CHAPTER 11.4. ADDITIONAL AUTHORITY: TWENTY-FIRST CENTURY RESEARCH AND TECHNOLOGY FUND
IC 4-4-11.4
Chapter 11.4. Additional Authority: Twenty-First CenturyResearch and Technology Fund
IC 4-4-11.4-1
"Authority"
Sec. 1. As used in this chapter, "authority" refers to the Indianafinance authority.
As added by P.L.232-2005, SEC.4. Amended by P.L.1-2006, SEC.32.
IC 4-4-11.4-2
"Bonds"
Sec. 2. As used in this chapter, "bonds" means any bonds, notes,debentures, interim certificates, revenue anticipation notes, warrants,or any other evidences of indebtedness of the authority.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-3
"Financial institution"
Sec. 3. As used in this chapter, "financial institution" means afinancial institution (as defined in IC 28-1-1).
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-4
"Holder"
Sec. 4. As used in this chapter, "holder" means a person who isthe:
(1) bearer of any outstanding bond or note registered to beareror not registered; or
(2) registered owner of any outstanding bond or note that isregistered other than to bearer.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-5
"Person"
Sec. 5. As used in this chapter, "person" means any individual,partnership, firm, association, joint venture, limited liabilitycompany, or corporation.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-6
"Reserve fund"
Sec. 6. As used in this chapter, "reserve fund" means a reservefund established under section 15 of this chapter.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-7
Bonds; issuance; purposes; liability of authority; pledges
Sec. 7. (a) The authority may issue its bonds in principal amountsthat the authority considers necessary to provide funds for the
purposes under this chapter, including the following:
(1) Providing a source of money for the Indiana twenty-firstcentury research and technology fund established byIC 5-28-16-2.
(2) Payment, funding, or refunding of the principal of, orinterest or redemption premiums on, bonds issued by theauthority under this chapter whether the bonds or interest to bepaid, funded, or refunded have or have not become due.
(3) Establishment or increase of reserves to secure or to paybonds or interest on bonds and all other costs or expenses of theauthority incident to and necessary or convenient to carry outthe authority's corporate purposes and powers under thischapter.
(b) Every issue of bonds shall be obligations of the authoritypayable solely out of the revenues or funds of the authority undersection 15 of this chapter, subject to agreements with the holders ofa particular series of bonds pledging a particular revenue or fund.Bonds may be additionally secured by a pledge of a grant orcontributions from the United States, a political subdivision, or aperson, or by a pledge of income or revenues, funds, or money of theauthority from any source.
As added by P.L.232-2005, SEC.4. Amended by P.L.1-2006, SEC.33.
IC 4-4-11.4-8
Bonds not state debt; state pledge to holders of bonds
Sec. 8. (a) A bond of the authority:
(1) is not a debt, liability, loan of the credit, or pledge of thefaith and credit of the state or of any political subdivision;
(2) is payable solely from the money pledged or available for itspayment under this chapter, unless funded or refunded by bondsof the authority; and
(3) must contain on its face a statement that the authority isobligated to pay principal and interest, and redemptionpremiums, if any, and that the faith, credit, and taxing power ofthe state are not pledged to the payment of the bond.
(b) The state pledges to and agrees with the holders of the bondsissued under this chapter that the state will not:
(1) limit or restrict the rights vested in the authority to fulfill theterms of any agreement made with the holders of its bonds; or
(2) in any way impair the rights or remedies of the holders ofthe bonds;
until the bonds, together with the interest on the bonds, and intereston unpaid installments of interest, and all costs and expenses inconnection with an action or proceeding by or on behalf of theholders, are fully met, paid, and discharged.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-9
Bonds; negotiability
Sec. 9. The bonds of the authority are negotiable instruments for
all purposes of the Uniform Commercial Code (IC 26), subject onlyto the provisions of the bonds for registration.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-10
Bonds; maximum amount; proceedings; interest; redemption
Sec. 10. (a) Bonds of the authority must be authorized byresolution of the authority, may be issued in one (1) or more series,and must:
(1) bear the date;
(2) mature at the time or times;
(3) be in the denomination;
(4) be in the form;
(5) carry the conversion or registration privileges;
(6) have the rank or priority;
(7) be executed in the manner;
(8) be payable from the sources in the medium of payment atthe place inside or outside Indiana; and
(9) be subject to the terms of redemption;
as the resolution of the authority or the trust agreement securing thebonds provides.
(b) Bonds may be issued under this chapter without obtaining theconsent of any state agency and without any other proceeding orcondition other than the proceedings or conditions specified in thischapter. However, the total principal of all outstanding bonds issuedunder this chapter may not exceed one billion dollars($1,000,000,000). Not more than two hundred million dollars($200,000,000) in bonds may be issued in any state fiscal year.Bonds issued before July 1, 2007, must provide that debt principaland other debt service payments are not required before July 1, 2007.Bonds may not be issued under this chapter after June 30, 2011,other than bonds issued to refinance bonds originally issued beforeJuly 1, 2011.
(c) The rate or rates of interest on the bonds may be fixed orvariable. Variable rates shall be determined in the manner and inaccordance with the procedures set forth in the resolution authorizingthe issuance of the bonds. Bonds bearing a variable rate of interestmay be converted to bonds bearing a fixed rate or rates of interest,and bonds bearing a fixed rate or rates of interest may be convertedto bonds bearing a variable rate of interest, to the extent and in themanner set forth in the resolution pursuant to which the bonds areissued. The interest on bonds may be payable semiannually orannually or at any other interval or intervals as may be provided inthe resolution, or the interest may be compounded and paid atmaturity or at any other times as may be specified in the resolution.
(d) The bonds may be made subject to mandatory redemption bythe authority at the times and under the circumstances set forth in theauthorizing resolution.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-11
Bonds; sale; notice
Sec. 11. Bonds of the authority may be sold at public or privatesale at the price the authority determines. If bonds of the authorityare to be sold at public sale, the authority shall publish notice of thesale for two (2) weeks in two (2) newspapers published and ofgeneral circulation in Indianapolis.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-12
Bonds; refunding
Sec. 12. The authority may periodically issue its bonds under thischapter and pay and retire the principal of the bonds or pay theinterest due thereon or fund or refund the bonds from proceeds ofbonds, or from other funds or money of the authority available forthat purpose in accordance with a contract between the authority andthe holders of the bonds.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-13
Bonds; trust agreement or resolution; expenses
Sec. 13. (a) In the discretion of the authority, any bonds issuedunder this chapter may be secured by a trust agreement by andbetween the authority and a corporate trustee, which may be any trustcompany or bank having the powers of a trust company within oroutside Indiana.
(b) The trust agreement or the resolution providing for theissuance of the bonds may contain provisions for protecting andenforcing the rights and remedies of the holders of any such bondsas are reasonable and proper and not in violation of law.
(c) The trust agreement or resolution may set forth the rights andremedies of the holders of any bonds and of the trustee and mayrestrict the individual right of action by the holders.
(d) In addition to the provisions of subsections (a), (b), and (c),any trust agreement or resolution may contain other provisions theauthority considers reasonable and proper for the security of theholders of any bonds.
(e) All expenses incurred in carrying out the trust agreement orresolution may be paid from revenues or assets pledged or assignedto the payment of the principal of and the interest on bonds or fromany other funds available to the authority.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-14
Bonds; purchase by authority
Sec. 14. The authority may purchase bonds of the authority out ofthe authority's funds or money available for the purchase of its ownbonds. The authority may hold, cancel, or resell the bonds subject to,and in accordance with, agreements with holders of its bonds. Unlesscanceled, bonds held by the authority are considered to be held for
resale or transfer and the obligation evidenced by the bonds shall notbe considered to be extinguished.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-15
Debt service reserve fund; reserve fund; deposits and transfers
Sec. 15. (a) The authority may establish and maintain a debtservice fund, and if necessary, a reserve fund, for each issue of bondsin which there shall be deposited or transferred:
(1) all money appropriated by the general assembly for thepurpose of the fund in accordance with section 18(a) of thischapter;
(2) all proceeds of bonds required to be deposited in the fund byterms of a contract between the authority and its holders or aresolution of the authority with respect to the proceeds ofbonds;
(3) all other money appropriated by the general assembly to thefunds; and
(4) any other money or funds of the authority that the authoritydecides to deposit in either fund.
(b) Subject to section 18(b) of this chapter, money in any reservefund shall be held and applied solely to the payment of the intereston and principal of bonds of the authority as the interest andprincipal become due and payable and for the retirement of bonds.
(c) Money in any reserve fund in excess of the required debtservice reserve, whether by reason of investment or otherwise, maybe withdrawn at any time by the authority and transferred to anotherfund or account of the authority, subject to the provisions of anyagreement with the holders of any bonds.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-16
Reserve fund; investments
Sec. 16. Money in any reserve fund may be invested in the mannerprovided in the trust agreement or the resolution authorizing issuanceof the bonds.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-17
Valuation of reserve fund investments
Sec. 17. For purposes of valuation, investments in the reservefund shall be valued at par, or if purchased at less than par, at costunless otherwise provided by resolution or trust agreement of theauthority. Valuation on a particular date shall include the amount ofinterest then earned or accrued to that date on the money orinvestments in the reserve fund.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-18
Debt service appropriation; nonliability of state; transfer of excess
funds
Sec. 18. (a) In order to assure the payment of debt service onbonds of the authority issued under this chapter or maintenance ofthe required debt service reserve in any reserve fund, the generalassembly may annually or biannually appropriate to the authority fordeposit in one (1) or more of the funds the sum, certified by thechairman of the authority to the general assembly, that is necessaryto pay the debt service on the bonds or to restore one (1) or more ofthe funds to an amount equal to the required debt service reserve.The chairman annually, before December 1, shall make and deliverto the general assembly the chairman's certificate stating the sumrequired to pay debt service on the bonds or to restore one (1) ormore of the funds to an amount equal to the required debt servicereserve. This subsection does not create a debt or liability of the stateto make any appropriation.
(b) All amounts received on account of money appropriated by thestate to any fund shall be held and applied in accordance with section15(b) of this chapter. However, at the end of each fiscal year, if theamount in any fund exceeds the debt service or required debt servicereserve, any amount representing earnings or income received onaccount of any money appropriated to the funds that exceeds theexpenses of the authority for that fiscal year may be transferred to theIndiana twenty-first century research and technology fundestablished by IC 5-28-16-2.
As added by P.L.232-2005, SEC.4. Amended by P.L.1-2007, SEC.8.
IC 4-4-11.4-19
Combining reserve funds
Sec. 19. Subject to any agreement with its holders, the authoritymay combine a reserve fund established for an issue of bonds intoone (1) or more reserve funds.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-20
Establishment of additional funds, reserves, and accounts
Sec. 20. The authority may establish additional reserves or otherfunds or accounts as the authority considers necessary, desirable, orconvenient to further the accomplishment of the authority's purposesor to comply with any of the authority's agreements or resolutions.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-21
Use of funds or accounts for payment of bonds
Sec. 21. Unless the resolution or trust agreement authorizing thebonds provides otherwise, money or investments in a fund or accountof the authority established or held for the payment of bonds shall beapplied to the payment or retirement of the bonds, and to no otherpurpose.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-22
Limitation of actions contesting validity of bonds
Sec. 22. (a) An action to contest the validity of any bonds of theauthority to be sold at public sale may not be brought after thefifteenth day following the first publication of notice of the sale ofthe bonds. An action to contest the validity of any bond sale underthis chapter may not be brought after the fifth day following the bondsale.
(b) If bonds are sold at private sale, an action to contest thevalidity of such bonds may not be brought after the fifteenth dayfollowing the adoption of the resolution authorizing the issuance ofthe bonds.
(c) If an action challenging the bonds of the authority is notbrought within the time prescribed by subsection (a) or (b),whichever is applicable, all bonds of the authority are conclusivelypresumed to be fully authorized and issued under the laws of thestate, and a person or a qualified entity is estopped from questioningtheir authorization, sale, issuance, execution, or delivery by theauthority.
(d) If this chapter is inconsistent with any other law (general,special, or local), this chapter controls.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-23
Exemption of authority property from judgment liens
Sec. 23. All property of the authority is exempt from levy and saleby virtue of an execution and no execution or other judicial processmay issue against the property. A judgment against the authority maynot be a charge or lien upon its property. However, this section doesnot apply to or limit the rights of the holder of bonds to pursue aremedy for the enforcement of a pledge or lien given by the authorityon the authority's revenues or other money.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-24
Pledge of revenues; filing or recording not required
Sec. 24. A pledge of revenues or other money made by theauthority is binding from the time the pledge is made. Revenues orother money so pledged and thereafter received by the authority areimmediately subject to the lien of the pledge without any further act,and the lien of a pledge is binding against all parties having claimsof any kind in tort, contract, or otherwise against the authority,regardless of whether the parties have notice of the lien. Neither theresolution nor any other instrument by which a pledge is createdneeds to be filed or recorded except in the records of the authority.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-25
Receipt of federal or state funds
Sec. 25. The chairman of the authority may receive from the
United States of America or any department or agency thereof, orany state agency any amount of money as and when appropriated,allocated, granted, turned over, or in any way provided for thepurposes of the authority or this chapter, and those amounts shall,unless otherwise directed by the federal authority, be credited to andbe available to the authority.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-26
Deposit of funds with financial institution
Sec. 26. A financial institution may give to the authority a goodand sufficient undertaking with such sureties as are approved by theauthority to the effect that the financial institution shall faithfullykeep and pay over to the order of or upon the warrant of the authorityor the authority's authorized agent all those funds deposited with thefinancial institution by the authority and agreed interest under or byreason of this chapter, at such times or upon such demands as may beagreed with the authority or instead of these sureties, deposit with theauthority or the authority's authorized agent or a trustee or for theholders of bonds, as collateral, those securities as the authority mayapprove. The deposits of the authority may be evidenced by anagreement in the form and upon the terms and conditions that may beagreed upon by the authority and the financial institution.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-27
Agreements or contracts with financial institutions
Sec. 27. The authority may enter into agreements or contracts witha financial institution inside or outside Indiana as the authorityconsiders necessary, desirable, or convenient for rendering servicesin connection with the care, custody, or safekeeping of securities orother investments held or owned by the authority, for renderingservices in connection with the payment or collection of amountspayable as to principal or interest, and for rendering services inconnection with the delivery to the authority of securities or otherinvestments purchased by or sold by the authority, and to pay thecost of those services. The authority may also, in connection withany of the services to be rendered by a financial institution as to thecustody and safekeeping of its securities or investments, requiresecurity in the form of collateral bonds, surety agreements, orsecurity agreements in such form and amount as, the authorityconsiders necessary or desirable.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-28
Investment in bonds by financial institutions and fiduciaries
Sec. 28. Notwithstanding the restrictions of any other law, allfinancial institutions, investment companies, insurance companies,insurance associations, executors, administrators, guardians, trustees,and other fiduciaries may legally invest sinking funds, money, or
other funds belonging to them or within their control in bonds issuedunder this chapter.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-29
Tax exemption; bonds and property of authority
Sec. 29. All property of the authority is public property devotedto an essential public and governmental function and purpose and isexempt from all taxes and special assessments, direct or indirect, ofthe state or a political subdivision of the state. All bonds issued underthis chapter are issued by a body corporate and public of the state,but not a state agency, and for an essential public and governmentalpurpose and the bonds, the interest thereon, the proceeds received bya holder from the sale of the bonds to the extent of the holder's costof acquisition, proceeds received upon redemption before maturity,and proceeds received at maturity and the receipt of the interest andproceeds are exempt from taxation in the state for all purposes excepta state inheritance tax imposed under IC 6-4.1.
As added by P.L.232-2005, SEC.4.
IC 4-4-11.4-30
Bonds exempt from registration
Sec. 30. Any bonds issued by the authority under this chapter areexempt from the registration and other requirements of IC 23-19 andany other securities registration laws.
As added by P.L.232-2005, SEC.4. Amended by P.L.27-2007, SEC.3.
IC 4-4-11.4-31
Application of chapter
Sec. 31. This chapter is supplemental to all other statutesgoverning the authority.
As added by P.L.232-2005, SEC.4.