IC 8-22-3.7
Chapter 3.7. Airport Development Authority
IC 8-22-3.7-1 "Airport project" defined
Sec. 1. As used in this chapter, "airport project" has the meaning
set forth in IC 8-22-3.6-2. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-2 "Bonds" defined
Sec. 2. As used in this chapter, "bonds" means bonds, notes, or
other evidences of indebtedness issued by the development authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-3 "Development authority" defined
Sec. 3. As used in this chapter, "development authority" refers to
an airport development authority created by this chapter. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-4 "Development board" defined
Sec. 4. As used in this chapter, "development board" refers to the
board of directors of a development authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-4.5 "Eligible entity" defined
Sec. 4.5. Notwithstanding IC 8-22-1-6, as used in this chapter,
"eligible entity" means the following:
(1) A city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000).
(2) A county having a population of more than one hundred five
thousand (105,000) but less than one hundred ten thousand
(110,000).
(3) A county having a population of more than three hundred
thousand (300,000) but less than four hundred thousand
(400,000). As added by P.L.108-1993, SEC.11. Amended by P.L.115-1995,
SEC.12; P.L.85-1996, SEC.8; P.L.170-2002, SEC.73.
IC 8-22-3.7-5 Creation of authority
Sec. 5. A "__________ Airport Development Authority" (the
blank to be filled in with the name of the eligible entity) may be
created by an eligible entity as a separate body corporate and politic
and as an instrumentality of the eligible entity to finance airport
projects for lease to the authority in that eligible entity. A
development authority may be created by ordinance of the legislative
body of the eligible entity. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-6 Development board; membership; term; removal; oath
Sec. 6. (a) The development board is composed of three (3)
members, who must be residents of the eligible entity. The members
of a development board for a development authority established by
an eligible entity described in section 4.5(1) of this chapter are
appointed by the executive of the eligible entity. The members of a
development board for a development authority established by an
eligible entity described in section 4.5(2) or 4.5(3) of this chapter are
appointed as follows:
(1) One (1) member is appointed by the county executive.
(2) One (1) member is appointed by the executive of the city
with the largest population in the county.
(3) One (1) member is appointed by the board of an airport
authority that is located in the county.
(b) A member is entitled to serve a three (3) year term. A member
may be reappointed to subsequent terms.
(c) If a vacancy occurs on the development board, the officer or
entity that made the original appointment shall fill the vacancy by
appointing a new member for the remainder of the vacated term.
(d) A member may be removed for cause by the officer or entity
that appointed the member.
(e) Each member, before entering upon the duties of office, must
take and subscribe an oath of office under IC 5-4-1, which shall be
endorsed upon the certificate of appointment and filed with the
records of the development board.
(f) A member may not receive a salary, and no profit or money of
the development authority inures to the benefit of a member. As added by P.L.108-1993, SEC.11. Amended by P.L.115-1995,
SEC.13; P.L.85-1996, SEC.9.
IC 8-22-3.7-7 Meetings; quorum
Sec. 7. (a) Immediately after January 15 of each year, the
development board shall hold an organizational meeting. It shall elect
one (1) of the members of the development board president, another
vice president, and another secretary-treasurer to perform the duties
of those offices. These officers serve from the date of their election
and until their successors are elected and qualified. The development
board may elect an assistant secretary-treasurer.
(b) Special meetings may be called by the president of the
development board or any two (2) members of the development
board.
(c) A majority of the members constitutes a quorum, and the
concurrence of a majority of the members is necessary to authorize
any action. As added by P.L.108-1993, SEC.11. IC 8-22-3.7-8 Bylaws and rules
Sec. 8. The development board may adopt the bylaws and rules
that it considers necessary for the proper conduct of its duties and the
safeguarding of the funds and property entrusted to its care. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-9 Purposes of authority
Sec. 9. The development authority is organized for the following
purposes:
(1) Financing, constructing, and leasing airport projects to the
authority.
(2) Financing and constructing additional improvements to
airport projects owned by the development authority and leasing
them to the authority.
(3) Acquiring all or a portion of one (1) or more airport projects
from the authority by purchase or lease and leasing these airport
projects back to the authority, with any additional
improvements that may be made to them.
(4) Acquiring all or a portion of one (1) or more airport projects
from the authority by purchase or lease to fund or refund
indebtedness incurred on account of those airport projects to
enable the authority to make a savings in debt service
obligations or lease rental obligations or to obtain relief from
covenants that the authority considers to be unduly burdensome. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-10 Authorized activities of authority; dissolution
Sec. 10. (a) The development authority may also:
(1) finance, improve, construct, reconstruct, renovate, purchase,
lease, acquire, and equip airport projects;
(2) lease those airport projects to the authority;
(3) sue, be sued, plead, and be impleaded, but all actions against
the development authority must be brought in the circuit or
superior court of the county in which the development authority
is located;
(4) lease, rent, purchase, and hold any real or personal property
needed or considered useful in connection with airport projects;
(5) acquire real or personal property by gift, devise, or bequest
and hold, use, or dispose of that property for the purposes
authorized by this chapter;
(6) with permission of the owner or occupant, enter upon any
lots or lands for the purpose of surveying or examining them to
determine the location of an airport project;
(7) design, order, contract for, and construct, reconstruct, and
renovate any airport projects or improvements thereto;
(8) employ managers, superintendents, architects, engineers,
attorneys, auditors, clerks, construction managers, and other
employees necessary for construction of airport projects or
improvements to them;
(9) make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution
of its powers under this chapter; and
(10) take any other action necessary to implement its purposes
as set forth in section 9 of this chapter.
(b) Whenever the development board determines that the purposes
for which the development authority was formed have been
substantially fulfilled and that all bonds issued and all other
obligations incurred by the development authority have been fully
paid or satisfied or provision for the payment of the bonds and
obligations has been made in accordance with the terms of the
resolution or trust indenture securing them, the development board
may declare the development authority dissolved. On the effective
date of the resolution of dissolution, the title to all funds and other
property owned by the development authority at the time of the
dissolution vests in the authority. However, if the authority is not in
existence, the title vests in the eligible entity. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-11 Refund of bonds; lease back
Sec. 11. (a) Bonds issued under IC 8-22-3 may be refunded as
provided in this section.
(b) The authority may lease all or a portion of an airport project
to the development authority, which may be at a nominal lease rental
with a lease back to the authority, conditioned upon the development
authority assuming bonds issued under IC 8-22-3 and issuing its
bonds to refund those bonds. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-12 Reasonableness of leases; leases of airport projects from
development authority
Sec. 12. (a) Before a lease may be entered into, the authority must
find that the lease rental provided for is fair and reasonable.
(b) A lease of an airport project from the development authority
to the authority:
(1) must comply with IC 8-22-3.6;
(2) may not require payment of lease rental for a newly
constructed airport project or for improvements to an existing
airport project except to the extent that the airport project or
improvements to the project have been completed and are ready
for occupancy or use;
(3) may contain provisions:
(A) allowing the authority to continue to operate an existing
airport project until completion of the improvements,
reconstruction, or renovation; and
(B) requiring payment of lease rentals for an existing airport
project being used, reconstructed, or renovated;
(4) may contain an option to renew the lease for the same or
shorter term on the conditions provided in the lease;
(5) must contain an option for the authority to purchase the
airport project upon the terms stated in the lease during the term
of the lease for a price equal to the amount required to pay all
indebtedness incurred on account of the airport project,
including indebtedness incurred for the refunding of that
indebtedness;
(6) may be entered into before acquisition or construction of an
airport project;
(7) may provide that the authority shall agree to:
(A) pay all taxes and assessments on the project;
(B) maintain insurance on the project for the benefit of the
development authority; and
(C) assume responsibility for utilities, repairs, alterations,
and any costs of operation; and
(8) may provide that the lease rental payments by the authority
shall be made from any one (1) or more of the sources set forth
in IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-13 Authority for leases between development authority and authority
Sec. 13. This chapter and IC 8-22-3.6 contain full and complete
authority for leases between the development authority and the
authority. No law, procedure, proceedings, publications, notices,
consents, approvals, orders, or acts by the board, authority or the
eligible entity or any other officer, department, agency, or
instrumentality of the state or any political subdivision are required
to enter into any lease, except as prescribed in this chapter and
IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-14 Leases; authority approval of plans and specifications of project
Sec. 14. If the lease provides for an airport project or
improvements to an airport project to be constructed by the
development authority, the plans and specifications shall be
submitted to and approved by the authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-15 Party walls; easements; licenses
Sec. 15. The development authority and the authority may enter
into common wall (party wall) agreements or other agreements
concerning easements or licenses. These agreements shall be
recorded with the recorder of the county. As added by P.L.108-1993, SEC.11. IC 8-22-3.7-16 Sales or leases of projects to development authority
Sec. 16. (a) The authority may lease for a nominal lease rental or
sell to the development authority one (1) or more airport projects or
portions of airport projects or land upon which an airport project is
located or is to be constructed.
(b) Any lease of all or a portion of an airport project by the
authority to the development authority must be for a term equal to the
term of the lease of that airport project back to the authority.
(c) The authority or the eligible entity may sell property to the
development authority for the amount that the authority or the
eligible entity determines to be in the best interest of the authority or
the eligible entity, which amount may be paid from the proceeds of
bonds of the development authority.
(d) The authority may sublease an airport project or portion of an
airport project to any person or entity for a term not to exceed the
term of the lease from the development authority, upon the terms and
at the rental that the authority determines to be in the best interest of
the authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-17 Bond issues
Sec. 17. (a) The development authority may issue bonds for the
purpose of obtaining money to pay the cost of:
(1) acquiring property;
(2) constructing, improving, reconstructing, or renovating one
(1) or more airport projects; or
(3) funding or refunding bonds issued under this chapter or
IC 8-22-3.
(b) The bonds are payable solely from the lease rentals from the
lease of the airport project for which the bonds were issued,
insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the
development board.
(d) The terms and form of the bonds shall either be set out in the
resolution or in a form of trust indenture approved by the resolution.
(e) The bonds shall mature within fifty (50) years.
(f) The development board shall sell the bonds at public or private
sale upon terms determined by the development board.
(g) All money received from any bonds issued under this chapter
shall be applied solely to the payment of the cost of the acquisition
or construction, or both, of airport projects, or the cost of refunding
or refinancing outstanding bonds, for which the bonds are issued.
The cost may include:
(1) planning and development of the airport project and all
related buildings, facilities, structures, and improvements;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the airport projects suitable for
use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction and for a period thereafter
determined by the board, but in no event to exceed five (5)
years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,
letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums, if any, and interest on, the
bonds being refunded or refinanced. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-18 Law governing issuance; bonds as legal investment
Sec. 18. (a) This chapter contains full and complete authority for
the issuance of bonds. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board of any other
officer, department, agency, or instrumentality of the state or of any
political subdivision are required to issue any bonds, except as
prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for
private trust funds and the funds of banks, trust companies, insurance
companies, building and loan associates, credit unions, banks of
discount and deposit, savings banks, private banks, loan and trust and
safe deposit companies, rural loan and savings associations, guaranty
loan and savings associations, mortgage guaranty companies, small
loan companies, industrial loan and investment companies, and other
financial institutions organized under Indiana law. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-19 Trust indentures securing bonds
Sec. 19. (a) The development authority may secure bonds issued
under this chapter by a trust indenture between the development
authority and a corporate trustee, which may be any trust company
or national or state bank within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income from
leased airport projects;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority and the board;
(3) set forth the rights and remedies of bondholders and trustee;
and
(4) restrict the individual right of action of bondholders.
However, the trust indenture may not mortgage airport projects.
(c) Any pledge or assignment made by the development authority
under this section is valid and binding in accordance with
IC 5-1-14-4 from the time that the pledge or assignment is made,
against all persons whether they have notice of the lien or not. Any
trust indenture by which a pledge is created or an assignment need
not be filed or recorded. The lien is perfected against third parties in
accordance with IC 5-1-14-4. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-20 Bonds issued upon exercise of option to purchase
Sec. 20. If the authority exercises its option to purchase leased
property, it may issue its bonds authorized by statute. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-21 Exemptions from taxation
Sec. 21. (a) All:
(1) property owned by the development authority;
(2) revenues of the development authority; and
(3) bonds issued by the development authority, the interest on
the bonds, the proceeds received by a holder from the sale of
bonds to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of interest in proceeds;
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.
(b) All securities issued under this chapter are exempt from the
registration requirements of IC 23-19 and other securities registration
statutes. As added by P.L.108-1993, SEC.11. Amended by P.L.254-1997(ss),
SEC.18; P.L.27-2007, SEC.9.
IC 8-22-3.7-22 Actions to contest validity of bonds; conditions
Sec. 22. Any action to contest the validity of bonds to be issued
under this chapter may not be brought after:
(1) fifteen (15) days following the receipt of bids for the bonds,
if the bonds are sold at public sale; or
(2) the time limitations set forth in IC 5-1-14-13. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-23 Impairment of bondholder rights
Sec. 23. The general assembly covenants that it will not:
(1) repeal or amend this chapter, IC 8-22-3.5, or IC 8-22-3.6 in
a manner that would adversely affect owners of outstanding
bonds, or payment of any lease rentals, secured by the revenues
pledged under this chapter, IC 8-22-3.5, or IC 8-22-3.6; or
(2) in any way impair the rights of owners of bonds of the
development authority, or the owners of bonds secured by lease
rentals, secured by a pledge of revenues under this chapter or
IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-24 Financing powers as public purpose
Sec. 24. This provision of alternative financing power to eligible
entities, development authorities, and authorities in order to finance
airport projects is a public purpose. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-25 Supplemental nature of chapter
Sec. 25. This chapter is supplemental to other statutes and does
not supersede any other provisions of the Indiana Code. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7
Chapter 3.7. Airport Development Authority
IC 8-22-3.7-1 "Airport project" defined
Sec. 1. As used in this chapter, "airport project" has the meaning
set forth in IC 8-22-3.6-2. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-2 "Bonds" defined
Sec. 2. As used in this chapter, "bonds" means bonds, notes, or
other evidences of indebtedness issued by the development authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-3 "Development authority" defined
Sec. 3. As used in this chapter, "development authority" refers to
an airport development authority created by this chapter. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-4 "Development board" defined
Sec. 4. As used in this chapter, "development board" refers to the
board of directors of a development authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-4.5 "Eligible entity" defined
Sec. 4.5. Notwithstanding IC 8-22-1-6, as used in this chapter,
"eligible entity" means the following:
(1) A city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000).
(2) A county having a population of more than one hundred five
thousand (105,000) but less than one hundred ten thousand
(110,000).
(3) A county having a population of more than three hundred
thousand (300,000) but less than four hundred thousand
(400,000). As added by P.L.108-1993, SEC.11. Amended by P.L.115-1995,
SEC.12; P.L.85-1996, SEC.8; P.L.170-2002, SEC.73.
IC 8-22-3.7-5 Creation of authority
Sec. 5. A "__________ Airport Development Authority" (the
blank to be filled in with the name of the eligible entity) may be
created by an eligible entity as a separate body corporate and politic
and as an instrumentality of the eligible entity to finance airport
projects for lease to the authority in that eligible entity. A
development authority may be created by ordinance of the legislative
body of the eligible entity. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-6 Development board; membership; term; removal; oath
Sec. 6. (a) The development board is composed of three (3)
members, who must be residents of the eligible entity. The members
of a development board for a development authority established by
an eligible entity described in section 4.5(1) of this chapter are
appointed by the executive of the eligible entity. The members of a
development board for a development authority established by an
eligible entity described in section 4.5(2) or 4.5(3) of this chapter are
appointed as follows:
(1) One (1) member is appointed by the county executive.
(2) One (1) member is appointed by the executive of the city
with the largest population in the county.
(3) One (1) member is appointed by the board of an airport
authority that is located in the county.
(b) A member is entitled to serve a three (3) year term. A member
may be reappointed to subsequent terms.
(c) If a vacancy occurs on the development board, the officer or
entity that made the original appointment shall fill the vacancy by
appointing a new member for the remainder of the vacated term.
(d) A member may be removed for cause by the officer or entity
that appointed the member.
(e) Each member, before entering upon the duties of office, must
take and subscribe an oath of office under IC 5-4-1, which shall be
endorsed upon the certificate of appointment and filed with the
records of the development board.
(f) A member may not receive a salary, and no profit or money of
the development authority inures to the benefit of a member. As added by P.L.108-1993, SEC.11. Amended by P.L.115-1995,
SEC.13; P.L.85-1996, SEC.9.
IC 8-22-3.7-7 Meetings; quorum
Sec. 7. (a) Immediately after January 15 of each year, the
development board shall hold an organizational meeting. It shall elect
one (1) of the members of the development board president, another
vice president, and another secretary-treasurer to perform the duties
of those offices. These officers serve from the date of their election
and until their successors are elected and qualified. The development
board may elect an assistant secretary-treasurer.
(b) Special meetings may be called by the president of the
development board or any two (2) members of the development
board.
(c) A majority of the members constitutes a quorum, and the
concurrence of a majority of the members is necessary to authorize
any action. As added by P.L.108-1993, SEC.11. IC 8-22-3.7-8 Bylaws and rules
Sec. 8. The development board may adopt the bylaws and rules
that it considers necessary for the proper conduct of its duties and the
safeguarding of the funds and property entrusted to its care. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-9 Purposes of authority
Sec. 9. The development authority is organized for the following
purposes:
(1) Financing, constructing, and leasing airport projects to the
authority.
(2) Financing and constructing additional improvements to
airport projects owned by the development authority and leasing
them to the authority.
(3) Acquiring all or a portion of one (1) or more airport projects
from the authority by purchase or lease and leasing these airport
projects back to the authority, with any additional
improvements that may be made to them.
(4) Acquiring all or a portion of one (1) or more airport projects
from the authority by purchase or lease to fund or refund
indebtedness incurred on account of those airport projects to
enable the authority to make a savings in debt service
obligations or lease rental obligations or to obtain relief from
covenants that the authority considers to be unduly burdensome. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-10 Authorized activities of authority; dissolution
Sec. 10. (a) The development authority may also:
(1) finance, improve, construct, reconstruct, renovate, purchase,
lease, acquire, and equip airport projects;
(2) lease those airport projects to the authority;
(3) sue, be sued, plead, and be impleaded, but all actions against
the development authority must be brought in the circuit or
superior court of the county in which the development authority
is located;
(4) lease, rent, purchase, and hold any real or personal property
needed or considered useful in connection with airport projects;
(5) acquire real or personal property by gift, devise, or bequest
and hold, use, or dispose of that property for the purposes
authorized by this chapter;
(6) with permission of the owner or occupant, enter upon any
lots or lands for the purpose of surveying or examining them to
determine the location of an airport project;
(7) design, order, contract for, and construct, reconstruct, and
renovate any airport projects or improvements thereto;
(8) employ managers, superintendents, architects, engineers,
attorneys, auditors, clerks, construction managers, and other
employees necessary for construction of airport projects or
improvements to them;
(9) make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution
of its powers under this chapter; and
(10) take any other action necessary to implement its purposes
as set forth in section 9 of this chapter.
(b) Whenever the development board determines that the purposes
for which the development authority was formed have been
substantially fulfilled and that all bonds issued and all other
obligations incurred by the development authority have been fully
paid or satisfied or provision for the payment of the bonds and
obligations has been made in accordance with the terms of the
resolution or trust indenture securing them, the development board
may declare the development authority dissolved. On the effective
date of the resolution of dissolution, the title to all funds and other
property owned by the development authority at the time of the
dissolution vests in the authority. However, if the authority is not in
existence, the title vests in the eligible entity. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-11 Refund of bonds; lease back
Sec. 11. (a) Bonds issued under IC 8-22-3 may be refunded as
provided in this section.
(b) The authority may lease all or a portion of an airport project
to the development authority, which may be at a nominal lease rental
with a lease back to the authority, conditioned upon the development
authority assuming bonds issued under IC 8-22-3 and issuing its
bonds to refund those bonds. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-12 Reasonableness of leases; leases of airport projects from
development authority
Sec. 12. (a) Before a lease may be entered into, the authority must
find that the lease rental provided for is fair and reasonable.
(b) A lease of an airport project from the development authority
to the authority:
(1) must comply with IC 8-22-3.6;
(2) may not require payment of lease rental for a newly
constructed airport project or for improvements to an existing
airport project except to the extent that the airport project or
improvements to the project have been completed and are ready
for occupancy or use;
(3) may contain provisions:
(A) allowing the authority to continue to operate an existing
airport project until completion of the improvements,
reconstruction, or renovation; and
(B) requiring payment of lease rentals for an existing airport
project being used, reconstructed, or renovated;
(4) may contain an option to renew the lease for the same or
shorter term on the conditions provided in the lease;
(5) must contain an option for the authority to purchase the
airport project upon the terms stated in the lease during the term
of the lease for a price equal to the amount required to pay all
indebtedness incurred on account of the airport project,
including indebtedness incurred for the refunding of that
indebtedness;
(6) may be entered into before acquisition or construction of an
airport project;
(7) may provide that the authority shall agree to:
(A) pay all taxes and assessments on the project;
(B) maintain insurance on the project for the benefit of the
development authority; and
(C) assume responsibility for utilities, repairs, alterations,
and any costs of operation; and
(8) may provide that the lease rental payments by the authority
shall be made from any one (1) or more of the sources set forth
in IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-13 Authority for leases between development authority and authority
Sec. 13. This chapter and IC 8-22-3.6 contain full and complete
authority for leases between the development authority and the
authority. No law, procedure, proceedings, publications, notices,
consents, approvals, orders, or acts by the board, authority or the
eligible entity or any other officer, department, agency, or
instrumentality of the state or any political subdivision are required
to enter into any lease, except as prescribed in this chapter and
IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-14 Leases; authority approval of plans and specifications of project
Sec. 14. If the lease provides for an airport project or
improvements to an airport project to be constructed by the
development authority, the plans and specifications shall be
submitted to and approved by the authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-15 Party walls; easements; licenses
Sec. 15. The development authority and the authority may enter
into common wall (party wall) agreements or other agreements
concerning easements or licenses. These agreements shall be
recorded with the recorder of the county. As added by P.L.108-1993, SEC.11. IC 8-22-3.7-16 Sales or leases of projects to development authority
Sec. 16. (a) The authority may lease for a nominal lease rental or
sell to the development authority one (1) or more airport projects or
portions of airport projects or land upon which an airport project is
located or is to be constructed.
(b) Any lease of all or a portion of an airport project by the
authority to the development authority must be for a term equal to the
term of the lease of that airport project back to the authority.
(c) The authority or the eligible entity may sell property to the
development authority for the amount that the authority or the
eligible entity determines to be in the best interest of the authority or
the eligible entity, which amount may be paid from the proceeds of
bonds of the development authority.
(d) The authority may sublease an airport project or portion of an
airport project to any person or entity for a term not to exceed the
term of the lease from the development authority, upon the terms and
at the rental that the authority determines to be in the best interest of
the authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-17 Bond issues
Sec. 17. (a) The development authority may issue bonds for the
purpose of obtaining money to pay the cost of:
(1) acquiring property;
(2) constructing, improving, reconstructing, or renovating one
(1) or more airport projects; or
(3) funding or refunding bonds issued under this chapter or
IC 8-22-3.
(b) The bonds are payable solely from the lease rentals from the
lease of the airport project for which the bonds were issued,
insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the
development board.
(d) The terms and form of the bonds shall either be set out in the
resolution or in a form of trust indenture approved by the resolution.
(e) The bonds shall mature within fifty (50) years.
(f) The development board shall sell the bonds at public or private
sale upon terms determined by the development board.
(g) All money received from any bonds issued under this chapter
shall be applied solely to the payment of the cost of the acquisition
or construction, or both, of airport projects, or the cost of refunding
or refinancing outstanding bonds, for which the bonds are issued.
The cost may include:
(1) planning and development of the airport project and all
related buildings, facilities, structures, and improvements;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the airport projects suitable for
use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction and for a period thereafter
determined by the board, but in no event to exceed five (5)
years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,
letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums, if any, and interest on, the
bonds being refunded or refinanced. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-18 Law governing issuance; bonds as legal investment
Sec. 18. (a) This chapter contains full and complete authority for
the issuance of bonds. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board of any other
officer, department, agency, or instrumentality of the state or of any
political subdivision are required to issue any bonds, except as
prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for
private trust funds and the funds of banks, trust companies, insurance
companies, building and loan associates, credit unions, banks of
discount and deposit, savings banks, private banks, loan and trust and
safe deposit companies, rural loan and savings associations, guaranty
loan and savings associations, mortgage guaranty companies, small
loan companies, industrial loan and investment companies, and other
financial institutions organized under Indiana law. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-19 Trust indentures securing bonds
Sec. 19. (a) The development authority may secure bonds issued
under this chapter by a trust indenture between the development
authority and a corporate trustee, which may be any trust company
or national or state bank within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income from
leased airport projects;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority and the board;
(3) set forth the rights and remedies of bondholders and trustee;
and
(4) restrict the individual right of action of bondholders.
However, the trust indenture may not mortgage airport projects.
(c) Any pledge or assignment made by the development authority
under this section is valid and binding in accordance with
IC 5-1-14-4 from the time that the pledge or assignment is made,
against all persons whether they have notice of the lien or not. Any
trust indenture by which a pledge is created or an assignment need
not be filed or recorded. The lien is perfected against third parties in
accordance with IC 5-1-14-4. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-20 Bonds issued upon exercise of option to purchase
Sec. 20. If the authority exercises its option to purchase leased
property, it may issue its bonds authorized by statute. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-21 Exemptions from taxation
Sec. 21. (a) All:
(1) property owned by the development authority;
(2) revenues of the development authority; and
(3) bonds issued by the development authority, the interest on
the bonds, the proceeds received by a holder from the sale of
bonds to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of interest in proceeds;
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.
(b) All securities issued under this chapter are exempt from the
registration requirements of IC 23-19 and other securities registration
statutes. As added by P.L.108-1993, SEC.11. Amended by P.L.254-1997(ss),
SEC.18; P.L.27-2007, SEC.9.
IC 8-22-3.7-22 Actions to contest validity of bonds; conditions
Sec. 22. Any action to contest the validity of bonds to be issued
under this chapter may not be brought after:
(1) fifteen (15) days following the receipt of bids for the bonds,
if the bonds are sold at public sale; or
(2) the time limitations set forth in IC 5-1-14-13. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-23 Impairment of bondholder rights
Sec. 23. The general assembly covenants that it will not:
(1) repeal or amend this chapter, IC 8-22-3.5, or IC 8-22-3.6 in
a manner that would adversely affect owners of outstanding
bonds, or payment of any lease rentals, secured by the revenues
pledged under this chapter, IC 8-22-3.5, or IC 8-22-3.6; or
(2) in any way impair the rights of owners of bonds of the
development authority, or the owners of bonds secured by lease
rentals, secured by a pledge of revenues under this chapter or
IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-24 Financing powers as public purpose
Sec. 24. This provision of alternative financing power to eligible
entities, development authorities, and authorities in order to finance
airport projects is a public purpose. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-25 Supplemental nature of chapter
Sec. 25. This chapter is supplemental to other statutes and does
not supersede any other provisions of the Indiana Code. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7
Chapter 3.7. Airport Development Authority
IC 8-22-3.7-1 "Airport project" defined
Sec. 1. As used in this chapter, "airport project" has the meaning
set forth in IC 8-22-3.6-2. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-2 "Bonds" defined
Sec. 2. As used in this chapter, "bonds" means bonds, notes, or
other evidences of indebtedness issued by the development authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-3 "Development authority" defined
Sec. 3. As used in this chapter, "development authority" refers to
an airport development authority created by this chapter. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-4 "Development board" defined
Sec. 4. As used in this chapter, "development board" refers to the
board of directors of a development authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-4.5 "Eligible entity" defined
Sec. 4.5. Notwithstanding IC 8-22-1-6, as used in this chapter,
"eligible entity" means the following:
(1) A city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000).
(2) A county having a population of more than one hundred five
thousand (105,000) but less than one hundred ten thousand
(110,000).
(3) A county having a population of more than three hundred
thousand (300,000) but less than four hundred thousand
(400,000). As added by P.L.108-1993, SEC.11. Amended by P.L.115-1995,
SEC.12; P.L.85-1996, SEC.8; P.L.170-2002, SEC.73.
IC 8-22-3.7-5 Creation of authority
Sec. 5. A "__________ Airport Development Authority" (the
blank to be filled in with the name of the eligible entity) may be
created by an eligible entity as a separate body corporate and politic
and as an instrumentality of the eligible entity to finance airport
projects for lease to the authority in that eligible entity. A
development authority may be created by ordinance of the legislative
body of the eligible entity. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-6 Development board; membership; term; removal; oath
Sec. 6. (a) The development board is composed of three (3)
members, who must be residents of the eligible entity. The members
of a development board for a development authority established by
an eligible entity described in section 4.5(1) of this chapter are
appointed by the executive of the eligible entity. The members of a
development board for a development authority established by an
eligible entity described in section 4.5(2) or 4.5(3) of this chapter are
appointed as follows:
(1) One (1) member is appointed by the county executive.
(2) One (1) member is appointed by the executive of the city
with the largest population in the county.
(3) One (1) member is appointed by the board of an airport
authority that is located in the county.
(b) A member is entitled to serve a three (3) year term. A member
may be reappointed to subsequent terms.
(c) If a vacancy occurs on the development board, the officer or
entity that made the original appointment shall fill the vacancy by
appointing a new member for the remainder of the vacated term.
(d) A member may be removed for cause by the officer or entity
that appointed the member.
(e) Each member, before entering upon the duties of office, must
take and subscribe an oath of office under IC 5-4-1, which shall be
endorsed upon the certificate of appointment and filed with the
records of the development board.
(f) A member may not receive a salary, and no profit or money of
the development authority inures to the benefit of a member. As added by P.L.108-1993, SEC.11. Amended by P.L.115-1995,
SEC.13; P.L.85-1996, SEC.9.
IC 8-22-3.7-7 Meetings; quorum
Sec. 7. (a) Immediately after January 15 of each year, the
development board shall hold an organizational meeting. It shall elect
one (1) of the members of the development board president, another
vice president, and another secretary-treasurer to perform the duties
of those offices. These officers serve from the date of their election
and until their successors are elected and qualified. The development
board may elect an assistant secretary-treasurer.
(b) Special meetings may be called by the president of the
development board or any two (2) members of the development
board.
(c) A majority of the members constitutes a quorum, and the
concurrence of a majority of the members is necessary to authorize
any action. As added by P.L.108-1993, SEC.11. IC 8-22-3.7-8 Bylaws and rules
Sec. 8. The development board may adopt the bylaws and rules
that it considers necessary for the proper conduct of its duties and the
safeguarding of the funds and property entrusted to its care. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-9 Purposes of authority
Sec. 9. The development authority is organized for the following
purposes:
(1) Financing, constructing, and leasing airport projects to the
authority.
(2) Financing and constructing additional improvements to
airport projects owned by the development authority and leasing
them to the authority.
(3) Acquiring all or a portion of one (1) or more airport projects
from the authority by purchase or lease and leasing these airport
projects back to the authority, with any additional
improvements that may be made to them.
(4) Acquiring all or a portion of one (1) or more airport projects
from the authority by purchase or lease to fund or refund
indebtedness incurred on account of those airport projects to
enable the authority to make a savings in debt service
obligations or lease rental obligations or to obtain relief from
covenants that the authority considers to be unduly burdensome. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-10 Authorized activities of authority; dissolution
Sec. 10. (a) The development authority may also:
(1) finance, improve, construct, reconstruct, renovate, purchase,
lease, acquire, and equip airport projects;
(2) lease those airport projects to the authority;
(3) sue, be sued, plead, and be impleaded, but all actions against
the development authority must be brought in the circuit or
superior court of the county in which the development authority
is located;
(4) lease, rent, purchase, and hold any real or personal property
needed or considered useful in connection with airport projects;
(5) acquire real or personal property by gift, devise, or bequest
and hold, use, or dispose of that property for the purposes
authorized by this chapter;
(6) with permission of the owner or occupant, enter upon any
lots or lands for the purpose of surveying or examining them to
determine the location of an airport project;
(7) design, order, contract for, and construct, reconstruct, and
renovate any airport projects or improvements thereto;
(8) employ managers, superintendents, architects, engineers,
attorneys, auditors, clerks, construction managers, and other
employees necessary for construction of airport projects or
improvements to them;
(9) make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution
of its powers under this chapter; and
(10) take any other action necessary to implement its purposes
as set forth in section 9 of this chapter.
(b) Whenever the development board determines that the purposes
for which the development authority was formed have been
substantially fulfilled and that all bonds issued and all other
obligations incurred by the development authority have been fully
paid or satisfied or provision for the payment of the bonds and
obligations has been made in accordance with the terms of the
resolution or trust indenture securing them, the development board
may declare the development authority dissolved. On the effective
date of the resolution of dissolution, the title to all funds and other
property owned by the development authority at the time of the
dissolution vests in the authority. However, if the authority is not in
existence, the title vests in the eligible entity. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-11 Refund of bonds; lease back
Sec. 11. (a) Bonds issued under IC 8-22-3 may be refunded as
provided in this section.
(b) The authority may lease all or a portion of an airport project
to the development authority, which may be at a nominal lease rental
with a lease back to the authority, conditioned upon the development
authority assuming bonds issued under IC 8-22-3 and issuing its
bonds to refund those bonds. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-12 Reasonableness of leases; leases of airport projects from
development authority
Sec. 12. (a) Before a lease may be entered into, the authority must
find that the lease rental provided for is fair and reasonable.
(b) A lease of an airport project from the development authority
to the authority:
(1) must comply with IC 8-22-3.6;
(2) may not require payment of lease rental for a newly
constructed airport project or for improvements to an existing
airport project except to the extent that the airport project or
improvements to the project have been completed and are ready
for occupancy or use;
(3) may contain provisions:
(A) allowing the authority to continue to operate an existing
airport project until completion of the improvements,
reconstruction, or renovation; and
(B) requiring payment of lease rentals for an existing airport
project being used, reconstructed, or renovated;
(4) may contain an option to renew the lease for the same or
shorter term on the conditions provided in the lease;
(5) must contain an option for the authority to purchase the
airport project upon the terms stated in the lease during the term
of the lease for a price equal to the amount required to pay all
indebtedness incurred on account of the airport project,
including indebtedness incurred for the refunding of that
indebtedness;
(6) may be entered into before acquisition or construction of an
airport project;
(7) may provide that the authority shall agree to:
(A) pay all taxes and assessments on the project;
(B) maintain insurance on the project for the benefit of the
development authority; and
(C) assume responsibility for utilities, repairs, alterations,
and any costs of operation; and
(8) may provide that the lease rental payments by the authority
shall be made from any one (1) or more of the sources set forth
in IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-13 Authority for leases between development authority and authority
Sec. 13. This chapter and IC 8-22-3.6 contain full and complete
authority for leases between the development authority and the
authority. No law, procedure, proceedings, publications, notices,
consents, approvals, orders, or acts by the board, authority or the
eligible entity or any other officer, department, agency, or
instrumentality of the state or any political subdivision are required
to enter into any lease, except as prescribed in this chapter and
IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-14 Leases; authority approval of plans and specifications of project
Sec. 14. If the lease provides for an airport project or
improvements to an airport project to be constructed by the
development authority, the plans and specifications shall be
submitted to and approved by the authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-15 Party walls; easements; licenses
Sec. 15. The development authority and the authority may enter
into common wall (party wall) agreements or other agreements
concerning easements or licenses. These agreements shall be
recorded with the recorder of the county. As added by P.L.108-1993, SEC.11. IC 8-22-3.7-16 Sales or leases of projects to development authority
Sec. 16. (a) The authority may lease for a nominal lease rental or
sell to the development authority one (1) or more airport projects or
portions of airport projects or land upon which an airport project is
located or is to be constructed.
(b) Any lease of all or a portion of an airport project by the
authority to the development authority must be for a term equal to the
term of the lease of that airport project back to the authority.
(c) The authority or the eligible entity may sell property to the
development authority for the amount that the authority or the
eligible entity determines to be in the best interest of the authority or
the eligible entity, which amount may be paid from the proceeds of
bonds of the development authority.
(d) The authority may sublease an airport project or portion of an
airport project to any person or entity for a term not to exceed the
term of the lease from the development authority, upon the terms and
at the rental that the authority determines to be in the best interest of
the authority. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-17 Bond issues
Sec. 17. (a) The development authority may issue bonds for the
purpose of obtaining money to pay the cost of:
(1) acquiring property;
(2) constructing, improving, reconstructing, or renovating one
(1) or more airport projects; or
(3) funding or refunding bonds issued under this chapter or
IC 8-22-3.
(b) The bonds are payable solely from the lease rentals from the
lease of the airport project for which the bonds were issued,
insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the
development board.
(d) The terms and form of the bonds shall either be set out in the
resolution or in a form of trust indenture approved by the resolution.
(e) The bonds shall mature within fifty (50) years.
(f) The development board shall sell the bonds at public or private
sale upon terms determined by the development board.
(g) All money received from any bonds issued under this chapter
shall be applied solely to the payment of the cost of the acquisition
or construction, or both, of airport projects, or the cost of refunding
or refinancing outstanding bonds, for which the bonds are issued.
The cost may include:
(1) planning and development of the airport project and all
related buildings, facilities, structures, and improvements;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the airport projects suitable for
use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction and for a period thereafter
determined by the board, but in no event to exceed five (5)
years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,
letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums, if any, and interest on, the
bonds being refunded or refinanced. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-18 Law governing issuance; bonds as legal investment
Sec. 18. (a) This chapter contains full and complete authority for
the issuance of bonds. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board of any other
officer, department, agency, or instrumentality of the state or of any
political subdivision are required to issue any bonds, except as
prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for
private trust funds and the funds of banks, trust companies, insurance
companies, building and loan associates, credit unions, banks of
discount and deposit, savings banks, private banks, loan and trust and
safe deposit companies, rural loan and savings associations, guaranty
loan and savings associations, mortgage guaranty companies, small
loan companies, industrial loan and investment companies, and other
financial institutions organized under Indiana law. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-19 Trust indentures securing bonds
Sec. 19. (a) The development authority may secure bonds issued
under this chapter by a trust indenture between the development
authority and a corporate trustee, which may be any trust company
or national or state bank within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income from
leased airport projects;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority and the board;
(3) set forth the rights and remedies of bondholders and trustee;
and
(4) restrict the individual right of action of bondholders.
However, the trust indenture may not mortgage airport projects.
(c) Any pledge or assignment made by the development authority
under this section is valid and binding in accordance with
IC 5-1-14-4 from the time that the pledge or assignment is made,
against all persons whether they have notice of the lien or not. Any
trust indenture by which a pledge is created or an assignment need
not be filed or recorded. The lien is perfected against third parties in
accordance with IC 5-1-14-4. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-20 Bonds issued upon exercise of option to purchase
Sec. 20. If the authority exercises its option to purchase leased
property, it may issue its bonds authorized by statute. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-21 Exemptions from taxation
Sec. 21. (a) All:
(1) property owned by the development authority;
(2) revenues of the development authority; and
(3) bonds issued by the development authority, the interest on
the bonds, the proceeds received by a holder from the sale of
bonds to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of interest in proceeds;
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.
(b) All securities issued under this chapter are exempt from the
registration requirements of IC 23-19 and other securities registration
statutes. As added by P.L.108-1993, SEC.11. Amended by P.L.254-1997(ss),
SEC.18; P.L.27-2007, SEC.9.
IC 8-22-3.7-22 Actions to contest validity of bonds; conditions
Sec. 22. Any action to contest the validity of bonds to be issued
under this chapter may not be brought after:
(1) fifteen (15) days following the receipt of bids for the bonds,
if the bonds are sold at public sale; or
(2) the time limitations set forth in IC 5-1-14-13. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-23 Impairment of bondholder rights
Sec. 23. The general assembly covenants that it will not:
(1) repeal or amend this chapter, IC 8-22-3.5, or IC 8-22-3.6 in
a manner that would adversely affect owners of outstanding
bonds, or payment of any lease rentals, secured by the revenues
pledged under this chapter, IC 8-22-3.5, or IC 8-22-3.6; or
(2) in any way impair the rights of owners of bonds of the
development authority, or the owners of bonds secured by lease
rentals, secured by a pledge of revenues under this chapter or
IC 8-22-3.6. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-24 Financing powers as public purpose
Sec. 24. This provision of alternative financing power to eligible
entities, development authorities, and authorities in order to finance
airport projects is a public purpose. As added by P.L.108-1993, SEC.11.
IC 8-22-3.7-25 Supplemental nature of chapter
Sec. 25. This chapter is supplemental to other statutes and does
not supersede any other provisions of the Indiana Code. As added by P.L.108-1993, SEC.11.
