CHAPTER 4. HOSPITAL BONDING AUTHORITIES
IC 5-1-4
Chapter 4. Hospital Bonding Authorities
IC 5-1-4-1
Declaration of policy
Sec. 1. Declaration of Policy. It is declared that for the benefit ofthe people of the state, the increase of their commerce, welfare andprosperity and the improvement of their health and living conditionsit is essential that hospitals within the state be provided withappropriate additional means to expand, enlarge and establish healthcare, hospital and other related facilities; and that it is the purpose ofthis chapter to provide a measure of assistance and alternativemethods to enable hospitals within this state to refund or refinanceoutstanding indebtedness incurred for the facilities and to provideadditional facilities and structures which are required to accomplishthe purposes of this chapter, all to the public benefit and good, to theextent and manner provided herein.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;Acts 1975, P.L.35, SEC.1.)
IC 5-1-4-2
Short title
Sec. 2. Short title. This chapter may be referred to and cited as the"Indiana Hospital Authority Act."
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-3
Definitions
Sec. 3. As used in this chapter, the following words and termsshall have the following meanings unless the context indicatesanother or different meaning or intent:
(a) "Authority" means a hospital authority created by IC 5-1-4-4or any board, body, commission, department, or officer succeedingto the principal functions thereof or to whom the powers conferredupon such authority by this chapter shall be given by law.
(b) "Project" means a structure or addition to an existing structurewhich is suitable for use as a hospital, clinic, laboratory, laundry,nurses' or interns' residence, administration building, researchfacility, or maintenance, storage, or utility facility, and otherstructures or facilities related thereto or required or useful for theoperation of the project, including the site thereof; parking and otherfacilities or structures essential or convenient for the orderlyoperation of such project, or equipment, machinery, and other similaritems necessary or convenient for the operation of the project in themanner for which its use is intended, but not such items as fuel,supplies, or other items which customarily result in a currentoperating charge. "Project" also means:
(1) the construction of a part or portion of a building;
(2) the acquisition and remodeling of an existing building; or
(3) the acquisition of existing facilities of a participating
hospital in connection with the refunding or refinancing ofoutstanding obligations, mortgages, or advances issued, made,or given by such participating hospital whenever the authorityfinds that such refunding or refinancing is in the public interestand either:
(A) alleviates a financial hardship upon the participatinghospital;
(B) results in a lesser cost of patient care and a saving tothird parties and others who must pay for such care; or
(C) enables the participating hospital to offer greater securityfor the financing of a new project or projects or to effectsavings in interest costs or more favorable amortizationterms.
(c) "Cost" as applied to a project or any portion thereof financedunder this chapter means all or any part of the cost of constructionand acquisition of all lands, structures, real or personal property,rights, rights-of-way, franchises, easements, and interests acquiredor used for a project; the cost of demolishing or removing anybuildings or structures on land so acquired, including the cost ofacquiring any lands to which such buildings or structures may bemoved; the cost of all machinery and equipment, financing charges,interest prior to, during, and for a period after completion of suchconstruction; provisions for working capital; reserves for principaland interest and for extensions, enlargements, additions,replacements, renovations, and improvements; cost of engineering,financial and legal services, plans, specifications, studies, surveys,estimates of cost and of revenues; administrative expenses; expensesnecessary or incident to determining the feasibility or practicabilityof constructing the project; and such other expenses as may benecessary or incident to the construction and acquisition of theproject, the financing of such construction and acquisition, and theplacing of the project in operation.
(d) "Bonds" means bonds of the authority issued under thischapter, including refunding bonds, notwithstanding that the samemay be secured by the full faith and credit of a participating hospitalor any other lawfully pledged security of a participating hospital.
(e) "Participating hospital" means a:
(1) nonprofit corporation which is organized under the laws ofthis state or which is admitted to transact business in this stateas a foreign corporation; or
(2) hospital organized and existing under IC 16-24-1;
which either operates or proposes to operate a project or undertakesthe refunding of all or part of its outstanding indebtedness asauthorized by this chapter, or both.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;Acts 1975, P.L.35, SEC.2.) As amended by Acts 1980, P.L.23, SEC.1;P.L.26-1986, SEC.1; P.L.2-1993, SEC.39.
IC 5-1-4-4
Creation of authority Sec. 4. (a) The legislative body of any county, second or thirdclass city, or town in which is located one (1) or more participatinghospitals, upon request in writing by the board of trustees or othergoverning board of any such participating hospital, may adopt aresolution for the creation of an authority under this chapter.
(b) Upon the adoption of the resolution, there is created anauthority which shall be a body corporate and politic for the purposeof financing, acquiring, constructing, equipping, and leasing a projector projects to participating hospitals located in the county, city, ortown or refunding outstanding indebtedness of participating hospitalslocated in the county, city, or town as authorized by this chapter, orboth.
(c) If the authority is created by a resolution of the legislativebody of a county, it shall be known as the "Hospital Authority of__________ County" (include the name of the county).
(d) If the authority is created by resolution of the legislative bodyof a second or third class city or town, it shall be known as the"Hospital Authority of __________" (include the name of the city ortown).
(e) The county auditor, the city clerk, or the town clerk-treasurer,as the case may be, shall file a certified copy of the resolution withthe executive of the county, city, or town, as the case may be, inwhich the authority is created.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;Acts 1975, P.L.35, SEC.3.) As amended by Acts 1980, P.L.23, SEC.2;Acts 1981, P.L.44, SEC.1; Acts 1982, P.L.30, SEC.1; P.L.40-1985,SEC.1; P.L.8-1989, SEC.14.
IC 5-1-4-5
Organization of authority; directors
Sec. 5. (a) Within sixty (60) days from the filing of the certifiedcopy of the resolution in accordance with section 4 of this chapter,the board of commissioners of the county or the executive of the cityor town shall appoint five (5) residents of the county, city, or town,as the case may be, as directors of the authority.
(b) Each appointment shall be evidenced by a written certificateof appointment signed by the appointing authority who shall causea written notice to be sent to each appointee. One (1) director shallbe appointed for a term of one (1) year, one (1) director for a term oftwo (2) years, one (1) director for a term of three (3) years, and two(2) directors for a term of four (4) years. At the expiration of therespective terms of the directors, the appointing authority shallappoint successors for four (4) year terms.
(c) Each director shall serve as such until the director's successoris appointed and qualified. In the event that any director shall die,resign, cease to be a resident of the county, city, or town, as the casemay be, or be removed, the appointing authority shall appointanother person as director for the remainder of such term. If anyperson appointed as a director shall fail to qualify within ten (10)days after the mailing to the appointee of notice of the appointment,
the appointing authority shall appoint another person as director forthe term.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by Acts 1982, P.L.30, SEC.2; P.L.7-1983, SEC.6;P.L.40-1985, SEC.2; P.L.8-1989, SEC.15; P.L.4-1991, SEC.134.
IC 5-1-4-6
Oath of office
Sec. 6. Oath of Office. Each director, before entering upon hisduties shall take and subscribe an oath of office in usual form to beendorsed upon his certificate of appointment, which shall be filedwith the clerk of the circuit court.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-7
Removal from office
Sec. 7. Removal from Office. Any director may be removed fromoffice for neglect of duty, incompetency, disability to perform hisduties, or any other good cause, by an order of the circuit court in thecounty in which such authority is located, subject to the followingprocedure: a complaint may be filed by any person against suchdirector, setting forth the charges preferred; the cause shall be placedon the advanced calendar and be tried as other civil causes are triedby the court without the intervention of a jury. If such charges besustained, the court shall declare such office vacant. A change ofvenue from the judge shall be granted upon motion but no change ofvenue from the county may be taken.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-8
Meetings; selection of officers; bylaws
Sec. 8. The directors originally appointed shall meet within thirty(30) days after their appointment, at a time and place designated bythe board of county commissioners, for the purpose of organization.The directors shall elect the following officers from among theirmembers: president, vice president, secretary, and treasurer, whoshall perform the duties usually pertaining to those offices. Suchofficers shall serve until the expiration of the first term to expire andthe directors shall meet annually to reorganize within thirty (30) daysafter the appointment of each successor director for a full term. Thedirectors are authorized to adopt such bylaws, rules and regulationsas they may deem necessary to the proper conduct of theirproceedings, the carrying out of their duties, and the safeguarding ofthe funds and property of the authority. In addition to such meetingsas above provided, other regular and special meetings shall be heldat such times as they may determine and upon such notice as theymay fix, either by resolution or in accordance with the provisions ofthe bylaws, rules and regulations adopted. A majority of the directorsshall constitute a quorum and the concurrence of a majority shall benecessary to authorize any action. Directors shall serve without pay
but shall be entitled to reimbursement for any expenses necessarilyincurred in the performance of their duties.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by P.L.7-1983, SEC.7.
IC 5-1-4-9
Pecuniary interest of directors; transaction void
Sec. 9. Pecuniary Interest of Director - Transaction Void. Nodirector shall have any pecuniary interest in any contract,employment, purchase or sale made under the provisions of thischapter, and any transaction made in which any director has apecuniary interest shall be void.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-10
Powers of authority
Sec. 10. Powers of Authority. The purpose of each authority shallbe to assist participating hospitals in the constructing, financing andrefinancing of projects, and for this purpose each authority isauthorized and empowered:
(a) to have perpetual succession as a body politic and corporateand to adopt by-laws for the regulation of its affairs and the conductof its business;
(b) to adopt an official seal and alter the same at its pleasure;
(c) to maintain an office at such place or places as it maydesignate;
(d) to sue and be sued in its own name, and plead and beimpleaded;
(e) to determine the location and character of any project to befinanced under the provisions of this chapter, and to construct,reconstruct, renovate, replace, maintain, repair, operate, lease, aslessee or lessor, and regulate the same, to enter into contracts for anyor all of such purposes, to enter into contracts for the managementand operation of a project, and to designate a participating hospitalas its agent to determine the location and character of a projectundertaken by such participating hospital under the provisions of thischapter and as the agent of the authority, to construct, reconstruct,renovate, replace, maintain, repair, operate, lease, as lessee or lessor,and regulate the same, and as the agent of the authority, to enter intocontracts for any or all of such purposes, including contracts for themanagement and operation of such project;
(f) to issue bonds and other obligations of the authority for any ofits corporate purposes, and to fund or refund the same, all asprovided in this chapter;
(g) generally, to fix and revise from time to time and charge andcollect rates, rents, fees and charges for the use of and for theservices furnished or to be furnished by a project or any portionthereof and to contract with any person, partnership, association,limited liability company, or corporation or other body public orprivate in respect thereof, including a contract with or the granting
of an option to the lessee to purchase the project for such price andon such conditions as the authority in its sole discretion determinesto be appropriate, after retirement or redemption, or provisiontherefor, of all the bonds issued to provide funds for the project;
(h) to establish rules and regulations for the use of a project or anyportion thereof and to designate a participating hospital as its agentto establish rules and regulations for the use of a project undertakenby such participating hospital;
(i) to employ consulting engineers, architects, attorneys,accountants, construction and financial experts, superintendents,managers, and such other employees and agents as may be necessaryin its judgment, and to fix their compensation;
(j) to receive and accept from any public agency loans or grantsfor or in aid of the construction of a project or any portion thereof,and to receive and accept loans, grants, aid or contributions from anysource of either money, property, labor or other things of value, to beheld, used and applied only for the purposes for which such loans,grants, aid and contributions are made;
(k) to mortgage all or any portion of any project and any otherfacilities conveyed to the authority for such purpose and the site orsites thereof, whether presently owned or subsequently acquired, forthe benefit of the holders of the bonds of the authority issued tofinance such project or any portion thereof or issued to refund orrefinance outstanding indebtedness of a participating hospital aspermitted by this chapter;
(l) to make loans to any participating hospital for the cost of anyproject in accordance with an agreement between the authority andsuch participating hospital provided that no such loan shall exceedthe total cost of such project as determined by such participatinghospital and approved by the authority;
(m) to make loans to a participating hospital to refund outstandingobligations, mortgages, or advances issued, made, or given by suchparticipating hospital for the cost of its facility or facilities, includingthe power to issue bonds and make loans to a participating hospitalto refinance indebtedness incurred for facilities undertaken and priorthereto whenever the authority finds that such financing is in thepublic interest, and either: (1) alleviates a financial hardship upon theparticipating hospital; (2) results in a lesser cost of patient care anda saving to third parties, including state or federal governments, andto others who must pay for such care; or (3) enables the participatinghospital to offer greater security for a loan or loans to finance a newproject or projects or to effect savings in interest costs or morefavorable amortization terms;
(n) to charge to and equitably apportion among participatinghospitals its administrative costs and expenses incurred in theexercise of the powers and duties conferred by this chapter; and
(o) to do all things necessary or convenient to carry out thepurposes of this chapter.
In carrying out the purposes of this chapter, the authority mayundertake a project for two or more participating hospitals jointly, or
for any combination thereof, and thereupon, all other provisions ofthis chapter shall apply to and for the benefit of the authority andsuch joint participants.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;Acts 1975, P.L.35, SEC.4.) As amended by P.L.8-1993, SEC.44.
IC 5-1-4-11
Payment of expenses
Sec. 11. Payment of Expenses. All expenses incurred in carryingout the provisions of this chapter shall be payable solely from fundsprovided under the provisions of this chapter and no liability orobligation shall be incurred by an Authority hereunder beyond theextent to which moneys shall have been provided under theprovisions of this chapter, or otherwise appropriated by law to suchAuthority.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-12
Acquisition of property
Sec. 12. Acquisition of Property by Authority. Any authority isauthorized and empowered, directly or by and through a participatinghospital, as its agent, to acquire by purchase or by gift or devise suchlands, structures, property, real or personal, rights, rights-of-way,franchises, easements and other interests in lands, including landslying under water and riparian rights, and including existing facilitiesof a participating hospital as it may deem necessary or convenient forthe construction, acquisition or operation of a project, upon suchterms and at such prices as may be considered by it to be reasonableand can be agreed upon between it and the owner thereof, and to taketitle thereto in the name of such Authority or in the name of aparticipating hospital as its agent.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;Acts 1975, P.L.35, SEC.5.)
IC 5-1-4-13
Bonds
Sec. 13. (a) Each authority is hereby authorized to provide byresolution, at one time or from time to time, for the issuance of bondsfor the purpose of paying all or any part of the cost of a project.
(b) The principal of and the interest on such bond shall be payablesolely out of the revenues of such authority derived from the projectto which they relate.
(c) The bonds of each issue shall be dated, shall bear interest atsuch rate or rates, shall mature at such time or times not exceedingfifty (50) years from the date thereof, all as may be determined by theauthority, and may be made redeemable before maturity, at theoption of the authority, at such price or prices and under such termsand conditions as may be fixed by the authority in the authorizingresolution.
(d) The authority shall determine the form of the bonds, including
any interest coupons to be attached thereto, and shall fix thedenomination or denominations of the bonds and the place or placesof payment of principal and interest which may be at any bank ortrust company within or without the state.
(e) The bonds shall be signed in the name of the authority, by thepresident or vice president, or by the facsimile signature of suchpresident or vice president, and the official seal of the authority, orfacsimile thereof, shall be affixed thereto and attested by thesecretary of the authority; and any coupons attached thereto shallbear the facsimile signature of the treasurer of the authority.
(f) In case any officer whose signature or a facsimile of whosesignature shall appear on any bonds or coupons shall cease to be suchofficer before the delivery of such bonds, such signature or suchfacsimile shall, nevertheless, be valid and sufficient for all purposesthe same as if he had remained in office until such delivery.
(g) All bonds issued under the provisions of this chapter shallhave and are hereby declared to have all the qualities and incidentsof negotiable instruments under the law of the state of Indiana.
(h) The bonds may be issued in coupon or in registered form, orboth, as the authority may determine; and provision may be made forthe registration of any coupon bonds as to principal alone and also asto both principal and interest, and for the reconversion into couponbonds of any bonds registered as to both principal and interest.
(i) The bonds may be sold in such manner, either at public orprivate sale as the authority may determine; and neither theprovisions of IC 5-1-11 nor IC 21-32-3 shall be applicable to suchsale.
(j) The proceeds of the bonds of each issue shall be used solelyfor the payment of the cost of the project for which such bonds shallhave been issued, and shall be disbursed in such manner and undersuch restrictions, if any, as the authority may provide in theresolution authorizing the issuance of such bonds or in the trustagreement mentioned in this chapter securing the same.
(k) If the proceeds of the bonds of any issue, by error of estimatesor otherwise, shall be less than such cost, additional bonds may inlike manner be issued to provide the amount of such deficit, and,unless otherwise provided in the resolution authorizing the issuanceof such bonds or in the trust agreement securing the same, shall bedeemed to be of the same issue and shall be entitled to payment fromthe same fund without preference or priority of the bonds first issued.
(l) If the proceeds of the bonds of any issue shall exceed the costof the project for which the same shall have been issued, the surplusshall be deposited to the credit of the sinking fund for such bonds.
(m) Prior to the preparation of definitive bonds, an authority may,under like restrictions, issue interim receipts or temporary bonds,with or without coupons, exchangeable for definitive bonds whensuch bonds shall have been executed and are available for delivery.
(n) An authority may also provide for the replacement of anybonds which shall become mutilated or shall be destroyed or lost.
(o) Bonds may be issued under the provisions of this chapter
without obtaining the consent of any officer, department, division,commission, board, bureau or agency of the state, and without anyother proceedings or the happening of any other conditions or thingsthan those proceedings, conditions or things which are specificallyrequired by this chapter.
(p) An authority shall have power out of any funds availabletherefor to purchase its bonds.
(q) An authority may hold, pledge, cancel or resell such bonds,subject to and in accordance with agreements, if any, withbondholders.
(r) Neither the members of an authority nor any person executingthe bonds or notes shall be liable personally on the bonds or notes orbe subject to any personal liability or accountability by reason of theissuance thereof.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by Acts 1981, P.L.11, SEC.14; P.L.2-2007, SEC.66.
IC 5-1-4-14
Bond resolutions
Sec. 14. Bonds Resolution. Any resolution or resolutionsauthorizing any bonds or any issue of bonds may contain provisions,which shall be a part of the contract with the holders of the bonds tobe authorized, as to: (1) pledging or assigning the revenues of theproject with respect to which such bonds are to be issued; (2) therentals, fees and other amounts to be charged, and the amounts to beraised in each year thereby, and the use and disposition of suchamounts; (3) the setting aside of reserves or sinking funds, and theregulation, investment and disposition thereof; (4) limitations on theuse of the project; (5) limitations on the purpose to which or theinvestments in which the proceeds of sale of any issue of bonds thenor thereafter to be issued may be applied and pledging such proceedsto secure the payment of the bonds or any issue of the bonds; (6)limitations on the issuance of additional bonds, the terms upon whichadditional bonds may be issued and secured and the refunding ofoutstanding bonds; (7) the procedure, if any, by which the terms ofany contract with bondholders may be amended or abrogated, theamount of bonds the holders of which must consent thereto, and themanner in which such consent may be given; (8) limitations on theamount of moneys derived from the project to be expended foroperating, administrative or other expenses of an Authority; (9)defining the acts or omissions to act which shall constitute a defaultin the duties of an Authority to holders of its obligations andproviding the rights and remedies of such holders in the event of adefault; (10) the mortgaging of a project and the site thereof for thepurpose of securing the bondholders; and (11) any other mattersrelating to the bonds which an Authority deems desirable.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-15
Trust agreement to secure bonds Sec. 15. Trust Agreement to Secure Bonds. In the discretion ofany Authority any bonds issued under the provisions of this chaptermay be secured by a trust agreement by and between such Authorityand a corporate trustee or trustees, which may be any trust companyor bank having the powers of a trust company within or without thestate. Such trust agreement or the resolution providing for theissuance of such bonds may pledge or assign the revenues to bereceived or proceeds of any contract or contracts pledged and mayconvey or mortgage the project or any portion thereof. Any pledgeor assignment made by an Authority pursuant hereto shall be validand binding from the time that the pledge or assignment is made, andthe revenues so pledged and thereafter received by such Authorityshall immediately be subject to the lien of such pledge or assignmentwithout physical delivery thereof or further act. The lien of suchpledge or assignment shall be valid and binding against all partieshaving claims of any kind in tort, contract or otherwise against theAuthority irrespective of whether such parties have notice thereof.Neither the resolution nor any trust agreement by which a pledge iscreated or assignment made need be filed or recorded in any publicrecords in order to perfect lien thereof as against third parties exceptthat a copy thereof shall be filed in the records of the Authority. Suchtrust agreement or resolution providing for the issuance of suchbonds may contain such provisions for protecting and enforcing therights and remedies of the bondholders as may be reasonable andproper and not in violation of law, including particularly suchprovisions as have hereinabove been specifically authorized to beincluded in any resolution or resolutions of an Authority authorizingbonds thereof. Any bank or trust company incorporated under thelaws of this state which may act as depository of the proceeds ofbonds or of revenues or other moneys may furnish such indemnifyingbonds or pledge such securities as may be required by an Authority.Any such trust agreement may set forth the rights and remedies of thebondholders and of the trustee or trustees, and may restrict theindividual right of action by bondholders. In addition to theforegoing, any such trust agreement or resolution may contain suchother provisions as the Authority may deem reasonable and properfor the security of the bondholders. All expenses incurred in carryingout the provisions of such trust agreement or resolution may betreated as a part of the cost of the operation of a project.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-15.5
Loans to participating hospitals
Sec. 15.5. Loans to Participating Hospitals. Notwithstanding anyother provision of this chapter to the contrary, the authority mayfinance the cost of a project or refund outstanding indebtedness of aparticipating hospital as authorized by section 10(m) of this chapterby issuing its bonds for the purpose of purchasing the securities of aparticipating hospital. Any such securities shall have the sameprincipal amounts, maturities and interest rates as the bonds so being
issued, may be secured by a first mortgage lien, subject to suchexceptions as the authority may approve and created by a mortgageinstrument satisfactory to the authority, and may be insured orguaranteed by others. Any such bonds shall be secured by a pledgeof such securities under the trust agreement or indenture creatingsuch bonds, shall be payable solely out of the payments to be madeon such securities and shall not exceed in principal amount the costof such project or the refunding of such indebtedness as determinedby the participating hospital and approved by the authority. In otherrespects any such bonds shall be subject to the provisions of thischapter including sections 13 and 14 and the trust agreement orindenture creating such bonds may contain such of the provisions setforth in section 15 hereof as the authority may consider appropriate.
In the event that a project is financed pursuant to this section, thetitle to such project shall remain in the participating hospital owningthe same, subject to the lien of the mortgage securing the securitiesthen being purchased, and there shall be no lease of such facilitybetween the authority and such participating hospital.
(Formerly: Acts 1975, P.L.35, SEC.6.)
IC 5-1-4-16
Refunding bonds
Sec. 16. An Authority is hereby authorized to provide byresolution for the issuance of refunding bonds for the purpose ofrefunding any bonds then outstanding which shall have been issuedby it under the provisions of this chapter, including the payment ofany redemption premium thereon and any interest accrued or toaccrue to the date of redemption of such bonds, and, if deemedadvisable by such Authority, for the additional purpose ofconstructing improvements, extensions or enlargements of theproject in connection with which the bonds to be refunded shall havebeen issued. Such refunding bonds shall be payable solely out of therevenues of the project (including any such improvements,extensions or enlargements thereto) to which the bonds beingrefunded relate. The issuance of such bonds, the maturities and otherdetails thereof, the rights of the holders thereof and the rights, dutiesand obligations of the Authority in respect of the same, shall begoverned by the provisions of this chapter insofar as the same maybe applicable.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-17
Payment of bonds
Sec. 17. Payment of Bonds. Bonds issued under the provisions ofthis chapter shall not be deemed to constitute a debt of the state or ofany political subdivision thereof or a pledge of the faith and credit ofthe state or of any such political subdivision, but such bonds shall bepayable solely from the funds pledged for their payment asauthorized herein, unless such bonds are refunded by refundingbonds, issued under the provisions of this chapter, which refunding
bonds shall be payable solely from funds pledged for their paymentas authorized herein. All such revenue bonds shall contain on theface thereof a statement to the effect that the bonds, as to bothprincipal and interest, are not an obligation of the State of Indiana,or of any political subdivision thereof, but are payable solely fromrevenues pledged for their payment. All expenses incurred incarrying out the provisions of this chapter shall be payable solelyfrom funds provided under the authority of this chapter, and nothingin this chapter contained shall be construed to authorize anyAuthority to incur indebtedness or liability on behalf of or payableby the state or any political subdivision thereof.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-18
Rents and charges
Sec. 18. Rents and Charges. Each Authority shall fix, revise,charge and collect rents for the use of each project and contract withany participating hospital, in respect thereof. Each lease entered intoby an Authority with a participating hospital shall provide that therents payable by the participating hospital shall be sufficient at alltimes (a) to pay its share of the administrative costs and expenses ofsuch Authority, (b) to pay the cost of maintaining, repairing andoperating the project and each and every portion thereof, (c) to paythe principal of, the premium, if any, and the interest on outstandingbonds of the Authority issued in respect of such project as the sameshall become due and payable, and (d) to create and maintainreserves which may but need not be required or provided for in thebond resolution or trust agreement relating to such bonds of theAuthority.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-19
Bond proceeds and revenues
Sec. 19. (a) All money received by an authority or held by atrustee under section 15 of this chapter, whether as proceeds from thesale of bonds, from revenues, or otherwise, shall be deemed to betrust funds to be held and applied solely as provided in this chapter,but prior to the time when needed for use may be invested to theextent and in the manner determined by the authority. Such fundsshall be deposited, held, and secured in accordance with the generallaws of the state relating to the handling of public funds.
(b) The resolution authorizing the issuance of bonds or the trustagreement securing such bonds shall provide that any officer towhom, or any bank or trust company to which, such money shall beentrusted shall act as trustee of such money and shall hold and applythe same for the purposes of this chapter, subject to the provisions ofthis chapter and of the authorizing resolution or trust agreement.
(c) The handling and expenditure of funds coming into thepossession of an authority shall be subject to audit and supervisionby the state board of accounts. The cost of such audit may be treated
as an expense of operation.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by P.L.43-1987, SEC.1.
IC 5-1-4-20
Enforcement of rights and duties
Sec. 20. Enforcement of Rights and Duties. Any holder of bondsissued under the provisions of this chapter or any of the couponsappertaining thereto, and the trustee under any trust agreement,except to the extent the rights herein given may be restricted by theauthorizing resolution or trust agreement, may, either at law or inequity, by suit, action, mandamus or other proceedings, protect andenforce any and all rights under the laws of the state or grantedhereunder or under such trust agreement, or the resolutionauthorizing the issuance of such bonds, and may enforce and compelthe performance of all duties required by this chapter or by such trustagreement or resolution to be performed by an Authority or by anyofficer, employee or agent thereof, including the fixing, charging andcollecting of rates, rents, fees and charges herein authorized andrequired by the provisions of such resolution or trust agreement to befixed, established and collected.
Such rights include the right to compel the performance of allduties of an Authority required by this chapter or the bond resolutionor trust agreement; to enjoin unlawful activities; and in the event ofdefault with respect to the payment of any principal of, premium, ifany, and interest on any bond or in the performance of any convenantor agreement on the part of an Authority in the bond resolution, toapply to a court having jurisdiction of the cause to appoint a receiverto administer and operate the project, the revenues of which arepledged to the payment of principal of, premium, if any, and intereston such bonds, (with full power to pay and to provide for paymentof, principal of, premium, if any, and interest on such bonds), andwith such powers, subject to the direction of the court, as arepermitted by law and are accorded receivers in general equity cases,excluding any power to pledge additional revenues of an Authorityto the payment of such principal, premium and interest; and toforeclose the mortgage on the project in the same manner as for realestate of private corporations.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-21
Repealed
(Repealed by P.L.4-1988, SEC.5.)
IC 5-1-4-22
Interest in contracts
Sec. 22. A member, agent, or employee of an Authority whoknowingly is interested in any contract with the Authority or in thesale of any property to the Authority commits a Class Amisdemeanor. Such contracts are void. This section does not apply
to contracts for purchases of property between an Authority andother departments, municipalities, or subdivisions of stategovernment.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by Acts 1978, P.L.2, SEC.501.
IC 5-1-4-23
Liberal construction
Sec. 23. Liberal Construction. This chapter being necessary forthe welfare of the state and its inhabitants, shall be liberallyconstrued to effect the purposes thereof.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-24
Legal investments
Sec. 24. Legal Investments. Revenue bonds issued by anAuthority under the provisions of this chapter shall constitute legalinvestments for any private trust funds, and the funds of any banks,trust companies, insurance companies, building and loanassociations, credit unions, banks of discount and deposit, savingsbanks, loan and trust and safe deposit companies, rural loan andsavings associations, guaranty loan and savings associations,mortgage guaranty companies, small loan companies and industrialloan and investment companies, and any other financial institutionsorganized under the laws of the state of Indiana. Such bonds arehereby made securities in which all public officers and publicagencies of the state and its political subdivisions may legally andproperly invest funds and such bonds may be properly and legallydeposited with and received by any state or municipal officer or anyagency or political subdivision of the state for any purpose for whichthe deposit of bonds or other obligations of the state is now or mayhereafter be authorized by law.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by P.L.42-1993, SEC.1.
IC 5-1-4-25
Repealed
(Repealed by P.L.4-1988, SEC.5.)
IC 5-1-4-26
Tax exemption
Sec. 26. The exercise of the powers granted by this chapter willbe in all respects for the benefit of the people of the state, for theincrease of their commerce and prosperity, and for the improvementof their health and living conditions, and as the operation andmaintenance of a project by an authority or its agent will constitutethe performance of essential governmental functions, such authorityshall not be required to pay any taxes or assessments upon or inrespect of a project or any property acquired or used by suchauthority under the provisions of this chapter, or upon the income
therefrom, and the bonds issued under the provisions of this chapter,the interest thereon, the proceeds received by a holder from the saleof such bonds to the extent of the holder's cost of acquisition, orproceeds received upon redemption prior to maturity or proceedsreceived at maturity, and the receipt of such interest and proceedsshall be exempt from taxation in the state of Indiana for all purposesexcept the financial institutions tax imposed under IC 6-5.5 or a stateinheritance tax imposed under IC 6-4.1.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by P.L.21-1990, SEC.3; P.L.254-1997(ss), SEC.4.
IC 5-1-4-27
Pledge by state to bondholders and contractors
Sec. 27. Pledge by State to Bondholders and Contractors. TheState of Indiana does hereby pledge to and agree with the holders ofany obligations issued under this chapter, and with those parties whomay enter into contracts with an Authority pursuant to the provisionsof this chapter, that the state will not limit or alter the rights herebyvested in such Authority until such obligations, together with theinterest thereon, are fully met and discharged and such contracts arefully performed on the part of such Authority, provided nothingherein contained shall preclude such limitation or alteration if andwhen adequate provisions shall be made by law for the protection ofthe holders of such obligations of such Authority or those enteringinto such contracts with such Authority. An Authority as agent forthe state is authorized to include this pledge and undertaking for thestate in such obligations or contracts.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by P.L.2-1995, SEC.12.
IC 5-1-4-28
Supplemental effect
Sec. 28. (a) This chapter provides a complete, additional, andalternative method for the doing of the things authorized in thischapter and is supplemental and additional to powers conferred byother laws.
(b) The issuance of bonds and refunding bonds under this chapterneed not comply with the requirements of any other law applicableto the issuance of bonds. In the construction and acquisition of aproject under this chapter, an authority need not comply with:
(1) IC 5-17-1; or
(2) any competitive bidding law or other restrictions imposedon the procedure for award of contracts for the construction andequipment of a project or the lease, sale, or disposition ofproperty of an authority.
(c) If the prospective lessee requests in writing, an authority shallcall for construction bids in the manner as determined by theauthority with the approval of the lessee.
(d) Except as otherwise expressly provided in this chapter, noneof the powers granted to an authority under this chapter shall be
subject to the supervision or regulation or require the approval orconsent of any political subdivision, commission, board, body,bureau, official, or agency of a political subdivision or the state.
(e) This subsection applies if the authority disposes of realproperty or awards a contract for the procurement of property byacceptance of bids, proposals, or quotations. A bid, proposal, orquotation submitted by a trust (as defined in IC 30-4-1-1(a)) mustidentify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) Asamended by P.L.3-1989, SEC.26; P.L.336-1989(ss), SEC.13.
IC 5-1-4-29
Conflicting laws
Sec. 29. Act Controlling Over Inconsistent Law. To the extent thatthe provisions of this chapter are inconsistent with the provisions ofany general statute or special act or parts thereof, the provisions ofthis chapter shall be deemed controlling.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)