IC 5-1-16.5
    Chapter 16.5. Indiana Health and Educational Facilities FinancingAuthority; Additional Provisions; Financing Projects for PrivateColleges and Universities; Participation in Risk Retention Group

IC 5-1-16.5-1
Declaration; purpose
    Sec. 1. It is declared:
        (1) that for the benefit of the people of the state, the conductand increase of their commerce, the protection andenhancement of their welfare, the development of continuedprosperity and the improvement of their health and livingconditions, it is essential that this and future generations ofyouth be given the fullest opportunity to learn and to developtheir intellectual and mental capacities and skills;
        (2) that to achieve the ends in subdivision (1), it is of the utmostimportance that nonprofit colleges or universities within Indianabe provided with appropriate additional means to assist youthin achieving the required levels of learning and development oftheir intellectual and mental capacities and skills; and
        (3) that it is the purpose of this chapter to provide a measure ofassistance and an alternative method to enable nonprofitcolleges or universities in Indiana to refund or refinanceoutstanding indebtedness incurred by nonprofit colleges oruniversities in Indiana for the renovation, construction,acquisition, or equipping of educational facilities, to establishliability or other loss insurance reserves or to contribute thoseinsurance reserves or other capital to a risk retention group toprovide insurance coverage against liability claims or otherlosses, and to provide the needed additional educationalfacilities for the public benefit and good, and in execution of thepublic policy set forth in this section.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-2
Powers
    Sec. 2. The exercise of the powers granted by this chapter must bein all respects for the benefit of the people of Indiana, for theincrease of their commerce, welfare, and prosperity, and for theimprovement of their health and living conditions.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-3
Liberal construction
    Sec. 3. This chapter, being necessary for the welfare of the stateand its inhabitants, shall be liberally construed to effect the purposesof this chapter.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-4
Supplemental effect
    Sec. 4. This chapter provides a complete, an additional, and analternative method for doing the things authorized under this chapterand is supplemental and additional to powers conferred by otherlaws. The adoption of rules and the issuance of bonds under thischapter need not comply with the requirements of any other law thatwould otherwise be applicable to the rules or issuance of bonds.Except as otherwise expressly provided in this chapter, none of thepowers granted to the authority under this chapter are subject to thesupervision or regulation or require the approval or consent of:
        (1) any municipality or political subdivision;
        (2) any department, division, commission, board, body, bureau,official, or agency of any municipality or political subdivision;or
        (3) the state.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-5
Applicability of authority
    Sec. 5. This chapter:
        (1) applies to the authority only when acting for the purposesset forth in this chapter; and
        (2) does not apply to the authority when acting under any otherstatute for any other purpose.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-6
Bond issues; authorized actions
    Sec. 6. Bonds issued and other actions taken under IC 20-12-63before its repeal shall be treated as an action taken under this chapter.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-7
"Authority"
    Sec. 7. As used in this chapter, "authority" refers to the Indianafinance authority established by IC 4-4-11-4.
As added by P.L.2-2007, SEC.69. Amended by P.L.162-2007,SEC.19.

IC 5-1-16.5-8
"Bonds"
    Sec. 8. As used in this chapter, "bonds" means revenue bonds,notes, bond anticipation notes, or other obligations of the authorityissued under this chapter, including refunding bonds, notes, bondanticipation notes, or other obligations.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-9
"Bond resolution"    Sec. 9. As used in this chapter, "bond resolution" means theresolution or resolutions and the trust agreement, if any, authorizingor providing for the terms and conditions applicable to bonds issuedunder this chapter.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-10
"Cost"
    Sec. 10. As used in this chapter, "cost" means all costs necessaryor incident to the acquisition, construction, or funding of a project,including the costs of refunding or refinancing outstandingindebtedness incurred for the financing of the project, reserves forprincipal and interest, engineering, legal, architectural, and all othernecessary and incidental expenses, together with interest on bondsissued to finance the project to a date six (6) months after theestimated date of completion.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-11
"Educational facility"
    Sec. 11. As used in this chapter, "educational facility" means anyproperty located within Indiana that:
        (1) is suitable for:
            (A) the instruction, feeding, recreation, or housing ofstudents;
            (B) the conduct of research or other work of a nonprofitcollege or university; or
            (C) use by a nonprofit college or university in connectionwith any educational, research, or related or incidentalactivity conducted by the nonprofit college or university;
        (2) is suitable for use as or in connection with:
            (A) an academic facility;
            (B) an administrative facility;
            (C) an agricultural facility;
            (D) an assembly hall;
            (E) an athletic facility;
            (F) an auditorium;
            (G) a boating facility;
            (H) a campus;
            (I) a communication facility;
            (J) a computer facility;
            (K) a continuing education facility;
            (L) a classroom;
            (M) a dining hall;
            (N) a dormitory;
            (O) an exhibition hall;
            (P) a firefighting facility;
            (Q) a fire prevention facility;
            (R) a food service and preparation facility;
            (S) a gymnasium;            (T) a greenhouse;
            (U) a health care facility;
            (V) a hospital;
            (W) housing;
            (X) an instructional facility;
            (Y) a laboratory;
            (Z) a library;
            (AA) a maintenance facility;
            (BB) a medical facility;
            (CC) a museum;
            (DD) offices;
            (EE) a parking area;
            (FF) a physical education facility;
            (GG) a recreational facility;
            (HH) a research facility;
            (II) a stadium;
            (JJ) a storage facility;
            (KK) a student union;
            (LL) a study facility;
            (MM) a theater; or
            (NN) a utility;
        (3) is not used or to be used for sectarian instruction or study oras a place for devotional activities or workshop; and
        (4) is not used or to be used primarily in connection with anypart of the program of a school or department of divinity for anyreligious denomination.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-12
"Eligible member"
    Sec. 12. As used in this chapter, "eligible member" means a stateeducational institution or any nonprofit college or university.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-13
"Liability"
    Sec. 13. As used in this chapter, "liability" means legal liabilityfor damages (including costs of defense, legal costs and fees, andother claims for expenses) because of injuries to other persons orentities, damage to the property or business of other persons orentities, or other damage or loss to such other persons or entitiesresulting from or arising out of any activity of an eligible member.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-14
"Liability or loss insurance reserves"
    Sec. 14. As used in this chapter, "liability or loss insurancereserves" means a fund or funds set aside as a reserve to cover riskretained by an eligible member in connection with liability claims orother losses.As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-15
"Nonprofit"
    Sec. 15. As used in this chapter, "nonprofit college or university"has the meaning set forth in IC 21-7-13-23(a).
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-16
"Project"
    Sec. 16. As used in this chapter, "project" means:
        (1) the acquisition, construction, enlarging, remodeling,renovation, improvement, furnishing, or equipping of aneducational facility by the authority for a nonprofit college oruniversity; or
        (2) the funding of any liability, other loss, or insurance reservesor the funding and contribution of such insurance reserves orother capital to a risk retention group to provide insurancecoverage against liability claims or other losses.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-17
"Property"
    Sec. 17. As used in this chapter, "property" means any real,personal, or mixed property, or any interest in real property or mixedproperty, including:
        (1) any real estate, appurtenances, buildings, easements,equipment, furnishings, furniture, improvements, machinery, orrights-of-way and structures; or
        (2) any interest in real estate, appurtenances, buildings,easements, equipment, furnishings, furniture, improvements,machinery, or rights-of-way and structures.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-18
"Revenues"
    Sec. 18. As used in this chapter, "revenues" means with respect toany project the rents, fees, charges, and other income or profitderived from the project.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-19
"Risk retention group"
    Sec. 19. As used in this chapter, "risk retention group" means atrust, pool, corporation, limited liability company, partnership, orjoint venture funded by and owned and operated for the benefit ofmore than one (1) eligible member.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-20
"State educational institution"
    Sec. 20. As used in this chapter, "state educational institution" hasthe meaning set forth in IC 21-7-13-32.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-21
Powers of authority
    Sec. 21. (a) The authority may determine the location andcharacter of any project to be financed under this chapter.
    (b) The authority may construct, reconstruct, remodel, maintain,manage, enlarge, alter, add to, repair, operate, lease as lessee orlessor, regulate any project, or enter into contracts for any purposestated in this section.
    (c) The authority may designate a nonprofit college or universityas the authority's agent to carry out the authority of this section.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-22
Bonds; issuance; funding and refunding
    Sec. 22. The authority may issue bonds or fund and refund bondsas provided in this chapter.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-23
Rents and charges
    Sec. 23. The authority:
        (1) may require that the rates, rents, fees, or charges establishedby a nonprofit college or university are sufficient to dischargethe institution's obligations to the authority; but
        (2) has no other jurisdiction over the rates, rents, fees, orcharges.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-24
Rules for projects
    Sec. 24. The authority may:
        (1) establish rules for the use of a project or any part of aproject; and
        (2) designate a nonprofit college or university as the authority'sagent to establish rules for the use of a project undertaken forthat nonprofit college or university.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-25
Employees
    Sec. 25. The authority may employ consulting engineers,architects, attorneys, accountants, trustees, construction and financialexperts, superintendents, managers, and other employees and agentsthe authority believes are necessary, and fix their compensation.As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-26
Receipt and use of funds
    Sec. 26. The authority may:
        (1) receive and accept from any source loans, contributions, orgrants for or in aid of the construction or funding of a project orany part of a project in either money, property, labor, or otherthings of value; and
        (2) when required, use the funds, property, or labor only for thepurposes for which the money, property, or labor was loaned,contributed, or granted.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-27
Loans
    Sec. 27. (a) The authority may make loans to any nonprofitcollege or university for the cost of a project, including theestablishment of liability or other loss insurance reserves or thecontribution of those reserves to a risk retention group for thepurpose of providing insurance coverage against liability claims orother losses in accordance with an agreement between the authorityand the nonprofit college or university.
    (b) A loan authorized under this section may not exceed the totalcost of the project as determined by the nonprofit college oruniversity and approved by the authority.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-28
Loans and bonds
    Sec. 28. (a) The authority may make loans to a nonprofit collegeor university to refund outstanding obligations or advances issued,made, or given by the nonprofit college or university for the cost ofa project, including the establishment of liability or other lossinsurance reserves or the contribution of those reserves to a riskretention group to provide insurance coverage against liability claimsor other losses.
    (b) The authority may issue bonds and make loans to a nonprofitcollege or university to refinance indebtedness incurred or toreimburse advances made for projects undertaken before the date ofthe bond issue whenever the authority finds that the financing is inthe public interest and either:
        (1) alleviates a financial hardship upon the nonprofit college oruniversity;
        (2) results in a lesser cost of education; or
        (3) enables the nonprofit college or university to offer greatersecurity for a loan or loans to finance a new project or projectsor to effect savings in interest costs or more favorableamortization terms.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-29
Costs
    Sec. 29. The authority may charge to and apportion amongnonprofit colleges or universities the authority's administrative costsand expenses incurred in the exercise of the powers and dutiesconferred by this chapter.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-30
Financing
    Sec. 30. (a) The authority may, for financing purposes, combinea project or projects and some or all future projects of any nonprofitcollege or university or nonprofit colleges or universities providedthat:
        (1) the authority obtains the consent of all of the nonprofitcolleges or universities that are involved, or when financingloans for the funding of liability or other loss insurance reservesor for the providing of those reserves or other capital to becontributed to a risk retention group, the authority obtains theconsent of all of the eligible members that are involved; and
        (2) the money set aside in any fund or funds pledged for anyseries of bonds or issue of bonds is held for the sole benefit ofa series or issue separate and apart from the money pledged forany other series or issue of bonds of the authority.
    (b) To facilitate the combining of projects, bonds may be issuedin series under one (1) or more resolutions or trust agreements andbe:
        (1) fully open end, thus providing for unlimited issuance ofadditional series; or
        (2) partially open end, limited as to additional series;
all in the discretion of the authority.
    (c) Notwithstanding any provision of this chapter, the authoritymay permit a nonprofit college or university to substitute one (1) ormore educational facilities of similar value (as determined by anindependent appraiser satisfactory to the authority) as security forany educational facility financed under this chapter on the terms andconditions that the authority may prescribe.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-31
Mortgages
    Sec. 31. The authority may mortgage all or any part of:
        (1) any project and any other educational facilities conveyed tothe authority for an educational purpose; and
        (2) the site or sites of the facilities, whether presently owned orsubsequently acquired;
for the benefit of the holders of the bonds of the authority issued tofinance a project or any portion of a project or issued to refund orrefinance outstanding indebtedness of a nonprofit college oruniversity as permitted by this chapter.As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-32
Risk retention
    Sec. 32. The authority may join in a risk retention group with stateeducational institutions or any nonprofit college or university.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-33
Authority
    Sec. 33. The authority may do all things necessary to carry out thepurposes of this chapter.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-34
Payment of expenses
    Sec. 34. All expenses incurred in carrying out this chapter arepayable solely from funds provided under the authority of thischapter. No liability may be incurred by the authority beyond theextent to which money has been provided under this chapter.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-35
Acquisitions
    Sec. 35. The authority may acquire:
        (1) directly;
        (2) by and through a nonprofit college or university as theprivate institution's agent;
        (3) by purchase solely from funds provided under this chapter;or
        (4) by gift or devise;
lands, structures, real or personal property, rights, rights-of-way,franchises, easements, and other interests in lands, including landslying under water and riparian rights that are located in Indiana, asthe authority finds necessary or convenient, for the construction oroperation of a project, upon the terms and at the prices as are agreedupon between the authority and the owner of a property interest. Theauthority may take title to property in the authority's own name or inthe name of a nonprofit college or university as the authority's agent.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-36
Conveyance of title
    Sec. 36. The authority shall promptly take any action and executeany deeds and conveyances necessary and required to convey the titleto a project or projects to the appropriate nonprofit college oruniversity whenever:
        (1) the principal of and interest on bonds of the authority issuedto finance the cost of a project or projects for a nonprofitcollege or university, including any refunding bonds issued to

refund and refinance the bonds, have been fully paid andretired; or
        (2) adequate provision has been made to fully pay and retirebonds of the authority issued to finance the cost of a project orprojects for a nonprofit college or university, all otherconditions of the bond resolution have been satisfied, and thelien created by the bond resolution has been released in accordwith the provisions of the bond resolution.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-37
Issuance of bonds
    Sec. 37. The authority may periodically issue bonds for anycorporate purpose. All bonds or other obligations of the authorityissued under this chapter are negotiable for all purposesnotwithstanding their payment from a limited source and withoutregard to any other.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-38
Bonds of issue
    Sec. 38. The bonds of every issue are payable solely out ofrevenues of the authority, including accumulated reserves or sinkingfunds. Any income received from the investment of reserves orsinking funds must be applied in reduction of the rentals or otheramounts paid by the nonprofit college or university or nonprofitcolleges or universities for whose project or projects the reserves orsinking funds were created. Funds held as reserves or sinking fundswhen invested must be allocated to a specific project or projects ofthe institution for which the fund was created, and the income fromthe investment must be used to reduce the bonded indebtednessattributable to the project or projects.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-39
Bonds; serial and term
    Sec. 39. (a) The bonds issued by the authority may be issued asserial bonds or term bonds, or both. The bonds:
        (1) must be authorized by a bond resolution of the authority;and
        (2) must:
            (A) bear the date or dates;
            (B) mature at the time or times not exceeding forty (40)years from their respective dates of issue;
            (C) bear interest at the rate or rates, without regard to anylimit contained in any other statute or law of Indiana;
            (D) be payable at the time or times;
            (E) be in the denominations;
            (F) be in the form, either coupon or fully registered;
            (G) carry the registration and conversion privileges;            (H) be payable in lawful money of the United States ofAmerica at the places; and
            (I) be subject to the terms of redemption;
        as are in current or customary usage in municipal bond marketsand as the bond resolution may provide.
    (b) The bond resolution for bonds of the authority may set themaximum interest rate or rates that the bonds may bear and delegateto an officer or agent of the authority power to set an interest rate orrates that the bonds may bear at the time of sale of the bonds.However, the rate or rates may not exceed the maximum rateestablished by the authority in the bond resolution.
    (c) The bonds of the authority must be executed by the manual orfacsimile signatures of the officers or agents of the authoritydesignated by the authority. In the case of bonds having a maturityof one (1) year or less, the bond resolution that authorizes the bondsmay concurrently provide for the issuance, delivery, and sale ofrefunding bonds subject to the terms and conditions prescribed in thebond resolution and this chapter. The bonds must be sold in themanner that the authority determines. Pending preparation of thedefinitive bonds, the authority may issue interim receipts orcertificates, which must be exchanged for the definitive bonds.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-40
Bond resolutions
    Sec. 40. Any bond resolution of the authority may containprovisions that become part of the contract with the holders of thebonds to be authorized, as to:
        (1) pledging or assigning the revenues of the project or projectswith respect to which the bonds are to be issued;
        (2) the rentals, fees, and other amounts to be charged, and thesums to be raised in each year, and the use, investment, anddisposition of the sums;
        (3) the setting aside of reserves or sinking funds, and theregulation, investment, and disposition of reserves or sinkingfunds;
        (4) limitations on the use of the project;
        (5) limitations on the purpose to which or the investments inwhich the proceeds of sale of any issue of bonds may beapplied;
        (6) limitations on the issuance of additional bonds, the termsupon which additional bonds may be issued and secured, theterms upon which additional bonds may rank on a parity with,or be subordinate or superior to, other bonds;
        (7) the refunding of outstanding bonds;
        (8) the procedure, if any, by which the terms of any contractwith bond holders may be amended or abrogated, the amount ofbonds the holders of which must give consent and the mannerin which the consent may be given;
        (9) defining the acts or omissions to act that constitute a default

in the duties of the authority to holders of the authority'sobligations and providing the rights and remedies of the holdersin the event of a default;
        (10) mortgaging the project or projects with respect to whichany bonds are to be issued and other educational facilitiesconveyed to the authority for a purpose for the benefit of theholders of the bonds;
        (11) the establishment of liability or other loss insurancereserves or the contribution of those reserves or other capital toa risk retention group to provide insurance coverage againstliability claims or other losses; and
        (12) any other matters relating to the bonds which the authorityconsiders desirable.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-41
Immunity for executing bonds
    Sec. 41. Neither the members of the authority nor any personexecuting the bonds of the authority may be held liable personally onthe bonds or be subject to any personal liability or accountability byreason of the issuance of the bonds.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-42
Bonds; purchasing
    Sec. 42. The authority may purchase bonds issued by the authorityusing any funds available for the purpose. The authority may hold,pledge, cancel, or resell bonds issued by the authority subject to andin accordance with agreements with bond holders.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-43
Bonds; trust agreements
    Sec. 43. (a) The authority may secure any bonds issued under thischapter by a trust agreement by and between the authority and acorporate trustee or trustees, which may be any trust company orbank in Indiana having the powers of a trust company.
    (b) The bond resolution providing for the issuance of bondssecured by a trust agreement:
        (1) must pledge the revenues to be received by the authorityfrom the project or projects;
        (2) may contain provisions for protecting and enforcing therights and remedies of the bondholders as are reasonable andproper and not in violation of law, including provisionsspecifically authorized to be included in any bond resolution ofthe authority; and
        (3) may restrict the individual right of action by bondholders.
    (c) Any bond resolution may contain any other provisions that theauthority determines reasonable and proper for the security of thebondholders.    (d) All expenses incurred in carrying out the provisions of thebond resolution may be treated as a part of the cost of the operationof a project.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-44
Bonds; restrictions
    Sec. 44. (a) Bonds issued under this chapter do not, and must stateupon the face of each bond that the bonds do not:
        (1) represent or constitute:
            (A) a debt of the authority or of the state within the meaningof the provisions of the Constitution or statutes of the stateof Indiana; or
            (B) a pledge of the faith and credit of the authority or thestate; or
        (2) grant to the owners or holders of the bonds any right to havethe authority or the general assembly levy any taxes orappropriate any funds for the payment of the principal of orinterest due on the bonds.
    (b) Bonds issued under this chapter are payable and must statethat the bonds are payable solely from the funds pledged for paymentof the bonds in accordance with the bond resolution.
    (c) This chapter may not be construed to authorize the authorityor any department, board, commission or other agency to create anobligation of the state of Indiana within the meaning of theConstitution of the State of Indiana or the statutes of Indiana.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-45
Leases
    Sec. 45. (a) In connection with any lease entered into between theauthority and any nonprofit college or university, the authority shallfix, revise, charge, and collect rents for the use of each project andcontract with any person, partnership, association, limited liabilitycompany, or corporation, or other body, public or private, in respectthereof.
    (b) Each lease entered into by the authority with a nonprofitcollege or university must provide that the rents or other moneypayable by the nonprofit college or university is sufficient at alltimes:
        (1) to pay the private institution's share of the administrativecosts and expenses of the authority;
        (2) to pay the principal of the premium, if any, and the intereston outstanding bonds of the authority issued in respect of theproject as the bonds become due and payable; and
        (3) to create and maintain reserves that may be required orprovided for in the bond resolution relating to the bonds of theauthority.
    (c) The authority shall pledge the revenues derived and to bederived from a project for the purposes specified in subsection (b).    (d) Additional bonds may be issued that rank on a parity withother bonds relating to the project to the extent and on the terms andconditions provided in the bond resolution.
    (e) A pledge is valid and binding from the time the pledge ismade. The revenues pledged by the authority are immediately subjectto the lien of a pledge without any physical delivery of the pledgedocument or further act. The lien of a pledge is valid and bindingagainst all parties having claims of any kind in tort or contract orotherwise against the authority, irrespective of whether the partieshave notice of the lien.
    (f) Neither the bond resolution nor any financing statement,continuation statement, or other instrument by which a pledge iscreated or by which the authority's interest in revenues is assignedneed be filed or recorded in public records to perfect the lien createdby a pledge of revenues by the authority as against third parties,except that a copy of the pledge document must be filed in therecords of the authority and with the treasurer of state.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-46
Bond proceeds
    Sec. 46. All money received under this chapter, whether asproceeds from the sale of bonds or as revenues, are trust funds to beheld and applied solely as provided in this chapter. Any officer withwhom, or any bank or trust company with which, money receivedunder this chapter is deposited shall act as trustee of the moneys andshall hold and apply the money for the purposes described in thischapter, subject to any provisions set forth in this chapter and thebond resolution authorizing the bonds of any issue.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-47
Rights of bond holders and trustees
    Sec. 47. Any holder of bonds issued under this chapter or a trusteeunder a trust agreement entered into under this chapter, except to theextent that the rights of a holder or a trustee are restricted by anybond resolution, may, by any suitable form of legal proceedings,protect and enforce any rights under the laws of Indiana or grantedby the bond resolution. These rights include the right:
        (1) to compel the performance of all duties of the authorityrequired by this chapter or the bond resolution;
        (2) to enjoin unlawful activities; and
        (3) in the event of default with respect to the payment of anyprincipal of, premium, if any, and interest on any bond or in theperformance of any covenant or agreement on the part of theauthority in the bond resolution, to apply to the circuit court toappoint a receiver:
            (A) to administer and operate the project or projects, therevenues of which are pledged to the payment of principalof, premium, if any, and interest on the bonds;            (B) with full power to pay, and to provide for payment of,principal of premium, if any, and interest on the bonds; and
            (C) with the powers, subject to the direction of the court, asare permitted by law and are accorded receivers, excludingany power to pledge additional revenues of the authority tothe payment of the principal, premium and interest.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-48
Refunding bonds generally
    Sec. 48. The authority may provide for the issuance of bonds ofthe authority:
        (1) to refund any bonds of the authority then outstanding,including the payment of any redemption premium on the bondsand any interest accrued or to accrue to the earlier or anysubsequent date of redemption, purchase, or maturity of thebonds; and
        (2) if determined advisable by the authority, for the additionalpurpose of paying all or any part of the cost of constructing andacquiring additions, improvements, extensions, or enlargementsof a project or any part of an addition, improvement, extension,or enlargement of a project.
However, no refunding bonds may be issued unless the authorityprovides for the payment of rentals adequate to satisfy therequirements of section 34 of this chapter.
As added by P.L.2-2007, SEC.69. Amended by P.L.3-2008, SEC.17.

IC 5-1-16.5-49
Issuance of bonds to refund outstanding bonds
    Sec. 49. The proceeds of any bonds issued for the purpose ofrefunding outstanding bonds may, in the discretion of the authority:
        (1) be applied to the purchase or retirement at maturity orredemption of the outstanding bonds either on their earliest orany subsequent redemption date or upon the purchase or at thematurity of the outstanding bonds; and
        (2) pending the application of the proceeds, be placed in escrowto be applied to the purchase or retirement at maturity orredemption of the outstanding bonds on a date determined bythe authority.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-50
Proceeds of refunding bonds; disposition
    Sec. 50. Any escrowed proceeds, pending use for the refunding ofoutstanding bonds, may be invested and reinvested in:
        (1) direct obligations of the United States of America; or
        (2) obligations having the timely payment of principal andinterest unconditionally guaranteed by the United States ofAmerica;
maturing at a time or times that are appropriate to assure the prompt

payment of the principal and interest and redemption premium, ifany, on the outstanding bonds to be refunded. Any interest, income,and profits earned or realized on any investment may also be appliedto the payment of the outstanding bonds to be refunded. Only afterthe terms of the escrow have been fully satisfied and carried out, anybalance of the proceeds and any interest, income and profits earnedor realized on the investments described in this section must bereturned to the nonprofit college or university for use by thenonprofit college or university in any lawful manner.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-51
Bonds; authority to refund
    Sec. 51. All bonds issued to refund outstanding bonds of theauthority are subject to this chapter in the same manner and to thesame extent as other bonds issued under this chapter.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-52
Power to invest bonds
    Sec. 52. Except as otherwise provided in section 50 of this chapteror in any trust indenture providing for the issuance of bonds, theauthority may invest:
        (1) the authority's money, funds, and accounts;
        (2) any money, funds, and accounts in the authority's custody;and
        (3) proceeds of bonds or notes;
in the manner provided by an investment policy established byresolution of the authority.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-53
Authority to invest bonds
    Sec. 53. All:
        (1) banks, bankers, trust companies, savings banks andinstitutions, building and loan associations, savings and loanassociations, investment companies, and insurance companiesand associations; and
        (2) executors, administrators, guardians, trustees, and otherfiduciaries;
may legally invest any sinking funds, moneys or other fundsbelonging to them or within their control in any bonds issued by theauthority under this chapter.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-54
Repealed
    (Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16.5-55
Competitive bidding requirement
    Sec. 55. Except as provided in IC 21-36-2, a project is not subjectto any statutory requirement of competitive bidding or otherrestriction imposed on the procedure for award of contracts or thelease, sale, or other disposition of property with regard to any actiontaken under authority of this chapter. If, however, the prospectivelessee so requests in writing, the authority shall call for theconstruction bids in the manner determined by the authority with theapproval of the lessee.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-56
Powers of authority; financing
    Sec. 56. Notwithstanding any other provision of this chapter, theauthority may:
        (1) finance the cost of an educational facility or refundoutstanding indebtedness of a nonprofit college or university,as authorized under section 28 of this chapter; or
        (2) finance the establishment of liability or other loss insurancereserves or the contribution of reserves or other capital to a riskretention group to provide insurance coverage against liabilityclaims or other losses;
by issuing the authority's bonds for the purpose of loaning theproceeds to a nonprofit college or university for the cost of a projector to refund or refinance outstanding indebtedness or reimburseadvances made in connection with a project in accordance with anagreement between the authority and the institution and in exchangefor the institution's promissory note or notes.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-57
Promissory notes
    Sec. 57. (a) Any promissory notes received under section 56 ofthis chapter:
        (1) must have the same principal amounts, maturities, andinterest rates as the bonds being issued;
        (2) may be secured by a first mortgage lien on the educationalfacility being financed or by a first mortgage lien or securityinterest in other real or personal property or funds acceptable tothe authority subject to any exceptions that the authority mayapprove and created by a mortgage instrument or securityagreement satisfactory to the authority; and
        (3) may be insured or guaranteed by others.
    (b) Any bonds described in section 56 of this chapter must bepayable solely out of the payments to be made on the promissorynotes and under the corresponding agreement. Any bonds describedin section 56 of this chapter may not exceed in principal amount thecost of the educational facility, as determined by the nonprofitcollege or university, or the necessary amount of these liability or

other loss insurance reserves, and approved by the authority. In otherrespects:
        (1) the bonds are subject to the provisions of section 39 of thischapter; and
        (2) the trust agreement or indenture creating the bonds maycontain any of the provisions set forth in section 40 of thischapter that the authority determines appropriate.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-58
Mortgages
    Sec. 58. If an educational facility is financed and mortgaged undersections 56 and 57 of this chapter:
        (1) the title to the facility must remain in the nonprofit collegeor university owning the facility, subject to the lien of themortgage securing the promissory notes then being purchased;and
        (2) there may not be a lease of the facility between the authorityand the institution.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-59
Power of authority; restrictions
    Sec. 59. Section 36 of this chapter does not apply to anyeducational facility or any liability or other loss insurance reservesfinanced under sections 56 through 58 of this chapter and thissection. However, the authority shall return the promissory notespurchased through the issuance of bonds under this chapter to thenonprofit college or university issuing the promissory notes when:
        (1) the bonds have been fully paid and retired or adequateprovision has been made to pay and retire the bonds fully;
        (2) all other conditions of the trust agreement or indenturecreating the bonds have been satisfied; and
        (3) the lien has been released in accordance with the provisionsof the instrument creating the lien.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-60
Power of authority; operation and maintenance of projects
    Sec. 60. Because the operation and maintenance of a project bythe authority or the authority's agent constitutes the performance ofan essential public function, neither the authority nor the authority'sagent are required to pay any taxes or assessments, includingmortgage recording taxes, upon or in respect of:
        (1) a project or any property acquired or used by the authorityor the authority's agent under this chapter or upon the incomefrom the project or property;
        (2) the bonds issued under this chapter or the interest on thosebonds; and
        (3) the proceeds received from bonds issued under this chapter:            (A) by a holder from the sale of such bonds, to the extent ofthe holder's cost of acquisition;
            (B) upon redemption before maturity; or
            (C) at maturity.
As added by P.L.2-2007, SEC.69.

IC 5-1-16.5-61
Bonds; tax exemption
    Sec. 61. All bonds and the interest on bonds issued under thischapter are exempt from taxation in Indiana for all purposes exceptthe financial institutions tax imposed under IC 6-5.5 or a stateinheritance tax imposed under IC 6-4.1.
As added by P.L.2-2007, SEC.69.