CHAPTER 3. POWERS AND DUTIES
IC 5-1.5-3
Chapter 3. Powers and Duties
IC 5-1.5-3-1
Powers
Sec. 1. The bank is granted all powers necessary, convenient, orappropriate to carry out and effectuate its public and corporatepurposes, including, but not limited to, the following:
(1) Have a perpetual existence as a body politic and corporate,and an independent instrumentality, but not a state agency,exercising essential public functions.
(2) Sue and be sued.
(3) Adopt and alter an official seal.
(4) Make and enforce bylaws and rules for the conduct of itsbusiness and for the use of its services and facilities, whichbylaws and rules may be adopted by the bank withoutcomplying with IC 4-22-2.
(5) Acquire, hold, use, and dispose of its income, revenues,funds, and money.
(6) Acquire, rent, lease, hold, use, and dispose of property forits purposes.
(7) Make contracts and incur liabilities, borrow money, issue itsnegotiable bonds or notes, subject to provisions for registrationof negotiable bonds and notes, and provide for and secure theirpayment and provide for the rights of their holders, andpurchase and hold and dispose of any of its bonds or notes.
(8) Fix and revise from time to time and charge and collect feesand charges for the use of its services or facilities.
(9) Accept gifts or grants of property, funds, money, materials,labor, supplies, or services from the United States, anygovernmental unit, or any person, carry out the terms orprovisions or make agreements with respect to the gifts orgrants, and do all things necessary, useful, desirable, orconvenient in connection with procuring, accepting, ordisposing of the gifts or grants.
(10) Do anything authorized by this article, through its officers,agents, or employees or by contracts with a person.
(11) Procure insurance against any losses in connection with itsproperty, operations, or assets in amounts and from insurers asit considers desirable.
(12) Cooperate with and exchange services, personnel, andinformation with any federal, state, or local government agency.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.6;P.L.46-1987, SEC.6.
IC 5-1.5-3-2
Duties
Sec. 2. The bank may:
(1) make, enter into, and enforce all contracts necessary,convenient, or desirable for the purposes of the bank or
pertaining to:
(A) a loan to or a lease or an agreement with a qualifiedentity;
(B) a purchase, acquisition, or sale of securities or otherinvestments; or
(C) the performance of its duties and execution of any of itspowers under this article;
(2) purchase, acquire, or hold securities or other investments forthe bank's own account or for a qualified entity at prices and ina manner the bank considers advisable, and sell or otherwisedispose of those securities or investments at prices withoutrelation to cost and in a manner the bank considers advisable;
(3) prescribe the form of application or procedure required ofa qualified entity for a loan or purchase of its securities, fix theterms and conditions of the loan or purchase, and enter intoagreements with qualified entities with respect to loans orpurchases;
(4) render services to a qualified entity in connection with apublic or private sale of its securities, including advisory andother services, and charge for services rendered;
(5) charge for its costs and services in review or considerationof a proposed loan to a qualified entity or purchase by the bankof securities, whether the loan is made or the securitiespurchased;
(6) fix and establish terms and provisions with respect to:
(A) a purchase of securities by the bank, including date andmaturities 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 thebank;
(7) to the extent permitted under its contracts with the holdersof bonds or notes of the bank, consent to modification of therate of interest, time, and payment of installment of principal orinterest, security, or any other term of a bond or note, contract,or agreement of any kind to which the bank is a party;
(8) appoint and employ general or special counsel, accountants,financial advisors or experts, and all such other or differentofficers, agents, and employees as it requires and determinetheir qualifications, duties, and compensation, all in order toeffectuate the purposes of this article;
(9) in connection with the purchase of any securities, considerthe need, desirability, or eligibility of the securities, the abilityof the qualified entity to secure financing from other sourcesand the costs thereof, and the particular public improvement orpurpose to be financed or refinanced with the proceeds of thesecurities to be purchased by the bank; and
(10) acquire, hold, and lease or sell property to a qualifiedentity. The lease or sale under this subdivision may be madeunder a financing lease, lease with option to purchase,
conditional sales contract, or any other form of agreement, uponthe terms and conditions that the board considers advisable inorder to promote the purpose of this article.
The bank shall not be considered to have engaged in any actsprohibited by this chapter in performing any duty or exercising anypower described in this section.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.7;P.L.46-1987, SEC.7; P.L.29-1992, SEC.1.
IC 5-1.5-3-3
Investments
Sec. 3. Money not being used to purchase securities may betemporarily invested and reinvested pending the disbursements ofthat money as provided in a resolution of the bank or in a trustagreement entered into by the bank under IC 5-1.5-4-8.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.8.
IC 5-1.5-3-4
Prohibited acts
Sec. 4. The bank may not:
(1) lend money other than to a qualified entity;
(2) purchase securities other than:
(A) a security to which a qualified entity is a party as issuer,borrower, or lessee; or
(B) an investment under section 3 of this chapter;
(3) deal in securities within the meaning of or subject to anysecurities law, securities exchange law, or securities dealers lawof the United States of America or of the state or of any otherstate or jurisdiction, domestic or foreign, except as authorizedin this article;
(4) emit bills of credit, or accept deposits of money for time ordemand deposit, or administer trusts, or engage in any form ormanner, or in the conduct of, any private or commercial bankingbusiness, or act as a savings bank or savings association, or anyother kind of financial institution; or
(5) engage in any form of private or commercial bankingbusiness.
As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.8;P.L.79-1998, SEC.6.
IC 5-1.5-3-5
Audit of books and accounts; costs; copy; annual report togovernor
Sec. 5. (a) The bank shall have an audit of its books and accountsmade at least once in each year by a certified public accounting firmor the state board of accounts. If the audit is to be conducted by acertified public accounting firm, the firm may not be selected withouta review of the firm's proposal and approval of the firm by the stateboard of accounts. The cost of the audit shall be considered anexpense of the bank, and a copy of the audit shall be made available
to the public.
(b) The bank shall submit a report of its activities for each fiscalyear to the governor before November 1 of the calendar year inwhich the bank's fiscal year ends. Each report shall set forth acomplete operating and financial statement covering its operationsduring that fiscal year.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.9;P.L.46-1987, SEC.9.
IC 5-1.5-3-6
Annual budget
Sec. 6. The board shall adopt, on either a calendar or fiscal yearbasis, an annual budget, which may be amended from time to timeduring the year.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.10.
IC 5-1.5-3-7
Expenses
Sec. 7. All expenses incurred in carrying out this article arepayable solely from revenues of the bank or funds appropriated underthis article and nothing in this article authorizes the bank to incur anindebtedness or liability on behalf of or payable by the state.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.11.
IC 5-1.5-3-8
Public meetings; records
Sec. 8. All meetings of the bank shall be open to the public inaccordance with and subject to the limitations of IC 5-14-1.5. Allrecords of the bank shall be subject to the requirements of IC 5-14-3.
As added by P.L.25-1984, SEC.1.