CHAPTER 12. AIRPORT FINANCING
IC 8-21-12
Chapter 12. Airport Financing
IC 8-21-12-1
"Aircraft" defined
Sec. 1. As used in this chapter, "aircraft" means a vehicle used ordesigned for navigation or flight in the air.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-2
"Airport" defined
Sec. 2. As used in this chapter, "airport" means a location on landor water or a building or other structure that is used for the landingand taking off of aircraft, and that also provides for the shelter,supply, or care of aircraft, or a place used for receiving ordischarging passengers or cargo by air.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-3
"Authority" defined
Sec. 3. As used in this chapter, "authority" refers to the Indianafinance authority established under IC 4-4-11.
As added by P.L.28-1991, SEC.2. Amended by P.L.235-2005,SEC.119.
IC 8-21-12-4
"Aviation related property or facilities" defined
Sec. 4. (a) As used in this chapter, "aviation related property orfacilities" means those properties or facilities that are utilized by alessee, or a lessee's assigns, who provides services oraccommodations:
(1) for scheduled or unscheduled air carriers and air taxis, andtheir passengers, air cargo operations, and related groundtransportation facilities;
(2) for fixed based operations;
(3) for general aviation or military users; and
(4) as aviation maintenance and repair facilities.
(b) The term includes any property leased to the United States, orits agencies or instrumentalities, and any leased property identifiedas clear zones, aviation easements, or safety and transition areas, asdefined by the Federal Aviation Administration.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-5
"District" defined
Sec. 5. As used in this chapter, "district" means an airport district
established under section 11(9) of this chapter.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-6
"Landing area" defined
Sec. 6. As used in this chapter, "landing area" is that part of anairport or landing field designated and used for the landing or takingoff of aircraft.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-7
"Landing field" defined
Sec. 7. As used in this chapter, "landing field" means a locationon land or water or a building or other structure that is used for thelanding and taking off of aircraft, but that provides no other facilitiesor services.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-8
"Loan contract" defined
Sec. 8. As used in this chapter, "loan contract" means a debtinstrument other than a revenue bond, such as a note.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-9
"Local entity" defined
Sec. 9. As used in this chapter, "local entity" means a county, city,town, or other municipal corporation (as defined in IC 36-1-2-10).
As added by P.L.28-1991, SEC.2.
IC 8-21-12-10
"Person" defined
Sec. 10. As used in this chapter, "person" means:
(1) an individual, partnership, firm, company, limited liabilitycompany, corporation, association, trust, or estate; or
(2) the legal representative or agent of the individual or entitydescribed in subdivision (1).
As added by P.L.28-1991, SEC.2. Amended by P.L.8-1993, SEC.151.
IC 8-21-12-10.5
Applicability to the authority
Sec. 10.5. 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.235-2005, SEC.120.
IC 8-21-12-11
Purpose
Sec. 11. The authority may do all acts necessary or reasonablyincident to carrying out the purposes of this chapter, including thefollowing:
(1) To protect a district and all property owned or managed bythe authority and, to carry out this subdivision, to employspecial police or hire guards.
(2) To incur indebtedness in the name of the authority inaccordance with this chapter.
(3) To adopt administrative procedures, rules, and regulations,including emergency rules under IC 4-22-2-37.1.
(4) To:
(A) acquire real, personal, or mixed property by deed,purchase, lease, condemnation, or otherwise and dispose ofit for use, in connection with, or for administrative purposesof the airport;
(B) receive gifts, donations, bequests, and public trusts andto agree to conditions and terms accompanying them and tobind the authority to carry them out;
(C) receive and administer federal or state aid; and
(D) erect buildings or structures that may be needed toadminister and carry out this chapter.
(5) To determine matters of policy regarding internalorganization and operating procedures not specifically providedfor otherwise.
(6) To adopt a schedule of reasonable charges and to collectthem from all users of facilities and services within the district.
(7) To purchase supplies, materials, equipment, and services tocarry out the duties and functions of the authority, inaccordance with procedures adopted by the authority.
(8) To employ personnel that are necessary to carry out theduties, functions, and powers of the authority.
(9) To:
(A) acquire, establish, construct, improve, equip, maintain,control, lease, and regulate airports, landing fields, and otherair navigation facilities;
(B) acquire by lease (with or without the option to purchase)airports, landing fields, or navigation facilities, and anystructures, equipment, or related improvements; and
(C) erect, install, construct, and maintain at the airport orairport's facilities for the servicing of aircraft and for thecomfort and accommodation of air travelers and the public. The Indiana department of transportation must grant approvalbefore land may be purchased or leased for the establishment ofan airport or landing field and before an airport or landing fieldmay be established and shall establish the boundaries of adistrict or districts from time to time.
(10) To fix and determine exclusively the uses to which theairport lands may be put. All uses must be necessary ordesirable to the airport or the aviation industry and must becompatible with the uses of the surrounding lands as far aspracticable.
(11) To employ or contract with an airport director,superintendents, managers, financial advisers, engineers,surveyors, bond counsel, disclosure counsel, and otherattorneys, clerks, mechanics, laborers, and all employees theauthority considers expedient, and to prescribe and assign therespective duties and authorities and to fix and regulate thecompensation to be paid to the persons employed by theauthority. Employees shall be selected irrespective of theirpolitical affiliations.
(12) To make all rules and regulations, consistent with lawsregarding air commerce, for the management and control ofairports, landing fields, air navigation facilities, and otherproperty within a district or otherwise under the authority'scontrol.
(13) To acquire by lease the use of an airport or landing fieldfor aircraft pending the acquisition and improvement of anairport or landing field.
(14) To manage and operate airports, landing fields, and otherair navigation facilities acquired or maintained by the authority;to lease all or part of an airport, landing field, or any buildingsor other structures, and to fix, charge, and collect rentals, tolls,fees, and charges to be paid for the use of the whole or a part ofthe airports, landing fields, or other air navigation facilities byaircraft landing there and for the maintenance or servicing ofthe aircraft; to construct public recreational facilities that willnot interfere with air operational facilities; to fix, charge, andcollect fees for public admissions and privileges; and to makecontracts for the operation and management of the airports,landing fields, and other air navigation facilities; and to providefor the use, management, and operation of the air navigationfacilities through lessees, its own employees, or otherwise.Contracts or leases for the maintenance, operation, or use of theairport or any part of it may be made for a term not exceedingforty (40) years, and may be extended for similar terms of years.If a person whose character, experience, and financial
responsibility has been determined satisfactory by the authority,offers to erect a permanent structure that facilitates and isconsistent with the operation, use, and purpose of the airport onland owned or otherwise controlled by the authority, a leasemay be entered into for a period not to exceed ninety-nine (99)years. The authority may not grant an exclusive right for the useof a landing area under the authority's jurisdiction. However,this does not prevent the making of leases in accordance withother provisions of this chapter. All contracts and leases aresubject to restrictions and conditions that the authorityprescribes. The authority may lease property and facilities forany commercial or industrial use the authority considersnecessary and proper, including the use of providing airportmotel facilities.
(15) To sell machinery, equipment, or material that is notrequired for aviation purposes. The proceeds shall be depositedwith the authority or in accordance with an applicable trustagreement.
(16) To negotiate and execute contracts for sale or purchase,lease, personal services, materials, supplies, equipment, or anyother transaction or business relative to an airport under theauthority's control and operation in accordance with the termsand conditions the authority may determine.
(17) To vacate all or parts of roads, highways, streets, or alleyswithin a district.
(18) To approve any state, county, city, or other highway, road,street, or other public way, railroad, power line, or otherright-of-way to be laid out or opened across an airport or insuch proximity as to affect the safe operation of the airport.
(19) To construct drainage and sanitary sewers withconnections and outlets as are necessary for the proper drainageand maintenance of an airport or landing field acquired ormaintained under this chapter, including the necessary buildingsand improvements and for the public use of them in the samemanner that the authority may construct sewers and drains.However, with respect to the construction of drains and sanitarysewers beyond the boundaries of the airport or landing field, theauthority may negotiate with the departments, bodies, andofficers of a local entity to secure the proper orders andapprovals; and to order a public utility or public servicecorporation or other person to remove or to install inunderground conduits wires, cables, and power lines passingthrough or over the airport or landing field or along the bordersor within a reasonable distance that may be determined to benecessary for the safety of operations, upon payment to the
utility or other person of due compensation for the expense ofthe removal or reinstallation. The authority must consent beforeany franchise may be granted by state authorities or localentities for the construction of or maintenance of railway,telephone, telegraph, electric power, pipe, or conduit line upon,over, or through a district or within a reasonable distance of thedistrict that is necessary for the safety of operation. Theauthority must also consent before overhead electric powerlines carrying a voltage of more than four thousand fourhundred (4,400) volts and having poles, standards, or supportsover thirty (30) feet in height within one-half (1/2) mile of alanding area acquired or maintained under this chapter may beinstalled.
(20) To contract with any other state agency or instrumentalityor any political subdivision for the rendition of services, therental or use of equipment or facilities, or the joint purchase anduse of equipment or facilities that are necessary for theoperation, maintenance, or construction of an airport operatedunder this chapter.
(21) To provide air transportation in furtherance of the dutiesand responsibilities of the authority.
(22) To promote or encourage aviation related trade orcommerce at the airports that it operates.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-12
Recovery of damages
Sec. 12. The authority may take action to recover damages for thebreach of an agreement, expressed or implied, relating to theoperation, control, leasing, management, or improvement of theproperty under the authority's control, to impose the penalties for theviolation of resolutions or of the authority's rules or regulations, andfor injury to the personal or real property under the authority'scontrol, and to recover possession of any such property.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-13
Zoning restrictions
Sec. 13. (a) To provide free air space for the safe descent andascent of aircraft and for the proper and safe use of an airport orlanding field acquired or maintained under this chapter, the authoritymay establish by resolution or resolutions a restricted zone or zonesof a distance in any direction from the boundaries of the district sothat no building or other structure is erected high enough to interferewith the descent of an aircraft at an approach angle necessary for
safety for the usual type of operation that is conducted at the airportor landing field.
(b) The authority may acquire by condemnation or purchase, uponthe payment of due compensation, the right to prevent the erectionof, and to require the removal of, all buildings, towers, poles, wires,cables, other structures, and trees within the zone that interfere withthe gliding angle or as much of any structure or trees that interferewith the gliding angles. When a restricted zone or zones has beenestablished, a permit issued by a department or office of a localentity or by any state or other authority for the erection of anystructure extending into a zone is effective only if approved by theauthority. Establishment of a restricted zone outside of a district, inconnection with the condemnation of the rights in the land,constitutes condemnation and the perpetual annihilation of all rightsof the owners of the property within the zone to erect or maintain anybuilding or structure that will interfere with the gliding angle. Thisresult may be accomplished by absolute condemnation of the land,with perpetual and irrevocable free license to use and occupy theland within the zone for all purposes except the erection of buildingsor other structures above the height so prescribed.
(c) The part of a restricted zone that extends below fifty (50) feetmeasured vertically from the land may be established only bypurchase or proceedings in eminent domain. That part of a restrictedzone that is at least fifty (50) feet above the surface of the land is ineffect immediately upon the adoption by the authority of zoningrules. However, the owners of land beneath a restricted zone have theright to recover damages that may be proven in an action brought forthat purpose. In an action for damages, the owner has the burden ofproving damage by reason of the establishment of the restricted zone.
(d) The zoning jurisdiction granted in this section is exclusiveagainst jurisdiction granted by any other statute unless the otherstatute specifically provides otherwise. In case of conflict with anyairport zoning or other regulations promulgated by a local entity, thezoning rules adopted under this section prevail.
(e) All zoning rules adopted under this chapter must be reasonableand may not impose a requirement or restriction that is notreasonably necessary to effectuate the purposes of this chapter. Indetermining what regulations to adopt, the authority shall consider,among other things, the character of the flying operations expectedto be conducted at the airport, the nature of the terrain within theairport hazard area, the character of the neighborhood, and the usesto which the property to be zoned is put and adaptable. However, thissection does not apply to the location, relocation, erection,construction, change, alteration, maintenance, removal, use, orenlargement of any buildings or structures on lands owned by a
public utility or railroad.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-14
Eminent domain; public utility property
Sec. 14. (a) The authority may exercise the power of eminentdomain to carry out this chapter and may award damages tolandowners for real estate and property rights appropriated. If theauthority cannot agree with the owners, lessees, or occupants of realestate selected by the authority for the purposes in this chapter, theauthority may procure the condemnation of the property. Theauthority may proceed under IC 32-24-1. IC 32-24-1 applies toairports, landing fields, districts, and restricted zones adjoining themto the extent that IC 32-24-1 is not inconsistent with this chapter.
(b) If:
(1) it is necessary to establish and fix a restricted zone on andacross land that:
(A) is already in use for another public purpose; or
(B) has been condemned or appropriated for a use authorizedby statute; and
(2) the land is being used for that purpose by the corporation soappropriating it;
the public use or prior condemnation does not bar the right of theauthority to condemn the use of ground for aviation purposes. Use bythe authority does not permanently prevent the use of the land for theprior public use or by the corporation condemning or appropriatingit.
(c) The authority may not take or disturb property or facilitiesbelonging to a public utility or common carrier engaged in interstatecommerce if the property or facilities are required for the proper andconvenient operation of the utility or carrier, unless provision ismade for the restoration, relocation, or duplication of the property orfacilities elsewhere, at the sole cost of the authority.
As added by P.L.28-1991, SEC.2. Amended by P.L.2-2002, SEC.45.
IC 8-21-12-15
Finances of authority; bonds
Sec. 15. (a) The authority may:
(1) finance improvements related to an airport or aviationrelated property or facilities, including the acquisition of realestate;
(2) refund any bonds; or
(3) pay any loan contract;
by borrowing money and issuing revenue bonds from time to timeunder this section. (b) The issuance of revenue bonds must be authorized by aresolution of the authority.
(c) The bonds or the trust agreement securing the bonds mustindicate:
(1) the maturity date or dates;
(2) the interest rate or rates (whether fixed, variable, or acombination of fixed or variable) or the manner in which theinterest rate or rates will be determined if a variable or anadjustable rate is used;
(3) the registration privileges and the place of payment;
(4) the conditions and terms under which the bonds may beredeemed or prepaid before maturity; and
(5) the source of payment.
(d) The bonds must be executed in the name of the authority bythe chairman or vice chairman of the authority and attested by thesecretary-treasurer, and interest coupons may be executed by placingon the interest coupons the facsimile signature of the chairman orvice chairman of the authority. The bonds are valid and bindingobligations of the authority for all purposes, notwithstanding thatbefore delivery of the bonds any of the persons whose signaturesappear on the bonds have ceased to be officers of the authority, as ifthe persons had continued to be officers of the authority until afterdelivery. The validity of the authorization and issuance of the bondsis not dependent on or affected in any way by proceedings taken forthe improvement for which the bonds are to be issued, or bycontracts made in connection with the improvement. A resolutionauthorizing revenue bonds must provide that a revenue bond containa recital that the bond is issued under this chapter, and a bondcontaining the recital under authority of a resolution is consideredvalid and issued in conformity with this chapter.
(e) At the discretion of the authority, the revenue bonds shall besold either under the procedures for selling public bonds or at anegotiated sale with such terms as are consistent with the provisionsof the resolution authorizing the sale. The resolution may delegate tothe chairman or the secretary-treasurer the authority to conduct thesale. The bonds may be sold in installments at different times, or anentire issue or series may be sold or exchanged at one (1) time. Anyissue or series of the bond may be sold in part or sold in part ininstallments at different times or at one (1) time.
(f) The bonds are special obligations of the authority and arepayable solely from and secured by a lien upon the revenues of all orpart of the facilities of the authority, as shall be more fully describedin the resolution of the authority or trust agreement authorizing theissuance of the bonds, and, subject to the constitution and to the prioror superior rights of any person, the authority may by resolution
pledge and assign for the security of the bonds all or part of the grossor net revenues of the authority and the authority's facilities.
(g) The bonds and interest on the bonds are not a debt of theauthority, nor a charge, a lien, or an encumbrance, legal or equitable,upon property of the authority, or upon income, receipts, or revenuesof the authority other than those revenues of the facilities that havebeen pledged to the payment of the bonds. Every bond must recite insubstance that the bond, including interest, is payable solely from therevenues pledged to the bond's payment, and that the authority isunder no obligation to pay the bond, except from those revenues.
(h) The bonds, when issued, have all the qualities of negotiableinstruments, subject to provisions for registration, under IC 26 andare incontestable in the hands of a bona fide purchaser or owner ofthe bonds for value.
(i) The proceeds of the bonds are appropriated for the purpose forwhich the bonds may be issued and the proceeds shall be depositedand disbursed in accordance with any provisions and restrictions thatthe authority may provide in the resolution or trust agreementauthorizing the issuance of the bonds.
(j) All bonds issued under this article are issued by a bodycorporate and politic of this state, but not a state agency, and for anessential public and governmental purpose. The bonds, the intereston the bonds, the proceeds received by an owner from the sale of thebonds to the extent of the owner's cost of acquisition, the proceedsreceived upon redemption before maturity, the proceeds received atmaturity, and the receipt of the interest and proceeds are exemptfrom taxation as provided in IC 6-8-5.
(k) Notwithstanding any other law, all financial institutions,investment companies, insurance companies, insurance associations,executors, administrators, guardians, trustees, and other fiduciariesmay legally invest sinking funds, money, or other funds belonging tothem or within their control in bonds issued under this chapter.
(l) Bonds issued under this chapter are exempt from theregistration requirements of IC 23-19 and any other state securitiesregistration statutes.
(m) The authority may obtain from a department or agency of thestate or of the United States, or from a nongovernmental insurer,available insurance or guaranty for the payment or repayment ofinterest or principal, or both, or any part of the interest or principal,or any debt service reserve funds, on bonds issued by the authority,or on securities purchased or held by the authority.
(n) The authority may enter into agreements with an entity toprovide credit enhancement or liquidity support for any bonds issuedby the authority, or for any debt service reserves securing any bonds,with terms that are reasonable and proper, in the discretion of the
authority, and not in violation of law.
(o) The authority may enter into agreements or contracts with anyfinancial institution as may be necessary, desirable, or convenient inthe opinion of the authority for rendering services in connectionwith:
(1) the care, custody, or safekeeping of securities or otherinvestments held or owned by the authority;
(2) the payment or collection of amounts payable as to principalor interest; and
(3) the delivery to the authority of securities or otherinvestments purchased or sold by it.
The authority may also, in connection with any of the servicesrendered by a financial institution as to custody and safekeeping ofthe authority's securities or investments, require security in the formof collateral bonds, surety agreements, or security agreements as, inthe opinion of the authority, is necessary or desirable.
(p) In the discretion of the authority, any bonds issued under thischapter may be secured by a trust agreement by and between theauthority and a corporate trustee, which may be any trust companyor bank having the powers of a trust company in Indiana. Such a trustagreement may also provide for a cotrustee, which may be any trustcompany or bank in Indiana or another state.
(q) The trust agreement or the resolution providing for theissuance of the bonds may contain provisions for protecting andenforcing the rights and remedies of the owners of bonds as may bereasonable and proper, in the discretion of the authority, and not inviolation of law.
(r) Any trust agreement or resolution may contain other provisionsthat the authority considers reasonable and proper for the security ofthe owners of bonds.
(s) All expenses incurred in carrying out the provisions of thetrust agreement or resolution may be paid from money pledged orassigned to the payment of the principal of and interest on bonds orfrom any other funds available to the authority.
(t) Funds or money held by the authority under any trustagreement or resolution may be invested pending disbursement asprovided in the trust agreement or the resolution. Such an investmentis not restricted by or subject to the provisions of any other law.
(u) Refunding or refunding and improvement revenue bonds maybe issued in accordance with the provisions for the refinancing orrefinancing and improving of any of the facilities for which revenuebonds or a loan contract have been issued or made under this sectionor section 16 of this chapter.
(v) This section constitutes full authority for the issuance ofrevenue bonds. No procedure, proceedings, publications, notices,
consents, approvals, orders, acts, or things by the authority, by aboard, an officer, a commission, a department, an agency, or aninstrumentality of the state, or by an eligible entity is required toissue revenue bonds or to do any act or perform anything under thischapter, except as presented by this chapter. The powers conferredby this chapter are in addition to, and not in substitution for, and thelimitations imposed by this section do not affect the powersconferred in another section of this chapter or by any other statute.
As added by P.L.28-1991, SEC.2. Amended by P.L.27-2007, SEC.8.
IC 8-21-12-16
Loans to the authority
Sec. 16. The authority may negotiate terms and borrow moneyfrom any source under a loan contract, subject to the followingrequirements:
(1) The loan contract must be approved by resolution of theauthority.
(2) The loan contract must provide for the repayment of theloan in not more than forty (40) years.
(3) The loan contract must state that the indebtedness is that ofthe authority, is payable solely from revenues of the authoritythat are derived from either airport operations or from revenuebonds, and may not be paid by a tax levied on property locatedwithin the state.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-17
Loan contracts; tax exemptions
Sec. 17. Any loan contract issued under this chapter is issued bya body corporate and politic of this state, but not a state agency, andfor essential public and governmental purposes. A loan contract, theinterest on it, the proceeds received by a holder from the sale of aloan contract to the extent of the holder's cost of acquisition, theproceeds received upon redemption before maturity, the proceedsreceived at maturity, and the receipt of the interest and proceeds areexempt from taxation as provided in IC 6-8-5.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-18
Officers and employees; bonds; surety
Sec. 18. The authority may require a bond from any of the officersor employees of the authority in an amount, upon terms andconditions, and with surety that the authority designates.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-19
Airports and landing fields; establishment; tax exemption
Sec. 19. (a) The acquisition, establishment, construction,improvement, equipment, maintenance, control, and operation ofairports and landing fields for aircraft under this chapter is agovernmental function of general public necessity and benefit, andis for the use and general welfare of all the people of the state.
(b) Notwithstanding any other statute, the leasehold estate of anylessee created pursuant to a lease by the authority of the authority'saviation related property or facilities, together with any permanentstructure erected on the property by the lessee is exempt fromproperty taxation.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-20
Bonds; issuance by fiscal bodies of local entities
Sec. 20. Whenever the fiscal body of a local entity determines thatthe public interest of the local entity will be served by assisting theauthority in executing the powers granted by this chapter, the localentity may furnish assistance by gift, or lease with or without rental,of real property, by donation, lease with or without rental, or loan, ofpersonal property, and by the appropriation of money that may beprovided for by taxation or the issuance of bonds in the same manneras funds might be provided for the same purpose if the local entitywas exercising the powers granted in the local entity's own behalf.
As added by P.L.28-1991, SEC.2.
IC 8-21-12-21
Airports and other navigation facilities; receipt of funds; grants
Sec. 21. (a) The authority may accept, receive, and receipt forfederal, other public, or private money for the acquisition,construction, enlargement, improvement, maintenance, equipment,or operation of airports, other air navigation facilities, and sites forthem, and comply with federal laws made for the expenditure offederal money upon airports and other air navigation facilities.
(b) Subject to IC 8-21-8, the authority has exclusive power tosubmit to the proper state and federal agencies applications for grantsof funds for airport development and to make or executerepresentations, assurances, and contracts, to enter into covenantsand agreements with a state or a federal agency relative to thedevelopment of an airport, and to comply with all federal and statelaws pertaining to the acquisition, development, operation, andadministration of airports and properties by the authority.
As added by P.L.28-1991, SEC.2.