IC 5-28-9
Chapter 9. Industrial Development Program and Fund
IC 5-28-9-1 "Enterprise zone"
Sec. 1. As used in this chapter, "enterprise zone" means an
enterprise zone created under IC 5-28-15 (or IC 4-4-6.1 before its
repeal). As added by P.L.4-2005, SEC.34.
IC 5-28-9-2 "Governing body"
Sec. 2. As used in this chapter, "governing body" means the
legislative body of a city, town, or county, an economic development
commission, or a board administering the affairs of a special taxing
district. As added by P.L.4-2005, SEC.34.
IC 5-28-9-3 "Industrial development program"
Sec. 3. As used in this chapter, "industrial development program"
means a program designed to aid the growth of industry in Indiana
and includes the:
(1) construction of airports, airport facilities, and tourist
attractions;
(2) construction, extension, or completion of sewerlines,
waterlines, streets, sidewalks, bridges, roads, highways, public
ways, and information and high technology infrastructure;
(3) leasing or purchase of property, both real and personal; and
(4) preparation of surveys, plans, and specifications for the
construction of publicly owned and operated facilities, utilities,
and services. As added by P.L.4-2005, SEC.34.
IC 5-28-9-4 "Information and high technology infrastructure"
Sec. 4. As used in this chapter, "information and high technology
infrastructure" includes, but is not limited to, fiber optic cable and
other infrastructure that supports high technology growth and the
purchase and installation of fiber optic cable and other infrastructure. As added by P.L.4-2005, SEC.34.
IC 5-28-9-5 "Minority enterprise small business investment company"
Sec. 5. As used in this chapter, "minority enterprise small
business investment company" means an investment company
licensed under 15 U.S.C. 681(D). As added by P.L.4-2005, SEC.34. IC 5-28-9-6 "Qualified entity"
Sec. 6. As used in this chapter, "qualified entity" means a city, a
town, a county, an economic development commission, or a special
taxing district. As added by P.L.4-2005, SEC.34.
IC 5-28-9-7 "Small business investment company"
Sec. 7. As used in this chapter, "small business investment
company" means an investment company licensed under 15 U.S.C.
691 et seq. or a successor statute. As added by P.L.4-2005, SEC.34.
IC 5-28-9-8 Findings
Sec. 8. The general assembly finds that:
(1) areas in Indiana have insufficient employment opportunities
and insufficient diversification of industry;
(2) these conditions are harmful to the health, prosperity,
economic stability, and general welfare of these areas and, if
not remedied, will be detrimental to the development of these
areas; and
(3) the use of money under this chapter and the fostering of
industrial development programs serves a public purpose. As added by P.L.4-2005, SEC.34.
IC 5-28-9-9 Fund established; purpose; administration
Sec. 9. (a) The industrial development fund is established within
the state treasury. Loans may be made to qualified entities, small
business investment companies, and minority enterprise small
business investment companies in accordance with this chapter and
the policies and guidelines adopted under it.
(b) The fund consists of appropriations from the general assembly
and loan repayments.
(c) The corporation and the state board of finance shall jointly
administer the fund. The following may be paid from money in the
fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry out
the purposes of this chapter.
(d) Earnings from loans made under this chapter shall be
deposited in the fund.
(e) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(f) The corporation, subject to the approval of the state board of
finance, may adopt policies and guidelines for the proper
administration of the fund and this chapter. The corporation may
employ personnel necessary to efficiently administer this chapter. As added by P.L.4-2005, SEC.34.
IC 5-28-9-10 Loans for approved programs; amount restriction; limitations
Sec. 10. (a) Two million dollars ($2,000,000) in the industrial
development fund does not revert to the state general fund but
constitutes a revolving fund to be used exclusively for the purpose of
this chapter. The corporation, subject to the approval of the state
board of finance, may order the auditor of state to make an approved
loan from the revolving fund to a qualified entity (including the
purchase of bonds of the qualified entity), a small business
investment company, or a minority enterprise small business
investment company.
(b) A qualified entity may borrow funds from the corporation
under this chapter and shall use the loan proceeds to institute and
administer an approved industrial development program. The
combined amount of outstanding loans to any one (1) program may
not exceed one million dollars ($1,000,000). However, the one
million dollar ($1,000,000) restriction in this subsection does not
apply to an approved industrial development program in an economic
development district established by a qualified entity under
IC 6-1.1-39. A loan made under this chapter to an economic
development commission is not a loan to or an obligation of the
qualified entity that formed the commission, if the repayment of the
loan is limited to a specified revenue source under section 15 of this
chapter.
(c) A small business investment company or a minority enterprise
small business investment company may use the loan proceeds for
any lawful purpose.
(d) Notwithstanding any other law (including IC 5-1-11), the loan
to a qualified entity under this section may be directly negotiated
with the corporation without public sale of bonds or other evidences
of indebtedness of the qualified entity. As added by P.L.4-2005, SEC.34.
IC 5-28-9-11 Industrial development programs
Sec. 11. A qualified entity may institute and administer an
industrial development program that is approved by ordinance or
resolution adopted by the governing body of the qualified entity and
approved by the corporation. As added by P.L.4-2005, SEC.34.
IC 5-28-9-12 Loans to qualified entities; conditions
Sec. 12. (a) The state board of finance and the corporation shall
authorize the making of a loan to a qualified entity under this chapter
only when all the following conditions exist:
(1) An application for the loan has been submitted by the
qualified entity, in a verified petition, to the state board of
finance and the corporation in the manner and form as the state
board of finance and the corporation direct. The application
must set forth all the following:
(A) The need for the program and the need for funds for
instituting and administering the program.
(B) An engineering estimate of the cost of the proposed
program acceptable to the state board of finance and the
corporation.
(C) The amount of money needed.
(D) Other information that is requested by the state board of
finance and the corporation.
(2) The proposed program has been approved by the state board
of finance and the corporation, which they may do only if they
have determined that the program is based on sound engineering
principles and is in the interest of industrial development.
(3) The loan does not exceed one hundred percent (100%) of
the cost to the qualified entity of an approved program, with the
cost of the program to be based on an estimate made by a
competent engineering authority and approved by the
corporation.
(4) The qualified entity has agreed to furnish assurance,
satisfactory to the state board of finance and the corporation,
that the qualified entity will operate and maintain the program,
after completion, in a satisfactory manner.
(b) The state board of finance and the corporation shall authorize
a loan to a small business investment company or minority enterprise
small business investment company under this chapter only if:
(1) the small business investment company or minority
enterprise small business investment company has loaned to or
invested in a business located in an enterprise zone for a
purpose directly related to the enterprise zone an amount that is
at least twice the amount of the requested loan; and
(2) the small business investment company or minority
enterprise small business investment company has submitted an
application, before the beginning of the phase out period of the
enterprise zone, to the state board of finance and the
corporation that shows the amount of the loan requested and
other information that is requested by the state board of finance
and the corporation. As added by P.L.4-2005, SEC.34.
IC 5-28-9-13 Participation in program or project by entity; share of cost
Sec. 13. (a) The qualified entity may provide labor, equipment,
and materials from any source at its disposal for such a program, and
participation in accomplishment of the project or projects may be:
(1) evaluated by the state board of finance and the corporation;
and
(2) computed as a part or all of the share of cost that the
qualified entity is required to pay toward the total cost of the
project or projects for which the loan is obtained.
(b) When participation as described in this section is authorized,
the participation must be under direction of the governing body, and
when cash amounts are included in the qualified entity's share of
total cost, the cost amounts shall be provided in the usual and
accepted manner for the financing of the affairs of the qualified
entity. Costs of engineering and legal services to the borrower may
be regarded as a part of the total cost of the project. As added by P.L.4-2005, SEC.34.
IC 5-28-9-14 Priority rating of applicant for loan
Sec. 14. (a) The state board of finance and the corporation shall
determine and ascribe to an applicant for a loan a priority rating. The
rating must be based primarily on the need of the qualified entity for
a proposed program or on the need of the small business investment
company or minority enterprise small business investment company
for the loan as the need is related to the needs of other applicants for
loans.
(b) The qualified entities, small business investment companies,
or minority enterprise small business investment companies with the
highest priority rating shall be given first consideration when loans
are made under this chapter. The loans shall be made in descending
order as shown by the priority ratings. As added by P.L.4-2005, SEC.34.
IC 5-28-9-15 Loans; restrictions; ordinance requirement
Sec. 15. (a) A loan made under this chapter is subject to the
following restrictions:
(1) The repayment period may not exceed fifteen (15) years.
(2) The interest rate is to be set by the state board of finance at
the time the loan is approved.
(3) Interest reverts to the industrial development fund
established by this chapter.
(4) The loan must be repaid in installments, including interest
on the unpaid balance, according to a repayment schedule
approved by the state board of finance for that loan. However,
on the approval of the state board of finance, the repayment of
principal may be deferred for a period not to exceed two (2)
years.
(5) Subject to subsection (b), the repayment of the loan may be
limited to a specified revenue source of the qualified entity and,
if limited, is not a general obligation of the unit and is payable
solely from the specified revenue source.
(6) If the qualified entity levies a tax to repay the loan, the first
installment of the loan is due from funds received from the first
levy.
(7) If prepayment of the loan is made, a penalty may not be
charged.
(b) A qualified entity may borrow money under this chapter only
under an ordinance adopted under IC 36-1-3-6 as follows:
(1) If the qualified entity is a city, town, or county, by the
qualified entity.
(2) If the qualified entity is an economic development
commission, by the city, town, or county that established the
economic development commission.
(3) If the qualified entity is a special taxing district established
by the city, town, or county, by the city, town, or county that
established the special taxing district.
(4) If the qualified entity is a special taxing district that was not
established by a city, town, or county, by the county in which
the special taxing district is located.
If repayment of the loan is to be from a specified revenue source
under subsection (a)(5), the ordinance must state the revenue source
and must state that the qualified entity is not obligated to pay the
principal or interest on the loan except from the specified revenue
source. An ordinance may not provide for repayment from a
specified revenue source if the repayment would impair the qualified
entity's contract with an owner of outstanding obligations payable
from the specified revenue source.
(c) Notwithstanding any other law, the qualified entity may enter
into loans under this chapter without obtaining the approval of any
other body. As added by P.L.4-2005, SEC.34.
IC 5-28-9-16 Revenue to pay annual loan installment and interest; levy of tax
Sec. 16. A qualified entity receiving a loan under this chapter may
levy an annual tax on personal and real property located within the
qualified entity's geographical limits for industrial development
purposes, in addition to any other tax authorized by statute to be
levied for such purposes, at a rate that will produce sufficient
revenue to pay the annual installment and interest on a loan made
under this chapter. The tax may be in addition to the maximum
annual rates prescribed by IC 6-1.1-18, IC 6-1.1-18.5, and other
statutes. As added by P.L.4-2005, SEC.34. Amended by P.L.2-2006, SEC.34;
P.L.146-2008, SEC.40.
IC 5-28-9-17 Failure to repay money lent; action to recover
Sec. 17. (a) If a qualified entity fails to make repayment of money
lent under this chapter or is in any way indebted to the industrial
development fund for any amounts incurred or accrued, the amount
payable may be:
(1) withheld by the auditor of state, as set forth in the loan
agreement with the qualified entity, from any money payable to
the qualified entity and transferred to the fund; or
(2) recovered in an action by the state on relation of the
corporation, prosecuted by the attorney general, in the circuit or
superior court of the county in which the qualified entity is
located.
(b) If a small business investment company or a minority
enterprise small business investment company fails to make
repayment of money lent under this chapter or is in any way indebted
to the industrial development fund for any amounts incurred or
accrued, the amount payable may be recovered in an action by the
state on relation of the company, prosecuted by the attorney general,
in the circuit or superior court of the county in which the small
business investment company or minority enterprise small business
investment company is located. As added by P.L.4-2005, SEC.34.
IC 5-28-9-18 Appropriation
Sec. 18. There is appropriated annually to the corporation from
the state general fund, from money not otherwise appropriated, an
amount sufficient to administer this chapter, subject to the approval
of the budget committee. As added by P.L.4-2005, SEC.34.
IC 5-28-9-19 Sale of notes or other debt obligations by a county, city, or town;
deposit and use of proceeds
Sec. 19. (a) The corporation, with the approval of the state board
of finance, may sell to a person (including the board for depositories)
the notes or other debt obligations issued by a county, city, or town
under this chapter or IC 6-1.1-39 for any borrowing from the
industrial development fund under this chapter.
(b) A sale by the corporation of a note or another debt obligation
of a county, city, or town as authorized by subsection (a) shall be
made:
(1) without recourse against the corporation, the state board of
finance, or the industrial development fund; and
(2) on the other terms and conditions that the corporation, with
the approval of the state board of finance, establishes.
(c) A purchaser of a note or another debt obligation succeeds to
all the rights, entitlements, conditions, and limitations under the note
or other debt obligation. However, section 17 of this chapter does not
apply to a note or another debt obligation that has been sold under
subsection (a).
(d) After a sale of a note or another debt obligation, the
corporation, the state board of finance, and the industrial
development fund have no right, title, or interest in or to the note or
debt obligation.
(e) The proceeds from a sale of a note or another debt obligation
shall be deposited in the industrial development fund to be used
exclusively for the purpose of this chapter. As added by P.L.4-2005, SEC.34.
IC 5-28-9-20 Loan with simultaneous or successive sale of note or other
obligation; legal investments
Sec. 20. (a) For industrial development projects (as defined in
IC 4-4-10.9-11(a)) that have a cost of the project (as defined in
IC 4-4-10.9-5) greater than one hundred million dollars
($100,000,000), the corporation may coordinate a loan to a county,
city, or town under this chapter that is to be funded under IC 6-1.1-39
with a simultaneous or successive sale of the note or other debt
obligation issued or to be issued by the county, city, or town to
evidence the borrowing under this chapter. For such a coordinated or
simultaneous lending and sale, the sale proceeds may be applied to
the funding of the loan to the county, city, or town.
(b) Notes or other debt obligations of a county, city, or town that
may be sold by the corporation under this section or section 19 of
this chapter are declared to be legal investments for:
(1) all insurance companies and associations and other persons
carrying on an insurance business; and
(2) all banks, bankers, banking associations, trust companies,
savings associations including savings and loan associations,
building and loan associations, investment companies, and other
persons carrying on a banking business.
These entities may invest their funds, including capital, in the notes
or other debt obligations, notwithstanding any law to the contrary. As added by P.L.4-2005, SEC.34. Amended by P.L.1-2006, SEC.127.
IC 5-28-9
Chapter 9. Industrial Development Program and Fund
IC 5-28-9-1 "Enterprise zone"
Sec. 1. As used in this chapter, "enterprise zone" means an
enterprise zone created under IC 5-28-15 (or IC 4-4-6.1 before its
repeal). As added by P.L.4-2005, SEC.34.
IC 5-28-9-2 "Governing body"
Sec. 2. As used in this chapter, "governing body" means the
legislative body of a city, town, or county, an economic development
commission, or a board administering the affairs of a special taxing
district. As added by P.L.4-2005, SEC.34.
IC 5-28-9-3 "Industrial development program"
Sec. 3. As used in this chapter, "industrial development program"
means a program designed to aid the growth of industry in Indiana
and includes the:
(1) construction of airports, airport facilities, and tourist
attractions;
(2) construction, extension, or completion of sewerlines,
waterlines, streets, sidewalks, bridges, roads, highways, public
ways, and information and high technology infrastructure;
(3) leasing or purchase of property, both real and personal; and
(4) preparation of surveys, plans, and specifications for the
construction of publicly owned and operated facilities, utilities,
and services. As added by P.L.4-2005, SEC.34.
IC 5-28-9-4 "Information and high technology infrastructure"
Sec. 4. As used in this chapter, "information and high technology
infrastructure" includes, but is not limited to, fiber optic cable and
other infrastructure that supports high technology growth and the
purchase and installation of fiber optic cable and other infrastructure. As added by P.L.4-2005, SEC.34.
IC 5-28-9-5 "Minority enterprise small business investment company"
Sec. 5. As used in this chapter, "minority enterprise small
business investment company" means an investment company
licensed under 15 U.S.C. 681(D). As added by P.L.4-2005, SEC.34. IC 5-28-9-6 "Qualified entity"
Sec. 6. As used in this chapter, "qualified entity" means a city, a
town, a county, an economic development commission, or a special
taxing district. As added by P.L.4-2005, SEC.34.
IC 5-28-9-7 "Small business investment company"
Sec. 7. As used in this chapter, "small business investment
company" means an investment company licensed under 15 U.S.C.
691 et seq. or a successor statute. As added by P.L.4-2005, SEC.34.
IC 5-28-9-8 Findings
Sec. 8. The general assembly finds that:
(1) areas in Indiana have insufficient employment opportunities
and insufficient diversification of industry;
(2) these conditions are harmful to the health, prosperity,
economic stability, and general welfare of these areas and, if
not remedied, will be detrimental to the development of these
areas; and
(3) the use of money under this chapter and the fostering of
industrial development programs serves a public purpose. As added by P.L.4-2005, SEC.34.
IC 5-28-9-9 Fund established; purpose; administration
Sec. 9. (a) The industrial development fund is established within
the state treasury. Loans may be made to qualified entities, small
business investment companies, and minority enterprise small
business investment companies in accordance with this chapter and
the policies and guidelines adopted under it.
(b) The fund consists of appropriations from the general assembly
and loan repayments.
(c) The corporation and the state board of finance shall jointly
administer the fund. The following may be paid from money in the
fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry out
the purposes of this chapter.
(d) Earnings from loans made under this chapter shall be
deposited in the fund.
(e) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(f) The corporation, subject to the approval of the state board of
finance, may adopt policies and guidelines for the proper
administration of the fund and this chapter. The corporation may
employ personnel necessary to efficiently administer this chapter. As added by P.L.4-2005, SEC.34.
IC 5-28-9-10 Loans for approved programs; amount restriction; limitations
Sec. 10. (a) Two million dollars ($2,000,000) in the industrial
development fund does not revert to the state general fund but
constitutes a revolving fund to be used exclusively for the purpose of
this chapter. The corporation, subject to the approval of the state
board of finance, may order the auditor of state to make an approved
loan from the revolving fund to a qualified entity (including the
purchase of bonds of the qualified entity), a small business
investment company, or a minority enterprise small business
investment company.
(b) A qualified entity may borrow funds from the corporation
under this chapter and shall use the loan proceeds to institute and
administer an approved industrial development program. The
combined amount of outstanding loans to any one (1) program may
not exceed one million dollars ($1,000,000). However, the one
million dollar ($1,000,000) restriction in this subsection does not
apply to an approved industrial development program in an economic
development district established by a qualified entity under
IC 6-1.1-39. A loan made under this chapter to an economic
development commission is not a loan to or an obligation of the
qualified entity that formed the commission, if the repayment of the
loan is limited to a specified revenue source under section 15 of this
chapter.
(c) A small business investment company or a minority enterprise
small business investment company may use the loan proceeds for
any lawful purpose.
(d) Notwithstanding any other law (including IC 5-1-11), the loan
to a qualified entity under this section may be directly negotiated
with the corporation without public sale of bonds or other evidences
of indebtedness of the qualified entity. As added by P.L.4-2005, SEC.34.
IC 5-28-9-11 Industrial development programs
Sec. 11. A qualified entity may institute and administer an
industrial development program that is approved by ordinance or
resolution adopted by the governing body of the qualified entity and
approved by the corporation. As added by P.L.4-2005, SEC.34.
IC 5-28-9-12 Loans to qualified entities; conditions
Sec. 12. (a) The state board of finance and the corporation shall
authorize the making of a loan to a qualified entity under this chapter
only when all the following conditions exist:
(1) An application for the loan has been submitted by the
qualified entity, in a verified petition, to the state board of
finance and the corporation in the manner and form as the state
board of finance and the corporation direct. The application
must set forth all the following:
(A) The need for the program and the need for funds for
instituting and administering the program.
(B) An engineering estimate of the cost of the proposed
program acceptable to the state board of finance and the
corporation.
(C) The amount of money needed.
(D) Other information that is requested by the state board of
finance and the corporation.
(2) The proposed program has been approved by the state board
of finance and the corporation, which they may do only if they
have determined that the program is based on sound engineering
principles and is in the interest of industrial development.
(3) The loan does not exceed one hundred percent (100%) of
the cost to the qualified entity of an approved program, with the
cost of the program to be based on an estimate made by a
competent engineering authority and approved by the
corporation.
(4) The qualified entity has agreed to furnish assurance,
satisfactory to the state board of finance and the corporation,
that the qualified entity will operate and maintain the program,
after completion, in a satisfactory manner.
(b) The state board of finance and the corporation shall authorize
a loan to a small business investment company or minority enterprise
small business investment company under this chapter only if:
(1) the small business investment company or minority
enterprise small business investment company has loaned to or
invested in a business located in an enterprise zone for a
purpose directly related to the enterprise zone an amount that is
at least twice the amount of the requested loan; and
(2) the small business investment company or minority
enterprise small business investment company has submitted an
application, before the beginning of the phase out period of the
enterprise zone, to the state board of finance and the
corporation that shows the amount of the loan requested and
other information that is requested by the state board of finance
and the corporation. As added by P.L.4-2005, SEC.34.
IC 5-28-9-13 Participation in program or project by entity; share of cost
Sec. 13. (a) The qualified entity may provide labor, equipment,
and materials from any source at its disposal for such a program, and
participation in accomplishment of the project or projects may be:
(1) evaluated by the state board of finance and the corporation;
and
(2) computed as a part or all of the share of cost that the
qualified entity is required to pay toward the total cost of the
project or projects for which the loan is obtained.
(b) When participation as described in this section is authorized,
the participation must be under direction of the governing body, and
when cash amounts are included in the qualified entity's share of
total cost, the cost amounts shall be provided in the usual and
accepted manner for the financing of the affairs of the qualified
entity. Costs of engineering and legal services to the borrower may
be regarded as a part of the total cost of the project. As added by P.L.4-2005, SEC.34.
IC 5-28-9-14 Priority rating of applicant for loan
Sec. 14. (a) The state board of finance and the corporation shall
determine and ascribe to an applicant for a loan a priority rating. The
rating must be based primarily on the need of the qualified entity for
a proposed program or on the need of the small business investment
company or minority enterprise small business investment company
for the loan as the need is related to the needs of other applicants for
loans.
(b) The qualified entities, small business investment companies,
or minority enterprise small business investment companies with the
highest priority rating shall be given first consideration when loans
are made under this chapter. The loans shall be made in descending
order as shown by the priority ratings. As added by P.L.4-2005, SEC.34.
IC 5-28-9-15 Loans; restrictions; ordinance requirement
Sec. 15. (a) A loan made under this chapter is subject to the
following restrictions:
(1) The repayment period may not exceed fifteen (15) years.
(2) The interest rate is to be set by the state board of finance at
the time the loan is approved.
(3) Interest reverts to the industrial development fund
established by this chapter.
(4) The loan must be repaid in installments, including interest
on the unpaid balance, according to a repayment schedule
approved by the state board of finance for that loan. However,
on the approval of the state board of finance, the repayment of
principal may be deferred for a period not to exceed two (2)
years.
(5) Subject to subsection (b), the repayment of the loan may be
limited to a specified revenue source of the qualified entity and,
if limited, is not a general obligation of the unit and is payable
solely from the specified revenue source.
(6) If the qualified entity levies a tax to repay the loan, the first
installment of the loan is due from funds received from the first
levy.
(7) If prepayment of the loan is made, a penalty may not be
charged.
(b) A qualified entity may borrow money under this chapter only
under an ordinance adopted under IC 36-1-3-6 as follows:
(1) If the qualified entity is a city, town, or county, by the
qualified entity.
(2) If the qualified entity is an economic development
commission, by the city, town, or county that established the
economic development commission.
(3) If the qualified entity is a special taxing district established
by the city, town, or county, by the city, town, or county that
established the special taxing district.
(4) If the qualified entity is a special taxing district that was not
established by a city, town, or county, by the county in which
the special taxing district is located.
If repayment of the loan is to be from a specified revenue source
under subsection (a)(5), the ordinance must state the revenue source
and must state that the qualified entity is not obligated to pay the
principal or interest on the loan except from the specified revenue
source. An ordinance may not provide for repayment from a
specified revenue source if the repayment would impair the qualified
entity's contract with an owner of outstanding obligations payable
from the specified revenue source.
(c) Notwithstanding any other law, the qualified entity may enter
into loans under this chapter without obtaining the approval of any
other body. As added by P.L.4-2005, SEC.34.
IC 5-28-9-16 Revenue to pay annual loan installment and interest; levy of tax
Sec. 16. A qualified entity receiving a loan under this chapter may
levy an annual tax on personal and real property located within the
qualified entity's geographical limits for industrial development
purposes, in addition to any other tax authorized by statute to be
levied for such purposes, at a rate that will produce sufficient
revenue to pay the annual installment and interest on a loan made
under this chapter. The tax may be in addition to the maximum
annual rates prescribed by IC 6-1.1-18, IC 6-1.1-18.5, and other
statutes. As added by P.L.4-2005, SEC.34. Amended by P.L.2-2006, SEC.34;
P.L.146-2008, SEC.40.
IC 5-28-9-17 Failure to repay money lent; action to recover
Sec. 17. (a) If a qualified entity fails to make repayment of money
lent under this chapter or is in any way indebted to the industrial
development fund for any amounts incurred or accrued, the amount
payable may be:
(1) withheld by the auditor of state, as set forth in the loan
agreement with the qualified entity, from any money payable to
the qualified entity and transferred to the fund; or
(2) recovered in an action by the state on relation of the
corporation, prosecuted by the attorney general, in the circuit or
superior court of the county in which the qualified entity is
located.
(b) If a small business investment company or a minority
enterprise small business investment company fails to make
repayment of money lent under this chapter or is in any way indebted
to the industrial development fund for any amounts incurred or
accrued, the amount payable may be recovered in an action by the
state on relation of the company, prosecuted by the attorney general,
in the circuit or superior court of the county in which the small
business investment company or minority enterprise small business
investment company is located. As added by P.L.4-2005, SEC.34.
IC 5-28-9-18 Appropriation
Sec. 18. There is appropriated annually to the corporation from
the state general fund, from money not otherwise appropriated, an
amount sufficient to administer this chapter, subject to the approval
of the budget committee. As added by P.L.4-2005, SEC.34.
IC 5-28-9-19 Sale of notes or other debt obligations by a county, city, or town;
deposit and use of proceeds
Sec. 19. (a) The corporation, with the approval of the state board
of finance, may sell to a person (including the board for depositories)
the notes or other debt obligations issued by a county, city, or town
under this chapter or IC 6-1.1-39 for any borrowing from the
industrial development fund under this chapter.
(b) A sale by the corporation of a note or another debt obligation
of a county, city, or town as authorized by subsection (a) shall be
made:
(1) without recourse against the corporation, the state board of
finance, or the industrial development fund; and
(2) on the other terms and conditions that the corporation, with
the approval of the state board of finance, establishes.
(c) A purchaser of a note or another debt obligation succeeds to
all the rights, entitlements, conditions, and limitations under the note
or other debt obligation. However, section 17 of this chapter does not
apply to a note or another debt obligation that has been sold under
subsection (a).
(d) After a sale of a note or another debt obligation, the
corporation, the state board of finance, and the industrial
development fund have no right, title, or interest in or to the note or
debt obligation.
(e) The proceeds from a sale of a note or another debt obligation
shall be deposited in the industrial development fund to be used
exclusively for the purpose of this chapter. As added by P.L.4-2005, SEC.34.
IC 5-28-9-20 Loan with simultaneous or successive sale of note or other
obligation; legal investments
Sec. 20. (a) For industrial development projects (as defined in
IC 4-4-10.9-11(a)) that have a cost of the project (as defined in
IC 4-4-10.9-5) greater than one hundred million dollars
($100,000,000), the corporation may coordinate a loan to a county,
city, or town under this chapter that is to be funded under IC 6-1.1-39
with a simultaneous or successive sale of the note or other debt
obligation issued or to be issued by the county, city, or town to
evidence the borrowing under this chapter. For such a coordinated or
simultaneous lending and sale, the sale proceeds may be applied to
the funding of the loan to the county, city, or town.
(b) Notes or other debt obligations of a county, city, or town that
may be sold by the corporation under this section or section 19 of
this chapter are declared to be legal investments for:
(1) all insurance companies and associations and other persons
carrying on an insurance business; and
(2) all banks, bankers, banking associations, trust companies,
savings associations including savings and loan associations,
building and loan associations, investment companies, and other
persons carrying on a banking business.
These entities may invest their funds, including capital, in the notes
or other debt obligations, notwithstanding any law to the contrary. As added by P.L.4-2005, SEC.34. Amended by P.L.1-2006, SEC.127.
IC 5-28-9
Chapter 9. Industrial Development Program and Fund
IC 5-28-9-1 "Enterprise zone"
Sec. 1. As used in this chapter, "enterprise zone" means an
enterprise zone created under IC 5-28-15 (or IC 4-4-6.1 before its
repeal). As added by P.L.4-2005, SEC.34.
IC 5-28-9-2 "Governing body"
Sec. 2. As used in this chapter, "governing body" means the
legislative body of a city, town, or county, an economic development
commission, or a board administering the affairs of a special taxing
district. As added by P.L.4-2005, SEC.34.
IC 5-28-9-3 "Industrial development program"
Sec. 3. As used in this chapter, "industrial development program"
means a program designed to aid the growth of industry in Indiana
and includes the:
(1) construction of airports, airport facilities, and tourist
attractions;
(2) construction, extension, or completion of sewerlines,
waterlines, streets, sidewalks, bridges, roads, highways, public
ways, and information and high technology infrastructure;
(3) leasing or purchase of property, both real and personal; and
(4) preparation of surveys, plans, and specifications for the
construction of publicly owned and operated facilities, utilities,
and services. As added by P.L.4-2005, SEC.34.
IC 5-28-9-4 "Information and high technology infrastructure"
Sec. 4. As used in this chapter, "information and high technology
infrastructure" includes, but is not limited to, fiber optic cable and
other infrastructure that supports high technology growth and the
purchase and installation of fiber optic cable and other infrastructure. As added by P.L.4-2005, SEC.34.
IC 5-28-9-5 "Minority enterprise small business investment company"
Sec. 5. As used in this chapter, "minority enterprise small
business investment company" means an investment company
licensed under 15 U.S.C. 681(D). As added by P.L.4-2005, SEC.34. IC 5-28-9-6 "Qualified entity"
Sec. 6. As used in this chapter, "qualified entity" means a city, a
town, a county, an economic development commission, or a special
taxing district. As added by P.L.4-2005, SEC.34.
IC 5-28-9-7 "Small business investment company"
Sec. 7. As used in this chapter, "small business investment
company" means an investment company licensed under 15 U.S.C.
691 et seq. or a successor statute. As added by P.L.4-2005, SEC.34.
IC 5-28-9-8 Findings
Sec. 8. The general assembly finds that:
(1) areas in Indiana have insufficient employment opportunities
and insufficient diversification of industry;
(2) these conditions are harmful to the health, prosperity,
economic stability, and general welfare of these areas and, if
not remedied, will be detrimental to the development of these
areas; and
(3) the use of money under this chapter and the fostering of
industrial development programs serves a public purpose. As added by P.L.4-2005, SEC.34.
IC 5-28-9-9 Fund established; purpose; administration
Sec. 9. (a) The industrial development fund is established within
the state treasury. Loans may be made to qualified entities, small
business investment companies, and minority enterprise small
business investment companies in accordance with this chapter and
the policies and guidelines adopted under it.
(b) The fund consists of appropriations from the general assembly
and loan repayments.
(c) The corporation and the state board of finance shall jointly
administer the fund. The following may be paid from money in the
fund:
(1) Expenses of administering the fund.
(2) Nonrecurring administrative expenses incurred to carry out
the purposes of this chapter.
(d) Earnings from loans made under this chapter shall be
deposited in the fund.
(e) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(f) The corporation, subject to the approval of the state board of
finance, may adopt policies and guidelines for the proper
administration of the fund and this chapter. The corporation may
employ personnel necessary to efficiently administer this chapter. As added by P.L.4-2005, SEC.34.
IC 5-28-9-10 Loans for approved programs; amount restriction; limitations
Sec. 10. (a) Two million dollars ($2,000,000) in the industrial
development fund does not revert to the state general fund but
constitutes a revolving fund to be used exclusively for the purpose of
this chapter. The corporation, subject to the approval of the state
board of finance, may order the auditor of state to make an approved
loan from the revolving fund to a qualified entity (including the
purchase of bonds of the qualified entity), a small business
investment company, or a minority enterprise small business
investment company.
(b) A qualified entity may borrow funds from the corporation
under this chapter and shall use the loan proceeds to institute and
administer an approved industrial development program. The
combined amount of outstanding loans to any one (1) program may
not exceed one million dollars ($1,000,000). However, the one
million dollar ($1,000,000) restriction in this subsection does not
apply to an approved industrial development program in an economic
development district established by a qualified entity under
IC 6-1.1-39. A loan made under this chapter to an economic
development commission is not a loan to or an obligation of the
qualified entity that formed the commission, if the repayment of the
loan is limited to a specified revenue source under section 15 of this
chapter.
(c) A small business investment company or a minority enterprise
small business investment company may use the loan proceeds for
any lawful purpose.
(d) Notwithstanding any other law (including IC 5-1-11), the loan
to a qualified entity under this section may be directly negotiated
with the corporation without public sale of bonds or other evidences
of indebtedness of the qualified entity. As added by P.L.4-2005, SEC.34.
IC 5-28-9-11 Industrial development programs
Sec. 11. A qualified entity may institute and administer an
industrial development program that is approved by ordinance or
resolution adopted by the governing body of the qualified entity and
approved by the corporation. As added by P.L.4-2005, SEC.34.
IC 5-28-9-12 Loans to qualified entities; conditions
Sec. 12. (a) The state board of finance and the corporation shall
authorize the making of a loan to a qualified entity under this chapter
only when all the following conditions exist:
(1) An application for the loan has been submitted by the
qualified entity, in a verified petition, to the state board of
finance and the corporation in the manner and form as the state
board of finance and the corporation direct. The application
must set forth all the following:
(A) The need for the program and the need for funds for
instituting and administering the program.
(B) An engineering estimate of the cost of the proposed
program acceptable to the state board of finance and the
corporation.
(C) The amount of money needed.
(D) Other information that is requested by the state board of
finance and the corporation.
(2) The proposed program has been approved by the state board
of finance and the corporation, which they may do only if they
have determined that the program is based on sound engineering
principles and is in the interest of industrial development.
(3) The loan does not exceed one hundred percent (100%) of
the cost to the qualified entity of an approved program, with the
cost of the program to be based on an estimate made by a
competent engineering authority and approved by the
corporation.
(4) The qualified entity has agreed to furnish assurance,
satisfactory to the state board of finance and the corporation,
that the qualified entity will operate and maintain the program,
after completion, in a satisfactory manner.
(b) The state board of finance and the corporation shall authorize
a loan to a small business investment company or minority enterprise
small business investment company under this chapter only if:
(1) the small business investment company or minority
enterprise small business investment company has loaned to or
invested in a business located in an enterprise zone for a
purpose directly related to the enterprise zone an amount that is
at least twice the amount of the requested loan; and
(2) the small business investment company or minority
enterprise small business investment company has submitted an
application, before the beginning of the phase out period of the
enterprise zone, to the state board of finance and the
corporation that shows the amount of the loan requested and
other information that is requested by the state board of finance
and the corporation. As added by P.L.4-2005, SEC.34.
IC 5-28-9-13 Participation in program or project by entity; share of cost
Sec. 13. (a) The qualified entity may provide labor, equipment,
and materials from any source at its disposal for such a program, and
participation in accomplishment of the project or projects may be:
(1) evaluated by the state board of finance and the corporation;
and
(2) computed as a part or all of the share of cost that the
qualified entity is required to pay toward the total cost of the
project or projects for which the loan is obtained.
(b) When participation as described in this section is authorized,
the participation must be under direction of the governing body, and
when cash amounts are included in the qualified entity's share of
total cost, the cost amounts shall be provided in the usual and
accepted manner for the financing of the affairs of the qualified
entity. Costs of engineering and legal services to the borrower may
be regarded as a part of the total cost of the project. As added by P.L.4-2005, SEC.34.
IC 5-28-9-14 Priority rating of applicant for loan
Sec. 14. (a) The state board of finance and the corporation shall
determine and ascribe to an applicant for a loan a priority rating. The
rating must be based primarily on the need of the qualified entity for
a proposed program or on the need of the small business investment
company or minority enterprise small business investment company
for the loan as the need is related to the needs of other applicants for
loans.
(b) The qualified entities, small business investment companies,
or minority enterprise small business investment companies with the
highest priority rating shall be given first consideration when loans
are made under this chapter. The loans shall be made in descending
order as shown by the priority ratings. As added by P.L.4-2005, SEC.34.
IC 5-28-9-15 Loans; restrictions; ordinance requirement
Sec. 15. (a) A loan made under this chapter is subject to the
following restrictions:
(1) The repayment period may not exceed fifteen (15) years.
(2) The interest rate is to be set by the state board of finance at
the time the loan is approved.
(3) Interest reverts to the industrial development fund
established by this chapter.
(4) The loan must be repaid in installments, including interest
on the unpaid balance, according to a repayment schedule
approved by the state board of finance for that loan. However,
on the approval of the state board of finance, the repayment of
principal may be deferred for a period not to exceed two (2)
years.
(5) Subject to subsection (b), the repayment of the loan may be
limited to a specified revenue source of the qualified entity and,
if limited, is not a general obligation of the unit and is payable
solely from the specified revenue source.
(6) If the qualified entity levies a tax to repay the loan, the first
installment of the loan is due from funds received from the first
levy.
(7) If prepayment of the loan is made, a penalty may not be
charged.
(b) A qualified entity may borrow money under this chapter only
under an ordinance adopted under IC 36-1-3-6 as follows:
(1) If the qualified entity is a city, town, or county, by the
qualified entity.
(2) If the qualified entity is an economic development
commission, by the city, town, or county that established the
economic development commission.
(3) If the qualified entity is a special taxing district established
by the city, town, or county, by the city, town, or county that
established the special taxing district.
(4) If the qualified entity is a special taxing district that was not
established by a city, town, or county, by the county in which
the special taxing district is located.
If repayment of the loan is to be from a specified revenue source
under subsection (a)(5), the ordinance must state the revenue source
and must state that the qualified entity is not obligated to pay the
principal or interest on the loan except from the specified revenue
source. An ordinance may not provide for repayment from a
specified revenue source if the repayment would impair the qualified
entity's contract with an owner of outstanding obligations payable
from the specified revenue source.
(c) Notwithstanding any other law, the qualified entity may enter
into loans under this chapter without obtaining the approval of any
other body. As added by P.L.4-2005, SEC.34.
IC 5-28-9-16 Revenue to pay annual loan installment and interest; levy of tax
Sec. 16. A qualified entity receiving a loan under this chapter may
levy an annual tax on personal and real property located within the
qualified entity's geographical limits for industrial development
purposes, in addition to any other tax authorized by statute to be
levied for such purposes, at a rate that will produce sufficient
revenue to pay the annual installment and interest on a loan made
under this chapter. The tax may be in addition to the maximum
annual rates prescribed by IC 6-1.1-18, IC 6-1.1-18.5, and other
statutes. As added by P.L.4-2005, SEC.34. Amended by P.L.2-2006, SEC.34;
P.L.146-2008, SEC.40.
IC 5-28-9-17 Failure to repay money lent; action to recover
Sec. 17. (a) If a qualified entity fails to make repayment of money
lent under this chapter or is in any way indebted to the industrial
development fund for any amounts incurred or accrued, the amount
payable may be:
(1) withheld by the auditor of state, as set forth in the loan
agreement with the qualified entity, from any money payable to
the qualified entity and transferred to the fund; or
(2) recovered in an action by the state on relation of the
corporation, prosecuted by the attorney general, in the circuit or
superior court of the county in which the qualified entity is
located.
(b) If a small business investment company or a minority
enterprise small business investment company fails to make
repayment of money lent under this chapter or is in any way indebted
to the industrial development fund for any amounts incurred or
accrued, the amount payable may be recovered in an action by the
state on relation of the company, prosecuted by the attorney general,
in the circuit or superior court of the county in which the small
business investment company or minority enterprise small business
investment company is located. As added by P.L.4-2005, SEC.34.
IC 5-28-9-18 Appropriation
Sec. 18. There is appropriated annually to the corporation from
the state general fund, from money not otherwise appropriated, an
amount sufficient to administer this chapter, subject to the approval
of the budget committee. As added by P.L.4-2005, SEC.34.
IC 5-28-9-19 Sale of notes or other debt obligations by a county, city, or town;
deposit and use of proceeds
Sec. 19. (a) The corporation, with the approval of the state board
of finance, may sell to a person (including the board for depositories)
the notes or other debt obligations issued by a county, city, or town
under this chapter or IC 6-1.1-39 for any borrowing from the
industrial development fund under this chapter.
(b) A sale by the corporation of a note or another debt obligation
of a county, city, or town as authorized by subsection (a) shall be
made:
(1) without recourse against the corporation, the state board of
finance, or the industrial development fund; and
(2) on the other terms and conditions that the corporation, with
the approval of the state board of finance, establishes.
(c) A purchaser of a note or another debt obligation succeeds to
all the rights, entitlements, conditions, and limitations under the note
or other debt obligation. However, section 17 of this chapter does not
apply to a note or another debt obligation that has been sold under
subsection (a).
(d) After a sale of a note or another debt obligation, the
corporation, the state board of finance, and the industrial
development fund have no right, title, or interest in or to the note or
debt obligation.
(e) The proceeds from a sale of a note or another debt obligation
shall be deposited in the industrial development fund to be used
exclusively for the purpose of this chapter. As added by P.L.4-2005, SEC.34.
IC 5-28-9-20 Loan with simultaneous or successive sale of note or other
obligation; legal investments
Sec. 20. (a) For industrial development projects (as defined in
IC 4-4-10.9-11(a)) that have a cost of the project (as defined in
IC 4-4-10.9-5) greater than one hundred million dollars
($100,000,000), the corporation may coordinate a loan to a county,
city, or town under this chapter that is to be funded under IC 6-1.1-39
with a simultaneous or successive sale of the note or other debt
obligation issued or to be issued by the county, city, or town to
evidence the borrowing under this chapter. For such a coordinated or
simultaneous lending and sale, the sale proceeds may be applied to
the funding of the loan to the county, city, or town.
(b) Notes or other debt obligations of a county, city, or town that
may be sold by the corporation under this section or section 19 of
this chapter are declared to be legal investments for:
(1) all insurance companies and associations and other persons
carrying on an insurance business; and
(2) all banks, bankers, banking associations, trust companies,
savings associations including savings and loan associations,
building and loan associations, investment companies, and other
persons carrying on a banking business.
These entities may invest their funds, including capital, in the notes
or other debt obligations, notwithstanding any law to the contrary. As added by P.L.4-2005, SEC.34. Amended by P.L.1-2006, SEC.127.
