IC 5-1-16
Chapter 16. Indiana Finance Authority Financing of Health
Facilities
IC 5-1-16-1 Definitions
Sec. 1. As used in this chapter:
"Authority" refers to the Indiana finance authority.
"Bonds" includes bonds, refunding bonds, notes, interim
certificates, bond anticipation notes, and other evidences of
indebtedness of the authority, issued under this chapter.
"Building" or "buildings" or similar words mean any building or
part of a building or addition to a building for health care purposes.
The term includes the site for the building (if a site is to be acquired),
equipment, heating facilities, sewage disposal facilities, landscaping,
walks, drives, parking facilities, and other structures, facilities,
appurtenances, materials, and supplies that may be considered
necessary to render a building suitable for use and occupancy for
health care purposes.
"Cost" includes the following:
(1) The cost and the incidental and related costs of the
acquisition, repair, restoration, reconditioning, refinancing, or
installation of health facility property.
(2) The cost of any property interest in health facility property,
including an option to purchase a leasehold interest.
(3) The cost of constructing health facility property, or an
addition to health facility property, acquiring health facility
property, or remodeling health facility property.
(4) The cost of architectural, engineering, legal, trustee,
underwriting, and related services; the cost of the preparation
of plans, specifications, studies, surveys, and estimates of cost
and of revenue; and all other expenses necessary or incident to
planning, providing, or determining the need for or the
feasibility and practicability of health facility property.
(5) The cost of financing charges, including premiums or
prepayment penalties and interest accrued during the
construction of health facility property or before the acquisition
and installation or refinancing of such health facility property
for up to two (2) years after such construction, acquisition, and
installation or refinancing and startup costs related to health
facility property for up to two (2) years after such construction,
acquisition, and installation or refinancing.
(6) The costs paid or incurred in connection with the financing
of health facility property, including out-of-pocket expenses,
the cost of any policy of insurance; the cost of printing,
engraving, and reproduction services; and the cost of the initial
or acceptance fee of any trustee or paying agent.
(7) The costs of the authority, incurred in connection with
providing health facility property, including reasonable sums to
reimburse the authority for time spent by its agents or
employees in providing and financing health facility property.
(8) The cost paid or incurred for the administration of any
program for the purchase or lease of or the making of loans for
health facility property, by the authority and any program for
the sale or lease of or making of loans for health facility
property to any participating provider.
"County" means any county in the state that owns and operates a
county hospital.
"Health facility property" means any tangible or intangible
property or asset owned or used by a participating provider and
which:
(1) is determined by the authority to be necessary or helpful,
directly or indirectly, to provide:
(A) health care;
(B) medical research;
(C) training or teaching of health care personnel;
(D) habilitation, rehabilitation, or therapeutic services; or
(E) any related supporting services;
regardless of whether such property is in existence at the time
of, or is to be provided after the making of, such finding;
(2) is a residential facility for:
(A) individuals with a physical, mental, or emotional
disability;
(B) individuals with a physical or mental illness; or
(C) the elderly; or
(3) is a licensed child caring institution providing residential
care described in IC 12-7-2-29(1) or corresponding provisions
of the laws of the state in which the property is located.
"Health facility" means any facility or building that is:
(1) owned or used by a participating provider;
(2) located:
(A) in Indiana; or
(B) outside Indiana, if the participating provider that
operates the facility or building, or an affiliate of the
participating provider, also operates a substantial health
facility or facilities, as determined by the authority, in
Indiana; and
(3) utilized, directly or indirectly:
(A) in:
(i) health care;
(ii) habilitation, rehabilitation, or therapeutic services;
(iii) medical research;
(iv) the training or teaching of health care personnel; or
(v) any related supporting services;
(B) to provide a residential facility for:
(i) individuals with a physical, mental, or emotional
disability;
(ii) individuals with a physical or mental illness; or
(iii) the elderly; or
(C) as a child caring institution and provides residential care
described in IC 12-7-2-29(1) or corresponding provisions of
the laws of the state in which the facility or building is
located.
"Net revenues" means the revenues of a hospital remaining after
provision for proper and reasonable expenses of operation, repair,
replacement, and maintenance of the hospital.
"Participating provider" means a person, corporation, municipal
corporation, political subdivision, or other entity, public or private,
which:
(1) is located in Indiana or outside Indiana;
(2) contracts with the authority for the financing or refinancing
of, or the lease or other acquisition of, health facility property
that is located:
(A) in Indiana; or
(B) outside Indiana, if the financing, refinancing, lease, or
other acquisition also includes a substantial component, as
determined by the authority, for the benefit of a health
facility or facilities located in Indiana;
(3) is:
(A) licensed under IC 12-25, IC 16-21, IC 16-28, or
corresponding laws of the state in which the property is
located;
(B) a regional blood center;
(C) a community mental health center or community mental
retardation and other developmental disabilities center (as
defined in IC 12-7-2-38 and IC 12-7-2-39 or corresponding
provisions of laws of the state in which the property is
located);
(D) an entity that:
(i) contracts with the division of disability and
rehabilitative services or the division of mental health and
addiction to provide the program described in
IC 12-11-1.1-1(e) or IC 12-22-2; or
(ii) provides a similar program under the laws of the state
in which the entity is located;
(E) a vocational rehabilitation center established under
IC 12-12-1-4.1(a)(1) or corresponding provisions of the laws
of the state in which the property is located;
(F) the owner or operator of a facility that is utilized, directly
or indirectly, to provide health care, habilitation,
rehabilitation, therapeutic services, medical research, the
training or teaching of health care personnel, or any related
supporting services, or of a residential facility for
individuals with a physical, mental, or emotional disability,
individuals with a physical or mental illness, or the elderly;
(G) a licensed child caring institution providing residential
care described in IC 12-7-2-29(1) or corresponding
provisions of the laws of the state in which the property is
located;
(H) an integrated health care system between or among
providers, a health care purchasing alliance, a health insurer
or third party administrator that is a participant in an
integrated health care system, a health maintenance or
preferred provider organization, or a foundation that
supports a health care provider; or
(I) an individual, a business entity, or a governmental entity
that owns an equity or membership interest in any of the
organizations described in clauses (A) through (H); and
(4) in the case of a person, corporation, municipal corporation,
political subdivision, or other entity located outside Indiana, is
owned or controlled by, under common control with, affiliated
with, or part of an obligated group that includes an entity that
provides one (1) or more of the following services or facilities
in Indiana:
(A) A facility that provides:
(i) health care;
(ii) habilitation, rehabilitation, or therapeutic services;
(iii) medical research;
(iv) training or teaching of health care personnel; or
(v) any related supporting services.
(B) A residential facility for:
(i) individuals with a physical, mental, or emotional
disability;
(ii) individuals with a physical or mental illness; or
(iii) the elderly.
(C) A child caring institution providing residential care
described in IC 12-7-2-29(1).
"Regional blood center" means a nonprofit corporation or
corporation created under 36 U.S.C. 1 that:
(1) is:
(A) accredited by the American Association of Blood Banks;
or
(B) registered or licensed by the Food and Drug
Administration of the Department of Health and Human
Services; and
(2) owns and operates a health facility that is primarily engaged
in:
(A) drawing, testing, processing, and storing human blood
and providing blood units or components to hospitals; or
(B) harvesting, testing, typing, processing, and storing
human body tissue and providing this tissue to hospitals. As added by P.L.45-1983, SEC.1. Amended by P.L.41-1985, SEC.1;
P.L.28-1986, SEC.1; P.L.45-1987, SEC.1; P.L.39-1988, SEC.1;
P.L.11-1990, SEC.104; P.L.2-1992, SEC.44; P.L.27-1992, SEC.1;
P.L.2-1993, SEC.40; P.L.43-1993, SEC.1; P.L.56-1995, SEC.1;
P.L.272-1999, SEC.3; P.L.5-2001, SEC.1; P.L.215-2001, SEC.7;
P.L.64-2002, SEC.1; P.L.235-2005, SEC.62; P.L.141-2006, SEC.7;
P.L.162-2007, SEC.15; P.L.99-2007, SEC.11. IC 5-1-16-1.1 Applicability of provisions to the authority
Sec. 1.1. This chapter:
(1) applies to the Indiana finance authority only when acting as
the authority for the purposes set forth in this chapter; and
(2) does not apply to the Indiana finance authority when acting
under any other statute for any other purpose. As added by P.L.235-2005, SEC.63. Amended by P.L.162-2007,
SEC.16.
IC 5-1-16-1.5 Appropriation and expenditure of county tax money; leases
binding upon county
Sec. 1.5. (a) For purposes of this chapter, county commissioner
action or approval for the appropriation and expenditure of county
tax money shall presuppose and include approval by the county
council.
(b) A lease entered into by the board of county commissioners
with the authority is valid or binding upon the county only if the
lease is approved by a majority vote of the county council. As added by P.L.43-1993, SEC.2.
IC 5-1-16-2
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-3
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-4
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-5
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-6
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-7
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-8
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16-9
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-10
Repealed
(Repealed by P.L.235-2005, SEC.212.)
IC 5-1-16-10.5
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-11
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-12
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-13 Powers of authority
Sec. 13. (a) The authority has all powers necessary to carry out
and effectuate its public and corporate purposes, including but not
limited to the following:
(1) To make and execute contracts and all other instruments
necessary or convenient for the performance of its duties and
the exercise of its powers and functions under this chapter.
(2) To employ architects, engineers, independent legal counsel,
inspectors, accountants, and health care and financial experts,
and such other advisors, consultants, and agents as may be
necessary in its judgment without the approval of or consent by
any other state official, and to fix their compensation.
(3) To procure insurance against any loss in connection with its
property and other assets, in such amounts and from such
insurers as it considers advisable, including the power to pay
premiums on any such insurance.
(4) To procure insurance or guarantees from any public or
private entities, including any department, agency, or
instrumentality of the United States of America, to secure
payment:
(A) on a loan, lease, or purchase payment owed by a
participating provider to the authority; and
(B) of any bonds issued by the authority, including the
power to pay premiums on any such insurance or guarantee.
(5) To procure letters of credit or other credit facilities or
agreements from any national or state banking association or
other entity authorized to issue a letter of credit or other credit
facilities or agreements to secure the payment of any bonds
issued by the authority or to secure the payment of any loan,
lease, or purchase payment owed by a participating provider to
the authority, including the power to pay the cost of obtaining
such letter of credit or other credit facilities or agreements.
(6) To receive and accept from any source any money, property,
or thing of value to be held, used, and applied to carry out the
purposes of this chapter subject to the conditions upon which
the grants or contributions are made, including gifts or grants
from any department, agency, or instrumentality of the United
States of America for any purpose consistent with this chapter.
(7) To provide, or cause to be provided by a participating
provider, by acquisition, lease, construction, fabrication, repair,
restoration, reconditioning, refinancing, or installation, health
facility property to be located within a health facility.
(8) To lease as lessor any item of health facility property for
such rentals and upon such terms and conditions as the
authority considers advisable and are not in conflict with this
chapter.
(9) To sell by installment or otherwise to sell by option or
contract for sale, and to convey all or any part of any item of
health facility property for such price and upon such terms and
conditions as the authority considers advisable and as are not in
conflict with this chapter.
(10) To make contracts and incur liabilities, borrow money at
such rates of interest as the authority determines, issue its bonds
in accordance with this chapter, and secure any of its bonds or
obligations by a mortgage or pledge of all or any of its property,
franchises, and income or as otherwise provided in this chapter.
(11) To make secured or unsecured loans for the purpose of
providing temporary or permanent financing or refinancing for
the cost of any item of health facility property, including the
retiring of any outstanding obligations issued by a participating
provider, and the reimbursement to a participating provider of
advances, for the cost of any health facility property purchased
in anticipation of procuring such financing or refinancing from
the authority or other sources, and to charge and collect interest
on such loans for such loan payments and upon such terms and
conditions as the authority considers advisable and as are not in
conflict with this chapter.
(12) To invest and reinvest its funds and to take and hold
property as security for the investment of such funds as
provided in this chapter.
(13) To purchase, receive, lease (as lessee or lessor), or
otherwise acquire, own, hold, improve, use, or otherwise deal
in and with, health facility property, or any interest therein,
wherever situated.
(14) To sell, convey, mortgage, pledge, assign, lease, exchange,
transfer, and otherwise dispose of all or any part of its property
and assets.
(15) To the extent permitted under its contract with the holders
of bonds of the authority, consent to any modification with
respect to the rate of interest, time, and payment of any
installment of principal or interest, or any other term of any
contract, loan, loan note, loan note commitment, contract, lease,
or agreement of any kind to which the authority is a party.
(16) To charge to and apportion among participating providers
its administrative costs and expenses incurred in the exercise of
the powers and duties conferred by this chapter.
(17) Except as otherwise provided in a trust agreement or bond
resolution securing bonds of the authority, and notwithstanding
IC 5-13, to invest:
(A) the authority's money, funds, and accounts;
(B) any money, funds, and accounts in the authority's
custody; and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority.
(18) To collect fees and charges, as the authority determines to
be reasonable, in connection with its loans, leases, sales,
advances, insurance, commitments, and servicing.
(19) To cooperate with and exchange services, personnel, and
information with any federal, state, or local governmental
agency.
(20) To sell, at public or private sale, with or without public
bidding, any loan or other obligation held by the authority.
(21) To assist, coordinate, and participate with other issuers of
tax exempt bonds and public officials in other states in
connection with financings or refinancings on behalf of
multiple state health facilities. Assistance, coordination, and
participation provided under this subdivision may include
conducting any hearings required by state or federal law in
order for bonds to be issued by public officials in other states if
part of the proceeds of the bonds will be used by participating
providers in Indiana. Neither the state of Indiana nor the
authority, nor any officers, agents, or employees of the state or
the authority, are subject to any liability resulting from
assistance to or coordination or participation with other issuers
of tax exempt bonds under this subsection. Any assistance,
coordination, or participation provided under this subsection is
given with the understanding that the issuers of tax exempt
bonds or borrowers will agree to indemnify and hold harmless
the state of Indiana and the authority and their officers, agents,
and employees from all claims and liability arising from any
action against the state of Indiana or the authority relating to the
bonds.
(22) Subject to the authority's investment policy, to enter into
swap agreements (as defined in IC 8-9.5-9-4) in accordance
with IC 8-9.5-9-5 and IC 8-9.5-9-7.
The omission of a power from the list in this subsection does not
imply that the authority lacks that power. The authority may exercise
any power that is not listed in this subsection but is consistent with
the powers listed in this subsection to the extent that the power is not
expressly denied by the Constitution of the State of Indiana or by
another statute.
(b) No part of the revenues or assets of the authority may inure to
the benefit of or be distributable to its members or officers or other
private persons. Any net earnings of the authority beyond that
necessary for retirement of authority indebtedness or to implement
the public purposes of this chapter inure to the benefit of the state.
Upon termination or dissolution, all rights and properties of the
authority pass to and are vested in the state, subject to the rights of
lienholders and other creditors. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.4;
P.L.5-2001, SEC.2; P.L.235-2005, SEC.72; P.L.162-2007, SEC.17.
IC 5-1-16-13.1
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-14 Competitive bidding requirement
Sec. 14. Health facility property financed under this chapter is not
subject to any statutory requirement of competitive bidding or other
restriction imposed on the procedure for award of contracts or the
lease, sale, or other disposition of health facility property with regard
to any action taken under authority of this chapter. However, if the
prospective lessee or purchaser requests in writing, the authority
shall call for the construction bids in a manner determined by the
authority with the approval of such lessee or purchaser. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.5.
IC 5-1-16-15 Health facility property; participating providers
Sec. 15. The authority may initiate a program of providing health
facility property to be operated by participating providers in health
facilities. In furtherance of this objective, the authority may also:
(1) establish eligibility standards for participating providers,
without complying with IC 4-22-2; however, these standards
have the force of law if the standards are adopted after a public
hearing for which notice has been published in a newspaper
published in the city of Indianapolis, at least ten (10) days in
advance of the hearing;
(2) contract with any entity securing the payment of bonds
under section 13(a)(4) and 13(a)(5) of this chapter, authorizing
the entity to approve the participating providers that can finance
or refinance health facility property with proceeds from the
bond issue secured by that entity;
(3) lease to a participating provider specific items of health
facility property upon terms and conditions that the authority
considers proper, to charge and collect rents therefor, to
terminate any such lease upon the failure of the lessee to
comply with any of its obligations under the lease or otherwise
as the lease provides, to include in any such lease provisions
that the lessee has the options to renew the term of the lease for
such periods and at such rents as may be determined by the
authority or to purchase any or all of the health facility property
to which the lease applies;
(4) loan to a participating provider under an installment
purchase contract or loan agreement money to finance,
reimburse, or refinance the cost of specific items of health
facility property and to take back a secured or unsecured
promissory note evidencing such a loan and a security interest
in the health facility property financed or refinanced with such
loan, upon such terms and conditions as the authority considers
proper;
(5) sell or otherwise dispose of any unneeded or obsolete health
facility property under terms and conditions as determined by
the authority;
(6) maintain, repair, replace, and otherwise improve or cause to
be maintained, repaired, replaced, and otherwise improved any
health facility property owned by the authority;
(7) obtain or aid in obtaining property insurance on all health
facility property owned or financed, or to accept payment if any
health facility property is damaged or destroyed; and
(8) enter into any agreement, contract, or other instrument with
respect to any insurance, guarantee, or letter of credit, accepting
payment in such manner and form as provided therein if a
participating provider defaults, and to assign any such
insurance, guarantee, or letter of credit as security for bonds
issued by the authority. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.6;
P.L.5-2001, SEC.3; P.L.162-2007, SEC.18.
IC 5-1-16-16 Authority management; agreements
Sec. 16. The authority may employ and may enter into agreements
with, and delegate to any person as it sees fit, the power to manage
the routine affairs of the authority, including the originating and
processing of any applications from participating providers for the
lease or purchase from the authority, or financing, reimbursing, or
refinancing by the authority, of health facility property and to service
the leases, installment purchase contracts, and loan agreements
between the authority and the participating providers. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.7.
IC 5-1-16-17 Security; transactions with participating providers
Sec. 17. Before exercising any of the powers conferred by section
15 of this chapter, the authority may:
(1) require that the lease, installment purchase contract, or loan
agreement involved be insured by a loan insurer, be guaranteed
by a loan guarantor, or be secured by a letter of credit; and
(2) require any other type of security from the participating
providers that it considers reasonable and necessary. As added by P.L.45-1983, SEC.1.
IC 5-1-16-18 Power to issue bonds
Sec. 18. The authority may issue, sell, and deliver its bonds, in
accordance with this chapter, for the purpose of paying for or making
loans to participating providers for the financing, reimbursing, or
refinancing of all or any part of the cost of health facility property,
to finance the acquisition of health facility property for lease or sale
to participating providers, and any other purposes authorized by this
chapter. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.8.
IC 5-1-16-19 Bonds; requisites
Sec. 19. (a) The bonds must be dated, must bear interest at such
rates (fixed or variable), must mature at such times not exceeding
forty (40) years from their date, and may be made redeemable before
maturity at such prices and upon terms and conditions determined by
the authority. The bonds, including any interest coupons to be
initially attached thereto, must be in the forms and denominations
and payable at such places, as the authority determines. The bonds
shall be executed by the manual or facsimile signature of the
chairman or vice chairman of the authority, and the seal of the
authority, or facsimile seal, shall be affixed or imprinted on the
bonds. The seal shall be attested by the manual or facsimile signature
of the public finance director. However, one (1) of the signatures
must be manual, unless the bonds are authenticated by the manual
signature of an authorized officer of a trustee for the bondholders.
Any coupons attached must bear the facsimile signature of the
chairman or vice chairman of the authority. If an officer's signature
or a facsimile of whose signature appears on any bonds or coupons,
and the officer ceases to be an officer before the delivery of and
payment for such bonds, such signature or such facsimile is
nevertheless valid and sufficient for all purposes, the same as if such
officer had remained in office until such delivery and payment. The
bonds may be issued in coupon or in fully registered form, or both,
or may be payable to a specific person, as the authority determines,
and provision may be made for the registration of any coupon bonds
as to principal alone or as to both principal and interest, for the
conversion of coupon bonds into fully registered bonds without
coupons, and for the conversion into coupon bonds of any fully
registered bonds without coupons. The duty of conversion may be
imposed upon a trustee in a trust agreement.
(b) The principal of, redemption premium, if any, and interest on
such bonds shall be payable solely from and may be secured by a
pledge of all or any part of the proceeds of bonds, revenues derived
from the lease or sale of health facility property or realized from a
loan made by the authority to finance or refinance in whole or in part
health facility property, revenues derived from operating health
facility property, including insurance proceeds, or any other revenues
provided by a participating provider.
(c) The authority shall sell the bonds at prices it determines, at
public or private sale.
(d) The authority may provide for the issuance of bonds of the
authority for the purpose of refunding any bonds of the authority then
outstanding, including the payment of any redemption premium
thereon and any interest accrued or to accrue to the earliest or any
subsequent date of redemption, purchase or maturity of such bonds,
and, if considered advisable by the authority, for the additional
purpose of paying all or any part of the cost of health facility
property.
(e) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase or retirement at maturity or redemption of such
outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or at the maturity thereof and
may, pending such application, be placed in escrow to be applied to
such purchase or retirement at maturity or redemption on such date
as may be determined by the authority. Subject to the provisions of
any trust indenture to the contrary, any such escrowed proceeds,
pending such use, may be invested and reinvested in such obligations
as are determined by the authority in order to assure the prompt
payment of the principal and interest and redemption premium, if
any, on the outstanding bonds to be so refunded. The interest,
income, and profits, if any, earned or realized on any such investment
may also be applied to the payment of the outstanding bonds to be so
refunded. Only after the terms of the escrow have been fully satisfied
and carried out, any balance of such proceeds and interest, income,
and profits, if any, earned or realized on the investments thereof shall
be returned to the authority or the participating providers for use by
them in any lawful manner. All such bonds are subject to this chapter
in the same manner and to the same extent as other bonds issued
under this chapter. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.9;
P.L.1-2009, SEC.12.
IC 5-1-16-20 Bond proceeds; use; disbursement
Sec. 20. The proceeds of the bonds (other than refunding bonds)
of each issue shall be used for the payment of all or part of the cost
of, or for the making of a loan in the amount of all or part of the cost
of, the health facility property for which such bonds have been
authorized and, at the option of the authority, for the deposit to a
reserve fund or reserve funds for the bonds. However, the authority
may be paid, out of money from the proceeds of the sale and delivery
of its bonds issued in accordance with this chapter, all of the
authority's out-of-pocket expenses and costs in connection with the
issuance, sale, and delivery of such bonds, and the costs of obtaining
insurance, guarantees, and letters of credit securing payment of the
bonds and the lease and the loan and installment purchase payments,
plus an amount equal to the compensation paid to any employees of
the authority for the time those employees have spent on activities
relating to the issuance, sale, and delivery of the bonds. Bond
proceeds shall be disbursed in the manner and under the restrictions
determined by the authority. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.10.
IC 5-1-16-21 Trust indenture to secure bonds; operating expenses
Sec. 21. (a) The bonds may be secured by a trust indenture by and
between the authority and a corporate trustee which may be any bank
having the power of a trust company or any trust company in Indiana.
The trust indenture may contain such provisions for protecting and
enforcing the rights and remedies of the holders of the bonds as may
be reasonable and proper and not in violation of law, including
covenants setting forth the duties of the authority in relation to the
exercise of its powers and the custody, investing, safekeeping, and
application of all money. The authority may provide by the trust
indenture for the payment of the proceeds of the bonds and the
revenue to the trustee under the trust indenture or other depository,
and for the method of disbursement thereof, with such safeguards
and restrictions as the authority may determine. All expenses
incurred in carrying out the trust indenture may be treated as a part
of the operating expenses of the authority. If the bonds are secured
by a trust indenture, the holders of the bonds have no authority to
appoint a separate trustee to represent them.
(b) All expenses incurred in carrying out this chapter shall be
payable solely from funds provided under the authority of this
chapter and no liability may be incurred by the authority or the state
beyond the extent to which money has been provided under this
chapter. As added by P.L.45-1983, SEC.1.
IC 5-1-16-22 Bond resolutions or related instruments; provisions and additional
security authorized
Sec. 22. Any bond resolution or related trust indenture, indenture
of mortgage, or deed of trust may contain provisions, which must be
a part of the contract with the holders of the bonds to be authorized,
as to:
(1) pledging or assigning the revenues generated by the health
facility property, pledging or assigning the notes and mortgage,
lease, or other security given by the participating providers
whose health facility property has been financed with the
proceeds of such bonds or other specified revenues or property
of the authority;
(2) the rentals, fees, interest, and other amounts to be charged
by the authority, the schedule of principal payments, and the
sums to be raised in each year thereby, and the use, investment,
and disposition of such sums;
(3) setting aside any reserves or sinking funds, and the
regulation, investment, and disposition thereof;
(4) limitation on the use of the health facility property;
(5) limitations on the purpose to which or the investments in
which the proceeds of sale of any issue of bonds then or
thereafter may be applied;
(6) limitations on the issuance of additional bonds, terms upon
which additional bonds may be issued and secured, and the
terms 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 contract
with holders of the bonds may be amended or abrogated, the
amounts of bonds the holders of which must consent thereto,
the manner in which such consent may be given, and
restrictions on the individual rights of action by holders of the
bonds;
(9) acts or omissions that constitute a default in the duties of the
authority to holders of its bonds and providing the rights and
remedies of such holders in the event of default; and
(10) any other matters relating to the bonds that the authority
considers desirable.
Bonds of the authority may also be secured by and payable from a
pooling of leases or of notes and mortgages or other security
instruments whereby the authority may assign its rights, as lessor,
and pledge rents under two (2) or more leases of health facility
property with two (2) or more participating providers, as lessees, or
assign its rights as payee or secured party and pledge the revenues
under two (2) or more notes and loan agreements from two (2) or
more participating providers, upon such terms as may be provided for
in bond resolutions or other instruments under which such bonds are
issued. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.11.
IC 5-1-16-23 Payment of bonds
Sec. 23. Every issue of bonds is payable solely out of revenues,
assets, or money of the authority as the authority determines, subject
only to any agreements with the holders of particular bonds pledging
any particular money or revenue. The bonds may be additionally
secured by a pledge of any grant, contribution, or guarantee from the
federal government or any corporation, limited liability company,
association, institution, or person or a pledge of any money, income,
or revenue of the authority from any source. As added by P.L.45-1983, SEC.1. Amended by P.L.8-1993, SEC.49. IC 5-1-16-24 Bonds not indebtedness or obligation of state
Sec. 24. (a) Bonds issued under this chapter do not, and shall state
upon the face of each bond that they do not, represent or constitute
a debt of the authority or of the state within the meaning of the
provisions of the Constitution or statutes of Indiana or a pledge of the
faith and credit of the authority or the state or grant to the owners or
holders thereof any right to have the authority or the state levy any
taxes or appropriate any funds for the payment of the principal
thereof or interest thereon. Such bonds are payable and shall state
that they are payable solely from the funds pledged for their payment
in accordance with the bond resolution or trust agreement securing
the same.
(b) This chapter does not authorize the authority or any
department, board, commission, or other agency to create an
obligation of the state within the meaning of the Constitution or
statutes of Indiana. As added by P.L.45-1983, SEC.1.
IC 5-1-16-25 Pledge by authority
Sec. 25. Any pledge made by the authority is valid and binding
from the time when the pledge is made. The revenue, money, or
properties so pledged and thereafter received by the authority are
immediately subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such pledge is
valid and binding as against all parties having claims of any kind in
tort, contract, or otherwise against the authority, irrespective of
whether the parties have notice of the lien. Neither the resolution nor
any other instrument by which a pledge is created need be recorded. As added by P.L.45-1983, SEC.1.
IC 5-1-16-26 Repurchase of authority bonds
Sec. 26. The authority, subject to such agreements with holders of
the bonds as then exist, may purchase bonds of the authority out of
any available funds, which shall thereupon be cancelled, at any
reasonable price which, if the bonds are then redeemable, does not
exceed the redemption price then applicable plus accrued interest to
the next interest payment date thereon. As added by P.L.45-1983, SEC.1.
IC 5-1-16-27 Negotiability of bonds
Sec. 27. Regardless of whether the bonds are in the form and
character of negotiable instruments, the bonds are negotiable
instruments, subject only to provisions of the bonds relating to
registration. As added by P.L.45-1983, SEC.1. IC 5-1-16-28 Personal liability of bond issuers
Sec. 28. Neither the members of the authority nor any other
person executing the bonds issued under this chapter is subject to
personal liability by reason of the issuance of the bonds. As added by P.L.45-1983, SEC.1.
IC 5-1-16-29 Establishment of funds and accounts
Sec. 29. The authority may establish funds and accounts necessary
for its purposes. As added by P.L.45-1983, SEC.1.
IC 5-1-16-30 Deposit of funds in accounts
Sec. 30. All money of the authority, except as otherwise provided
in this chapter, shall be deposited as soon as practical in a separate
account in banks or trust companies organized under the laws of
Indiana or in national banking associations. The money in these
accounts shall be paid by checks signed by the public finance
director or other officers or employees of the authority as the
authority authorizes. All deposits of money shall, if required by the
authority, be secured in such a manner as the authority determines to
be prudent, and all banks or trust companies are authorized to give
security for the deposits. As added by P.L.45-1983, SEC.1. Amended by P.L.1-2009, SEC.13.
IC 5-1-16-31 Enforcement of rights and duties concerning bonds
Sec. 31. (a) Any holder of bonds or any coupons appertaining
thereto, and the trustee under any trust agreement or resolution
authorizing the issuance of such bonds, except to the extent the rights
given in this chapter may be restricted by such trust agreement or
resolution, may, either at law or in equity, by suit, action, mandamus,
or other proceeding, protect and enforce any and all rights under the
laws of Indiana, or under such trust agreement or resolution, or under
any other contract executed by the authority under this chapter, and
may enforce and compel the performance of all duties required by
this chapter or by such trust agreement or resolution to be performed
by the authority or by any officer thereof.
(b) The state does hereby pledge to and agree with the holders of
any bonds issued under this chapter that the state will not limit or
alter the rights vested in the authority to fulfill the terms of any
agreements made with the holders of bonds, or in any way impair the
rights or remedies of the holders until the bonds, together with the
interest thereon, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or
proceeding by or on behalf of the holders, are fully met and
discharged. The authority may include this subsection in any
agreement with the holders of the bonds.
As added by P.L.45-1983, SEC.1.
IC 5-1-16-32 Payment of expenses
Sec. 32. All expenses incurred by the authority in carrying out this
chapter are payable solely from funds provided under this chapter,
except to the extent payable from grants or advances from
participating providers or any other entity, which grants or advances
may be reimbursed from bond proceeds, and this chapter does not
authorize the authority to incur indebtedness or liability on behalf of
or payable by the state or any political subdivision of it. As added by P.L.45-1983, SEC.1.
IC 5-1-16-33 Public property; tax exemption
Sec. 33. All property acquired or held by the authority under this
chapter is declared to be public property used for public and
governmental purposes, and all property, income therefrom and
bonds issued under this chapter, interest payable thereon and income
derived therefrom, are exempt from all taxes, direct or indirect,
imposed by the state, any county, any city, or any political
subdivision of the state. As added by P.L.45-1983, SEC.1.
IC 5-1-16-34 Bonds as legal investments
Sec. 34. The bonds issued under this chapter by the authority are
legal investments in which all public officers or public bodies of this
state, its political subdivisions, all municipalities and municipal
subdivisions, all insurance companies, associations, and other
persons carrying on insurance business, all banks, bankers, banking
associations, trust companies, savings associations, including savings
and loan associations, building and loan associations, investment
companies, and other persons carrying on a banking business, all
administrators, guardians, executors, trustees, and other fiduciaries,
and all other persons who are authorized to invest in bonds or in
other obligations of this state, may invest funds, including capital, in
their control or belonging to them. Such bonds are securities which
may be deposited with and received by all public officers and bodies
of the state or any agency or political subdivision of the state and all
municipalities and public corporations for any purpose for which the
deposit of bonds or other obligations of the state is authorized by
law. As added by P.L.45-1983, SEC.1.
IC 5-1-16-35
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16-36 Construction of chapter
Sec. 36. Nothing in this chapter may be construed as a restriction
or limitation upon any powers which the authority might otherwise
have under any other law of this state, and this chapter is cumulative
to such powers. This chapter shall be construed to provide a
complete, additional, and alternative method for the doing of the
things authorized, and shall be construed as supplemental to powers
conferred by any other laws. The adoption by the authority of bylaws
and rules, and the issuance of bonds by the authority under this
chapter need not comply with the requirements of any other state
laws applicable to the adoption of bylaws and rules and the issuance
of bonds, notes, and other obligations. No proceedings, notice, or
approval is required for the issuance of any bonds or any instrument
or the security therefor, or for the proper conduct of the authority's
business, affairs, or operations, except as provided in this chapter. As added by P.L.45-1983, SEC.1.
IC 5-1-16-37
Repealed
(Repealed by P.L.1-2010, SEC.156.)
IC 5-1-16-38 Leases by county with the authority
Sec. 38. (a) A county may lease land and buildings, including the
necessary equipment and appurtenances, from the authority for
hospital purposes. No contract of lease on a particular building shall
be entered into for a period of more than forty (40) years. However,
a contract of lease is renewable for less than forty (40) years.
(b) A lease entered into by a county may require the funding of a
reserve fund for the benefit of the authority or the authority's assigns.
In order to assure the maintenance of the required reserve amount in
any reserve fund, the county council may appropriate for deposit in
the reserve fund the sum certified by the county fiscal officer to the
county council that is necessary to restore the reserve fund to an
amount equal to the required reserve amount. The county fiscal
officer shall annually before December 1 prepare and deliver a
certificate to the county council stating the sum required to restore
the reserve fund to the appropriate reserve amount. Nothing in this
subsection creates a debt or liability of the county to make an
appropriation.
(c) All amounts received because of money appropriated by the
county to a reserve fund must be held by the authority under the lease
and applied in accordance with the lease. As added by P.L.43-1993, SEC.3.
IC 5-1-16-39 Leases before construction, erection, or renovation of buildings
Sec. 39. A county may, in anticipation of the construction,
erection, or renovation of a building (including the necessary
equipment and appurtenances), make and enter into a contract of
lease with the authority prior to the actual acquisition of a site and
the construction, erection, or renovation of the building. The contract
of lease shall not provide for the payment of any lease rental by the
lessee until the building is ready for occupancy. However, if a
building is to be acquired and renovated under this chapter, a county
may, in anticipation of the acquisition and renovation, make and
enter into a contract of lease upon terms and conditions that are
agreed upon by the county and the authority, including:
(1) terms and conditions upon which the county may continue
to operate the building until completion of the renovation; and
(2) the payment of a lease rental by the lessee during the period
of renovation. As added by P.L.43-1993, SEC.4.
IC 5-1-16-40 Payment of lease rental
Sec. 40. (a) Any lease executed under section 38 or 39 of this
chapter may provide for the payment of the lease rental in any one
(1) of the following ways as established in the lease:
(1) Entirely from the levy of taxes.
(2) Entirely from the net revenues of the hospital of which the
leased building is a part.
(3) In part from the levy of taxes and in part from the net
revenues described in subdivision (2).
(b) If any lease provides for the payment of lease rental in whole
or in part from net revenues of the hospital, the lease may further
provide that the county and the board of trustees or board of
managers of the hospital set aside and hold as a reserve for such
purpose excess net revenues over and above the amount required to
pay lease rental payable from net revenues. The reserve fund may not
exceed an amount equal to the amount of lease rental payable from
net revenues for two (2) years. The reserve fund shall be held and
used only for the purpose of paying lease rental payable from net
revenues, if such net revenues at any time are insufficient to pay
lease rentals. The amount in the reserve fund may be invested in the
manner and to the extent provided in the lease. All interest or other
income from the investment shall become part of the reserve fund
unless the reserve fund contains the maximum amount required to be
in the reserve fund. The following occur if the reserve fund contains
the maximum amount required to be in the reserve fund:
(1) If any of the lease rental is payable from taxes, the interest
or other income shall be transferred to the fund to be used for
the payment of the lease rental provided to be paid from taxes.
(2) If none of the lease rental is payable from taxes, the interest
or other income shall become a part of the reserve fund. As added by P.L.43-1993, SEC.5.
IC 5-1-16-41 Payment of lease rental from cumulative building fund
Sec. 41. In addition to the ways specified in section 40 of this
chapter for the payment of lease rental, any lease executed under this
chapter may provide for the payment of lease rental from a
cumulative building fund established by the lessee under
IC 16-22-5-3 (or IC 16-12.1-4-4 before its repeal on July 1, 1993).
Part or all of a cumulative building fund and the tax levied for that
cumulative building fund may be committed and pledged to the
payment of the lease rental. To the extent that the amount committed
and pledged is insufficient to pay the lease rental, the lease shall
provide that any remaining lease rental shall be paid entirely from the
net revenues of the hospital of which the leased building is a part. So
long as the lease remains in effect:
(1) any amount of cumulative building fund so committed and
pledged may not be expended by lessee for any other purpose;
and
(2) the tax levy committed and pledged for the cumulative
building fund may not be reduced or rescinded by the county
council.
Notwithstanding any other provision of this chapter, if a lease
provides for payment of lease rental under this section, no approval
of the county council is required for the lease, the terms and
conditions of the lease, or the sale of the land by the county to the
authority under this chapter. As added by P.L.43-1993, SEC.6.
IC 5-1-16-42 Notice of public hearing; notice of execution of lease; action to
contest validity of lease; taxpayer objections to lease
Sec. 42. (a) When the authority, the board of trustees or board of
managers of the hospital, the board of commissioners of the county,
and a majority of the county council have agreed upon the terms and
conditions of any lease proposed to be entered into under section 38
or 39 of this chapter, and before the final execution of the lease, the
county auditor shall give notice by publication of a public hearing to
be held in the county by the board of commissioners. The hearing
shall take place on a day not earlier than ten (10) days after the
publication of the notice. The notice of the hearing shall be published
one (1) time in a newspaper of general circulation printed in the
English language and published in the county. The notice shall do the
following:
(1) Name the day, place, and hour of the hearing.
(2) Set forth a brief summary of the principal terms of the lease
agreed upon, including the character and location of the
property to be leased, the lease rental to be paid, and the
number of years the contract is to be in effect.
(3) State a location where the proposed lease, drawings, plans,
specifications, and estimates may be examined.
The proposed lease and the drawings, plans, specifications, and
estimates of construction cost for the building shall be open to
inspection by the public during the ten (10) day period and at the
hearing. All interested persons shall have a right to be heard at the
hearing on the necessity for the execution of the lease and whether
the lease rental under the lease is fair and reasonable. The hearing
may be adjourned to a later date with the place of the hearing fixed
prior to adjournment. Following the hearing, the board of
commissioners may either authorize the execution of the lease as
originally agreed upon or may make modifications that are agreed
upon by the authority, the board of trustees or board of managers of
the hospital, and the county council. The authorization shall be by an
order that is entered in the official records of the board of
commissioners. The lease contract shall be executed on behalf of the
county by the board of commissioners.
(b) If the execution of the lease as originally agreed upon or as
modified by agreement is authorized, notice of the signing of the
lease shall be given on behalf of the county by publication one (1)
time in a newspaper of general circulation printed in the English
language and published in the county. Except as provided in
subsection (d), ten (10) or more taxpayers in the county whose tax
rate will be affected by the proposed lease and who may be of the
opinion that no necessity exists for the execution of the lease or that
the lease rental under the lease is not fair and reasonable may file a
petition in the office of the county auditor within thirty (30) days
after publication of notice of the execution of the lease that sets forth
the taxpayers' objections and facts supporting those objections. Upon
the filing of a petition, the county auditor shall immediately certify
a copy of the petition together with such other data as may be
necessary in order to present the questions involved to the
department of local government finance. Upon receipt of the certified
petition and information, the department of local government finance
shall fix a time and place in the affected county for the hearing of the
matter that is not less than five (5) or more than fifteen (15) days
after receipt. Notice of the hearing shall be given by the department
of local government finance to the board of county commiss
IC 5-1-16
Chapter 16. Indiana Finance Authority Financing of Health
Facilities
IC 5-1-16-1 Definitions
Sec. 1. As used in this chapter:
"Authority" refers to the Indiana finance authority.
"Bonds" includes bonds, refunding bonds, notes, interim
certificates, bond anticipation notes, and other evidences of
indebtedness of the authority, issued under this chapter.
"Building" or "buildings" or similar words mean any building or
part of a building or addition to a building for health care purposes.
The term includes the site for the building (if a site is to be acquired),
equipment, heating facilities, sewage disposal facilities, landscaping,
walks, drives, parking facilities, and other structures, facilities,
appurtenances, materials, and supplies that may be considered
necessary to render a building suitable for use and occupancy for
health care purposes.
"Cost" includes the following:
(1) The cost and the incidental and related costs of the
acquisition, repair, restoration, reconditioning, refinancing, or
installation of health facility property.
(2) The cost of any property interest in health facility property,
including an option to purchase a leasehold interest.
(3) The cost of constructing health facility property, or an
addition to health facility property, acquiring health facility
property, or remodeling health facility property.
(4) The cost of architectural, engineering, legal, trustee,
underwriting, and related services; the cost of the preparation
of plans, specifications, studies, surveys, and estimates of cost
and of revenue; and all other expenses necessary or incident to
planning, providing, or determining the need for or the
feasibility and practicability of health facility property.
(5) The cost of financing charges, including premiums or
prepayment penalties and interest accrued during the
construction of health facility property or before the acquisition
and installation or refinancing of such health facility property
for up to two (2) years after such construction, acquisition, and
installation or refinancing and startup costs related to health
facility property for up to two (2) years after such construction,
acquisition, and installation or refinancing.
(6) The costs paid or incurred in connection with the financing
of health facility property, including out-of-pocket expenses,
the cost of any policy of insurance; the cost of printing,
engraving, and reproduction services; and the cost of the initial
or acceptance fee of any trustee or paying agent.
(7) The costs of the authority, incurred in connection with
providing health facility property, including reasonable sums to
reimburse the authority for time spent by its agents or
employees in providing and financing health facility property.
(8) The cost paid or incurred for the administration of any
program for the purchase or lease of or the making of loans for
health facility property, by the authority and any program for
the sale or lease of or making of loans for health facility
property to any participating provider.
"County" means any county in the state that owns and operates a
county hospital.
"Health facility property" means any tangible or intangible
property or asset owned or used by a participating provider and
which:
(1) is determined by the authority to be necessary or helpful,
directly or indirectly, to provide:
(A) health care;
(B) medical research;
(C) training or teaching of health care personnel;
(D) habilitation, rehabilitation, or therapeutic services; or
(E) any related supporting services;
regardless of whether such property is in existence at the time
of, or is to be provided after the making of, such finding;
(2) is a residential facility for:
(A) individuals with a physical, mental, or emotional
disability;
(B) individuals with a physical or mental illness; or
(C) the elderly; or
(3) is a licensed child caring institution providing residential
care described in IC 12-7-2-29(1) or corresponding provisions
of the laws of the state in which the property is located.
"Health facility" means any facility or building that is:
(1) owned or used by a participating provider;
(2) located:
(A) in Indiana; or
(B) outside Indiana, if the participating provider that
operates the facility or building, or an affiliate of the
participating provider, also operates a substantial health
facility or facilities, as determined by the authority, in
Indiana; and
(3) utilized, directly or indirectly:
(A) in:
(i) health care;
(ii) habilitation, rehabilitation, or therapeutic services;
(iii) medical research;
(iv) the training or teaching of health care personnel; or
(v) any related supporting services;
(B) to provide a residential facility for:
(i) individuals with a physical, mental, or emotional
disability;
(ii) individuals with a physical or mental illness; or
(iii) the elderly; or
(C) as a child caring institution and provides residential care
described in IC 12-7-2-29(1) or corresponding provisions of
the laws of the state in which the facility or building is
located.
"Net revenues" means the revenues of a hospital remaining after
provision for proper and reasonable expenses of operation, repair,
replacement, and maintenance of the hospital.
"Participating provider" means a person, corporation, municipal
corporation, political subdivision, or other entity, public or private,
which:
(1) is located in Indiana or outside Indiana;
(2) contracts with the authority for the financing or refinancing
of, or the lease or other acquisition of, health facility property
that is located:
(A) in Indiana; or
(B) outside Indiana, if the financing, refinancing, lease, or
other acquisition also includes a substantial component, as
determined by the authority, for the benefit of a health
facility or facilities located in Indiana;
(3) is:
(A) licensed under IC 12-25, IC 16-21, IC 16-28, or
corresponding laws of the state in which the property is
located;
(B) a regional blood center;
(C) a community mental health center or community mental
retardation and other developmental disabilities center (as
defined in IC 12-7-2-38 and IC 12-7-2-39 or corresponding
provisions of laws of the state in which the property is
located);
(D) an entity that:
(i) contracts with the division of disability and
rehabilitative services or the division of mental health and
addiction to provide the program described in
IC 12-11-1.1-1(e) or IC 12-22-2; or
(ii) provides a similar program under the laws of the state
in which the entity is located;
(E) a vocational rehabilitation center established under
IC 12-12-1-4.1(a)(1) or corresponding provisions of the laws
of the state in which the property is located;
(F) the owner or operator of a facility that is utilized, directly
or indirectly, to provide health care, habilitation,
rehabilitation, therapeutic services, medical research, the
training or teaching of health care personnel, or any related
supporting services, or of a residential facility for
individuals with a physical, mental, or emotional disability,
individuals with a physical or mental illness, or the elderly;
(G) a licensed child caring institution providing residential
care described in IC 12-7-2-29(1) or corresponding
provisions of the laws of the state in which the property is
located;
(H) an integrated health care system between or among
providers, a health care purchasing alliance, a health insurer
or third party administrator that is a participant in an
integrated health care system, a health maintenance or
preferred provider organization, or a foundation that
supports a health care provider; or
(I) an individual, a business entity, or a governmental entity
that owns an equity or membership interest in any of the
organizations described in clauses (A) through (H); and
(4) in the case of a person, corporation, municipal corporation,
political subdivision, or other entity located outside Indiana, is
owned or controlled by, under common control with, affiliated
with, or part of an obligated group that includes an entity that
provides one (1) or more of the following services or facilities
in Indiana:
(A) A facility that provides:
(i) health care;
(ii) habilitation, rehabilitation, or therapeutic services;
(iii) medical research;
(iv) training or teaching of health care personnel; or
(v) any related supporting services.
(B) A residential facility for:
(i) individuals with a physical, mental, or emotional
disability;
(ii) individuals with a physical or mental illness; or
(iii) the elderly.
(C) A child caring institution providing residential care
described in IC 12-7-2-29(1).
"Regional blood center" means a nonprofit corporation or
corporation created under 36 U.S.C. 1 that:
(1) is:
(A) accredited by the American Association of Blood Banks;
or
(B) registered or licensed by the Food and Drug
Administration of the Department of Health and Human
Services; and
(2) owns and operates a health facility that is primarily engaged
in:
(A) drawing, testing, processing, and storing human blood
and providing blood units or components to hospitals; or
(B) harvesting, testing, typing, processing, and storing
human body tissue and providing this tissue to hospitals. As added by P.L.45-1983, SEC.1. Amended by P.L.41-1985, SEC.1;
P.L.28-1986, SEC.1; P.L.45-1987, SEC.1; P.L.39-1988, SEC.1;
P.L.11-1990, SEC.104; P.L.2-1992, SEC.44; P.L.27-1992, SEC.1;
P.L.2-1993, SEC.40; P.L.43-1993, SEC.1; P.L.56-1995, SEC.1;
P.L.272-1999, SEC.3; P.L.5-2001, SEC.1; P.L.215-2001, SEC.7;
P.L.64-2002, SEC.1; P.L.235-2005, SEC.62; P.L.141-2006, SEC.7;
P.L.162-2007, SEC.15; P.L.99-2007, SEC.11. IC 5-1-16-1.1 Applicability of provisions to the authority
Sec. 1.1. This chapter:
(1) applies to the Indiana finance authority only when acting as
the authority for the purposes set forth in this chapter; and
(2) does not apply to the Indiana finance authority when acting
under any other statute for any other purpose. As added by P.L.235-2005, SEC.63. Amended by P.L.162-2007,
SEC.16.
IC 5-1-16-1.5 Appropriation and expenditure of county tax money; leases
binding upon county
Sec. 1.5. (a) For purposes of this chapter, county commissioner
action or approval for the appropriation and expenditure of county
tax money shall presuppose and include approval by the county
council.
(b) A lease entered into by the board of county commissioners
with the authority is valid or binding upon the county only if the
lease is approved by a majority vote of the county council. As added by P.L.43-1993, SEC.2.
IC 5-1-16-2
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-3
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-4
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-5
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-6
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-7
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-8
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16-9
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-10
Repealed
(Repealed by P.L.235-2005, SEC.212.)
IC 5-1-16-10.5
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-11
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-12
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-13 Powers of authority
Sec. 13. (a) The authority has all powers necessary to carry out
and effectuate its public and corporate purposes, including but not
limited to the following:
(1) To make and execute contracts and all other instruments
necessary or convenient for the performance of its duties and
the exercise of its powers and functions under this chapter.
(2) To employ architects, engineers, independent legal counsel,
inspectors, accountants, and health care and financial experts,
and such other advisors, consultants, and agents as may be
necessary in its judgment without the approval of or consent by
any other state official, and to fix their compensation.
(3) To procure insurance against any loss in connection with its
property and other assets, in such amounts and from such
insurers as it considers advisable, including the power to pay
premiums on any such insurance.
(4) To procure insurance or guarantees from any public or
private entities, including any department, agency, or
instrumentality of the United States of America, to secure
payment:
(A) on a loan, lease, or purchase payment owed by a
participating provider to the authority; and
(B) of any bonds issued by the authority, including the
power to pay premiums on any such insurance or guarantee.
(5) To procure letters of credit or other credit facilities or
agreements from any national or state banking association or
other entity authorized to issue a letter of credit or other credit
facilities or agreements to secure the payment of any bonds
issued by the authority or to secure the payment of any loan,
lease, or purchase payment owed by a participating provider to
the authority, including the power to pay the cost of obtaining
such letter of credit or other credit facilities or agreements.
(6) To receive and accept from any source any money, property,
or thing of value to be held, used, and applied to carry out the
purposes of this chapter subject to the conditions upon which
the grants or contributions are made, including gifts or grants
from any department, agency, or instrumentality of the United
States of America for any purpose consistent with this chapter.
(7) To provide, or cause to be provided by a participating
provider, by acquisition, lease, construction, fabrication, repair,
restoration, reconditioning, refinancing, or installation, health
facility property to be located within a health facility.
(8) To lease as lessor any item of health facility property for
such rentals and upon such terms and conditions as the
authority considers advisable and are not in conflict with this
chapter.
(9) To sell by installment or otherwise to sell by option or
contract for sale, and to convey all or any part of any item of
health facility property for such price and upon such terms and
conditions as the authority considers advisable and as are not in
conflict with this chapter.
(10) To make contracts and incur liabilities, borrow money at
such rates of interest as the authority determines, issue its bonds
in accordance with this chapter, and secure any of its bonds or
obligations by a mortgage or pledge of all or any of its property,
franchises, and income or as otherwise provided in this chapter.
(11) To make secured or unsecured loans for the purpose of
providing temporary or permanent financing or refinancing for
the cost of any item of health facility property, including the
retiring of any outstanding obligations issued by a participating
provider, and the reimbursement to a participating provider of
advances, for the cost of any health facility property purchased
in anticipation of procuring such financing or refinancing from
the authority or other sources, and to charge and collect interest
on such loans for such loan payments and upon such terms and
conditions as the authority considers advisable and as are not in
conflict with this chapter.
(12) To invest and reinvest its funds and to take and hold
property as security for the investment of such funds as
provided in this chapter.
(13) To purchase, receive, lease (as lessee or lessor), or
otherwise acquire, own, hold, improve, use, or otherwise deal
in and with, health facility property, or any interest therein,
wherever situated.
(14) To sell, convey, mortgage, pledge, assign, lease, exchange,
transfer, and otherwise dispose of all or any part of its property
and assets.
(15) To the extent permitted under its contract with the holders
of bonds of the authority, consent to any modification with
respect to the rate of interest, time, and payment of any
installment of principal or interest, or any other term of any
contract, loan, loan note, loan note commitment, contract, lease,
or agreement of any kind to which the authority is a party.
(16) To charge to and apportion among participating providers
its administrative costs and expenses incurred in the exercise of
the powers and duties conferred by this chapter.
(17) Except as otherwise provided in a trust agreement or bond
resolution securing bonds of the authority, and notwithstanding
IC 5-13, to invest:
(A) the authority's money, funds, and accounts;
(B) any money, funds, and accounts in the authority's
custody; and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority.
(18) To collect fees and charges, as the authority determines to
be reasonable, in connection with its loans, leases, sales,
advances, insurance, commitments, and servicing.
(19) To cooperate with and exchange services, personnel, and
information with any federal, state, or local governmental
agency.
(20) To sell, at public or private sale, with or without public
bidding, any loan or other obligation held by the authority.
(21) To assist, coordinate, and participate with other issuers of
tax exempt bonds and public officials in other states in
connection with financings or refinancings on behalf of
multiple state health facilities. Assistance, coordination, and
participation provided under this subdivision may include
conducting any hearings required by state or federal law in
order for bonds to be issued by public officials in other states if
part of the proceeds of the bonds will be used by participating
providers in Indiana. Neither the state of Indiana nor the
authority, nor any officers, agents, or employees of the state or
the authority, are subject to any liability resulting from
assistance to or coordination or participation with other issuers
of tax exempt bonds under this subsection. Any assistance,
coordination, or participation provided under this subsection is
given with the understanding that the issuers of tax exempt
bonds or borrowers will agree to indemnify and hold harmless
the state of Indiana and the authority and their officers, agents,
and employees from all claims and liability arising from any
action against the state of Indiana or the authority relating to the
bonds.
(22) Subject to the authority's investment policy, to enter into
swap agreements (as defined in IC 8-9.5-9-4) in accordance
with IC 8-9.5-9-5 and IC 8-9.5-9-7.
The omission of a power from the list in this subsection does not
imply that the authority lacks that power. The authority may exercise
any power that is not listed in this subsection but is consistent with
the powers listed in this subsection to the extent that the power is not
expressly denied by the Constitution of the State of Indiana or by
another statute.
(b) No part of the revenues or assets of the authority may inure to
the benefit of or be distributable to its members or officers or other
private persons. Any net earnings of the authority beyond that
necessary for retirement of authority indebtedness or to implement
the public purposes of this chapter inure to the benefit of the state.
Upon termination or dissolution, all rights and properties of the
authority pass to and are vested in the state, subject to the rights of
lienholders and other creditors. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.4;
P.L.5-2001, SEC.2; P.L.235-2005, SEC.72; P.L.162-2007, SEC.17.
IC 5-1-16-13.1
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-14 Competitive bidding requirement
Sec. 14. Health facility property financed under this chapter is not
subject to any statutory requirement of competitive bidding or other
restriction imposed on the procedure for award of contracts or the
lease, sale, or other disposition of health facility property with regard
to any action taken under authority of this chapter. However, if the
prospective lessee or purchaser requests in writing, the authority
shall call for the construction bids in a manner determined by the
authority with the approval of such lessee or purchaser. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.5.
IC 5-1-16-15 Health facility property; participating providers
Sec. 15. The authority may initiate a program of providing health
facility property to be operated by participating providers in health
facilities. In furtherance of this objective, the authority may also:
(1) establish eligibility standards for participating providers,
without complying with IC 4-22-2; however, these standards
have the force of law if the standards are adopted after a public
hearing for which notice has been published in a newspaper
published in the city of Indianapolis, at least ten (10) days in
advance of the hearing;
(2) contract with any entity securing the payment of bonds
under section 13(a)(4) and 13(a)(5) of this chapter, authorizing
the entity to approve the participating providers that can finance
or refinance health facility property with proceeds from the
bond issue secured by that entity;
(3) lease to a participating provider specific items of health
facility property upon terms and conditions that the authority
considers proper, to charge and collect rents therefor, to
terminate any such lease upon the failure of the lessee to
comply with any of its obligations under the lease or otherwise
as the lease provides, to include in any such lease provisions
that the lessee has the options to renew the term of the lease for
such periods and at such rents as may be determined by the
authority or to purchase any or all of the health facility property
to which the lease applies;
(4) loan to a participating provider under an installment
purchase contract or loan agreement money to finance,
reimburse, or refinance the cost of specific items of health
facility property and to take back a secured or unsecured
promissory note evidencing such a loan and a security interest
in the health facility property financed or refinanced with such
loan, upon such terms and conditions as the authority considers
proper;
(5) sell or otherwise dispose of any unneeded or obsolete health
facility property under terms and conditions as determined by
the authority;
(6) maintain, repair, replace, and otherwise improve or cause to
be maintained, repaired, replaced, and otherwise improved any
health facility property owned by the authority;
(7) obtain or aid in obtaining property insurance on all health
facility property owned or financed, or to accept payment if any
health facility property is damaged or destroyed; and
(8) enter into any agreement, contract, or other instrument with
respect to any insurance, guarantee, or letter of credit, accepting
payment in such manner and form as provided therein if a
participating provider defaults, and to assign any such
insurance, guarantee, or letter of credit as security for bonds
issued by the authority. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.6;
P.L.5-2001, SEC.3; P.L.162-2007, SEC.18.
IC 5-1-16-16 Authority management; agreements
Sec. 16. The authority may employ and may enter into agreements
with, and delegate to any person as it sees fit, the power to manage
the routine affairs of the authority, including the originating and
processing of any applications from participating providers for the
lease or purchase from the authority, or financing, reimbursing, or
refinancing by the authority, of health facility property and to service
the leases, installment purchase contracts, and loan agreements
between the authority and the participating providers. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.7.
IC 5-1-16-17 Security; transactions with participating providers
Sec. 17. Before exercising any of the powers conferred by section
15 of this chapter, the authority may:
(1) require that the lease, installment purchase contract, or loan
agreement involved be insured by a loan insurer, be guaranteed
by a loan guarantor, or be secured by a letter of credit; and
(2) require any other type of security from the participating
providers that it considers reasonable and necessary. As added by P.L.45-1983, SEC.1.
IC 5-1-16-18 Power to issue bonds
Sec. 18. The authority may issue, sell, and deliver its bonds, in
accordance with this chapter, for the purpose of paying for or making
loans to participating providers for the financing, reimbursing, or
refinancing of all or any part of the cost of health facility property,
to finance the acquisition of health facility property for lease or sale
to participating providers, and any other purposes authorized by this
chapter. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.8.
IC 5-1-16-19 Bonds; requisites
Sec. 19. (a) The bonds must be dated, must bear interest at such
rates (fixed or variable), must mature at such times not exceeding
forty (40) years from their date, and may be made redeemable before
maturity at such prices and upon terms and conditions determined by
the authority. The bonds, including any interest coupons to be
initially attached thereto, must be in the forms and denominations
and payable at such places, as the authority determines. The bonds
shall be executed by the manual or facsimile signature of the
chairman or vice chairman of the authority, and the seal of the
authority, or facsimile seal, shall be affixed or imprinted on the
bonds. The seal shall be attested by the manual or facsimile signature
of the public finance director. However, one (1) of the signatures
must be manual, unless the bonds are authenticated by the manual
signature of an authorized officer of a trustee for the bondholders.
Any coupons attached must bear the facsimile signature of the
chairman or vice chairman of the authority. If an officer's signature
or a facsimile of whose signature appears on any bonds or coupons,
and the officer ceases to be an officer before the delivery of and
payment for such bonds, such signature or such facsimile is
nevertheless valid and sufficient for all purposes, the same as if such
officer had remained in office until such delivery and payment. The
bonds may be issued in coupon or in fully registered form, or both,
or may be payable to a specific person, as the authority determines,
and provision may be made for the registration of any coupon bonds
as to principal alone or as to both principal and interest, for the
conversion of coupon bonds into fully registered bonds without
coupons, and for the conversion into coupon bonds of any fully
registered bonds without coupons. The duty of conversion may be
imposed upon a trustee in a trust agreement.
(b) The principal of, redemption premium, if any, and interest on
such bonds shall be payable solely from and may be secured by a
pledge of all or any part of the proceeds of bonds, revenues derived
from the lease or sale of health facility property or realized from a
loan made by the authority to finance or refinance in whole or in part
health facility property, revenues derived from operating health
facility property, including insurance proceeds, or any other revenues
provided by a participating provider.
(c) The authority shall sell the bonds at prices it determines, at
public or private sale.
(d) The authority may provide for the issuance of bonds of the
authority for the purpose of refunding any bonds of the authority then
outstanding, including the payment of any redemption premium
thereon and any interest accrued or to accrue to the earliest or any
subsequent date of redemption, purchase or maturity of such bonds,
and, if considered advisable by the authority, for the additional
purpose of paying all or any part of the cost of health facility
property.
(e) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase or retirement at maturity or redemption of such
outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or at the maturity thereof and
may, pending such application, be placed in escrow to be applied to
such purchase or retirement at maturity or redemption on such date
as may be determined by the authority. Subject to the provisions of
any trust indenture to the contrary, any such escrowed proceeds,
pending such use, may be invested and reinvested in such obligations
as are determined by the authority in order to assure the prompt
payment of the principal and interest and redemption premium, if
any, on the outstanding bonds to be so refunded. The interest,
income, and profits, if any, earned or realized on any such investment
may also be applied to the payment of the outstanding bonds to be so
refunded. Only after the terms of the escrow have been fully satisfied
and carried out, any balance of such proceeds and interest, income,
and profits, if any, earned or realized on the investments thereof shall
be returned to the authority or the participating providers for use by
them in any lawful manner. All such bonds are subject to this chapter
in the same manner and to the same extent as other bonds issued
under this chapter. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.9;
P.L.1-2009, SEC.12.
IC 5-1-16-20 Bond proceeds; use; disbursement
Sec. 20. The proceeds of the bonds (other than refunding bonds)
of each issue shall be used for the payment of all or part of the cost
of, or for the making of a loan in the amount of all or part of the cost
of, the health facility property for which such bonds have been
authorized and, at the option of the authority, for the deposit to a
reserve fund or reserve funds for the bonds. However, the authority
may be paid, out of money from the proceeds of the sale and delivery
of its bonds issued in accordance with this chapter, all of the
authority's out-of-pocket expenses and costs in connection with the
issuance, sale, and delivery of such bonds, and the costs of obtaining
insurance, guarantees, and letters of credit securing payment of the
bonds and the lease and the loan and installment purchase payments,
plus an amount equal to the compensation paid to any employees of
the authority for the time those employees have spent on activities
relating to the issuance, sale, and delivery of the bonds. Bond
proceeds shall be disbursed in the manner and under the restrictions
determined by the authority. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.10.
IC 5-1-16-21 Trust indenture to secure bonds; operating expenses
Sec. 21. (a) The bonds may be secured by a trust indenture by and
between the authority and a corporate trustee which may be any bank
having the power of a trust company or any trust company in Indiana.
The trust indenture may contain such provisions for protecting and
enforcing the rights and remedies of the holders of the bonds as may
be reasonable and proper and not in violation of law, including
covenants setting forth the duties of the authority in relation to the
exercise of its powers and the custody, investing, safekeeping, and
application of all money. The authority may provide by the trust
indenture for the payment of the proceeds of the bonds and the
revenue to the trustee under the trust indenture or other depository,
and for the method of disbursement thereof, with such safeguards
and restrictions as the authority may determine. All expenses
incurred in carrying out the trust indenture may be treated as a part
of the operating expenses of the authority. If the bonds are secured
by a trust indenture, the holders of the bonds have no authority to
appoint a separate trustee to represent them.
(b) All expenses incurred in carrying out this chapter shall be
payable solely from funds provided under the authority of this
chapter and no liability may be incurred by the authority or the state
beyond the extent to which money has been provided under this
chapter. As added by P.L.45-1983, SEC.1.
IC 5-1-16-22 Bond resolutions or related instruments; provisions and additional
security authorized
Sec. 22. Any bond resolution or related trust indenture, indenture
of mortgage, or deed of trust may contain provisions, which must be
a part of the contract with the holders of the bonds to be authorized,
as to:
(1) pledging or assigning the revenues generated by the health
facility property, pledging or assigning the notes and mortgage,
lease, or other security given by the participating providers
whose health facility property has been financed with the
proceeds of such bonds or other specified revenues or property
of the authority;
(2) the rentals, fees, interest, and other amounts to be charged
by the authority, the schedule of principal payments, and the
sums to be raised in each year thereby, and the use, investment,
and disposition of such sums;
(3) setting aside any reserves or sinking funds, and the
regulation, investment, and disposition thereof;
(4) limitation on the use of the health facility property;
(5) limitations on the purpose to which or the investments in
which the proceeds of sale of any issue of bonds then or
thereafter may be applied;
(6) limitations on the issuance of additional bonds, terms upon
which additional bonds may be issued and secured, and the
terms 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 contract
with holders of the bonds may be amended or abrogated, the
amounts of bonds the holders of which must consent thereto,
the manner in which such consent may be given, and
restrictions on the individual rights of action by holders of the
bonds;
(9) acts or omissions that constitute a default in the duties of the
authority to holders of its bonds and providing the rights and
remedies of such holders in the event of default; and
(10) any other matters relating to the bonds that the authority
considers desirable.
Bonds of the authority may also be secured by and payable from a
pooling of leases or of notes and mortgages or other security
instruments whereby the authority may assign its rights, as lessor,
and pledge rents under two (2) or more leases of health facility
property with two (2) or more participating providers, as lessees, or
assign its rights as payee or secured party and pledge the revenues
under two (2) or more notes and loan agreements from two (2) or
more participating providers, upon such terms as may be provided for
in bond resolutions or other instruments under which such bonds are
issued. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.11.
IC 5-1-16-23 Payment of bonds
Sec. 23. Every issue of bonds is payable solely out of revenues,
assets, or money of the authority as the authority determines, subject
only to any agreements with the holders of particular bonds pledging
any particular money or revenue. The bonds may be additionally
secured by a pledge of any grant, contribution, or guarantee from the
federal government or any corporation, limited liability company,
association, institution, or person or a pledge of any money, income,
or revenue of the authority from any source. As added by P.L.45-1983, SEC.1. Amended by P.L.8-1993, SEC.49. IC 5-1-16-24 Bonds not indebtedness or obligation of state
Sec. 24. (a) Bonds issued under this chapter do not, and shall state
upon the face of each bond that they do not, represent or constitute
a debt of the authority or of the state within the meaning of the
provisions of the Constitution or statutes of Indiana or a pledge of the
faith and credit of the authority or the state or grant to the owners or
holders thereof any right to have the authority or the state levy any
taxes or appropriate any funds for the payment of the principal
thereof or interest thereon. Such bonds are payable and shall state
that they are payable solely from the funds pledged for their payment
in accordance with the bond resolution or trust agreement securing
the same.
(b) This chapter does not authorize the authority or any
department, board, commission, or other agency to create an
obligation of the state within the meaning of the Constitution or
statutes of Indiana. As added by P.L.45-1983, SEC.1.
IC 5-1-16-25 Pledge by authority
Sec. 25. Any pledge made by the authority is valid and binding
from the time when the pledge is made. The revenue, money, or
properties so pledged and thereafter received by the authority are
immediately subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such pledge is
valid and binding as against all parties having claims of any kind in
tort, contract, or otherwise against the authority, irrespective of
whether the parties have notice of the lien. Neither the resolution nor
any other instrument by which a pledge is created need be recorded. As added by P.L.45-1983, SEC.1.
IC 5-1-16-26 Repurchase of authority bonds
Sec. 26. The authority, subject to such agreements with holders of
the bonds as then exist, may purchase bonds of the authority out of
any available funds, which shall thereupon be cancelled, at any
reasonable price which, if the bonds are then redeemable, does not
exceed the redemption price then applicable plus accrued interest to
the next interest payment date thereon. As added by P.L.45-1983, SEC.1.
IC 5-1-16-27 Negotiability of bonds
Sec. 27. Regardless of whether the bonds are in the form and
character of negotiable instruments, the bonds are negotiable
instruments, subject only to provisions of the bonds relating to
registration. As added by P.L.45-1983, SEC.1. IC 5-1-16-28 Personal liability of bond issuers
Sec. 28. Neither the members of the authority nor any other
person executing the bonds issued under this chapter is subject to
personal liability by reason of the issuance of the bonds. As added by P.L.45-1983, SEC.1.
IC 5-1-16-29 Establishment of funds and accounts
Sec. 29. The authority may establish funds and accounts necessary
for its purposes. As added by P.L.45-1983, SEC.1.
IC 5-1-16-30 Deposit of funds in accounts
Sec. 30. All money of the authority, except as otherwise provided
in this chapter, shall be deposited as soon as practical in a separate
account in banks or trust companies organized under the laws of
Indiana or in national banking associations. The money in these
accounts shall be paid by checks signed by the public finance
director or other officers or employees of the authority as the
authority authorizes. All deposits of money shall, if required by the
authority, be secured in such a manner as the authority determines to
be prudent, and all banks or trust companies are authorized to give
security for the deposits. As added by P.L.45-1983, SEC.1. Amended by P.L.1-2009, SEC.13.
IC 5-1-16-31 Enforcement of rights and duties concerning bonds
Sec. 31. (a) Any holder of bonds or any coupons appertaining
thereto, and the trustee under any trust agreement or resolution
authorizing the issuance of such bonds, except to the extent the rights
given in this chapter may be restricted by such trust agreement or
resolution, may, either at law or in equity, by suit, action, mandamus,
or other proceeding, protect and enforce any and all rights under the
laws of Indiana, or under such trust agreement or resolution, or under
any other contract executed by the authority under this chapter, and
may enforce and compel the performance of all duties required by
this chapter or by such trust agreement or resolution to be performed
by the authority or by any officer thereof.
(b) The state does hereby pledge to and agree with the holders of
any bonds issued under this chapter that the state will not limit or
alter the rights vested in the authority to fulfill the terms of any
agreements made with the holders of bonds, or in any way impair the
rights or remedies of the holders until the bonds, together with the
interest thereon, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or
proceeding by or on behalf of the holders, are fully met and
discharged. The authority may include this subsection in any
agreement with the holders of the bonds.
As added by P.L.45-1983, SEC.1.
IC 5-1-16-32 Payment of expenses
Sec. 32. All expenses incurred by the authority in carrying out this
chapter are payable solely from funds provided under this chapter,
except to the extent payable from grants or advances from
participating providers or any other entity, which grants or advances
may be reimbursed from bond proceeds, and this chapter does not
authorize the authority to incur indebtedness or liability on behalf of
or payable by the state or any political subdivision of it. As added by P.L.45-1983, SEC.1.
IC 5-1-16-33 Public property; tax exemption
Sec. 33. All property acquired or held by the authority under this
chapter is declared to be public property used for public and
governmental purposes, and all property, income therefrom and
bonds issued under this chapter, interest payable thereon and income
derived therefrom, are exempt from all taxes, direct or indirect,
imposed by the state, any county, any city, or any political
subdivision of the state. As added by P.L.45-1983, SEC.1.
IC 5-1-16-34 Bonds as legal investments
Sec. 34. The bonds issued under this chapter by the authority are
legal investments in which all public officers or public bodies of this
state, its political subdivisions, all municipalities and municipal
subdivisions, all insurance companies, associations, and other
persons carrying on insurance business, all banks, bankers, banking
associations, trust companies, savings associations, including savings
and loan associations, building and loan associations, investment
companies, and other persons carrying on a banking business, all
administrators, guardians, executors, trustees, and other fiduciaries,
and all other persons who are authorized to invest in bonds or in
other obligations of this state, may invest funds, including capital, in
their control or belonging to them. Such bonds are securities which
may be deposited with and received by all public officers and bodies
of the state or any agency or political subdivision of the state and all
municipalities and public corporations for any purpose for which the
deposit of bonds or other obligations of the state is authorized by
law. As added by P.L.45-1983, SEC.1.
IC 5-1-16-35
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16-36 Construction of chapter
Sec. 36. Nothing in this chapter may be construed as a restriction
or limitation upon any powers which the authority might otherwise
have under any other law of this state, and this chapter is cumulative
to such powers. This chapter shall be construed to provide a
complete, additional, and alternative method for the doing of the
things authorized, and shall be construed as supplemental to powers
conferred by any other laws. The adoption by the authority of bylaws
and rules, and the issuance of bonds by the authority under this
chapter need not comply with the requirements of any other state
laws applicable to the adoption of bylaws and rules and the issuance
of bonds, notes, and other obligations. No proceedings, notice, or
approval is required for the issuance of any bonds or any instrument
or the security therefor, or for the proper conduct of the authority's
business, affairs, or operations, except as provided in this chapter. As added by P.L.45-1983, SEC.1.
IC 5-1-16-37
Repealed
(Repealed by P.L.1-2010, SEC.156.)
IC 5-1-16-38 Leases by county with the authority
Sec. 38. (a) A county may lease land and buildings, including the
necessary equipment and appurtenances, from the authority for
hospital purposes. No contract of lease on a particular building shall
be entered into for a period of more than forty (40) years. However,
a contract of lease is renewable for less than forty (40) years.
(b) A lease entered into by a county may require the funding of a
reserve fund for the benefit of the authority or the authority's assigns.
In order to assure the maintenance of the required reserve amount in
any reserve fund, the county council may appropriate for deposit in
the reserve fund the sum certified by the county fiscal officer to the
county council that is necessary to restore the reserve fund to an
amount equal to the required reserve amount. The county fiscal
officer shall annually before December 1 prepare and deliver a
certificate to the county council stating the sum required to restore
the reserve fund to the appropriate reserve amount. Nothing in this
subsection creates a debt or liability of the county to make an
appropriation.
(c) All amounts received because of money appropriated by the
county to a reserve fund must be held by the authority under the lease
and applied in accordance with the lease. As added by P.L.43-1993, SEC.3.
IC 5-1-16-39 Leases before construction, erection, or renovation of buildings
Sec. 39. A county may, in anticipation of the construction,
erection, or renovation of a building (including the necessary
equipment and appurtenances), make and enter into a contract of
lease with the authority prior to the actual acquisition of a site and
the construction, erection, or renovation of the building. The contract
of lease shall not provide for the payment of any lease rental by the
lessee until the building is ready for occupancy. However, if a
building is to be acquired and renovated under this chapter, a county
may, in anticipation of the acquisition and renovation, make and
enter into a contract of lease upon terms and conditions that are
agreed upon by the county and the authority, including:
(1) terms and conditions upon which the county may continue
to operate the building until completion of the renovation; and
(2) the payment of a lease rental by the lessee during the period
of renovation. As added by P.L.43-1993, SEC.4.
IC 5-1-16-40 Payment of lease rental
Sec. 40. (a) Any lease executed under section 38 or 39 of this
chapter may provide for the payment of the lease rental in any one
(1) of the following ways as established in the lease:
(1) Entirely from the levy of taxes.
(2) Entirely from the net revenues of the hospital of which the
leased building is a part.
(3) In part from the levy of taxes and in part from the net
revenues described in subdivision (2).
(b) If any lease provides for the payment of lease rental in whole
or in part from net revenues of the hospital, the lease may further
provide that the county and the board of trustees or board of
managers of the hospital set aside and hold as a reserve for such
purpose excess net revenues over and above the amount required to
pay lease rental payable from net revenues. The reserve fund may not
exceed an amount equal to the amount of lease rental payable from
net revenues for two (2) years. The reserve fund shall be held and
used only for the purpose of paying lease rental payable from net
revenues, if such net revenues at any time are insufficient to pay
lease rentals. The amount in the reserve fund may be invested in the
manner and to the extent provided in the lease. All interest or other
income from the investment shall become part of the reserve fund
unless the reserve fund contains the maximum amount required to be
in the reserve fund. The following occur if the reserve fund contains
the maximum amount required to be in the reserve fund:
(1) If any of the lease rental is payable from taxes, the interest
or other income shall be transferred to the fund to be used for
the payment of the lease rental provided to be paid from taxes.
(2) If none of the lease rental is payable from taxes, the interest
or other income shall become a part of the reserve fund. As added by P.L.43-1993, SEC.5.
IC 5-1-16-41 Payment of lease rental from cumulative building fund
Sec. 41. In addition to the ways specified in section 40 of this
chapter for the payment of lease rental, any lease executed under this
chapter may provide for the payment of lease rental from a
cumulative building fund established by the lessee under
IC 16-22-5-3 (or IC 16-12.1-4-4 before its repeal on July 1, 1993).
Part or all of a cumulative building fund and the tax levied for that
cumulative building fund may be committed and pledged to the
payment of the lease rental. To the extent that the amount committed
and pledged is insufficient to pay the lease rental, the lease shall
provide that any remaining lease rental shall be paid entirely from the
net revenues of the hospital of which the leased building is a part. So
long as the lease remains in effect:
(1) any amount of cumulative building fund so committed and
pledged may not be expended by lessee for any other purpose;
and
(2) the tax levy committed and pledged for the cumulative
building fund may not be reduced or rescinded by the county
council.
Notwithstanding any other provision of this chapter, if a lease
provides for payment of lease rental under this section, no approval
of the county council is required for the lease, the terms and
conditions of the lease, or the sale of the land by the county to the
authority under this chapter. As added by P.L.43-1993, SEC.6.
IC 5-1-16-42 Notice of public hearing; notice of execution of lease; action to
contest validity of lease; taxpayer objections to lease
Sec. 42. (a) When the authority, the board of trustees or board of
managers of the hospital, the board of commissioners of the county,
and a majority of the county council have agreed upon the terms and
conditions of any lease proposed to be entered into under section 38
or 39 of this chapter, and before the final execution of the lease, the
county auditor shall give notice by publication of a public hearing to
be held in the county by the board of commissioners. The hearing
shall take place on a day not earlier than ten (10) days after the
publication of the notice. The notice of the hearing shall be published
one (1) time in a newspaper of general circulation printed in the
English language and published in the county. The notice shall do the
following:
(1) Name the day, place, and hour of the hearing.
(2) Set forth a brief summary of the principal terms of the lease
agreed upon, including the character and location of the
property to be leased, the lease rental to be paid, and the
number of years the contract is to be in effect.
(3) State a location where the proposed lease, drawings, plans,
specifications, and estimates may be examined.
The proposed lease and the drawings, plans, specifications, and
estimates of construction cost for the building shall be open to
inspection by the public during the ten (10) day period and at the
hearing. All interested persons shall have a right to be heard at the
hearing on the necessity for the execution of the lease and whether
the lease rental under the lease is fair and reasonable. The hearing
may be adjourned to a later date with the place of the hearing fixed
prior to adjournment. Following the hearing, the board of
commissioners may either authorize the execution of the lease as
originally agreed upon or may make modifications that are agreed
upon by the authority, the board of trustees or board of managers of
the hospital, and the county council. The authorization shall be by an
order that is entered in the official records of the board of
commissioners. The lease contract shall be executed on behalf of the
county by the board of commissioners.
(b) If the execution of the lease as originally agreed upon or as
modified by agreement is authorized, notice of the signing of the
lease shall be given on behalf of the county by publication one (1)
time in a newspaper of general circulation printed in the English
language and published in the county. Except as provided in
subsection (d), ten (10) or more taxpayers in the county whose tax
rate will be affected by the proposed lease and who may be of the
opinion that no necessity exists for the execution of the lease or that
the lease rental under the lease is not fair and reasonable may file a
petition in the office of the county auditor within thirty (30) days
after publication of notice of the execution of the lease that sets forth
the taxpayers' objections and facts supporting those objections. Upon
the filing of a petition, the county auditor shall immediately certify
a copy of the petition together with such other data as may be
necessary in order to present the questions involved to the
department of local government finance. Upon receipt of the certified
petition and information, the department of local government finance
shall fix a time and place in the affected county for the hearing of the
matter that is not less than five (5) or more than fifteen (15) days
after receipt. Notice of the hearing shall be given by the department
of local government finance to the board of county commiss
IC 5-1-16
Chapter 16. Indiana Finance Authority Financing of Health
Facilities
IC 5-1-16-1 Definitions
Sec. 1. As used in this chapter:
"Authority" refers to the Indiana finance authority.
"Bonds" includes bonds, refunding bonds, notes, interim
certificates, bond anticipation notes, and other evidences of
indebtedness of the authority, issued under this chapter.
"Building" or "buildings" or similar words mean any building or
part of a building or addition to a building for health care purposes.
The term includes the site for the building (if a site is to be acquired),
equipment, heating facilities, sewage disposal facilities, landscaping,
walks, drives, parking facilities, and other structures, facilities,
appurtenances, materials, and supplies that may be considered
necessary to render a building suitable for use and occupancy for
health care purposes.
"Cost" includes the following:
(1) The cost and the incidental and related costs of the
acquisition, repair, restoration, reconditioning, refinancing, or
installation of health facility property.
(2) The cost of any property interest in health facility property,
including an option to purchase a leasehold interest.
(3) The cost of constructing health facility property, or an
addition to health facility property, acquiring health facility
property, or remodeling health facility property.
(4) The cost of architectural, engineering, legal, trustee,
underwriting, and related services; the cost of the preparation
of plans, specifications, studies, surveys, and estimates of cost
and of revenue; and all other expenses necessary or incident to
planning, providing, or determining the need for or the
feasibility and practicability of health facility property.
(5) The cost of financing charges, including premiums or
prepayment penalties and interest accrued during the
construction of health facility property or before the acquisition
and installation or refinancing of such health facility property
for up to two (2) years after such construction, acquisition, and
installation or refinancing and startup costs related to health
facility property for up to two (2) years after such construction,
acquisition, and installation or refinancing.
(6) The costs paid or incurred in connection with the financing
of health facility property, including out-of-pocket expenses,
the cost of any policy of insurance; the cost of printing,
engraving, and reproduction services; and the cost of the initial
or acceptance fee of any trustee or paying agent.
(7) The costs of the authority, incurred in connection with
providing health facility property, including reasonable sums to
reimburse the authority for time spent by its agents or
employees in providing and financing health facility property.
(8) The cost paid or incurred for the administration of any
program for the purchase or lease of or the making of loans for
health facility property, by the authority and any program for
the sale or lease of or making of loans for health facility
property to any participating provider.
"County" means any county in the state that owns and operates a
county hospital.
"Health facility property" means any tangible or intangible
property or asset owned or used by a participating provider and
which:
(1) is determined by the authority to be necessary or helpful,
directly or indirectly, to provide:
(A) health care;
(B) medical research;
(C) training or teaching of health care personnel;
(D) habilitation, rehabilitation, or therapeutic services; or
(E) any related supporting services;
regardless of whether such property is in existence at the time
of, or is to be provided after the making of, such finding;
(2) is a residential facility for:
(A) individuals with a physical, mental, or emotional
disability;
(B) individuals with a physical or mental illness; or
(C) the elderly; or
(3) is a licensed child caring institution providing residential
care described in IC 12-7-2-29(1) or corresponding provisions
of the laws of the state in which the property is located.
"Health facility" means any facility or building that is:
(1) owned or used by a participating provider;
(2) located:
(A) in Indiana; or
(B) outside Indiana, if the participating provider that
operates the facility or building, or an affiliate of the
participating provider, also operates a substantial health
facility or facilities, as determined by the authority, in
Indiana; and
(3) utilized, directly or indirectly:
(A) in:
(i) health care;
(ii) habilitation, rehabilitation, or therapeutic services;
(iii) medical research;
(iv) the training or teaching of health care personnel; or
(v) any related supporting services;
(B) to provide a residential facility for:
(i) individuals with a physical, mental, or emotional
disability;
(ii) individuals with a physical or mental illness; or
(iii) the elderly; or
(C) as a child caring institution and provides residential care
described in IC 12-7-2-29(1) or corresponding provisions of
the laws of the state in which the facility or building is
located.
"Net revenues" means the revenues of a hospital remaining after
provision for proper and reasonable expenses of operation, repair,
replacement, and maintenance of the hospital.
"Participating provider" means a person, corporation, municipal
corporation, political subdivision, or other entity, public or private,
which:
(1) is located in Indiana or outside Indiana;
(2) contracts with the authority for the financing or refinancing
of, or the lease or other acquisition of, health facility property
that is located:
(A) in Indiana; or
(B) outside Indiana, if the financing, refinancing, lease, or
other acquisition also includes a substantial component, as
determined by the authority, for the benefit of a health
facility or facilities located in Indiana;
(3) is:
(A) licensed under IC 12-25, IC 16-21, IC 16-28, or
corresponding laws of the state in which the property is
located;
(B) a regional blood center;
(C) a community mental health center or community mental
retardation and other developmental disabilities center (as
defined in IC 12-7-2-38 and IC 12-7-2-39 or corresponding
provisions of laws of the state in which the property is
located);
(D) an entity that:
(i) contracts with the division of disability and
rehabilitative services or the division of mental health and
addiction to provide the program described in
IC 12-11-1.1-1(e) or IC 12-22-2; or
(ii) provides a similar program under the laws of the state
in which the entity is located;
(E) a vocational rehabilitation center established under
IC 12-12-1-4.1(a)(1) or corresponding provisions of the laws
of the state in which the property is located;
(F) the owner or operator of a facility that is utilized, directly
or indirectly, to provide health care, habilitation,
rehabilitation, therapeutic services, medical research, the
training or teaching of health care personnel, or any related
supporting services, or of a residential facility for
individuals with a physical, mental, or emotional disability,
individuals with a physical or mental illness, or the elderly;
(G) a licensed child caring institution providing residential
care described in IC 12-7-2-29(1) or corresponding
provisions of the laws of the state in which the property is
located;
(H) an integrated health care system between or among
providers, a health care purchasing alliance, a health insurer
or third party administrator that is a participant in an
integrated health care system, a health maintenance or
preferred provider organization, or a foundation that
supports a health care provider; or
(I) an individual, a business entity, or a governmental entity
that owns an equity or membership interest in any of the
organizations described in clauses (A) through (H); and
(4) in the case of a person, corporation, municipal corporation,
political subdivision, or other entity located outside Indiana, is
owned or controlled by, under common control with, affiliated
with, or part of an obligated group that includes an entity that
provides one (1) or more of the following services or facilities
in Indiana:
(A) A facility that provides:
(i) health care;
(ii) habilitation, rehabilitation, or therapeutic services;
(iii) medical research;
(iv) training or teaching of health care personnel; or
(v) any related supporting services.
(B) A residential facility for:
(i) individuals with a physical, mental, or emotional
disability;
(ii) individuals with a physical or mental illness; or
(iii) the elderly.
(C) A child caring institution providing residential care
described in IC 12-7-2-29(1).
"Regional blood center" means a nonprofit corporation or
corporation created under 36 U.S.C. 1 that:
(1) is:
(A) accredited by the American Association of Blood Banks;
or
(B) registered or licensed by the Food and Drug
Administration of the Department of Health and Human
Services; and
(2) owns and operates a health facility that is primarily engaged
in:
(A) drawing, testing, processing, and storing human blood
and providing blood units or components to hospitals; or
(B) harvesting, testing, typing, processing, and storing
human body tissue and providing this tissue to hospitals. As added by P.L.45-1983, SEC.1. Amended by P.L.41-1985, SEC.1;
P.L.28-1986, SEC.1; P.L.45-1987, SEC.1; P.L.39-1988, SEC.1;
P.L.11-1990, SEC.104; P.L.2-1992, SEC.44; P.L.27-1992, SEC.1;
P.L.2-1993, SEC.40; P.L.43-1993, SEC.1; P.L.56-1995, SEC.1;
P.L.272-1999, SEC.3; P.L.5-2001, SEC.1; P.L.215-2001, SEC.7;
P.L.64-2002, SEC.1; P.L.235-2005, SEC.62; P.L.141-2006, SEC.7;
P.L.162-2007, SEC.15; P.L.99-2007, SEC.11. IC 5-1-16-1.1 Applicability of provisions to the authority
Sec. 1.1. This chapter:
(1) applies to the Indiana finance authority only when acting as
the authority for the purposes set forth in this chapter; and
(2) does not apply to the Indiana finance authority when acting
under any other statute for any other purpose. As added by P.L.235-2005, SEC.63. Amended by P.L.162-2007,
SEC.16.
IC 5-1-16-1.5 Appropriation and expenditure of county tax money; leases
binding upon county
Sec. 1.5. (a) For purposes of this chapter, county commissioner
action or approval for the appropriation and expenditure of county
tax money shall presuppose and include approval by the county
council.
(b) A lease entered into by the board of county commissioners
with the authority is valid or binding upon the county only if the
lease is approved by a majority vote of the county council. As added by P.L.43-1993, SEC.2.
IC 5-1-16-2
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-3
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-4
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-5
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-6
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-7
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-8
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16-9
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-10
Repealed
(Repealed by P.L.235-2005, SEC.212.)
IC 5-1-16-10.5
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-11
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-12
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-13 Powers of authority
Sec. 13. (a) The authority has all powers necessary to carry out
and effectuate its public and corporate purposes, including but not
limited to the following:
(1) To make and execute contracts and all other instruments
necessary or convenient for the performance of its duties and
the exercise of its powers and functions under this chapter.
(2) To employ architects, engineers, independent legal counsel,
inspectors, accountants, and health care and financial experts,
and such other advisors, consultants, and agents as may be
necessary in its judgment without the approval of or consent by
any other state official, and to fix their compensation.
(3) To procure insurance against any loss in connection with its
property and other assets, in such amounts and from such
insurers as it considers advisable, including the power to pay
premiums on any such insurance.
(4) To procure insurance or guarantees from any public or
private entities, including any department, agency, or
instrumentality of the United States of America, to secure
payment:
(A) on a loan, lease, or purchase payment owed by a
participating provider to the authority; and
(B) of any bonds issued by the authority, including the
power to pay premiums on any such insurance or guarantee.
(5) To procure letters of credit or other credit facilities or
agreements from any national or state banking association or
other entity authorized to issue a letter of credit or other credit
facilities or agreements to secure the payment of any bonds
issued by the authority or to secure the payment of any loan,
lease, or purchase payment owed by a participating provider to
the authority, including the power to pay the cost of obtaining
such letter of credit or other credit facilities or agreements.
(6) To receive and accept from any source any money, property,
or thing of value to be held, used, and applied to carry out the
purposes of this chapter subject to the conditions upon which
the grants or contributions are made, including gifts or grants
from any department, agency, or instrumentality of the United
States of America for any purpose consistent with this chapter.
(7) To provide, or cause to be provided by a participating
provider, by acquisition, lease, construction, fabrication, repair,
restoration, reconditioning, refinancing, or installation, health
facility property to be located within a health facility.
(8) To lease as lessor any item of health facility property for
such rentals and upon such terms and conditions as the
authority considers advisable and are not in conflict with this
chapter.
(9) To sell by installment or otherwise to sell by option or
contract for sale, and to convey all or any part of any item of
health facility property for such price and upon such terms and
conditions as the authority considers advisable and as are not in
conflict with this chapter.
(10) To make contracts and incur liabilities, borrow money at
such rates of interest as the authority determines, issue its bonds
in accordance with this chapter, and secure any of its bonds or
obligations by a mortgage or pledge of all or any of its property,
franchises, and income or as otherwise provided in this chapter.
(11) To make secured or unsecured loans for the purpose of
providing temporary or permanent financing or refinancing for
the cost of any item of health facility property, including the
retiring of any outstanding obligations issued by a participating
provider, and the reimbursement to a participating provider of
advances, for the cost of any health facility property purchased
in anticipation of procuring such financing or refinancing from
the authority or other sources, and to charge and collect interest
on such loans for such loan payments and upon such terms and
conditions as the authority considers advisable and as are not in
conflict with this chapter.
(12) To invest and reinvest its funds and to take and hold
property as security for the investment of such funds as
provided in this chapter.
(13) To purchase, receive, lease (as lessee or lessor), or
otherwise acquire, own, hold, improve, use, or otherwise deal
in and with, health facility property, or any interest therein,
wherever situated.
(14) To sell, convey, mortgage, pledge, assign, lease, exchange,
transfer, and otherwise dispose of all or any part of its property
and assets.
(15) To the extent permitted under its contract with the holders
of bonds of the authority, consent to any modification with
respect to the rate of interest, time, and payment of any
installment of principal or interest, or any other term of any
contract, loan, loan note, loan note commitment, contract, lease,
or agreement of any kind to which the authority is a party.
(16) To charge to and apportion among participating providers
its administrative costs and expenses incurred in the exercise of
the powers and duties conferred by this chapter.
(17) Except as otherwise provided in a trust agreement or bond
resolution securing bonds of the authority, and notwithstanding
IC 5-13, to invest:
(A) the authority's money, funds, and accounts;
(B) any money, funds, and accounts in the authority's
custody; and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority.
(18) To collect fees and charges, as the authority determines to
be reasonable, in connection with its loans, leases, sales,
advances, insurance, commitments, and servicing.
(19) To cooperate with and exchange services, personnel, and
information with any federal, state, or local governmental
agency.
(20) To sell, at public or private sale, with or without public
bidding, any loan or other obligation held by the authority.
(21) To assist, coordinate, and participate with other issuers of
tax exempt bonds and public officials in other states in
connection with financings or refinancings on behalf of
multiple state health facilities. Assistance, coordination, and
participation provided under this subdivision may include
conducting any hearings required by state or federal law in
order for bonds to be issued by public officials in other states if
part of the proceeds of the bonds will be used by participating
providers in Indiana. Neither the state of Indiana nor the
authority, nor any officers, agents, or employees of the state or
the authority, are subject to any liability resulting from
assistance to or coordination or participation with other issuers
of tax exempt bonds under this subsection. Any assistance,
coordination, or participation provided under this subsection is
given with the understanding that the issuers of tax exempt
bonds or borrowers will agree to indemnify and hold harmless
the state of Indiana and the authority and their officers, agents,
and employees from all claims and liability arising from any
action against the state of Indiana or the authority relating to the
bonds.
(22) Subject to the authority's investment policy, to enter into
swap agreements (as defined in IC 8-9.5-9-4) in accordance
with IC 8-9.5-9-5 and IC 8-9.5-9-7.
The omission of a power from the list in this subsection does not
imply that the authority lacks that power. The authority may exercise
any power that is not listed in this subsection but is consistent with
the powers listed in this subsection to the extent that the power is not
expressly denied by the Constitution of the State of Indiana or by
another statute.
(b) No part of the revenues or assets of the authority may inure to
the benefit of or be distributable to its members or officers or other
private persons. Any net earnings of the authority beyond that
necessary for retirement of authority indebtedness or to implement
the public purposes of this chapter inure to the benefit of the state.
Upon termination or dissolution, all rights and properties of the
authority pass to and are vested in the state, subject to the rights of
lienholders and other creditors. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.4;
P.L.5-2001, SEC.2; P.L.235-2005, SEC.72; P.L.162-2007, SEC.17.
IC 5-1-16-13.1
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 5-1-16-14 Competitive bidding requirement
Sec. 14. Health facility property financed under this chapter is not
subject to any statutory requirement of competitive bidding or other
restriction imposed on the procedure for award of contracts or the
lease, sale, or other disposition of health facility property with regard
to any action taken under authority of this chapter. However, if the
prospective lessee or purchaser requests in writing, the authority
shall call for the construction bids in a manner determined by the
authority with the approval of such lessee or purchaser. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.5.
IC 5-1-16-15 Health facility property; participating providers
Sec. 15. The authority may initiate a program of providing health
facility property to be operated by participating providers in health
facilities. In furtherance of this objective, the authority may also:
(1) establish eligibility standards for participating providers,
without complying with IC 4-22-2; however, these standards
have the force of law if the standards are adopted after a public
hearing for which notice has been published in a newspaper
published in the city of Indianapolis, at least ten (10) days in
advance of the hearing;
(2) contract with any entity securing the payment of bonds
under section 13(a)(4) and 13(a)(5) of this chapter, authorizing
the entity to approve the participating providers that can finance
or refinance health facility property with proceeds from the
bond issue secured by that entity;
(3) lease to a participating provider specific items of health
facility property upon terms and conditions that the authority
considers proper, to charge and collect rents therefor, to
terminate any such lease upon the failure of the lessee to
comply with any of its obligations under the lease or otherwise
as the lease provides, to include in any such lease provisions
that the lessee has the options to renew the term of the lease for
such periods and at such rents as may be determined by the
authority or to purchase any or all of the health facility property
to which the lease applies;
(4) loan to a participating provider under an installment
purchase contract or loan agreement money to finance,
reimburse, or refinance the cost of specific items of health
facility property and to take back a secured or unsecured
promissory note evidencing such a loan and a security interest
in the health facility property financed or refinanced with such
loan, upon such terms and conditions as the authority considers
proper;
(5) sell or otherwise dispose of any unneeded or obsolete health
facility property under terms and conditions as determined by
the authority;
(6) maintain, repair, replace, and otherwise improve or cause to
be maintained, repaired, replaced, and otherwise improved any
health facility property owned by the authority;
(7) obtain or aid in obtaining property insurance on all health
facility property owned or financed, or to accept payment if any
health facility property is damaged or destroyed; and
(8) enter into any agreement, contract, or other instrument with
respect to any insurance, guarantee, or letter of credit, accepting
payment in such manner and form as provided therein if a
participating provider defaults, and to assign any such
insurance, guarantee, or letter of credit as security for bonds
issued by the authority. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.6;
P.L.5-2001, SEC.3; P.L.162-2007, SEC.18.
IC 5-1-16-16 Authority management; agreements
Sec. 16. The authority may employ and may enter into agreements
with, and delegate to any person as it sees fit, the power to manage
the routine affairs of the authority, including the originating and
processing of any applications from participating providers for the
lease or purchase from the authority, or financing, reimbursing, or
refinancing by the authority, of health facility property and to service
the leases, installment purchase contracts, and loan agreements
between the authority and the participating providers. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.7.
IC 5-1-16-17 Security; transactions with participating providers
Sec. 17. Before exercising any of the powers conferred by section
15 of this chapter, the authority may:
(1) require that the lease, installment purchase contract, or loan
agreement involved be insured by a loan insurer, be guaranteed
by a loan guarantor, or be secured by a letter of credit; and
(2) require any other type of security from the participating
providers that it considers reasonable and necessary. As added by P.L.45-1983, SEC.1.
IC 5-1-16-18 Power to issue bonds
Sec. 18. The authority may issue, sell, and deliver its bonds, in
accordance with this chapter, for the purpose of paying for or making
loans to participating providers for the financing, reimbursing, or
refinancing of all or any part of the cost of health facility property,
to finance the acquisition of health facility property for lease or sale
to participating providers, and any other purposes authorized by this
chapter. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.8.
IC 5-1-16-19 Bonds; requisites
Sec. 19. (a) The bonds must be dated, must bear interest at such
rates (fixed or variable), must mature at such times not exceeding
forty (40) years from their date, and may be made redeemable before
maturity at such prices and upon terms and conditions determined by
the authority. The bonds, including any interest coupons to be
initially attached thereto, must be in the forms and denominations
and payable at such places, as the authority determines. The bonds
shall be executed by the manual or facsimile signature of the
chairman or vice chairman of the authority, and the seal of the
authority, or facsimile seal, shall be affixed or imprinted on the
bonds. The seal shall be attested by the manual or facsimile signature
of the public finance director. However, one (1) of the signatures
must be manual, unless the bonds are authenticated by the manual
signature of an authorized officer of a trustee for the bondholders.
Any coupons attached must bear the facsimile signature of the
chairman or vice chairman of the authority. If an officer's signature
or a facsimile of whose signature appears on any bonds or coupons,
and the officer ceases to be an officer before the delivery of and
payment for such bonds, such signature or such facsimile is
nevertheless valid and sufficient for all purposes, the same as if such
officer had remained in office until such delivery and payment. The
bonds may be issued in coupon or in fully registered form, or both,
or may be payable to a specific person, as the authority determines,
and provision may be made for the registration of any coupon bonds
as to principal alone or as to both principal and interest, for the
conversion of coupon bonds into fully registered bonds without
coupons, and for the conversion into coupon bonds of any fully
registered bonds without coupons. The duty of conversion may be
imposed upon a trustee in a trust agreement.
(b) The principal of, redemption premium, if any, and interest on
such bonds shall be payable solely from and may be secured by a
pledge of all or any part of the proceeds of bonds, revenues derived
from the lease or sale of health facility property or realized from a
loan made by the authority to finance or refinance in whole or in part
health facility property, revenues derived from operating health
facility property, including insurance proceeds, or any other revenues
provided by a participating provider.
(c) The authority shall sell the bonds at prices it determines, at
public or private sale.
(d) The authority may provide for the issuance of bonds of the
authority for the purpose of refunding any bonds of the authority then
outstanding, including the payment of any redemption premium
thereon and any interest accrued or to accrue to the earliest or any
subsequent date of redemption, purchase or maturity of such bonds,
and, if considered advisable by the authority, for the additional
purpose of paying all or any part of the cost of health facility
property.
(e) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase or retirement at maturity or redemption of such
outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or at the maturity thereof and
may, pending such application, be placed in escrow to be applied to
such purchase or retirement at maturity or redemption on such date
as may be determined by the authority. Subject to the provisions of
any trust indenture to the contrary, any such escrowed proceeds,
pending such use, may be invested and reinvested in such obligations
as are determined by the authority in order to assure the prompt
payment of the principal and interest and redemption premium, if
any, on the outstanding bonds to be so refunded. The interest,
income, and profits, if any, earned or realized on any such investment
may also be applied to the payment of the outstanding bonds to be so
refunded. Only after the terms of the escrow have been fully satisfied
and carried out, any balance of such proceeds and interest, income,
and profits, if any, earned or realized on the investments thereof shall
be returned to the authority or the participating providers for use by
them in any lawful manner. All such bonds are subject to this chapter
in the same manner and to the same extent as other bonds issued
under this chapter. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.9;
P.L.1-2009, SEC.12.
IC 5-1-16-20 Bond proceeds; use; disbursement
Sec. 20. The proceeds of the bonds (other than refunding bonds)
of each issue shall be used for the payment of all or part of the cost
of, or for the making of a loan in the amount of all or part of the cost
of, the health facility property for which such bonds have been
authorized and, at the option of the authority, for the deposit to a
reserve fund or reserve funds for the bonds. However, the authority
may be paid, out of money from the proceeds of the sale and delivery
of its bonds issued in accordance with this chapter, all of the
authority's out-of-pocket expenses and costs in connection with the
issuance, sale, and delivery of such bonds, and the costs of obtaining
insurance, guarantees, and letters of credit securing payment of the
bonds and the lease and the loan and installment purchase payments,
plus an amount equal to the compensation paid to any employees of
the authority for the time those employees have spent on activities
relating to the issuance, sale, and delivery of the bonds. Bond
proceeds shall be disbursed in the manner and under the restrictions
determined by the authority. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.10.
IC 5-1-16-21 Trust indenture to secure bonds; operating expenses
Sec. 21. (a) The bonds may be secured by a trust indenture by and
between the authority and a corporate trustee which may be any bank
having the power of a trust company or any trust company in Indiana.
The trust indenture may contain such provisions for protecting and
enforcing the rights and remedies of the holders of the bonds as may
be reasonable and proper and not in violation of law, including
covenants setting forth the duties of the authority in relation to the
exercise of its powers and the custody, investing, safekeeping, and
application of all money. The authority may provide by the trust
indenture for the payment of the proceeds of the bonds and the
revenue to the trustee under the trust indenture or other depository,
and for the method of disbursement thereof, with such safeguards
and restrictions as the authority may determine. All expenses
incurred in carrying out the trust indenture may be treated as a part
of the operating expenses of the authority. If the bonds are secured
by a trust indenture, the holders of the bonds have no authority to
appoint a separate trustee to represent them.
(b) All expenses incurred in carrying out this chapter shall be
payable solely from funds provided under the authority of this
chapter and no liability may be incurred by the authority or the state
beyond the extent to which money has been provided under this
chapter. As added by P.L.45-1983, SEC.1.
IC 5-1-16-22 Bond resolutions or related instruments; provisions and additional
security authorized
Sec. 22. Any bond resolution or related trust indenture, indenture
of mortgage, or deed of trust may contain provisions, which must be
a part of the contract with the holders of the bonds to be authorized,
as to:
(1) pledging or assigning the revenues generated by the health
facility property, pledging or assigning the notes and mortgage,
lease, or other security given by the participating providers
whose health facility property has been financed with the
proceeds of such bonds or other specified revenues or property
of the authority;
(2) the rentals, fees, interest, and other amounts to be charged
by the authority, the schedule of principal payments, and the
sums to be raised in each year thereby, and the use, investment,
and disposition of such sums;
(3) setting aside any reserves or sinking funds, and the
regulation, investment, and disposition thereof;
(4) limitation on the use of the health facility property;
(5) limitations on the purpose to which or the investments in
which the proceeds of sale of any issue of bonds then or
thereafter may be applied;
(6) limitations on the issuance of additional bonds, terms upon
which additional bonds may be issued and secured, and the
terms 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 contract
with holders of the bonds may be amended or abrogated, the
amounts of bonds the holders of which must consent thereto,
the manner in which such consent may be given, and
restrictions on the individual rights of action by holders of the
bonds;
(9) acts or omissions that constitute a default in the duties of the
authority to holders of its bonds and providing the rights and
remedies of such holders in the event of default; and
(10) any other matters relating to the bonds that the authority
considers desirable.
Bonds of the authority may also be secured by and payable from a
pooling of leases or of notes and mortgages or other security
instruments whereby the authority may assign its rights, as lessor,
and pledge rents under two (2) or more leases of health facility
property with two (2) or more participating providers, as lessees, or
assign its rights as payee or secured party and pledge the revenues
under two (2) or more notes and loan agreements from two (2) or
more participating providers, upon such terms as may be provided for
in bond resolutions or other instruments under which such bonds are
issued. As added by P.L.45-1983, SEC.1. Amended by P.L.28-1986, SEC.11.
IC 5-1-16-23 Payment of bonds
Sec. 23. Every issue of bonds is payable solely out of revenues,
assets, or money of the authority as the authority determines, subject
only to any agreements with the holders of particular bonds pledging
any particular money or revenue. The bonds may be additionally
secured by a pledge of any grant, contribution, or guarantee from the
federal government or any corporation, limited liability company,
association, institution, or person or a pledge of any money, income,
or revenue of the authority from any source. As added by P.L.45-1983, SEC.1. Amended by P.L.8-1993, SEC.49. IC 5-1-16-24 Bonds not indebtedness or obligation of state
Sec. 24. (a) Bonds issued under this chapter do not, and shall state
upon the face of each bond that they do not, represent or constitute
a debt of the authority or of the state within the meaning of the
provisions of the Constitution or statutes of Indiana or a pledge of the
faith and credit of the authority or the state or grant to the owners or
holders thereof any right to have the authority or the state levy any
taxes or appropriate any funds for the payment of the principal
thereof or interest thereon. Such bonds are payable and shall state
that they are payable solely from the funds pledged for their payment
in accordance with the bond resolution or trust agreement securing
the same.
(b) This chapter does not authorize the authority or any
department, board, commission, or other agency to create an
obligation of the state within the meaning of the Constitution or
statutes of Indiana. As added by P.L.45-1983, SEC.1.
IC 5-1-16-25 Pledge by authority
Sec. 25. Any pledge made by the authority is valid and binding
from the time when the pledge is made. The revenue, money, or
properties so pledged and thereafter received by the authority are
immediately subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such pledge is
valid and binding as against all parties having claims of any kind in
tort, contract, or otherwise against the authority, irrespective of
whether the parties have notice of the lien. Neither the resolution nor
any other instrument by which a pledge is created need be recorded. As added by P.L.45-1983, SEC.1.
IC 5-1-16-26 Repurchase of authority bonds
Sec. 26. The authority, subject to such agreements with holders of
the bonds as then exist, may purchase bonds of the authority out of
any available funds, which shall thereupon be cancelled, at any
reasonable price which, if the bonds are then redeemable, does not
exceed the redemption price then applicable plus accrued interest to
the next interest payment date thereon. As added by P.L.45-1983, SEC.1.
IC 5-1-16-27 Negotiability of bonds
Sec. 27. Regardless of whether the bonds are in the form and
character of negotiable instruments, the bonds are negotiable
instruments, subject only to provisions of the bonds relating to
registration. As added by P.L.45-1983, SEC.1. IC 5-1-16-28 Personal liability of bond issuers
Sec. 28. Neither the members of the authority nor any other
person executing the bonds issued under this chapter is subject to
personal liability by reason of the issuance of the bonds. As added by P.L.45-1983, SEC.1.
IC 5-1-16-29 Establishment of funds and accounts
Sec. 29. The authority may establish funds and accounts necessary
for its purposes. As added by P.L.45-1983, SEC.1.
IC 5-1-16-30 Deposit of funds in accounts
Sec. 30. All money of the authority, except as otherwise provided
in this chapter, shall be deposited as soon as practical in a separate
account in banks or trust companies organized under the laws of
Indiana or in national banking associations. The money in these
accounts shall be paid by checks signed by the public finance
director or other officers or employees of the authority as the
authority authorizes. All deposits of money shall, if required by the
authority, be secured in such a manner as the authority determines to
be prudent, and all banks or trust companies are authorized to give
security for the deposits. As added by P.L.45-1983, SEC.1. Amended by P.L.1-2009, SEC.13.
IC 5-1-16-31 Enforcement of rights and duties concerning bonds
Sec. 31. (a) Any holder of bonds or any coupons appertaining
thereto, and the trustee under any trust agreement or resolution
authorizing the issuance of such bonds, except to the extent the rights
given in this chapter may be restricted by such trust agreement or
resolution, may, either at law or in equity, by suit, action, mandamus,
or other proceeding, protect and enforce any and all rights under the
laws of Indiana, or under such trust agreement or resolution, or under
any other contract executed by the authority under this chapter, and
may enforce and compel the performance of all duties required by
this chapter or by such trust agreement or resolution to be performed
by the authority or by any officer thereof.
(b) The state does hereby pledge to and agree with the holders of
any bonds issued under this chapter that the state will not limit or
alter the rights vested in the authority to fulfill the terms of any
agreements made with the holders of bonds, or in any way impair the
rights or remedies of the holders until the bonds, together with the
interest thereon, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or
proceeding by or on behalf of the holders, are fully met and
discharged. The authority may include this subsection in any
agreement with the holders of the bonds.
As added by P.L.45-1983, SEC.1.
IC 5-1-16-32 Payment of expenses
Sec. 32. All expenses incurred by the authority in carrying out this
chapter are payable solely from funds provided under this chapter,
except to the extent payable from grants or advances from
participating providers or any other entity, which grants or advances
may be reimbursed from bond proceeds, and this chapter does not
authorize the authority to incur indebtedness or liability on behalf of
or payable by the state or any political subdivision of it. As added by P.L.45-1983, SEC.1.
IC 5-1-16-33 Public property; tax exemption
Sec. 33. All property acquired or held by the authority under this
chapter is declared to be public property used for public and
governmental purposes, and all property, income therefrom and
bonds issued under this chapter, interest payable thereon and income
derived therefrom, are exempt from all taxes, direct or indirect,
imposed by the state, any county, any city, or any political
subdivision of the state. As added by P.L.45-1983, SEC.1.
IC 5-1-16-34 Bonds as legal investments
Sec. 34. The bonds issued under this chapter by the authority are
legal investments in which all public officers or public bodies of this
state, its political subdivisions, all municipalities and municipal
subdivisions, all insurance companies, associations, and other
persons carrying on insurance business, all banks, bankers, banking
associations, trust companies, savings associations, including savings
and loan associations, building and loan associations, investment
companies, and other persons carrying on a banking business, all
administrators, guardians, executors, trustees, and other fiduciaries,
and all other persons who are authorized to invest in bonds or in
other obligations of this state, may invest funds, including capital, in
their control or belonging to them. Such bonds are securities which
may be deposited with and received by all public officers and bodies
of the state or any agency or political subdivision of the state and all
municipalities and public corporations for any purpose for which the
deposit of bonds or other obligations of the state is authorized by
law. As added by P.L.45-1983, SEC.1.
IC 5-1-16-35
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16-36 Construction of chapter
Sec. 36. Nothing in this chapter may be construed as a restriction
or limitation upon any powers which the authority might otherwise
have under any other law of this state, and this chapter is cumulative
to such powers. This chapter shall be construed to provide a
complete, additional, and alternative method for the doing of the
things authorized, and shall be construed as supplemental to powers
conferred by any other laws. The adoption by the authority of bylaws
and rules, and the issuance of bonds by the authority under this
chapter need not comply with the requirements of any other state
laws applicable to the adoption of bylaws and rules and the issuance
of bonds, notes, and other obligations. No proceedings, notice, or
approval is required for the issuance of any bonds or any instrument
or the security therefor, or for the proper conduct of the authority's
business, affairs, or operations, except as provided in this chapter. As added by P.L.45-1983, SEC.1.
IC 5-1-16-37
Repealed
(Repealed by P.L.1-2010, SEC.156.)
IC 5-1-16-38 Leases by county with the authority
Sec. 38. (a) A county may lease land and buildings, including the
necessary equipment and appurtenances, from the authority for
hospital purposes. No contract of lease on a particular building shall
be entered into for a period of more than forty (40) years. However,
a contract of lease is renewable for less than forty (40) years.
(b) A lease entered into by a county may require the funding of a
reserve fund for the benefit of the authority or the authority's assigns.
In order to assure the maintenance of the required reserve amount in
any reserve fund, the county council may appropriate for deposit in
the reserve fund the sum certified by the county fiscal officer to the
county council that is necessary to restore the reserve fund to an
amount equal to the required reserve amount. The county fiscal
officer shall annually before December 1 prepare and deliver a
certificate to the county council stating the sum required to restore
the reserve fund to the appropriate reserve amount. Nothing in this
subsection creates a debt or liability of the county to make an
appropriation.
(c) All amounts received because of money appropriated by the
county to a reserve fund must be held by the authority under the lease
and applied in accordance with the lease. As added by P.L.43-1993, SEC.3.
IC 5-1-16-39 Leases before construction, erection, or renovation of buildings
Sec. 39. A county may, in anticipation of the construction,
erection, or renovation of a building (including the necessary
equipment and appurtenances), make and enter into a contract of
lease with the authority prior to the actual acquisition of a site and
the construction, erection, or renovation of the building. The contract
of lease shall not provide for the payment of any lease rental by the
lessee until the building is ready for occupancy. However, if a
building is to be acquired and renovated under this chapter, a county
may, in anticipation of the acquisition and renovation, make and
enter into a contract of lease upon terms and conditions that are
agreed upon by the county and the authority, including:
(1) terms and conditions upon which the county may continue
to operate the building until completion of the renovation; and
(2) the payment of a lease rental by the lessee during the period
of renovation. As added by P.L.43-1993, SEC.4.
IC 5-1-16-40 Payment of lease rental
Sec. 40. (a) Any lease executed under section 38 or 39 of this
chapter may provide for the payment of the lease rental in any one
(1) of the following ways as established in the lease:
(1) Entirely from the levy of taxes.
(2) Entirely from the net revenues of the hospital of which the
leased building is a part.
(3) In part from the levy of taxes and in part from the net
revenues described in subdivision (2).
(b) If any lease provides for the payment of lease rental in whole
or in part from net revenues of the hospital, the lease may further
provide that the county and the board of trustees or board of
managers of the hospital set aside and hold as a reserve for such
purpose excess net revenues over and above the amount required to
pay lease rental payable from net revenues. The reserve fund may not
exceed an amount equal to the amount of lease rental payable from
net revenues for two (2) years. The reserve fund shall be held and
used only for the purpose of paying lease rental payable from net
revenues, if such net revenues at any time are insufficient to pay
lease rentals. The amount in the reserve fund may be invested in the
manner and to the extent provided in the lease. All interest or other
income from the investment shall become part of the reserve fund
unless the reserve fund contains the maximum amount required to be
in the reserve fund. The following occur if the reserve fund contains
the maximum amount required to be in the reserve fund:
(1) If any of the lease rental is payable from taxes, the interest
or other income shall be transferred to the fund to be used for
the payment of the lease rental provided to be paid from taxes.
(2) If none of the lease rental is payable from taxes, the interest
or other income shall become a part of the reserve fund. As added by P.L.43-1993, SEC.5.
IC 5-1-16-41 Payment of lease rental from cumulative building fund
Sec. 41. In addition to the ways specified in section 40 of this
chapter for the payment of lease rental, any lease executed under this
chapter may provide for the payment of lease rental from a
cumulative building fund established by the lessee under
IC 16-22-5-3 (or IC 16-12.1-4-4 before its repeal on July 1, 1993).
Part or all of a cumulative building fund and the tax levied for that
cumulative building fund may be committed and pledged to the
payment of the lease rental. To the extent that the amount committed
and pledged is insufficient to pay the lease rental, the lease shall
provide that any remaining lease rental shall be paid entirely from the
net revenues of the hospital of which the leased building is a part. So
long as the lease remains in effect:
(1) any amount of cumulative building fund so committed and
pledged may not be expended by lessee for any other purpose;
and
(2) the tax levy committed and pledged for the cumulative
building fund may not be reduced or rescinded by the county
council.
Notwithstanding any other provision of this chapter, if a lease
provides for payment of lease rental under this section, no approval
of the county council is required for the lease, the terms and
conditions of the lease, or the sale of the land by the county to the
authority under this chapter. As added by P.L.43-1993, SEC.6.
IC 5-1-16-42 Notice of public hearing; notice of execution of lease; action to
contest validity of lease; taxpayer objections to lease
Sec. 42. (a) When the authority, the board of trustees or board of
managers of the hospital, the board of commissioners of the county,
and a majority of the county council have agreed upon the terms and
conditions of any lease proposed to be entered into under section 38
or 39 of this chapter, and before the final execution of the lease, the
county auditor shall give notice by publication of a public hearing to
be held in the county by the board of commissioners. The hearing
shall take place on a day not earlier than ten (10) days after the
publication of the notice. The notice of the hearing shall be published
one (1) time in a newspaper of general circulation printed in the
English language and published in the county. The notice shall do the
following:
(1) Name the day, place, and hour of the hearing.
(2) Set forth a brief summary of the principal terms of the lease
agreed upon, including the character and location of the
property to be leased, the lease rental to be paid, and the
number of years the contract is to be in effect.
(3) State a location where the proposed lease, drawings, plans,
specifications, and estimates may be examined.
The proposed lease and the drawings, plans, specifications, and
estimates of construction cost for the building shall be open to
inspection by the public during the ten (10) day period and at the
hearing. All interested persons shall have a right to be heard at the
hearing on the necessity for the execution of the lease and whether
the lease rental under the lease is fair and reasonable. The hearing
may be adjourned to a later date with the place of the hearing fixed
prior to adjournment. Following the hearing, the board of
commissioners may either authorize the execution of the lease as
originally agreed upon or may make modifications that are agreed
upon by the authority, the board of trustees or board of managers of
the hospital, and the county council. The authorization shall be by an
order that is entered in the official records of the board of
commissioners. The lease contract shall be executed on behalf of the
county by the board of commissioners.
(b) If the execution of the lease as originally agreed upon or as
modified by agreement is authorized, notice of the signing of the
lease shall be given on behalf of the county by publication one (1)
time in a newspaper of general circulation printed in the English
language and published in the county. Except as provided in
subsection (d), ten (10) or more taxpayers in the county whose tax
rate will be affected by the proposed lease and who may be of the
opinion that no necessity exists for the execution of the lease or that
the lease rental under the lease is not fair and reasonable may file a
petition in the office of the county auditor within thirty (30) days
after publication of notice of the execution of the lease that sets forth
the taxpayers' objections and facts supporting those objections. Upon
the filing of a petition, the county auditor shall immediately certify
a copy of the petition together with such other data as may be
necessary in order to present the questions involved to the
department of local government finance. Upon receipt of the certified
petition and information, the department of local government finance
shall fix a time and place in the affected county for the hearing of the
matter that is not less than five (5) or more than fifteen (15) days
after receipt. Notice of the hearing shall be given by the department
of local government finance to the board of county commiss
