-9.5-9-4) related to the purposes of the affectedstatutes in accordance with IC 8-9.5-9-5 and IC 8-9.5-9-7,whether the action is incidental to the issuance, carrying, orsecuring of bonds or otherwise.
(51) Do any act necessary or convenient to the exercise of thepowers granted by the affected statutes, or reasonably impliedfrom those statutes, including but not limited to compliancewith requirements of federal law imposed from time to time forthe issuance of bonds.
(b) The authority's powers under this chapter shall be interpretedbroadly to effectuate the purposes of this chapter and may not beconstrued as a limitation of powers. The omission of a power fromthe list in subsection (a) does not imply that the authority lacks thatpower. The authority may exercise any power that is not listed insubsection (a) but is consistent with the powers listed in subsection(a) to the extent that the power is not expressly denied by theConstitution of the State of Indiana or by another statute.
(c) This chapter does not authorize the financing of industrialdevelopment projects for a developer unless any written agreementthat may exist between the developer and the user at the time of thebond resolution is fully disclosed to and approved by the authority.
(d) The authority shall work with and assist the Indiana housingand community development authority established by IC 5-20-1-3,the ports of Indiana established under IC 8-10-1-3, and the state faircommission established by IC 15-13-2-1 in the issuance of bonds,notes, or other indebtedness. The Indiana housing and communitydevelopment authority, the ports of Indiana, and the state faircommission shall work with and cooperate with the authority inconnection with the issuance of bonds, notes, or other indebtedness.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.24-1983,SEC.3; P.L.20-1985, SEC.4; P.L.2-1987, SEC.2; P.L.25-1987,SEC.5; P.L.20-1988, SEC.8; P.L.11-1990, SEC.29; P.L.24-1995,SEC.12; P.L.4-2002, SEC.3; P.L.235-2005, SEC.19; P.L.232-2005,SEC.3; P.L.1-2006, SEC.28 and P.L.181-2006, SEC.1;P.L.162-2007, SEC.6; P.L.2-2008, SEC.15; P.L.98-2008, SEC.2.
IC 4-4-11-15.1
Code of ethics
Sec. 15.1. (a) The authority shall:
(1) without complying with IC 4-22-2, adopt a policyestablishing a code of ethics for its employees; or
(2) decide it wishes to be under the jurisdiction and rulesadopted by the state ethics commission.
(b) A code of ethics adopted under this section must be consistentwith state law and approved by the governor.
As added by P.L.5-1996, SEC.2. Amended by P.L.235-2005, SEC.20.
IC 4-4-11-15.2
Guaranteed participating loans; export loans required to be sold;bond issuance
Sec. 15.2. (a) Before using the proceeds of bonds to make aguaranteed participating loan, the authority shall require the financialinstitution to which the authority makes the guaranteed participatingloan to make eligible export loans and sell them to the authoritywithin a reasonable period of time.
(b) Issuance of bonds by the authority to fund the program of theauthority under IC 4-4-21 is subject to the general provisions for theissuance of bonds set forth in this chapter, except for therequirements for the issuance of bonds under sections 17 and 17.5 ofthis chapter.
As added by P.L.20-1988, SEC.9. Amended by P.L.11-1990, SEC.30.
IC 4-4-11-15.3
Prohibited activities
Sec. 15.3. The authority:
(1) may not deal in securities within the meaning of or subjectto any securities law, securities exchange law, or securitiesdealers law of the United States of America or of the state or ofany other state or jurisdiction, domestic or foreign, except asauthorized in the affected statutes;
(2) may not:
(A) emit bills of credit;
(B) accept deposits of money for time or demand deposit;
(C) administer trusts;
(D) engage in any form or manner, or in the conduct of, anyprivate or commercial banking business; or
(E) act as a savings bank, savings association, or any otherkind of financial institution; and
(3) may not engage in any form of private or commercialbanking business.
As added by P.L.235-2005, SEC.21. Amended by P.L.1-2006,SEC.29.
IC 4-4-11-15.4
Issuance of bonds for the wastewater revolving loan program andthe drinking water revolving loan program Sec. 15.4. (a) The authority may issue bonds or notes and investor loan the proceeds of those bonds or notes to a participant (asdefined in IC 13-11-2-151.1) for the purposes of:
(1) the wastewater revolving loan program established byIC 13-18-13-1; and
(2) the drinking water revolving loan program established byIC 13-18-21-1.
(b) If the authority loans money to or purchases debt securities ofa political subdivision (as defined in IC 13-11-2-164(a) andIC 13-11-2-164(b)), the authority may, by the resolution approvingthe bonds or notes, provide that subsection (c) is applicable to thepolitical subdivision.
(c) Notwithstanding any other law, to the extent that anydepartment or agency of the state, including the treasurer of state, isthe custodian of money payable to the political subdivision (otherthan for goods or services provided by the political subdivision), atany time after written notice to the department or agency head fromthe authority that the political subdivision is in default on thepayment of principal or interest on the obligations then held orowned by or arising from an agreement with the authority, thedepartment or agency shall withhold the payment of that money fromthat political subdivision and pay over the money to the authority forthe purpose of paying principal of and interest on bonds or notes ofthe authority. However, the withholding of payment from thepolitical subdivision and payment to the authority under this sectionmust not adversely affect the validity of the obligation in default.
As added by P.L.235-2005, SEC.22.
IC 4-4-11-15.5
Public offering for sale or lease of property or interests acquiredfor an industrial development project
Sec. 15.5. (a) In addition to the powers enumerated in section15(a) of this chapter, the authority may, in lieu of a private sale orleasing as authorized by section 15(a) of this chapter or a financingof an industrial development project under section 17 of this chapter,decide to hold a public offering under this section for the sale orleasing of any land or interests in land, building improvements,structures, personal property, and franchises and patents acquired bythe authority under this chapter for an industrial developmentproject. If the authority decides to hold a public offering for the saleor leasing of any property or interests acquired for an industrialdevelopment project, the offering shall be made in accordance withthis section.
(b) Before offering for sale or lease to the public any property orinterests acquired for an industrial development project under thissection, the authority shall prepare an offering sheet showing theproperty or interests to be offered and copies of the offering sheetsshall be furnished to prospective buyers or lessees. Maps and platsof the property and any additional information consideredappropriate by the authority shall also be kept available for
inspection at the office of the authority.
(c) The authority shall publish a notice of the offering inaccordance with IC 5-3-1. The notice must state that at a designatedtime the authority will open and consider written offers for thepurchase or lease of the property or interests being offered. In givingthe notice, it is not necessary to describe specifically the property orinterests or to specify the exact terms of the disposition, but thenotice must state the general location of the property or interests andcall attention generally to any requirements or limitations that theauthority may establish in respect to the industrial developmentproject.
(d) At the time fixed in the notice, the authority shall open andconsider any offers received. All offers received shall be opened atpublic meetings of the authority and shall be kept open for publicinspection.
(e) The authority may reject any or all bids or may make awardsto the highest and best bidder or bidders. In determining the highestand best bids, the authority may take into consideration thefollowing:
(1) The size and character of the improvements for theindustrial development project as proposed by the bidder to bemade on the property and the terms and conditions of theconsideration offered by the bidder.
(2) The bidder's plans and ability to carry out the industrialdevelopment project with reasonable promptness.
(3) Whether the property and interests to be acquired by thebidder will be leased or released for the industrial developmentproject.
(4) The nature and extent of any obligations to be undertaken bythe authority in conjunction with the improvement of theproperty or interests to be acquired for the industrialdevelopment project as proposed by the bidder.
(5) The potential impact of the bidder's proposal on the creationof new employment or the retention of existing employmentresulting from the industrial development project.
(6) The potential impact of the bidder's proposal to attract orestablish a major new business enterprise or to retain or expanda significant existing business enterprise that will provide orpreserve gainful employment for the citizens of the state.
(7) The economic benefits to the state and its citizens that willresult from the industrial development project, as proposed bythe bidder, including the dollar volume of new or preservedwages and salaries, increases in or preservation of state andlocal government tax revenues, the incremental economicbenefits to the citizens of the state, the state, and localgovernmental units potentially resulting from the industrialdevelopment project as proposed by the bidder, and any otherdirect or indirect economic benefit to the state and its citizensresulting from the industrial development project as proposedby the bidder. (8) The potential impact and benefit to the state and its citizensof the industrial development project as proposed by the bidderfrom the standpoint of both human and economic welfare.
(f) In making an award to the highest and best bidder as providedin subsection (e), the authority shall determine whether in itsjudgment the potential benefits to the state and its citizens of theindustrial development project as proposed by the bidder exceed thedirect costs to the authority of acquiring the property and interestsbeing offered for sale or lease for the industrial development projectless any sums to be paid by the successful bidder pursuant to its bid.The authority's judgment concerning this determination shall bebased on the economic studies, analyses, and projections that theauthority determines are reasonably necessary. The authority'sdetermination is final and conclusive.
(g) The authority may contract with a bidder concerning any ofthe factors listed in subsection (e), and the contract may provide forthe deposit of surety bonds, the making of good faith deposits,liquidated damages, the right of reversion or repurchase, or otherrights and remedies if the bidder fails to comply with the contract.
(h) After the opening, consideration, and determination of thewritten offers filed in response to the notice, the authority maydispose of all or part of the remaining available property or interestsfor any approved use, either at public sale or by private negotiationcarried on by the authority, its regular employees, or real estateexperts employed for that purpose. For a period of thirty (30) daysafter the opening of the written offers and determination on them, nosale, exchange, or lease may be made on terms less than that shownon the offering sheet, but after that period the authority may adjustthe offering terms it considers necessary to further the industrialdevelopment project.
(i) An action to contest the validity of any sale or lease awardedand approved by the authority under this section may not becommenced more than thirty (30) days following the authority'sadoption of a resolution designating the successful bidder or biddersand stating and approving the basic terms and conditions of the saleor lease.
As added by P.L.24-1987, SEC.4. Amended by P.L.11-1990, SEC.31.
IC 4-4-11-15.6
Additional authority powers
Sec. 15.6. In addition to the powers listed in section 15 of thischapter, the authority may:
(1) issue bonds under terms and conditions determined by theauthority and use the proceeds of the bonds to acquireobligations issued by any entity authorized to acquire, finance,construct, or lease capital improvements under IC 5-1-17;
(2) issue bonds under terms and conditions determined by theauthority and use the proceeds of the bonds to acquire anyobligations issued by the northwest Indiana regionaldevelopment authority established by IC 36-7.5-2-1; and (3) after December 31, 2009, issue bonds under terms andconditions determined by the authority and use the proceeds ofthe bonds to acquire any obligations issued by either thecommuter rail service board established under IC.8-24-5 or theregional demand and scheduled bus service board establishedunder IC.8-24-6.
As added by P.L.214-2005, SEC.1. Amended by P.L.182-2009(ss),SEC.50.
IC 4-4-11-16
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 4-4-11-16.1
Repealed
(Repealed by P.L.2-2005, SEC.131.)
IC 4-4-11-16.3
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 4-4-11-16.5
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 4-4-11-17
Industrial development projects; financing; procedure; approval
Sec. 17. (a) The authority may enter into negotiations with one (1)or more persons concerning the terms and conditions of financingagreements for industrial development projects. The authority shallconsider whether a proposed industrial development project mayhave an adverse competitive effect on similar industrial developmentprojects already constructed or operating in the local governmentalunit where the industrial development project will be located.Preliminary expenses in connection with negotiations under thissection may be paid from:
(1) money furnished by the proposed user or developer;
(2) money made available by the state or federal government, orby any of their departments or agencies; or
(3) money of the authority.
(b) The authority shall prepare a report that:
(1) briefly describes the proposed industrial developmentproject;
(2) estimates the number and expense of public works orservices that would be made necessary or desirable by theproposed industrial development project, including public ways,schools, water, sewers, street lights, and fire protection;
(3) estimates the total costs of the proposed industrialdevelopment project;
(4) for an industrial development project that is not exclusively
either a pollution control facility or an educational facilityproject, estimates the number of jobs and the payroll to becreated or saved by the project;
(5) for pollution control facilities, describes the facilities andhow they will abate, reduce, or prevent pollution;
(6) for educational facility projects, describes how the projectpromotes the educational enrichment (including cultural,intellectual, scientific, or artistic opportunities) of the people ofthe state; and
(7) for child care facility projects, describes the facilities andhow the facilities promote accessibility to and increased optionsfor child care for the people of the state.
The report shall be submitted to the executive director or chairmanof the plan commission, if any, having jurisdiction over the industrialdevelopment project and, if the number of new jobs estimatedexceeds one hundred (100), to the superintendent of the schoolcorporation where the industrial development project will be located.The executive director or chairman of the plan commission and theschool superintendent may formulate their written commentsconcerning the report and transmit their comments, if any, to theauthority within five (5) days from the receipt of the report.
(c) The authority shall hold a public hearing, which may beconducted by the authority, or any officer, member, or agentdesignated thereby, on the proposed financing agreement for theindustrial development project, after giving notice by publication inone (1) newspaper of general circulation in the city, town, or countywhere the industrial development project is to be located at least ten(10) days in advance of this public hearing.
(d) If the authority finds that the industrial development projectwill be of benefit to the health, safety, morals, and general welfare ofthe area where the industrial development project is to be located,and complies with the purposes and provisions of this chapter, it mayby resolution approve the proposed financing agreement. Thisresolution may also authorize the issuance of bonds payable solelyfrom revenues and receipts derived from the financing agreement orfrom payments made under an agreement to guarantee obligations ofthe developer, a user, a related person, or the authority by adeveloper, a user, a related person thereto, or the authority and theIndiana economic development corporation pursuant to the industrialdevelopment project guaranty fund under IC 5-28-30. The bonds arenot in any respect a general obligation of the state, nor are theypayable in any manner from revenues raised by taxation.
(e) A financing agreement approved under this section mustprovide for payments in an amount sufficient to pay the principal of,premium, if any, and interest on the bonds authorized for thefinancing of the industrial development project. However, interestpayments for the anticipated construction period, plus a period of notmore than one (1) year, may be funded in the bond issue. The termof a financing agreement may not exceed fifty (50) years from thedate of any bonds issued under the financing agreement. However,
a financing agreement does not terminate after fifty (50) years if adefault under that financing agreement remains uncured, unless thetermination is authorized by the terms of the financing agreement. Ifthe authority retains an interest in the industrial development project,the financing agreement must require the user or the developer to payall costs of maintenance, repair, taxes, assessments, insurancepremiums, trustee's fees, and any other expenses relating to theindustrial development projects, so that the authority will not incurany expenses on account of the industrial development projects otherthan those that are covered by the payments provided for in thefinancing agreement.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.20-1985,SEC.6; P.L.24-1987, SEC.6; P.L.11-1990, SEC.33; P