CHAPTER 21. COUNTY TOLL ROAD FINANCING
IC 8-18-21
Chapter 21. County Toll Road Financing
IC 8-18-21-1
Application of chapter
Sec. 1. This chapter applies to all toll road authorities establishedunder IC 8-18-20.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-2
Preliminary expenses; payment; charge against bonds
Sec. 2. All necessary preliminary expenses that must be paid bythe board of directors of a toll road authority before the issuance anddelivery of bonds or the negotiation of a loan under this chapter,including expenses incurred in:
(1) making surveys;
(2) estimating costs and receipts;
(3) employing engineers or other employees;
(4) giving notices; and
(5) taking options;
may be paid out of money provided by the county and county seat,or either of them, from money on hand or derived from taxes leviedfor that purpose. The fund or funds from which the payments aremade shall be fully reimbursed by the board out of the first proceedsof the sale of bonds or the loan negotiated by the authority before anyother disbursements are made from those proceeds. The amountadvanced to pay preliminary expenses under this section is a firstcharge against the proceeds resulting from the sale of the bonds orthe negotiation of the loan until that amount has been repaid.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-3
Powers of board of directors
Sec. 3. Except as provided in section 4 of this chapter, the boardof directors of a toll road authority, acting in the name of theauthority, may:
(1) finance, construct, reconstruct, operate, maintain, andmanage any toll road project acquired or financed under thischapter;
(2) sue, be sued, plead, and be impleaded, but all actions againstthe authority must be brought in the circuit court for the countyin which the authority is located;
(3) condemn, appropriate, purchase, and hold any real orpersonal property needed or considered useful in connectionwith a toll road facility;
(4) acquire real or personal property by gift, devise, or bequestand hold, use, or dispose of that property for the purposesauthorized by this chapter;
(5) enter upon any lots or lands for the purpose of surveying orexamining them to determine the location of a toll road facility; (6) collect all money that is due on account of the operation,maintenance, or management of, or otherwise related to, a tollroad facility, and expend that money for proper purposes;
(7) employ the managers, superintendents, architects, engineers,attorneys, auditors, clerks, foremen, custodians, and otheremployees, necessary for the proper operation of a toll roadfacility and fix the compensation of those employees, but acontract of employment may not be made for a period of morethan four (4) years although it may be extended or renewedfrom time to time;
(8) make and enter into all contracts and agreements necessaryor incidental to the performance of its duties and the executionof its powers under this chapter; and
(9) provide coverage for its employees under IC 22-3 andIC 22-4.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-4
Counties with consolidated cities; approval
Sec. 4. The toll road authority in a county having a consolidatedcity may not construct or finance unless that action is first approvedby:
(1) the city-county legislative body; and
(2) the legislative body of the unit involved.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-5
Revenue bonds; issuance; source of payment
Sec. 5. (a) For the purpose of obtaining money to pay the cost of:
(1) constructing toll road facilities;
(2) acquiring land;
(3) repaying any advances for preliminary expenses made to theauthority by an eligible entity; or
(4) refinancing any loan made under this chapter;
the board of directors of a toll road authority may issue revenuebonds of the authority.
(b) The bonds are payable solely from the income and revenuesof the toll road facilities for which the bonds were issued.
As added by P.L.386-1987(ss), SEC.21. Amended by P.L.3-1990,SEC.32.
IC 8-18-21-6
Revenue bonds; resolution; interest; maturity
Sec. 6. The revenue bonds must be authorized by resolution of theboard. The bonds:
(1) bear interest payable semiannually; and
(2) mature serially, either annually or semiannually, at timesdetermined by the resolution authorizing the bonds.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-7
Revenue bonds; redemption before maturity; resolution; contents;negotiable instruments
Sec. 7. (a) The revenue bonds may, and all bonds maturing afterten (10) years from date of issuance shall, be made redeemablebefore maturity at the option of the board of directors of the toll roadauthority. Such a redemption must be at the par value of the bonds,together with the premiums and under the terms and conditions fixedby the resolution authorizing the issuance of the bonds.
(b) The principal of and interest on the bonds may be madepayable in any lawful medium.
(c) The resolution authorizing the issuance of the bonds must:
(1) determine the form of the bonds, including the interestcoupons to be attached to them;
(2) fix the denomination or denominations of the bonds; and
(3) fix the place or places of payment of the principal andinterest of the bonds, which must be at a state or national bankor trust company within Indiana and may also be at one (1) ormore state or national banks or trust companies outside Indiana.
(d) The bonds are negotiable instruments under IC 26-1.
(e) The resolution authorizing the issuance of the bonds mayprovide for the registration of any of the bonds in the name of theowner as to principal alone.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-8
Revenue bonds; execution; notice of sale; sale
Sec. 8. (a) The revenue bonds shall be executed by the presidentof the board of directors, the corporate seal of the authority shall beaffixed to the bonds and attested by the secretary of the board, andthe interest coupons attached to the bonds shall be executed byplacing the facsimile signature of the treasurer of the board on them.
(b) Notice of the sale of the bonds shall be published inaccordance with IC 5-3-1.
(c) The board of directors shall sell the bonds at public sale, fornot less than their par value. The board shall award the bonds to thehighest bidder, as determined by computing the total interest on thebonds from the date of sale to the dates of maturity and deductingfrom that amount the premium bid, if any. Any premium receivedfrom the sale of the bonds shall be used solely for the payment ofprincipal and interest on the bonds. If the bonds are not sold on thedate fixed for the sale, then the sale may be continued from day today until a satisfactory bid has been received.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-9
Temporary bonds
Sec. 9. The board of directors may issue temporary bonds, with orwithout coupons. These bonds, which must be issued in the mannerprescribed by this chapter, may be exchanged for the bonds that are
subsequently issued.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-10
Loans; resolutions; notice
Sec. 10. (a) In lieu of authorizing and selling bonds under thischapter, the board of directors of a toll road authority may adopt aresolution authorizing the negotiation of a loan or loans for thepurpose of obtaining the required money.
(b) The resolution authorizing the loan must set out:
(1) the total amount of the loan desired;
(2) the approximate dates on which money will be required, andthe amounts of the money that will be required on those dates;and
(3) any terms, conditions, and restrictions concerning theproposed loan or the submission of proposals that the boardconsiders advisable.
(c) Before the consideration of proposals for such a loan, a noticeshall be published in accordance with IC 5-3-1. The notice must setout:
(1) the amount and purpose of the proposed loan;
(2) a brief summary of other provisions of the resolution; and
(3) the time and place where proposals will be considered.
(d) The board of directors may accept the proposal it considersmost advantageous to the authority.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-11
Trust indentures
Sec. 11. (a) The board of directors of an authority may securebonds issued or loans made under this chapter by a trust indenturebetween the authority and a corporate trustee, which may be any trustcompany or national or state bank within Indiana that has trustpowers.
(b) The trust indenture may:
(1) mortgage all or part of the toll road facility for which thebonds are issued or loan is made;
(2) contain reasonable and proper provisions for protecting andenforcing the rights and remedies of the bondholders or lenders,including covenants setting forth the duties of the authority andboard concerning:
(A) the construction, operation, repair, maintenance, andinsurance of the toll road facility; and
(B) the custody, safeguarding, and application of all moneyreceived or to be received by the authority on account of thetoll road facility financed by the bonds or loan;
(3) set forth the rights and remedies of the bondholders orlenders and trustee; and
(4) restrict the individual right of action of bondholders orlenders. (c) Except as otherwise provided in this chapter, the board ofdirectors may, by resolution or in the trust indenture, specify:
(1) the officer, board, or depository to which the proceeds of thebonds or loan shall be paid; and
(2) the method of disbursing those proceeds.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-12
Proceeds of bonds or loans; application; lien
Sec. 12. (a) The proceeds of any bonds issued or loans madeunder this chapter shall first be applied to the reimbursement of allamounts advanced for preliminary expenses under this chapter. Theproceeds shall then be applied solely to the payment of the costs forwhich the bonds are issued or the loan is negotiated, includingincidental expenses and interest during construction.
(b) The bondholders, lenders, or trustees under this chapter havea lien upon the proceeds of the bonds or the loan until those proceedsare applied as prescribed by this section.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-13
Review of annual operating budget
Sec. 13. The annual operating budget of a toll road authority issubject to:
(1) review by the county board of tax adjustment; and
(2) review by the department of local government finance;
as in the case of other political subdivisions.
As added by P.L.386-1987(ss), SEC.21. Amended by P.L.90-2002,SEC.326; P.L.224-2007, SEC.96; P.L.146-2008, SEC.363.
IC 8-18-21-14
Tax exemption; property and revenue of authority
Sec. 14. All the property and revenues of a toll road authority areexempt from taxation for all purposes.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-15
Tax exemption; bonds and securities
Sec. 15. All the bonds and other securities issued by a toll roadauthority, including the interest on them, are exempt from taxationas provided in IC 6-8-5.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-16
Handling and expenditure of authority money; surety bonds
Sec. 16. (a) Except as otherwise provided in this chapter, allmoney coming into possession of the toll road authority shall bedeposited, held, and secured in accordance with the general statutesconcerning the handling of public funds. The handling andexpenditure of money coming into possession of the authority is
subject to audit and supervision by the state board of accounts.
(b) Any employee of the toll road authority authorized to receive,disburse, or in any other way handle money or negotiable securitiesof the authority shall execute a bond payable to the state, with suretyto consist of a surety or guaranty corporation qualified to do businessin Indiana. The bond must be in an amount determined by the boardof directors of the authority and must be conditioned upon thefaithful performance of the employee's duties and the accounting forall money and property that may come into his hands or under hiscontrol. The cost of the bond shall be paid by the authority.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-17
Contracts subject to public works statutes
Sec. 17. All contracts let by a toll road authority for theconstruction and equipment of a toll road facility must be let inaccordance with the general statutes concerning public works.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-18
Public records
Sec. 18. The records of a toll road authority are public records.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-19
Dissolution of authority
Sec. 19. (a) The county fiscal body and the municipal fiscal bodyof the county seat may by concurrent resolution dissolve a toll roadauthority. They may consider dissolving the toll road authority at anytime, but they shall consider dissolving the toll road authority whenthey are presented with a petition signed by twenty percent (20%) ofthe registered voters residing in the county or thirty-five percent(35%) of the registered voters residing in the county seat.
(b) The concurrent resolution must provide a plan for paying anyobligations, including bonds, of the toll road authority and for thedisposition of the funds and property of the toll road authority.
As added by P.L.386-1987(ss), SEC.21.