IC 5-1-16.5
Chapter 16.5. Indiana Health and Educational Facilities Financing
Authority; Additional Provisions; Financing Projects for Private
Colleges and Universities; Participation in Risk Retention Group
IC 5-1-16.5-1 Declaration; purpose
Sec. 1. It is declared:
(1) that for the benefit of the people of the state, the conduct
and increase of their commerce, the protection and
enhancement of their welfare, the development of continued
prosperity and the improvement of their health and living
conditions, it is essential that this and future generations of
youth be given the fullest opportunity to learn and to develop
their intellectual and mental capacities and skills;
(2) that to achieve the ends in subdivision (1), it is of the utmost
importance that nonprofit colleges or universities within Indiana
be provided with appropriate additional means to assist youth
in achieving the required levels of learning and development of
their intellectual and mental capacities and skills; and
(3) that it is the purpose of this chapter to provide a measure of
assistance and an alternative method to enable nonprofit
colleges or universities in Indiana to refund or refinance
outstanding indebtedness incurred by nonprofit colleges or
universities in Indiana for the renovation, construction,
acquisition, or equipping of educational facilities, to establish
liability or other loss insurance reserves or to contribute those
insurance reserves or other capital to a risk retention group to
provide insurance coverage against liability claims or other
losses, and to provide the needed additional educational
facilities for the public benefit and good, and in execution of the
public policy set forth in this section. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-2 Powers
Sec. 2. The exercise of the powers granted by this chapter must be
in all respects for the benefit of the people of Indiana, for the
increase of their commerce, welfare, and prosperity, and for the
improvement of their health and living conditions. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-3 Liberal construction
Sec. 3. This chapter, being necessary for the welfare of the state
and its inhabitants, shall be liberally construed to effect the purposes
of this chapter. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-4 Supplemental effect
Sec. 4. This chapter provides a complete, an additional, and an
alternative method for doing the things authorized under this chapter
and is supplemental and additional to powers conferred by other
laws. The adoption of rules and the issuance of bonds under this
chapter need not comply with the requirements of any other law that
would otherwise be applicable to the rules or issuance of bonds.
Except as otherwise expressly provided in this chapter, none of the
powers granted to the authority under this chapter are subject to the
supervision or regulation or require the approval or consent of:
(1) any municipality or political subdivision;
(2) any department, division, commission, board, body, bureau,
official, or agency of any municipality or political subdivision;
or
(3) the state. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-5 Applicability of authority
Sec. 5. This chapter:
(1) applies to the authority only when acting for the purposes
set forth in this chapter; and
(2) does not apply to the authority when acting under any other
statute for any other purpose. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-6 Bond issues; authorized actions
Sec. 6. Bonds issued and other actions taken under IC 20-12-63
before its repeal shall be treated as an action taken under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-7 "Authority"
Sec. 7. As used in this chapter, "authority" refers to the Indiana
finance authority established by IC 4-4-11-4. As added by P.L.2-2007, SEC.69. Amended by P.L.162-2007,
SEC.19.
IC 5-1-16.5-8 "Bonds"
Sec. 8. As used in this chapter, "bonds" means revenue bonds,
notes, bond anticipation notes, or other obligations of the authority
issued under this chapter, including refunding bonds, notes, bond
anticipation notes, or other obligations. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-9 "Bond resolution"
Sec. 9. As used in this chapter, "bond resolution" means the
resolution or resolutions and the trust agreement, if any, authorizing
or providing for the terms and conditions applicable to bonds issued
under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-10 "Cost"
Sec. 10. As used in this chapter, "cost" means all costs necessary
or incident to the acquisition, construction, or funding of a project,
including the costs of refunding or refinancing outstanding
indebtedness incurred for the financing of the project, reserves for
principal and interest, engineering, legal, architectural, and all other
necessary and incidental expenses, together with interest on bonds
issued to finance the project to a date six (6) months after the
estimated date of completion. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-11 "Educational facility"
Sec. 11. As used in this chapter, "educational facility" means any
property located within Indiana that:
(1) is suitable for:
(A) the instruction, feeding, recreation, or housing of
students;
(B) the conduct of research or other work of a nonprofit
college or university; or
(C) use by a nonprofit college or university in connection
with any educational, research, or related or incidental
activity conducted by the nonprofit college or university;
(2) is suitable for use as or in connection with:
(A) an academic facility;
(B) an administrative facility;
(C) an agricultural facility;
(D) an assembly hall;
(E) an athletic facility;
(F) an auditorium;
(G) a boating facility;
(H) a campus;
(I) a communication facility;
(J) a computer facility;
(K) a continuing education facility;
(L) a classroom;
(M) a dining hall;
(N) a dormitory;
(O) an exhibition hall;
(P) a firefighting facility;
(Q) a fire prevention facility;
(R) a food service and preparation facility;
(S) a gymnasium;
(T) a greenhouse;
(U) a health care facility;
(V) a hospital;
(W) housing;
(X) an instructional facility;
(Y) a laboratory;
(Z) a library;
(AA) a maintenance facility;
(BB) a medical facility;
(CC) a museum;
(DD) offices;
(EE) a parking area;
(FF) a physical education facility;
(GG) a recreational facility;
(HH) a research facility;
(II) a stadium;
(JJ) a storage facility;
(KK) a student union;
(LL) a study facility;
(MM) a theater; or
(NN) a utility;
(3) is not used or to be used for sectarian instruction or study or
as a place for devotional activities or workshop; and
(4) is not used or to be used primarily in connection with any
part of the program of a school or department of divinity for any
religious denomination. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-12 "Eligible member"
Sec. 12. As used in this chapter, "eligible member" means a state
educational institution or any nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-13 "Liability"
Sec. 13. As used in this chapter, "liability" means legal liability
for damages (including costs of defense, legal costs and fees, and
other claims for expenses) because of injuries to other persons or
entities, damage to the property or business of other persons or
entities, or other damage or loss to such other persons or entities
resulting from or arising out of any activity of an eligible member. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-14 "Liability or loss insurance reserves"
Sec. 14. As used in this chapter, "liability or loss insurance
reserves" means a fund or funds set aside as a reserve to cover risk
retained by an eligible member in connection with liability claims or
other losses.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-15 "Nonprofit"
Sec. 15. As used in this chapter, "nonprofit college or university"
has the meaning set forth in IC 21-7-13-23(a). As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-16 "Project"
Sec. 16. As used in this chapter, "project" means:
(1) the acquisition, construction, enlarging, remodeling,
renovation, improvement, furnishing, or equipping of an
educational facility by the authority for a nonprofit college or
university; or
(2) the funding of any liability, other loss, or insurance reserves
or the funding and contribution of such insurance reserves or
other capital to a risk retention group to provide insurance
coverage against liability claims or other losses. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-17 "Property"
Sec. 17. As used in this chapter, "property" means any real,
personal, or mixed property, or any interest in real property or mixed
property, including:
(1) any real estate, appurtenances, buildings, easements,
equipment, furnishings, furniture, improvements, machinery, or
rights-of-way and structures; or
(2) any interest in real estate, appurtenances, buildings,
easements, equipment, furnishings, furniture, improvements,
machinery, or rights-of-way and structures. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-18 "Revenues"
Sec. 18. As used in this chapter, "revenues" means with respect to
any project the rents, fees, charges, and other income or profit
derived from the project. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-19 "Risk retention group"
Sec. 19. As used in this chapter, "risk retention group" means a
trust, pool, corporation, limited liability company, partnership, or
joint venture funded by and owned and operated for the benefit of
more than one (1) eligible member. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-20 "State educational institution"
Sec. 20. As used in this chapter, "state educational institution" has
the meaning set forth in IC 21-7-13-32. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-21 Powers of authority
Sec. 21. (a) The authority may determine the location and
character of any project to be financed under this chapter.
(b) The authority may construct, reconstruct, remodel, maintain,
manage, enlarge, alter, add to, repair, operate, lease as lessee or
lessor, regulate any project, or enter into contracts for any purpose
stated in this section.
(c) The authority may designate a nonprofit college or university
as the authority's agent to carry out the authority of this section. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-22 Bonds; issuance; funding and refunding
Sec. 22. The authority may issue bonds or fund and refund bonds
as provided in this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-23 Rents and charges
Sec. 23. The authority:
(1) may require that the rates, rents, fees, or charges established
by a nonprofit college or university are sufficient to discharge
the institution's obligations to the authority; but
(2) has no other jurisdiction over the rates, rents, fees, or
charges. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-24 Rules for projects
Sec. 24. The authority may:
(1) establish rules for the use of a project or any part of a
project; and
(2) designate a nonprofit college or university as the authority's
agent to establish rules for the use of a project undertaken for
that nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-25 Employees
Sec. 25. The authority may employ consulting engineers,
architects, attorneys, accountants, trustees, construction and financial
experts, superintendents, managers, and other employees and agents
the authority believes are necessary, and fix their compensation.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-26 Receipt and use of funds
Sec. 26. The authority may:
(1) receive and accept from any source loans, contributions, or
grants for or in aid of the construction or funding of a project or
any part of a project in either money, property, labor, or other
things of value; and
(2) when required, use the funds, property, or labor only for the
purposes for which the money, property, or labor was loaned,
contributed, or granted. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-27 Loans
Sec. 27. (a) The authority may make loans to any nonprofit
college or university for the cost of a project, including the
establishment of liability or other loss insurance reserves or the
contribution of those reserves to a risk retention group for the
purpose of providing insurance coverage against liability claims or
other losses in accordance with an agreement between the authority
and the nonprofit college or university.
(b) A loan authorized under this section may not exceed the total
cost of the project as determined by the nonprofit college or
university and approved by the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-28 Loans and bonds
Sec. 28. (a) The authority may make loans to a nonprofit college
or university to refund outstanding obligations or advances issued,
made, or given by the nonprofit college or university for the cost of
a project, including the establishment of liability or other loss
insurance reserves or the contribution of those reserves to a risk
retention group to provide insurance coverage against liability claims
or other losses.
(b) The authority may issue bonds and make loans to a nonprofit
college or university to refinance indebtedness incurred or to
reimburse advances made for projects undertaken before the date of
the bond issue whenever the authority finds that the financing is in
the public interest and either:
(1) alleviates a financial hardship upon the nonprofit college or
university;
(2) results in a lesser cost of education; or
(3) enables the nonprofit college or university to offer greater
security for a loan or loans to finance a new project or projects
or to effect savings in interest costs or more favorable
amortization terms. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-29 Costs
Sec. 29. The authority may charge to and apportion among
nonprofit colleges or universities the authority's administrative costs
and expenses incurred in the exercise of the powers and duties
conferred by this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-30 Financing
Sec. 30. (a) The authority may, for financing purposes, combine
a project or projects and some or all future projects of any nonprofit
college or university or nonprofit colleges or universities provided
that:
(1) the authority obtains the consent of all of the nonprofit
colleges or universities that are involved, or when financing
loans for the funding of liability or other loss insurance reserves
or for the providing of those reserves or other capital to be
contributed to a risk retention group, the authority obtains the
consent of all of the eligible members that are involved; and
(2) the money set aside in any fund or funds pledged for any
series of bonds or issue of bonds is held for the sole benefit of
a series or issue separate and apart from the money pledged for
any other series or issue of bonds of the authority.
(b) To facilitate the combining of projects, bonds may be issued
in series under one (1) or more resolutions or trust agreements and
be:
(1) fully open end, thus providing for unlimited issuance of
additional series; or
(2) partially open end, limited as to additional series;
all in the discretion of the authority.
(c) Notwithstanding any provision of this chapter, the authority
may permit a nonprofit college or university to substitute one (1) or
more educational facilities of similar value (as determined by an
independent appraiser satisfactory to the authority) as security for
any educational facility financed under this chapter on the terms and
conditions that the authority may prescribe. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-31 Mortgages
Sec. 31. The authority may mortgage all or any part of:
(1) any project and any other educational facilities conveyed to
the authority for an educational purpose; and
(2) the site or sites of the facilities, whether presently owned or
subsequently acquired;
for the benefit of the holders of the bonds of the authority issued to
finance a project or any portion of a project or issued to refund or
refinance outstanding indebtedness of a nonprofit college or
university as permitted by this chapter.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-32 Risk retention
Sec. 32. The authority may join in a risk retention group with state
educational institutions or any nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-33 Authority
Sec. 33. The authority may do all things necessary to carry out the
purposes of this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-34 Payment of expenses
Sec. 34. All expenses incurred in carrying out this chapter are
payable solely from funds provided under the authority of this
chapter. No liability may be incurred by the authority beyond the
extent to which money has been provided under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-35 Acquisitions
Sec. 35. The authority may acquire:
(1) directly;
(2) by and through a nonprofit college or university as the
private institution's agent;
(3) by purchase solely from funds provided under this chapter;
or
(4) by gift or devise;
lands, structures, real or personal property, rights, rights-of-way,
franchises, easements, and other interests in lands, including lands
lying under water and riparian rights that are located in Indiana, as
the authority finds necessary or convenient, for the construction or
operation of a project, upon the terms and at the prices as are agreed
upon between the authority and the owner of a property interest. The
authority may take title to property in the authority's own name or in
the name of a nonprofit college or university as the authority's agent. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-36 Conveyance of title
Sec. 36. The authority shall promptly take any action and execute
any deeds and conveyances necessary and required to convey the title
to a project or projects to the appropriate nonprofit college or
university whenever:
(1) the principal of and interest on bonds of the authority issued
to finance the cost of a project or projects for a nonprofit
college or university, including any refunding bonds issued to
refund and refinance the bonds, have been fully paid and
retired; or
(2) adequate provision has been made to fully pay and retire
bonds of the authority issued to finance the cost of a project or
projects for a nonprofit college or university, all other
conditions of the bond resolution have been satisfied, and the
lien created by the bond resolution has been released in accord
with the provisions of the bond resolution. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-37 Issuance of bonds
Sec. 37. The authority may periodically issue bonds for any
corporate purpose. All bonds or other obligations of the authority
issued under this chapter are negotiable for all purposes
notwithstanding their payment from a limited source and without
regard to any other. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-38 Bonds of issue
Sec. 38. The bonds of every issue are payable solely out of
revenues of the authority, including accumulated reserves or sinking
funds. Any income received from the investment of reserves or
sinking funds must be applied in reduction of the rentals or other
amounts paid by the nonprofit college or university or nonprofit
colleges or universities for whose project or projects the reserves or
sinking funds were created. Funds held as reserves or sinking funds
when invested must be allocated to a specific project or projects of
the institution for which the fund was created, and the income from
the investment must be used to reduce the bonded indebtedness
attributable to the project or projects. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-39 Bonds; serial and term
Sec. 39. (a) The bonds issued by the authority may be issued as
serial bonds or term bonds, or both. The bonds:
(1) must be authorized by a bond resolution of the authority;
and
(2) must:
(A) bear the date or dates;
(B) mature at the time or times not exceeding forty (40)
years from their respective dates of issue;
(C) bear interest at the rate or rates, without regard to any
limit contained in any other statute or law of Indiana;
(D) be payable at the time or times;
(E) be in the denominations;
(F) be in the form, either coupon or fully registered;
(G) carry the registration and conversion privileges;
(H) be payable in lawful money of the United States of
America at the places; and
(I) be subject to the terms of redemption;
as are in current or customary usage in municipal bond markets
and as the bond resolution may provide.
(b) The bond resolution for bonds of the authority may set the
maximum interest rate or rates that the bonds may bear and delegate
to an officer or agent of the authority power to set an interest rate or
rates that the bonds may bear at the time of sale of the bonds.
However, the rate or rates may not exceed the maximum rate
established by the authority in the bond resolution.
(c) The bonds of the authority must be executed by the manual or
facsimile signatures of the officers or agents of the authority
designated by the authority. In the case of bonds having a maturity
of one (1) year or less, the bond resolution that authorizes the bonds
may concurrently provide for the issuance, delivery, and sale of
refunding bonds subject to the terms and conditions prescribed in the
bond resolution and this chapter. The bonds must be sold in the
manner that the authority determines. Pending preparation of the
definitive bonds, the authority may issue interim receipts or
certificates, which must be exchanged for the definitive bonds. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-40 Bond resolutions
Sec. 40. Any bond resolution of the authority may contain
provisions that become part of the contract with the holders of the
bonds to be authorized, as to:
(1) pledging or assigning the revenues of the project or projects
with respect to which the bonds are to be issued;
(2) the rentals, fees, and other amounts to be charged, and the
sums to be raised in each year, and the use, investment, and
disposition of the sums;
(3) the setting aside of reserves or sinking funds, and the
regulation, investment, and disposition of reserves or sinking
funds;
(4) limitations on the use of the project;
(5) limitations on the purpose to which or the investments in
which the proceeds of sale of any issue of bonds may be
applied;
(6) limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, 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 bond holders may be amended or abrogated, the amount of
bonds the holders of which must give consent and the manner
in which the consent may be given;
(9) defining the acts or omissions to act that constitute a default
in the duties of the authority to holders of the authority's
obligations and providing the rights and remedies of the holders
in the event of a default;
(10) mortgaging the project or projects with respect to which
any bonds are to be issued and other educational facilities
conveyed to the authority for a purpose for the benefit of the
holders of the bonds;
(11) the establishment of liability or other loss insurance
reserves or the contribution of those reserves or other capital to
a risk retention group to provide insurance coverage against
liability claims or other losses; and
(12) any other matters relating to the bonds which the authority
considers desirable. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-41 Immunity for executing bonds
Sec. 41. Neither the members of the authority nor any person
executing the bonds of the authority may be held liable personally on
the bonds or be subject to any personal liability or accountability by
reason of the issuance of the bonds. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-42 Bonds; purchasing
Sec. 42. The authority may purchase bonds issued by the authority
using any funds available for the purpose. The authority may hold,
pledge, cancel, or resell bonds issued by the authority subject to and
in accordance with agreements with bond holders. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-43 Bonds; trust agreements
Sec. 43. (a) The authority may secure any bonds issued under this
chapter by a trust agreement by and between the authority and a
corporate trustee or trustees, which may be any trust company or
bank in Indiana having the powers of a trust company.
(b) The bond resolution providing for the issuance of bonds
secured by a trust agreement:
(1) must pledge the revenues to be received by the authority
from the project or projects;
(2) may contain provisions for protecting and enforcing the
rights and remedies of the bondholders as are reasonable and
proper and not in violation of law, including provisions
specifically authorized to be included in any bond resolution of
the authority; and
(3) may restrict the individual right of action by bondholders.
(c) Any bond resolution may contain any other provisions that the
authority determines reasonable and proper for the security of the
bondholders.
(d) All expenses incurred in carrying out the provisions of the
bond resolution may be treated as a part of the cost of the operation
of a project. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-44 Bonds; restrictions
Sec. 44. (a) Bonds issued under this chapter do not, and must state
upon the face of each bond that the bonds do not:
(1) represent or constitute:
(A) a debt of the authority or of the state within the meaning
of the provisions of the Constitution or statutes of the state
of Indiana; or
(B) a pledge of the faith and credit of the authority or the
state; or
(2) grant to the owners or holders of the bonds any right to have
the authority or the general assembly levy any taxes or
appropriate any funds for the payment of the principal of or
interest due on the bonds.
(b) Bonds issued under this chapter are payable and must state
that the bonds are payable solely from the funds pledged for payment
of the bonds in accordance with the bond resolution.
(c) This chapter may not be construed to authorize the authority
or any department, board, commission or other agency to create an
obligation of the state of Indiana within the meaning of the
Constitution of the State of Indiana or the statutes of Indiana. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-45 Leases
Sec. 45. (a) In connection with any lease entered into between the
authority and any nonprofit college or university, the authority shall
fix, revise, charge, and collect rents for the use of each project and
contract with any person, partnership, association, limited liability
company, or corporation, or other body, public or private, in respect
thereof.
(b) Each lease entered into by the authority with a nonprofit
college or university must provide that the rents or other money
payable by the nonprofit college or university is sufficient at all
times:
(1) to pay the private institution's share of the administrative
costs and expenses of the authority;
(2) to pay the principal of the premium, if any, and the interest
on outstanding bonds of the authority issued in respect of the
project as the bonds become due and payable; and
(3) to create and maintain reserves that may be required or
provided for in the bond resolution relating to the bonds of the
authority.
(c) The authority shall pledge the revenues derived and to be
derived from a project for the purposes specified in subsection (b).
(d) Additional bonds may be issued that rank on a parity with
other bonds relating to the project to the extent and on the terms and
conditions provided in the bond resolution.
(e) A pledge is valid and binding from the time the pledge is
made. The revenues pledged by the authority are immediately subject
to the lien of a pledge without any physical delivery of the pledge
document or further act. The lien of a pledge is valid and binding
against all parties having claims of any kind in tort or contract or
otherwise against the authority, irrespective of whether the parties
have notice of the lien.
(f) Neither the bond resolution nor any financing statement,
continuation statement, or other instrument by which a pledge is
created or by which the authority's interest in revenues is assigned
need be filed or recorded in public records to perfect the lien created
by a pledge of revenues by the authority as against third parties,
except that a copy of the pledge document must be filed in the
records of the authority and with the treasurer of state. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-46 Bond proceeds
Sec. 46. All money received under this chapter, whether as
proceeds from the sale of bonds or as revenues, are trust funds to be
held and applied solely as provided in this chapter. Any officer with
whom, or any bank or trust company with which, money received
under this chapter is deposited shall act as trustee of the moneys and
shall hold and apply the money for the purposes described in this
chapter, subject to any provisions set forth in this chapter and the
bond resolution authorizing the bonds of any issue. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-47 Rights of bond holders and trustees
Sec. 47. Any holder of bonds issued under this chapter or a trustee
under a trust agreement entered into under this chapter, except to the
extent that the rights of a holder or a trustee are restricted by any
bond resolution, may, by any suitable form of legal proceedings,
protect and enforce any rights under the laws of Indiana or granted
by the bond resolution. These rights include the right:
(1) to compel the performance of all duties of the authority
required by this chapter or the bond resolution;
(2) to enjoin unlawful activities; and
(3) in the event of default with respect to the payment of any
principal of, premium, if any, and interest on any bond or in the
performance of any covenant or agreement on the part of the
authority in the bond resolution, to apply to the circuit court to
appoint a receiver:
(A) to administer and operate the project or projects, the
revenues of which are pledged to the payment of principal
of, premium, if any, and interest on the bonds;
(B) with full power to pay, and to provide for payment of,
principal of premium, if any, and interest on the bonds; and
(C) with the powers, subject to the direction of the court, as
are permitted by law and are accorded receivers, excluding
any power to pledge additional revenues of the authority to
the payment of the principal, premium and interest. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-48 Refunding bonds generally
Sec. 48. The authority may provide for the issuance of bonds of
the authority:
(1) to refund any bonds of the authority then outstanding,
including the payment of any redemption premium on the bonds
and any interest accrued or to accrue to the earlier or any
subsequent date of redemption, purchase, or maturity of the
bonds; and
(2) if determined advisable by the authority, for the additional
purpose of paying all or any part of the cost of constructing and
acquiring additions, improvements, extensions, or enlargements
of a project or any part of an addition, improvement, extension,
or enlargement of a project.
However, no refunding bonds may be issued unless the authority
provides for the payment of rentals adequate to satisfy the
requirements of section 34 of this chapter. As added by P.L.2-2007, SEC.69. Amended by P.L.3-2008, SEC.17.
IC 5-1-16.5-49 Issuance of bonds to refund outstanding bonds
Sec. 49. The proceeds of any bonds issued for the purpose of
refunding outstanding bonds may, in the discretion of the authority:
(1) be applied to the purchase or retirement at maturity or
redemption of the outstanding bonds either on their earliest or
any subsequent redemption date or upon the purchase or at the
maturity of the outstanding bonds; and
(2) pending the application of the proceeds, be placed in escrow
to be applied to the purchase or retirement at maturity or
redemption of the outstanding bonds on a date determined by
the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-50 Proceeds of refunding bonds; disposition
Sec. 50. Any escrowed proceeds, pending use for the refunding of
outstanding bonds, may be invested and reinvested in:
(1) direct obligations of the United States of America; or
(2) obligations having the timely payment of principal and
interest unconditionally guaranteed by the United States of
America;
maturing at a time or times that are appropriate to assure the prompt
payment of the principal and interest and redemption premium, if
any, on the outstanding bonds to be refunded. Any interest, income,
and profits earned or realized on any investment may also be applied
to the payment of the outstanding bonds to be refunded. Only after
the terms of the escrow have been fully satisfied and carried out, any
balance of the proceeds and any interest, income and profits earned
or realized on the investments described in this section must be
returned to the nonprofit college or university for use by the
nonprofit college or university in any lawful manner. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-51 Bonds; authority to refund
Sec. 51. All bonds issued to refund outstanding bonds of the
authority 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.2-2007, SEC.69.
IC 5-1-16.5-52 Power to invest bonds
Sec. 52. Except as otherwise provided in section 50 of this chapter
or in any trust indenture providing for the issuance of bonds, the
authority may invest:
(1) the authority's money, funds, and accounts;
(2) any money, funds, and accounts in the authority's custody;
and
(3) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-53 Authority to invest bonds
Sec. 53. All:
(1) banks, bankers, trust companies, savings banks and
institutions, building and loan associations, savings and loan
associations, investment companies, and insurance companies
and associations; and
(2) executors, administrators, guardians, trustees, and other
fiduciaries;
may legally invest any sinking funds, moneys or other funds
belonging to them or within their control in any bonds issued by the
authority under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-54
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16.5-55 Competitive bidding requirement
Sec. 55. Except as provided in IC 21-36-2, a project is not 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 property with regard to any action
taken under authority of this chapter. If, however, the prospective
lessee so requests in writing, the authority shall call for the
construction bids in the manner determined by the authority with the
approval of the lessee. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-56 Powers of authority; financing
Sec. 56. Notwithstanding any other provision of this chapter, the
authority may:
(1) finance the cost of an educational facility or refund
outstanding indebtedness of a nonprofit college or university,
as authorized under section 28 of this chapter; or
(2) finance the establishment of liability or other loss insurance
reserves or the contribution of reserves or other capital to a risk
retention group to provide insurance coverage against liability
claims or other losses;
by issuing the authority's bonds for the purpose of loaning the
proceeds to a nonprofit college or university for the cost of a project
or to refund or refinance outstanding indebtedness or reimburse
advances made in connection with a project in accordance with an
agreement between the authority and the institution and in exchange
for the institution's promissory note or notes. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-57 Promissory notes
Sec. 57. (a) Any promissory notes received under section 56 of
this chapter:
(1) must have the same principal amounts, maturities, and
interest rates as the bonds being issued;
(2) may be secured by a first mortgage lien on the educational
facility being financed or by a first mortgage lien or security
interest in other real or personal property or funds acceptable to
the authority subject to any exceptions that the authority may
approve and created by a mortgage instrument or security
agreement satisfactory to the authority; and
(3) may be insured or guaranteed by others.
(b) Any bonds described in section 56 of this chapter must be
payable solely out of the payments to be made on the promissory
notes and under the corresponding agreement. Any bonds described
in section 56 of this chapter may not exceed in principal amount the
cost of the educational facility, as determined by the nonprofit
college or university, or the necessary amount of these liability or
other loss insurance reserves, and approved by the authority. In other
respects:
(1) the bonds are subject to the provisions of section 39 of this
chapter; and
(2) the trust agreement or indenture creating the bonds may
contain any of the provisions set forth in section 40 of this
chapter that the authority determines appropriate. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-58 Mortgages
Sec. 58. If an educational facility is financed and mortgaged under
sections 56 and 57 of this chapter:
(1) the title to the facility must remain in the nonprofit college
or university owning the facility, subject to the lien of the
mortgage securing the promissory notes then being purchased;
and
(2) there may not be a lease of the facility between the authority
and the institution. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-59 Power of authority; restrictions
Sec. 59. Section 36 of this chapter does not apply to any
educational facility or any liability or other loss insurance reserves
financed under sections 56 through 58 of this chapter and this
section. However, the authority shall return the promissory notes
purchased through the issuance of bonds under this chapter to the
nonprofit college or university issuing the promissory notes when:
(1) the bonds have been fully paid and retired or adequate
provision has been made to pay and retire the bonds fully;
(2) all other conditions of the trust agreement or indenture
creating the bonds have been satisfied; and
(3) the lien has been released in accordance with the provisions
of the instrument creating the lien. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-60 Power of authority; operation and maintenance of projects
Sec. 60. Because the operation and maintenance of a project by
the authority or the authority's agent constitutes the performance of
an essential public function, neither the authority nor the authority's
agent are required to pay any taxes or assessments, including
mortgage recording taxes, upon or in respect of:
(1) a project or any property acquired or used by the authority
or the authority's agent under this chapter or upon the income
from the project or property;
(2) the bonds issued under this chapter or the interest on those
bonds; and
(3) the proceeds received from bonds issued under this chapter:
(A) by a holder from the sale of such bonds, to the extent of
the holder's cost of acquisition;
(B) upon redemption before maturity; or
(C) at maturity. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-61 Bonds; tax exemption
Sec. 61. All bonds and the interest on bonds issued under this
chapter are exempt from taxation in Indiana for all purposes except
the financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5
Chapter 16.5. Indiana Health and Educational Facilities Financing
Authority; Additional Provisions; Financing Projects for Private
Colleges and Universities; Participation in Risk Retention Group
IC 5-1-16.5-1 Declaration; purpose
Sec. 1. It is declared:
(1) that for the benefit of the people of the state, the conduct
and increase of their commerce, the protection and
enhancement of their welfare, the development of continued
prosperity and the improvement of their health and living
conditions, it is essential that this and future generations of
youth be given the fullest opportunity to learn and to develop
their intellectual and mental capacities and skills;
(2) that to achieve the ends in subdivision (1), it is of the utmost
importance that nonprofit colleges or universities within Indiana
be provided with appropriate additional means to assist youth
in achieving the required levels of learning and development of
their intellectual and mental capacities and skills; and
(3) that it is the purpose of this chapter to provide a measure of
assistance and an alternative method to enable nonprofit
colleges or universities in Indiana to refund or refinance
outstanding indebtedness incurred by nonprofit colleges or
universities in Indiana for the renovation, construction,
acquisition, or equipping of educational facilities, to establish
liability or other loss insurance reserves or to contribute those
insurance reserves or other capital to a risk retention group to
provide insurance coverage against liability claims or other
losses, and to provide the needed additional educational
facilities for the public benefit and good, and in execution of the
public policy set forth in this section. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-2 Powers
Sec. 2. The exercise of the powers granted by this chapter must be
in all respects for the benefit of the people of Indiana, for the
increase of their commerce, welfare, and prosperity, and for the
improvement of their health and living conditions. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-3 Liberal construction
Sec. 3. This chapter, being necessary for the welfare of the state
and its inhabitants, shall be liberally construed to effect the purposes
of this chapter. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-4 Supplemental effect
Sec. 4. This chapter provides a complete, an additional, and an
alternative method for doing the things authorized under this chapter
and is supplemental and additional to powers conferred by other
laws. The adoption of rules and the issuance of bonds under this
chapter need not comply with the requirements of any other law that
would otherwise be applicable to the rules or issuance of bonds.
Except as otherwise expressly provided in this chapter, none of the
powers granted to the authority under this chapter are subject to the
supervision or regulation or require the approval or consent of:
(1) any municipality or political subdivision;
(2) any department, division, commission, board, body, bureau,
official, or agency of any municipality or political subdivision;
or
(3) the state. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-5 Applicability of authority
Sec. 5. This chapter:
(1) applies to the authority only when acting for the purposes
set forth in this chapter; and
(2) does not apply to the authority when acting under any other
statute for any other purpose. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-6 Bond issues; authorized actions
Sec. 6. Bonds issued and other actions taken under IC 20-12-63
before its repeal shall be treated as an action taken under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-7 "Authority"
Sec. 7. As used in this chapter, "authority" refers to the Indiana
finance authority established by IC 4-4-11-4. As added by P.L.2-2007, SEC.69. Amended by P.L.162-2007,
SEC.19.
IC 5-1-16.5-8 "Bonds"
Sec. 8. As used in this chapter, "bonds" means revenue bonds,
notes, bond anticipation notes, or other obligations of the authority
issued under this chapter, including refunding bonds, notes, bond
anticipation notes, or other obligations. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-9 "Bond resolution"
Sec. 9. As used in this chapter, "bond resolution" means the
resolution or resolutions and the trust agreement, if any, authorizing
or providing for the terms and conditions applicable to bonds issued
under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-10 "Cost"
Sec. 10. As used in this chapter, "cost" means all costs necessary
or incident to the acquisition, construction, or funding of a project,
including the costs of refunding or refinancing outstanding
indebtedness incurred for the financing of the project, reserves for
principal and interest, engineering, legal, architectural, and all other
necessary and incidental expenses, together with interest on bonds
issued to finance the project to a date six (6) months after the
estimated date of completion. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-11 "Educational facility"
Sec. 11. As used in this chapter, "educational facility" means any
property located within Indiana that:
(1) is suitable for:
(A) the instruction, feeding, recreation, or housing of
students;
(B) the conduct of research or other work of a nonprofit
college or university; or
(C) use by a nonprofit college or university in connection
with any educational, research, or related or incidental
activity conducted by the nonprofit college or university;
(2) is suitable for use as or in connection with:
(A) an academic facility;
(B) an administrative facility;
(C) an agricultural facility;
(D) an assembly hall;
(E) an athletic facility;
(F) an auditorium;
(G) a boating facility;
(H) a campus;
(I) a communication facility;
(J) a computer facility;
(K) a continuing education facility;
(L) a classroom;
(M) a dining hall;
(N) a dormitory;
(O) an exhibition hall;
(P) a firefighting facility;
(Q) a fire prevention facility;
(R) a food service and preparation facility;
(S) a gymnasium;
(T) a greenhouse;
(U) a health care facility;
(V) a hospital;
(W) housing;
(X) an instructional facility;
(Y) a laboratory;
(Z) a library;
(AA) a maintenance facility;
(BB) a medical facility;
(CC) a museum;
(DD) offices;
(EE) a parking area;
(FF) a physical education facility;
(GG) a recreational facility;
(HH) a research facility;
(II) a stadium;
(JJ) a storage facility;
(KK) a student union;
(LL) a study facility;
(MM) a theater; or
(NN) a utility;
(3) is not used or to be used for sectarian instruction or study or
as a place for devotional activities or workshop; and
(4) is not used or to be used primarily in connection with any
part of the program of a school or department of divinity for any
religious denomination. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-12 "Eligible member"
Sec. 12. As used in this chapter, "eligible member" means a state
educational institution or any nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-13 "Liability"
Sec. 13. As used in this chapter, "liability" means legal liability
for damages (including costs of defense, legal costs and fees, and
other claims for expenses) because of injuries to other persons or
entities, damage to the property or business of other persons or
entities, or other damage or loss to such other persons or entities
resulting from or arising out of any activity of an eligible member. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-14 "Liability or loss insurance reserves"
Sec. 14. As used in this chapter, "liability or loss insurance
reserves" means a fund or funds set aside as a reserve to cover risk
retained by an eligible member in connection with liability claims or
other losses.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-15 "Nonprofit"
Sec. 15. As used in this chapter, "nonprofit college or university"
has the meaning set forth in IC 21-7-13-23(a). As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-16 "Project"
Sec. 16. As used in this chapter, "project" means:
(1) the acquisition, construction, enlarging, remodeling,
renovation, improvement, furnishing, or equipping of an
educational facility by the authority for a nonprofit college or
university; or
(2) the funding of any liability, other loss, or insurance reserves
or the funding and contribution of such insurance reserves or
other capital to a risk retention group to provide insurance
coverage against liability claims or other losses. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-17 "Property"
Sec. 17. As used in this chapter, "property" means any real,
personal, or mixed property, or any interest in real property or mixed
property, including:
(1) any real estate, appurtenances, buildings, easements,
equipment, furnishings, furniture, improvements, machinery, or
rights-of-way and structures; or
(2) any interest in real estate, appurtenances, buildings,
easements, equipment, furnishings, furniture, improvements,
machinery, or rights-of-way and structures. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-18 "Revenues"
Sec. 18. As used in this chapter, "revenues" means with respect to
any project the rents, fees, charges, and other income or profit
derived from the project. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-19 "Risk retention group"
Sec. 19. As used in this chapter, "risk retention group" means a
trust, pool, corporation, limited liability company, partnership, or
joint venture funded by and owned and operated for the benefit of
more than one (1) eligible member. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-20 "State educational institution"
Sec. 20. As used in this chapter, "state educational institution" has
the meaning set forth in IC 21-7-13-32. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-21 Powers of authority
Sec. 21. (a) The authority may determine the location and
character of any project to be financed under this chapter.
(b) The authority may construct, reconstruct, remodel, maintain,
manage, enlarge, alter, add to, repair, operate, lease as lessee or
lessor, regulate any project, or enter into contracts for any purpose
stated in this section.
(c) The authority may designate a nonprofit college or university
as the authority's agent to carry out the authority of this section. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-22 Bonds; issuance; funding and refunding
Sec. 22. The authority may issue bonds or fund and refund bonds
as provided in this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-23 Rents and charges
Sec. 23. The authority:
(1) may require that the rates, rents, fees, or charges established
by a nonprofit college or university are sufficient to discharge
the institution's obligations to the authority; but
(2) has no other jurisdiction over the rates, rents, fees, or
charges. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-24 Rules for projects
Sec. 24. The authority may:
(1) establish rules for the use of a project or any part of a
project; and
(2) designate a nonprofit college or university as the authority's
agent to establish rules for the use of a project undertaken for
that nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-25 Employees
Sec. 25. The authority may employ consulting engineers,
architects, attorneys, accountants, trustees, construction and financial
experts, superintendents, managers, and other employees and agents
the authority believes are necessary, and fix their compensation.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-26 Receipt and use of funds
Sec. 26. The authority may:
(1) receive and accept from any source loans, contributions, or
grants for or in aid of the construction or funding of a project or
any part of a project in either money, property, labor, or other
things of value; and
(2) when required, use the funds, property, or labor only for the
purposes for which the money, property, or labor was loaned,
contributed, or granted. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-27 Loans
Sec. 27. (a) The authority may make loans to any nonprofit
college or university for the cost of a project, including the
establishment of liability or other loss insurance reserves or the
contribution of those reserves to a risk retention group for the
purpose of providing insurance coverage against liability claims or
other losses in accordance with an agreement between the authority
and the nonprofit college or university.
(b) A loan authorized under this section may not exceed the total
cost of the project as determined by the nonprofit college or
university and approved by the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-28 Loans and bonds
Sec. 28. (a) The authority may make loans to a nonprofit college
or university to refund outstanding obligations or advances issued,
made, or given by the nonprofit college or university for the cost of
a project, including the establishment of liability or other loss
insurance reserves or the contribution of those reserves to a risk
retention group to provide insurance coverage against liability claims
or other losses.
(b) The authority may issue bonds and make loans to a nonprofit
college or university to refinance indebtedness incurred or to
reimburse advances made for projects undertaken before the date of
the bond issue whenever the authority finds that the financing is in
the public interest and either:
(1) alleviates a financial hardship upon the nonprofit college or
university;
(2) results in a lesser cost of education; or
(3) enables the nonprofit college or university to offer greater
security for a loan or loans to finance a new project or projects
or to effect savings in interest costs or more favorable
amortization terms. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-29 Costs
Sec. 29. The authority may charge to and apportion among
nonprofit colleges or universities the authority's administrative costs
and expenses incurred in the exercise of the powers and duties
conferred by this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-30 Financing
Sec. 30. (a) The authority may, for financing purposes, combine
a project or projects and some or all future projects of any nonprofit
college or university or nonprofit colleges or universities provided
that:
(1) the authority obtains the consent of all of the nonprofit
colleges or universities that are involved, or when financing
loans for the funding of liability or other loss insurance reserves
or for the providing of those reserves or other capital to be
contributed to a risk retention group, the authority obtains the
consent of all of the eligible members that are involved; and
(2) the money set aside in any fund or funds pledged for any
series of bonds or issue of bonds is held for the sole benefit of
a series or issue separate and apart from the money pledged for
any other series or issue of bonds of the authority.
(b) To facilitate the combining of projects, bonds may be issued
in series under one (1) or more resolutions or trust agreements and
be:
(1) fully open end, thus providing for unlimited issuance of
additional series; or
(2) partially open end, limited as to additional series;
all in the discretion of the authority.
(c) Notwithstanding any provision of this chapter, the authority
may permit a nonprofit college or university to substitute one (1) or
more educational facilities of similar value (as determined by an
independent appraiser satisfactory to the authority) as security for
any educational facility financed under this chapter on the terms and
conditions that the authority may prescribe. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-31 Mortgages
Sec. 31. The authority may mortgage all or any part of:
(1) any project and any other educational facilities conveyed to
the authority for an educational purpose; and
(2) the site or sites of the facilities, whether presently owned or
subsequently acquired;
for the benefit of the holders of the bonds of the authority issued to
finance a project or any portion of a project or issued to refund or
refinance outstanding indebtedness of a nonprofit college or
university as permitted by this chapter.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-32 Risk retention
Sec. 32. The authority may join in a risk retention group with state
educational institutions or any nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-33 Authority
Sec. 33. The authority may do all things necessary to carry out the
purposes of this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-34 Payment of expenses
Sec. 34. All expenses incurred in carrying out this chapter are
payable solely from funds provided under the authority of this
chapter. No liability may be incurred by the authority beyond the
extent to which money has been provided under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-35 Acquisitions
Sec. 35. The authority may acquire:
(1) directly;
(2) by and through a nonprofit college or university as the
private institution's agent;
(3) by purchase solely from funds provided under this chapter;
or
(4) by gift or devise;
lands, structures, real or personal property, rights, rights-of-way,
franchises, easements, and other interests in lands, including lands
lying under water and riparian rights that are located in Indiana, as
the authority finds necessary or convenient, for the construction or
operation of a project, upon the terms and at the prices as are agreed
upon between the authority and the owner of a property interest. The
authority may take title to property in the authority's own name or in
the name of a nonprofit college or university as the authority's agent. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-36 Conveyance of title
Sec. 36. The authority shall promptly take any action and execute
any deeds and conveyances necessary and required to convey the title
to a project or projects to the appropriate nonprofit college or
university whenever:
(1) the principal of and interest on bonds of the authority issued
to finance the cost of a project or projects for a nonprofit
college or university, including any refunding bonds issued to
refund and refinance the bonds, have been fully paid and
retired; or
(2) adequate provision has been made to fully pay and retire
bonds of the authority issued to finance the cost of a project or
projects for a nonprofit college or university, all other
conditions of the bond resolution have been satisfied, and the
lien created by the bond resolution has been released in accord
with the provisions of the bond resolution. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-37 Issuance of bonds
Sec. 37. The authority may periodically issue bonds for any
corporate purpose. All bonds or other obligations of the authority
issued under this chapter are negotiable for all purposes
notwithstanding their payment from a limited source and without
regard to any other. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-38 Bonds of issue
Sec. 38. The bonds of every issue are payable solely out of
revenues of the authority, including accumulated reserves or sinking
funds. Any income received from the investment of reserves or
sinking funds must be applied in reduction of the rentals or other
amounts paid by the nonprofit college or university or nonprofit
colleges or universities for whose project or projects the reserves or
sinking funds were created. Funds held as reserves or sinking funds
when invested must be allocated to a specific project or projects of
the institution for which the fund was created, and the income from
the investment must be used to reduce the bonded indebtedness
attributable to the project or projects. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-39 Bonds; serial and term
Sec. 39. (a) The bonds issued by the authority may be issued as
serial bonds or term bonds, or both. The bonds:
(1) must be authorized by a bond resolution of the authority;
and
(2) must:
(A) bear the date or dates;
(B) mature at the time or times not exceeding forty (40)
years from their respective dates of issue;
(C) bear interest at the rate or rates, without regard to any
limit contained in any other statute or law of Indiana;
(D) be payable at the time or times;
(E) be in the denominations;
(F) be in the form, either coupon or fully registered;
(G) carry the registration and conversion privileges;
(H) be payable in lawful money of the United States of
America at the places; and
(I) be subject to the terms of redemption;
as are in current or customary usage in municipal bond markets
and as the bond resolution may provide.
(b) The bond resolution for bonds of the authority may set the
maximum interest rate or rates that the bonds may bear and delegate
to an officer or agent of the authority power to set an interest rate or
rates that the bonds may bear at the time of sale of the bonds.
However, the rate or rates may not exceed the maximum rate
established by the authority in the bond resolution.
(c) The bonds of the authority must be executed by the manual or
facsimile signatures of the officers or agents of the authority
designated by the authority. In the case of bonds having a maturity
of one (1) year or less, the bond resolution that authorizes the bonds
may concurrently provide for the issuance, delivery, and sale of
refunding bonds subject to the terms and conditions prescribed in the
bond resolution and this chapter. The bonds must be sold in the
manner that the authority determines. Pending preparation of the
definitive bonds, the authority may issue interim receipts or
certificates, which must be exchanged for the definitive bonds. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-40 Bond resolutions
Sec. 40. Any bond resolution of the authority may contain
provisions that become part of the contract with the holders of the
bonds to be authorized, as to:
(1) pledging or assigning the revenues of the project or projects
with respect to which the bonds are to be issued;
(2) the rentals, fees, and other amounts to be charged, and the
sums to be raised in each year, and the use, investment, and
disposition of the sums;
(3) the setting aside of reserves or sinking funds, and the
regulation, investment, and disposition of reserves or sinking
funds;
(4) limitations on the use of the project;
(5) limitations on the purpose to which or the investments in
which the proceeds of sale of any issue of bonds may be
applied;
(6) limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, 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 bond holders may be amended or abrogated, the amount of
bonds the holders of which must give consent and the manner
in which the consent may be given;
(9) defining the acts or omissions to act that constitute a default
in the duties of the authority to holders of the authority's
obligations and providing the rights and remedies of the holders
in the event of a default;
(10) mortgaging the project or projects with respect to which
any bonds are to be issued and other educational facilities
conveyed to the authority for a purpose for the benefit of the
holders of the bonds;
(11) the establishment of liability or other loss insurance
reserves or the contribution of those reserves or other capital to
a risk retention group to provide insurance coverage against
liability claims or other losses; and
(12) any other matters relating to the bonds which the authority
considers desirable. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-41 Immunity for executing bonds
Sec. 41. Neither the members of the authority nor any person
executing the bonds of the authority may be held liable personally on
the bonds or be subject to any personal liability or accountability by
reason of the issuance of the bonds. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-42 Bonds; purchasing
Sec. 42. The authority may purchase bonds issued by the authority
using any funds available for the purpose. The authority may hold,
pledge, cancel, or resell bonds issued by the authority subject to and
in accordance with agreements with bond holders. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-43 Bonds; trust agreements
Sec. 43. (a) The authority may secure any bonds issued under this
chapter by a trust agreement by and between the authority and a
corporate trustee or trustees, which may be any trust company or
bank in Indiana having the powers of a trust company.
(b) The bond resolution providing for the issuance of bonds
secured by a trust agreement:
(1) must pledge the revenues to be received by the authority
from the project or projects;
(2) may contain provisions for protecting and enforcing the
rights and remedies of the bondholders as are reasonable and
proper and not in violation of law, including provisions
specifically authorized to be included in any bond resolution of
the authority; and
(3) may restrict the individual right of action by bondholders.
(c) Any bond resolution may contain any other provisions that the
authority determines reasonable and proper for the security of the
bondholders.
(d) All expenses incurred in carrying out the provisions of the
bond resolution may be treated as a part of the cost of the operation
of a project. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-44 Bonds; restrictions
Sec. 44. (a) Bonds issued under this chapter do not, and must state
upon the face of each bond that the bonds do not:
(1) represent or constitute:
(A) a debt of the authority or of the state within the meaning
of the provisions of the Constitution or statutes of the state
of Indiana; or
(B) a pledge of the faith and credit of the authority or the
state; or
(2) grant to the owners or holders of the bonds any right to have
the authority or the general assembly levy any taxes or
appropriate any funds for the payment of the principal of or
interest due on the bonds.
(b) Bonds issued under this chapter are payable and must state
that the bonds are payable solely from the funds pledged for payment
of the bonds in accordance with the bond resolution.
(c) This chapter may not be construed to authorize the authority
or any department, board, commission or other agency to create an
obligation of the state of Indiana within the meaning of the
Constitution of the State of Indiana or the statutes of Indiana. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-45 Leases
Sec. 45. (a) In connection with any lease entered into between the
authority and any nonprofit college or university, the authority shall
fix, revise, charge, and collect rents for the use of each project and
contract with any person, partnership, association, limited liability
company, or corporation, or other body, public or private, in respect
thereof.
(b) Each lease entered into by the authority with a nonprofit
college or university must provide that the rents or other money
payable by the nonprofit college or university is sufficient at all
times:
(1) to pay the private institution's share of the administrative
costs and expenses of the authority;
(2) to pay the principal of the premium, if any, and the interest
on outstanding bonds of the authority issued in respect of the
project as the bonds become due and payable; and
(3) to create and maintain reserves that may be required or
provided for in the bond resolution relating to the bonds of the
authority.
(c) The authority shall pledge the revenues derived and to be
derived from a project for the purposes specified in subsection (b).
(d) Additional bonds may be issued that rank on a parity with
other bonds relating to the project to the extent and on the terms and
conditions provided in the bond resolution.
(e) A pledge is valid and binding from the time the pledge is
made. The revenues pledged by the authority are immediately subject
to the lien of a pledge without any physical delivery of the pledge
document or further act. The lien of a pledge is valid and binding
against all parties having claims of any kind in tort or contract or
otherwise against the authority, irrespective of whether the parties
have notice of the lien.
(f) Neither the bond resolution nor any financing statement,
continuation statement, or other instrument by which a pledge is
created or by which the authority's interest in revenues is assigned
need be filed or recorded in public records to perfect the lien created
by a pledge of revenues by the authority as against third parties,
except that a copy of the pledge document must be filed in the
records of the authority and with the treasurer of state. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-46 Bond proceeds
Sec. 46. All money received under this chapter, whether as
proceeds from the sale of bonds or as revenues, are trust funds to be
held and applied solely as provided in this chapter. Any officer with
whom, or any bank or trust company with which, money received
under this chapter is deposited shall act as trustee of the moneys and
shall hold and apply the money for the purposes described in this
chapter, subject to any provisions set forth in this chapter and the
bond resolution authorizing the bonds of any issue. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-47 Rights of bond holders and trustees
Sec. 47. Any holder of bonds issued under this chapter or a trustee
under a trust agreement entered into under this chapter, except to the
extent that the rights of a holder or a trustee are restricted by any
bond resolution, may, by any suitable form of legal proceedings,
protect and enforce any rights under the laws of Indiana or granted
by the bond resolution. These rights include the right:
(1) to compel the performance of all duties of the authority
required by this chapter or the bond resolution;
(2) to enjoin unlawful activities; and
(3) in the event of default with respect to the payment of any
principal of, premium, if any, and interest on any bond or in the
performance of any covenant or agreement on the part of the
authority in the bond resolution, to apply to the circuit court to
appoint a receiver:
(A) to administer and operate the project or projects, the
revenues of which are pledged to the payment of principal
of, premium, if any, and interest on the bonds;
(B) with full power to pay, and to provide for payment of,
principal of premium, if any, and interest on the bonds; and
(C) with the powers, subject to the direction of the court, as
are permitted by law and are accorded receivers, excluding
any power to pledge additional revenues of the authority to
the payment of the principal, premium and interest. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-48 Refunding bonds generally
Sec. 48. The authority may provide for the issuance of bonds of
the authority:
(1) to refund any bonds of the authority then outstanding,
including the payment of any redemption premium on the bonds
and any interest accrued or to accrue to the earlier or any
subsequent date of redemption, purchase, or maturity of the
bonds; and
(2) if determined advisable by the authority, for the additional
purpose of paying all or any part of the cost of constructing and
acquiring additions, improvements, extensions, or enlargements
of a project or any part of an addition, improvement, extension,
or enlargement of a project.
However, no refunding bonds may be issued unless the authority
provides for the payment of rentals adequate to satisfy the
requirements of section 34 of this chapter. As added by P.L.2-2007, SEC.69. Amended by P.L.3-2008, SEC.17.
IC 5-1-16.5-49 Issuance of bonds to refund outstanding bonds
Sec. 49. The proceeds of any bonds issued for the purpose of
refunding outstanding bonds may, in the discretion of the authority:
(1) be applied to the purchase or retirement at maturity or
redemption of the outstanding bonds either on their earliest or
any subsequent redemption date or upon the purchase or at the
maturity of the outstanding bonds; and
(2) pending the application of the proceeds, be placed in escrow
to be applied to the purchase or retirement at maturity or
redemption of the outstanding bonds on a date determined by
the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-50 Proceeds of refunding bonds; disposition
Sec. 50. Any escrowed proceeds, pending use for the refunding of
outstanding bonds, may be invested and reinvested in:
(1) direct obligations of the United States of America; or
(2) obligations having the timely payment of principal and
interest unconditionally guaranteed by the United States of
America;
maturing at a time or times that are appropriate to assure the prompt
payment of the principal and interest and redemption premium, if
any, on the outstanding bonds to be refunded. Any interest, income,
and profits earned or realized on any investment may also be applied
to the payment of the outstanding bonds to be refunded. Only after
the terms of the escrow have been fully satisfied and carried out, any
balance of the proceeds and any interest, income and profits earned
or realized on the investments described in this section must be
returned to the nonprofit college or university for use by the
nonprofit college or university in any lawful manner. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-51 Bonds; authority to refund
Sec. 51. All bonds issued to refund outstanding bonds of the
authority 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.2-2007, SEC.69.
IC 5-1-16.5-52 Power to invest bonds
Sec. 52. Except as otherwise provided in section 50 of this chapter
or in any trust indenture providing for the issuance of bonds, the
authority may invest:
(1) the authority's money, funds, and accounts;
(2) any money, funds, and accounts in the authority's custody;
and
(3) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-53 Authority to invest bonds
Sec. 53. All:
(1) banks, bankers, trust companies, savings banks and
institutions, building and loan associations, savings and loan
associations, investment companies, and insurance companies
and associations; and
(2) executors, administrators, guardians, trustees, and other
fiduciaries;
may legally invest any sinking funds, moneys or other funds
belonging to them or within their control in any bonds issued by the
authority under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-54
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16.5-55 Competitive bidding requirement
Sec. 55. Except as provided in IC 21-36-2, a project is not 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 property with regard to any action
taken under authority of this chapter. If, however, the prospective
lessee so requests in writing, the authority shall call for the
construction bids in the manner determined by the authority with the
approval of the lessee. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-56 Powers of authority; financing
Sec. 56. Notwithstanding any other provision of this chapter, the
authority may:
(1) finance the cost of an educational facility or refund
outstanding indebtedness of a nonprofit college or university,
as authorized under section 28 of this chapter; or
(2) finance the establishment of liability or other loss insurance
reserves or the contribution of reserves or other capital to a risk
retention group to provide insurance coverage against liability
claims or other losses;
by issuing the authority's bonds for the purpose of loaning the
proceeds to a nonprofit college or university for the cost of a project
or to refund or refinance outstanding indebtedness or reimburse
advances made in connection with a project in accordance with an
agreement between the authority and the institution and in exchange
for the institution's promissory note or notes. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-57 Promissory notes
Sec. 57. (a) Any promissory notes received under section 56 of
this chapter:
(1) must have the same principal amounts, maturities, and
interest rates as the bonds being issued;
(2) may be secured by a first mortgage lien on the educational
facility being financed or by a first mortgage lien or security
interest in other real or personal property or funds acceptable to
the authority subject to any exceptions that the authority may
approve and created by a mortgage instrument or security
agreement satisfactory to the authority; and
(3) may be insured or guaranteed by others.
(b) Any bonds described in section 56 of this chapter must be
payable solely out of the payments to be made on the promissory
notes and under the corresponding agreement. Any bonds described
in section 56 of this chapter may not exceed in principal amount the
cost of the educational facility, as determined by the nonprofit
college or university, or the necessary amount of these liability or
other loss insurance reserves, and approved by the authority. In other
respects:
(1) the bonds are subject to the provisions of section 39 of this
chapter; and
(2) the trust agreement or indenture creating the bonds may
contain any of the provisions set forth in section 40 of this
chapter that the authority determines appropriate. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-58 Mortgages
Sec. 58. If an educational facility is financed and mortgaged under
sections 56 and 57 of this chapter:
(1) the title to the facility must remain in the nonprofit college
or university owning the facility, subject to the lien of the
mortgage securing the promissory notes then being purchased;
and
(2) there may not be a lease of the facility between the authority
and the institution. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-59 Power of authority; restrictions
Sec. 59. Section 36 of this chapter does not apply to any
educational facility or any liability or other loss insurance reserves
financed under sections 56 through 58 of this chapter and this
section. However, the authority shall return the promissory notes
purchased through the issuance of bonds under this chapter to the
nonprofit college or university issuing the promissory notes when:
(1) the bonds have been fully paid and retired or adequate
provision has been made to pay and retire the bonds fully;
(2) all other conditions of the trust agreement or indenture
creating the bonds have been satisfied; and
(3) the lien has been released in accordance with the provisions
of the instrument creating the lien. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-60 Power of authority; operation and maintenance of projects
Sec. 60. Because the operation and maintenance of a project by
the authority or the authority's agent constitutes the performance of
an essential public function, neither the authority nor the authority's
agent are required to pay any taxes or assessments, including
mortgage recording taxes, upon or in respect of:
(1) a project or any property acquired or used by the authority
or the authority's agent under this chapter or upon the income
from the project or property;
(2) the bonds issued under this chapter or the interest on those
bonds; and
(3) the proceeds received from bonds issued under this chapter:
(A) by a holder from the sale of such bonds, to the extent of
the holder's cost of acquisition;
(B) upon redemption before maturity; or
(C) at maturity. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-61 Bonds; tax exemption
Sec. 61. All bonds and the interest on bonds issued under this
chapter are exempt from taxation in Indiana for all purposes except
the financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5
Chapter 16.5. Indiana Health and Educational Facilities Financing
Authority; Additional Provisions; Financing Projects for Private
Colleges and Universities; Participation in Risk Retention Group
IC 5-1-16.5-1 Declaration; purpose
Sec. 1. It is declared:
(1) that for the benefit of the people of the state, the conduct
and increase of their commerce, the protection and
enhancement of their welfare, the development of continued
prosperity and the improvement of their health and living
conditions, it is essential that this and future generations of
youth be given the fullest opportunity to learn and to develop
their intellectual and mental capacities and skills;
(2) that to achieve the ends in subdivision (1), it is of the utmost
importance that nonprofit colleges or universities within Indiana
be provided with appropriate additional means to assist youth
in achieving the required levels of learning and development of
their intellectual and mental capacities and skills; and
(3) that it is the purpose of this chapter to provide a measure of
assistance and an alternative method to enable nonprofit
colleges or universities in Indiana to refund or refinance
outstanding indebtedness incurred by nonprofit colleges or
universities in Indiana for the renovation, construction,
acquisition, or equipping of educational facilities, to establish
liability or other loss insurance reserves or to contribute those
insurance reserves or other capital to a risk retention group to
provide insurance coverage against liability claims or other
losses, and to provide the needed additional educational
facilities for the public benefit and good, and in execution of the
public policy set forth in this section. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-2 Powers
Sec. 2. The exercise of the powers granted by this chapter must be
in all respects for the benefit of the people of Indiana, for the
increase of their commerce, welfare, and prosperity, and for the
improvement of their health and living conditions. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-3 Liberal construction
Sec. 3. This chapter, being necessary for the welfare of the state
and its inhabitants, shall be liberally construed to effect the purposes
of this chapter. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-4 Supplemental effect
Sec. 4. This chapter provides a complete, an additional, and an
alternative method for doing the things authorized under this chapter
and is supplemental and additional to powers conferred by other
laws. The adoption of rules and the issuance of bonds under this
chapter need not comply with the requirements of any other law that
would otherwise be applicable to the rules or issuance of bonds.
Except as otherwise expressly provided in this chapter, none of the
powers granted to the authority under this chapter are subject to the
supervision or regulation or require the approval or consent of:
(1) any municipality or political subdivision;
(2) any department, division, commission, board, body, bureau,
official, or agency of any municipality or political subdivision;
or
(3) the state. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-5 Applicability of authority
Sec. 5. This chapter:
(1) applies to the authority only when acting for the purposes
set forth in this chapter; and
(2) does not apply to the authority when acting under any other
statute for any other purpose. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-6 Bond issues; authorized actions
Sec. 6. Bonds issued and other actions taken under IC 20-12-63
before its repeal shall be treated as an action taken under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-7 "Authority"
Sec. 7. As used in this chapter, "authority" refers to the Indiana
finance authority established by IC 4-4-11-4. As added by P.L.2-2007, SEC.69. Amended by P.L.162-2007,
SEC.19.
IC 5-1-16.5-8 "Bonds"
Sec. 8. As used in this chapter, "bonds" means revenue bonds,
notes, bond anticipation notes, or other obligations of the authority
issued under this chapter, including refunding bonds, notes, bond
anticipation notes, or other obligations. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-9 "Bond resolution"
Sec. 9. As used in this chapter, "bond resolution" means the
resolution or resolutions and the trust agreement, if any, authorizing
or providing for the terms and conditions applicable to bonds issued
under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-10 "Cost"
Sec. 10. As used in this chapter, "cost" means all costs necessary
or incident to the acquisition, construction, or funding of a project,
including the costs of refunding or refinancing outstanding
indebtedness incurred for the financing of the project, reserves for
principal and interest, engineering, legal, architectural, and all other
necessary and incidental expenses, together with interest on bonds
issued to finance the project to a date six (6) months after the
estimated date of completion. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-11 "Educational facility"
Sec. 11. As used in this chapter, "educational facility" means any
property located within Indiana that:
(1) is suitable for:
(A) the instruction, feeding, recreation, or housing of
students;
(B) the conduct of research or other work of a nonprofit
college or university; or
(C) use by a nonprofit college or university in connection
with any educational, research, or related or incidental
activity conducted by the nonprofit college or university;
(2) is suitable for use as or in connection with:
(A) an academic facility;
(B) an administrative facility;
(C) an agricultural facility;
(D) an assembly hall;
(E) an athletic facility;
(F) an auditorium;
(G) a boating facility;
(H) a campus;
(I) a communication facility;
(J) a computer facility;
(K) a continuing education facility;
(L) a classroom;
(M) a dining hall;
(N) a dormitory;
(O) an exhibition hall;
(P) a firefighting facility;
(Q) a fire prevention facility;
(R) a food service and preparation facility;
(S) a gymnasium;
(T) a greenhouse;
(U) a health care facility;
(V) a hospital;
(W) housing;
(X) an instructional facility;
(Y) a laboratory;
(Z) a library;
(AA) a maintenance facility;
(BB) a medical facility;
(CC) a museum;
(DD) offices;
(EE) a parking area;
(FF) a physical education facility;
(GG) a recreational facility;
(HH) a research facility;
(II) a stadium;
(JJ) a storage facility;
(KK) a student union;
(LL) a study facility;
(MM) a theater; or
(NN) a utility;
(3) is not used or to be used for sectarian instruction or study or
as a place for devotional activities or workshop; and
(4) is not used or to be used primarily in connection with any
part of the program of a school or department of divinity for any
religious denomination. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-12 "Eligible member"
Sec. 12. As used in this chapter, "eligible member" means a state
educational institution or any nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-13 "Liability"
Sec. 13. As used in this chapter, "liability" means legal liability
for damages (including costs of defense, legal costs and fees, and
other claims for expenses) because of injuries to other persons or
entities, damage to the property or business of other persons or
entities, or other damage or loss to such other persons or entities
resulting from or arising out of any activity of an eligible member. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-14 "Liability or loss insurance reserves"
Sec. 14. As used in this chapter, "liability or loss insurance
reserves" means a fund or funds set aside as a reserve to cover risk
retained by an eligible member in connection with liability claims or
other losses.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-15 "Nonprofit"
Sec. 15. As used in this chapter, "nonprofit college or university"
has the meaning set forth in IC 21-7-13-23(a). As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-16 "Project"
Sec. 16. As used in this chapter, "project" means:
(1) the acquisition, construction, enlarging, remodeling,
renovation, improvement, furnishing, or equipping of an
educational facility by the authority for a nonprofit college or
university; or
(2) the funding of any liability, other loss, or insurance reserves
or the funding and contribution of such insurance reserves or
other capital to a risk retention group to provide insurance
coverage against liability claims or other losses. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-17 "Property"
Sec. 17. As used in this chapter, "property" means any real,
personal, or mixed property, or any interest in real property or mixed
property, including:
(1) any real estate, appurtenances, buildings, easements,
equipment, furnishings, furniture, improvements, machinery, or
rights-of-way and structures; or
(2) any interest in real estate, appurtenances, buildings,
easements, equipment, furnishings, furniture, improvements,
machinery, or rights-of-way and structures. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-18 "Revenues"
Sec. 18. As used in this chapter, "revenues" means with respect to
any project the rents, fees, charges, and other income or profit
derived from the project. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-19 "Risk retention group"
Sec. 19. As used in this chapter, "risk retention group" means a
trust, pool, corporation, limited liability company, partnership, or
joint venture funded by and owned and operated for the benefit of
more than one (1) eligible member. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-20 "State educational institution"
Sec. 20. As used in this chapter, "state educational institution" has
the meaning set forth in IC 21-7-13-32. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-21 Powers of authority
Sec. 21. (a) The authority may determine the location and
character of any project to be financed under this chapter.
(b) The authority may construct, reconstruct, remodel, maintain,
manage, enlarge, alter, add to, repair, operate, lease as lessee or
lessor, regulate any project, or enter into contracts for any purpose
stated in this section.
(c) The authority may designate a nonprofit college or university
as the authority's agent to carry out the authority of this section. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-22 Bonds; issuance; funding and refunding
Sec. 22. The authority may issue bonds or fund and refund bonds
as provided in this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-23 Rents and charges
Sec. 23. The authority:
(1) may require that the rates, rents, fees, or charges established
by a nonprofit college or university are sufficient to discharge
the institution's obligations to the authority; but
(2) has no other jurisdiction over the rates, rents, fees, or
charges. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-24 Rules for projects
Sec. 24. The authority may:
(1) establish rules for the use of a project or any part of a
project; and
(2) designate a nonprofit college or university as the authority's
agent to establish rules for the use of a project undertaken for
that nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-25 Employees
Sec. 25. The authority may employ consulting engineers,
architects, attorneys, accountants, trustees, construction and financial
experts, superintendents, managers, and other employees and agents
the authority believes are necessary, and fix their compensation.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-26 Receipt and use of funds
Sec. 26. The authority may:
(1) receive and accept from any source loans, contributions, or
grants for or in aid of the construction or funding of a project or
any part of a project in either money, property, labor, or other
things of value; and
(2) when required, use the funds, property, or labor only for the
purposes for which the money, property, or labor was loaned,
contributed, or granted. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-27 Loans
Sec. 27. (a) The authority may make loans to any nonprofit
college or university for the cost of a project, including the
establishment of liability or other loss insurance reserves or the
contribution of those reserves to a risk retention group for the
purpose of providing insurance coverage against liability claims or
other losses in accordance with an agreement between the authority
and the nonprofit college or university.
(b) A loan authorized under this section may not exceed the total
cost of the project as determined by the nonprofit college or
university and approved by the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-28 Loans and bonds
Sec. 28. (a) The authority may make loans to a nonprofit college
or university to refund outstanding obligations or advances issued,
made, or given by the nonprofit college or university for the cost of
a project, including the establishment of liability or other loss
insurance reserves or the contribution of those reserves to a risk
retention group to provide insurance coverage against liability claims
or other losses.
(b) The authority may issue bonds and make loans to a nonprofit
college or university to refinance indebtedness incurred or to
reimburse advances made for projects undertaken before the date of
the bond issue whenever the authority finds that the financing is in
the public interest and either:
(1) alleviates a financial hardship upon the nonprofit college or
university;
(2) results in a lesser cost of education; or
(3) enables the nonprofit college or university to offer greater
security for a loan or loans to finance a new project or projects
or to effect savings in interest costs or more favorable
amortization terms. As added by P.L.2-2007, SEC.69. IC 5-1-16.5-29 Costs
Sec. 29. The authority may charge to and apportion among
nonprofit colleges or universities the authority's administrative costs
and expenses incurred in the exercise of the powers and duties
conferred by this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-30 Financing
Sec. 30. (a) The authority may, for financing purposes, combine
a project or projects and some or all future projects of any nonprofit
college or university or nonprofit colleges or universities provided
that:
(1) the authority obtains the consent of all of the nonprofit
colleges or universities that are involved, or when financing
loans for the funding of liability or other loss insurance reserves
or for the providing of those reserves or other capital to be
contributed to a risk retention group, the authority obtains the
consent of all of the eligible members that are involved; and
(2) the money set aside in any fund or funds pledged for any
series of bonds or issue of bonds is held for the sole benefit of
a series or issue separate and apart from the money pledged for
any other series or issue of bonds of the authority.
(b) To facilitate the combining of projects, bonds may be issued
in series under one (1) or more resolutions or trust agreements and
be:
(1) fully open end, thus providing for unlimited issuance of
additional series; or
(2) partially open end, limited as to additional series;
all in the discretion of the authority.
(c) Notwithstanding any provision of this chapter, the authority
may permit a nonprofit college or university to substitute one (1) or
more educational facilities of similar value (as determined by an
independent appraiser satisfactory to the authority) as security for
any educational facility financed under this chapter on the terms and
conditions that the authority may prescribe. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-31 Mortgages
Sec. 31. The authority may mortgage all or any part of:
(1) any project and any other educational facilities conveyed to
the authority for an educational purpose; and
(2) the site or sites of the facilities, whether presently owned or
subsequently acquired;
for the benefit of the holders of the bonds of the authority issued to
finance a project or any portion of a project or issued to refund or
refinance outstanding indebtedness of a nonprofit college or
university as permitted by this chapter.
As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-32 Risk retention
Sec. 32. The authority may join in a risk retention group with state
educational institutions or any nonprofit college or university. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-33 Authority
Sec. 33. The authority may do all things necessary to carry out the
purposes of this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-34 Payment of expenses
Sec. 34. All expenses incurred in carrying out this chapter are
payable solely from funds provided under the authority of this
chapter. No liability may be incurred by the authority beyond the
extent to which money has been provided under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-35 Acquisitions
Sec. 35. The authority may acquire:
(1) directly;
(2) by and through a nonprofit college or university as the
private institution's agent;
(3) by purchase solely from funds provided under this chapter;
or
(4) by gift or devise;
lands, structures, real or personal property, rights, rights-of-way,
franchises, easements, and other interests in lands, including lands
lying under water and riparian rights that are located in Indiana, as
the authority finds necessary or convenient, for the construction or
operation of a project, upon the terms and at the prices as are agreed
upon between the authority and the owner of a property interest. The
authority may take title to property in the authority's own name or in
the name of a nonprofit college or university as the authority's agent. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-36 Conveyance of title
Sec. 36. The authority shall promptly take any action and execute
any deeds and conveyances necessary and required to convey the title
to a project or projects to the appropriate nonprofit college or
university whenever:
(1) the principal of and interest on bonds of the authority issued
to finance the cost of a project or projects for a nonprofit
college or university, including any refunding bonds issued to
refund and refinance the bonds, have been fully paid and
retired; or
(2) adequate provision has been made to fully pay and retire
bonds of the authority issued to finance the cost of a project or
projects for a nonprofit college or university, all other
conditions of the bond resolution have been satisfied, and the
lien created by the bond resolution has been released in accord
with the provisions of the bond resolution. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-37 Issuance of bonds
Sec. 37. The authority may periodically issue bonds for any
corporate purpose. All bonds or other obligations of the authority
issued under this chapter are negotiable for all purposes
notwithstanding their payment from a limited source and without
regard to any other. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-38 Bonds of issue
Sec. 38. The bonds of every issue are payable solely out of
revenues of the authority, including accumulated reserves or sinking
funds. Any income received from the investment of reserves or
sinking funds must be applied in reduction of the rentals or other
amounts paid by the nonprofit college or university or nonprofit
colleges or universities for whose project or projects the reserves or
sinking funds were created. Funds held as reserves or sinking funds
when invested must be allocated to a specific project or projects of
the institution for which the fund was created, and the income from
the investment must be used to reduce the bonded indebtedness
attributable to the project or projects. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-39 Bonds; serial and term
Sec. 39. (a) The bonds issued by the authority may be issued as
serial bonds or term bonds, or both. The bonds:
(1) must be authorized by a bond resolution of the authority;
and
(2) must:
(A) bear the date or dates;
(B) mature at the time or times not exceeding forty (40)
years from their respective dates of issue;
(C) bear interest at the rate or rates, without regard to any
limit contained in any other statute or law of Indiana;
(D) be payable at the time or times;
(E) be in the denominations;
(F) be in the form, either coupon or fully registered;
(G) carry the registration and conversion privileges;
(H) be payable in lawful money of the United States of
America at the places; and
(I) be subject to the terms of redemption;
as are in current or customary usage in municipal bond markets
and as the bond resolution may provide.
(b) The bond resolution for bonds of the authority may set the
maximum interest rate or rates that the bonds may bear and delegate
to an officer or agent of the authority power to set an interest rate or
rates that the bonds may bear at the time of sale of the bonds.
However, the rate or rates may not exceed the maximum rate
established by the authority in the bond resolution.
(c) The bonds of the authority must be executed by the manual or
facsimile signatures of the officers or agents of the authority
designated by the authority. In the case of bonds having a maturity
of one (1) year or less, the bond resolution that authorizes the bonds
may concurrently provide for the issuance, delivery, and sale of
refunding bonds subject to the terms and conditions prescribed in the
bond resolution and this chapter. The bonds must be sold in the
manner that the authority determines. Pending preparation of the
definitive bonds, the authority may issue interim receipts or
certificates, which must be exchanged for the definitive bonds. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-40 Bond resolutions
Sec. 40. Any bond resolution of the authority may contain
provisions that become part of the contract with the holders of the
bonds to be authorized, as to:
(1) pledging or assigning the revenues of the project or projects
with respect to which the bonds are to be issued;
(2) the rentals, fees, and other amounts to be charged, and the
sums to be raised in each year, and the use, investment, and
disposition of the sums;
(3) the setting aside of reserves or sinking funds, and the
regulation, investment, and disposition of reserves or sinking
funds;
(4) limitations on the use of the project;
(5) limitations on the purpose to which or the investments in
which the proceeds of sale of any issue of bonds may be
applied;
(6) limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, 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 bond holders may be amended or abrogated, the amount of
bonds the holders of which must give consent and the manner
in which the consent may be given;
(9) defining the acts or omissions to act that constitute a default
in the duties of the authority to holders of the authority's
obligations and providing the rights and remedies of the holders
in the event of a default;
(10) mortgaging the project or projects with respect to which
any bonds are to be issued and other educational facilities
conveyed to the authority for a purpose for the benefit of the
holders of the bonds;
(11) the establishment of liability or other loss insurance
reserves or the contribution of those reserves or other capital to
a risk retention group to provide insurance coverage against
liability claims or other losses; and
(12) any other matters relating to the bonds which the authority
considers desirable. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-41 Immunity for executing bonds
Sec. 41. Neither the members of the authority nor any person
executing the bonds of the authority may be held liable personally on
the bonds or be subject to any personal liability or accountability by
reason of the issuance of the bonds. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-42 Bonds; purchasing
Sec. 42. The authority may purchase bonds issued by the authority
using any funds available for the purpose. The authority may hold,
pledge, cancel, or resell bonds issued by the authority subject to and
in accordance with agreements with bond holders. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-43 Bonds; trust agreements
Sec. 43. (a) The authority may secure any bonds issued under this
chapter by a trust agreement by and between the authority and a
corporate trustee or trustees, which may be any trust company or
bank in Indiana having the powers of a trust company.
(b) The bond resolution providing for the issuance of bonds
secured by a trust agreement:
(1) must pledge the revenues to be received by the authority
from the project or projects;
(2) may contain provisions for protecting and enforcing the
rights and remedies of the bondholders as are reasonable and
proper and not in violation of law, including provisions
specifically authorized to be included in any bond resolution of
the authority; and
(3) may restrict the individual right of action by bondholders.
(c) Any bond resolution may contain any other provisions that the
authority determines reasonable and proper for the security of the
bondholders.
(d) All expenses incurred in carrying out the provisions of the
bond resolution may be treated as a part of the cost of the operation
of a project. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-44 Bonds; restrictions
Sec. 44. (a) Bonds issued under this chapter do not, and must state
upon the face of each bond that the bonds do not:
(1) represent or constitute:
(A) a debt of the authority or of the state within the meaning
of the provisions of the Constitution or statutes of the state
of Indiana; or
(B) a pledge of the faith and credit of the authority or the
state; or
(2) grant to the owners or holders of the bonds any right to have
the authority or the general assembly levy any taxes or
appropriate any funds for the payment of the principal of or
interest due on the bonds.
(b) Bonds issued under this chapter are payable and must state
that the bonds are payable solely from the funds pledged for payment
of the bonds in accordance with the bond resolution.
(c) This chapter may not be construed to authorize the authority
or any department, board, commission or other agency to create an
obligation of the state of Indiana within the meaning of the
Constitution of the State of Indiana or the statutes of Indiana. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-45 Leases
Sec. 45. (a) In connection with any lease entered into between the
authority and any nonprofit college or university, the authority shall
fix, revise, charge, and collect rents for the use of each project and
contract with any person, partnership, association, limited liability
company, or corporation, or other body, public or private, in respect
thereof.
(b) Each lease entered into by the authority with a nonprofit
college or university must provide that the rents or other money
payable by the nonprofit college or university is sufficient at all
times:
(1) to pay the private institution's share of the administrative
costs and expenses of the authority;
(2) to pay the principal of the premium, if any, and the interest
on outstanding bonds of the authority issued in respect of the
project as the bonds become due and payable; and
(3) to create and maintain reserves that may be required or
provided for in the bond resolution relating to the bonds of the
authority.
(c) The authority shall pledge the revenues derived and to be
derived from a project for the purposes specified in subsection (b).
(d) Additional bonds may be issued that rank on a parity with
other bonds relating to the project to the extent and on the terms and
conditions provided in the bond resolution.
(e) A pledge is valid and binding from the time the pledge is
made. The revenues pledged by the authority are immediately subject
to the lien of a pledge without any physical delivery of the pledge
document or further act. The lien of a pledge is valid and binding
against all parties having claims of any kind in tort or contract or
otherwise against the authority, irrespective of whether the parties
have notice of the lien.
(f) Neither the bond resolution nor any financing statement,
continuation statement, or other instrument by which a pledge is
created or by which the authority's interest in revenues is assigned
need be filed or recorded in public records to perfect the lien created
by a pledge of revenues by the authority as against third parties,
except that a copy of the pledge document must be filed in the
records of the authority and with the treasurer of state. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-46 Bond proceeds
Sec. 46. All money received under this chapter, whether as
proceeds from the sale of bonds or as revenues, are trust funds to be
held and applied solely as provided in this chapter. Any officer with
whom, or any bank or trust company with which, money received
under this chapter is deposited shall act as trustee of the moneys and
shall hold and apply the money for the purposes described in this
chapter, subject to any provisions set forth in this chapter and the
bond resolution authorizing the bonds of any issue. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-47 Rights of bond holders and trustees
Sec. 47. Any holder of bonds issued under this chapter or a trustee
under a trust agreement entered into under this chapter, except to the
extent that the rights of a holder or a trustee are restricted by any
bond resolution, may, by any suitable form of legal proceedings,
protect and enforce any rights under the laws of Indiana or granted
by the bond resolution. These rights include the right:
(1) to compel the performance of all duties of the authority
required by this chapter or the bond resolution;
(2) to enjoin unlawful activities; and
(3) in the event of default with respect to the payment of any
principal of, premium, if any, and interest on any bond or in the
performance of any covenant or agreement on the part of the
authority in the bond resolution, to apply to the circuit court to
appoint a receiver:
(A) to administer and operate the project or projects, the
revenues of which are pledged to the payment of principal
of, premium, if any, and interest on the bonds;
(B) with full power to pay, and to provide for payment of,
principal of premium, if any, and interest on the bonds; and
(C) with the powers, subject to the direction of the court, as
are permitted by law and are accorded receivers, excluding
any power to pledge additional revenues of the authority to
the payment of the principal, premium and interest. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-48 Refunding bonds generally
Sec. 48. The authority may provide for the issuance of bonds of
the authority:
(1) to refund any bonds of the authority then outstanding,
including the payment of any redemption premium on the bonds
and any interest accrued or to accrue to the earlier or any
subsequent date of redemption, purchase, or maturity of the
bonds; and
(2) if determined advisable by the authority, for the additional
purpose of paying all or any part of the cost of constructing and
acquiring additions, improvements, extensions, or enlargements
of a project or any part of an addition, improvement, extension,
or enlargement of a project.
However, no refunding bonds may be issued unless the authority
provides for the payment of rentals adequate to satisfy the
requirements of section 34 of this chapter. As added by P.L.2-2007, SEC.69. Amended by P.L.3-2008, SEC.17.
IC 5-1-16.5-49 Issuance of bonds to refund outstanding bonds
Sec. 49. The proceeds of any bonds issued for the purpose of
refunding outstanding bonds may, in the discretion of the authority:
(1) be applied to the purchase or retirement at maturity or
redemption of the outstanding bonds either on their earliest or
any subsequent redemption date or upon the purchase or at the
maturity of the outstanding bonds; and
(2) pending the application of the proceeds, be placed in escrow
to be applied to the purchase or retirement at maturity or
redemption of the outstanding bonds on a date determined by
the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-50 Proceeds of refunding bonds; disposition
Sec. 50. Any escrowed proceeds, pending use for the refunding of
outstanding bonds, may be invested and reinvested in:
(1) direct obligations of the United States of America; or
(2) obligations having the timely payment of principal and
interest unconditionally guaranteed by the United States of
America;
maturing at a time or times that are appropriate to assure the prompt
payment of the principal and interest and redemption premium, if
any, on the outstanding bonds to be refunded. Any interest, income,
and profits earned or realized on any investment may also be applied
to the payment of the outstanding bonds to be refunded. Only after
the terms of the escrow have been fully satisfied and carried out, any
balance of the proceeds and any interest, income and profits earned
or realized on the investments described in this section must be
returned to the nonprofit college or university for use by the
nonprofit college or university in any lawful manner. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-51 Bonds; authority to refund
Sec. 51. All bonds issued to refund outstanding bonds of the
authority 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.2-2007, SEC.69.
IC 5-1-16.5-52 Power to invest bonds
Sec. 52. Except as otherwise provided in section 50 of this chapter
or in any trust indenture providing for the issuance of bonds, the
authority may invest:
(1) the authority's money, funds, and accounts;
(2) any money, funds, and accounts in the authority's custody;
and
(3) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-53 Authority to invest bonds
Sec. 53. All:
(1) banks, bankers, trust companies, savings banks and
institutions, building and loan associations, savings and loan
associations, investment companies, and insurance companies
and associations; and
(2) executors, administrators, guardians, trustees, and other
fiduciaries;
may legally invest any sinking funds, moneys or other funds
belonging to them or within their control in any bonds issued by the
authority under this chapter. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-54
Repealed
(Repealed by P.L.162-2007, SEC.42.) IC 5-1-16.5-55 Competitive bidding requirement
Sec. 55. Except as provided in IC 21-36-2, a project is not 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 property with regard to any action
taken under authority of this chapter. If, however, the prospective
lessee so requests in writing, the authority shall call for the
construction bids in the manner determined by the authority with the
approval of the lessee. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-56 Powers of authority; financing
Sec. 56. Notwithstanding any other provision of this chapter, the
authority may:
(1) finance the cost of an educational facility or refund
outstanding indebtedness of a nonprofit college or university,
as authorized under section 28 of this chapter; or
(2) finance the establishment of liability or other loss insurance
reserves or the contribution of reserves or other capital to a risk
retention group to provide insurance coverage against liability
claims or other losses;
by issuing the authority's bonds for the purpose of loaning the
proceeds to a nonprofit college or university for the cost of a project
or to refund or refinance outstanding indebtedness or reimburse
advances made in connection with a project in accordance with an
agreement between the authority and the institution and in exchange
for the institution's promissory note or notes. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-57 Promissory notes
Sec. 57. (a) Any promissory notes received under section 56 of
this chapter:
(1) must have the same principal amounts, maturities, and
interest rates as the bonds being issued;
(2) may be secured by a first mortgage lien on the educational
facility being financed or by a first mortgage lien or security
interest in other real or personal property or funds acceptable to
the authority subject to any exceptions that the authority may
approve and created by a mortgage instrument or security
agreement satisfactory to the authority; and
(3) may be insured or guaranteed by others.
(b) Any bonds described in section 56 of this chapter must be
payable solely out of the payments to be made on the promissory
notes and under the corresponding agreement. Any bonds described
in section 56 of this chapter may not exceed in principal amount the
cost of the educational facility, as determined by the nonprofit
college or university, or the necessary amount of these liability or
other loss insurance reserves, and approved by the authority. In other
respects:
(1) the bonds are subject to the provisions of section 39 of this
chapter; and
(2) the trust agreement or indenture creating the bonds may
contain any of the provisions set forth in section 40 of this
chapter that the authority determines appropriate. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-58 Mortgages
Sec. 58. If an educational facility is financed and mortgaged under
sections 56 and 57 of this chapter:
(1) the title to the facility must remain in the nonprofit college
or university owning the facility, subject to the lien of the
mortgage securing the promissory notes then being purchased;
and
(2) there may not be a lease of the facility between the authority
and the institution. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-59 Power of authority; restrictions
Sec. 59. Section 36 of this chapter does not apply to any
educational facility or any liability or other loss insurance reserves
financed under sections 56 through 58 of this chapter and this
section. However, the authority shall return the promissory notes
purchased through the issuance of bonds under this chapter to the
nonprofit college or university issuing the promissory notes when:
(1) the bonds have been fully paid and retired or adequate
provision has been made to pay and retire the bonds fully;
(2) all other conditions of the trust agreement or indenture
creating the bonds have been satisfied; and
(3) the lien has been released in accordance with the provisions
of the instrument creating the lien. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-60 Power of authority; operation and maintenance of projects
Sec. 60. Because the operation and maintenance of a project by
the authority or the authority's agent constitutes the performance of
an essential public function, neither the authority nor the authority's
agent are required to pay any taxes or assessments, including
mortgage recording taxes, upon or in respect of:
(1) a project or any property acquired or used by the authority
or the authority's agent under this chapter or upon the income
from the project or property;
(2) the bonds issued under this chapter or the interest on those
bonds; and
(3) the proceeds received from bonds issued under this chapter:
(A) by a holder from the sale of such bonds, to the extent of
the holder's cost of acquisition;
(B) upon redemption before maturity; or
(C) at maturity. As added by P.L.2-2007, SEC.69.
IC 5-1-16.5-61 Bonds; tax exemption
Sec. 61. All bonds and the interest on bonds issued under this
chapter are exempt from taxation in Indiana for all purposes except
the financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1. As added by P.L.2-2007, SEC.69.
