IC 8-9.5-9
Chapter 9. Powers and Duties of Authorities Related to Swap
Agreements
IC 8-9.5-9-1 Construction and application of chapter
Sec. 1. This chapter applies notwithstanding any other law and
shall be liberally construed. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-2 "Authority" defined
Sec. 2. As used in this chapter, "authority" means:
(1) an authority or agency established under IC 8-1-2.2 or
IC 8-9.5 through IC 8-23;
(2) when acting under an affected statute (as defined in
IC 4-4-10.9-1.2), the Indiana finance authority established by
IC 4-4-11;
(3) only in connection with a program established under
IC 13-18-13 or IC 13-18-21, the bank established under
IC 5-1.5;
(4) a fund or program established under IC 13-18-13 or
IC 13-18-21;
(5) the Indiana housing and community development authority
established by IC 5-20-1;
(6) the authority established under IC 4-4-11; or
(7) the authority established under IC 5-1-17. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.45; P.L.235-2005, SEC.108; P.L.214-2005, SEC.50;
P.L.1-2006, SEC.153 and P.L.181-2006, SEC.49; P.L.162-2007,
SEC.30.
IC 8-9.5-9-3 "Obligations" defined
Sec. 3. As used in this chapter, "obligations" means bonds, loan
contracts, notes, bond anticipation notes, commercial paper, leases,
lease-purchases, installment purchases, certificates of participation
in agreements or programs, other evidences of indebtedness, or other
agreements or purchasing programs, whether or not the obligations
have been issued or entered into. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.46.
IC 8-9.5-9-4 "Swap agreement" defined
Sec. 4. As used in this chapter, "swap agreement" refers to:
(1) an agreement (including terms and conditions incorporated
by reference in the agreement) that is a rate swap agreement,
basis swap, forward rate agreement, interest rate option, rate
cap agreement, rate floor agreement, rate collar agreement, or
any other similar agreement (including any option to enter into
any of the agreements described in this subdivision);
(2) any combination of the agreements described in subdivision
(1); or
(3) a master agreement for an agreement or a combination of
agreements described in subdivision (1) or (2), together with all
supplements to the agreement. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-5 Powers and duties of authorities
Sec. 5. (a) Subject to subsections (b) through (d), an authority
may enter into and modify, amend, or terminate one (1) or more swap
agreements that the authority determines to be necessary or desirable
in connection with or incidental to the issuance, carrying, or securing
of obligations. Swap agreements entered into by an authority shall:
(1) contain the provisions (including payment, term, security,
default, and remedy provisions); and
(2) be with the parties;
that the authority determines are necessary or desirable after due
consideration is given to the creditworthiness of the parties.
(b) The authority may not:
(1) enter into any swap agreement under this section other than
for the purpose of managing an interest rate or similar risk that
arises in connection with or incidental to the issuance, carrying,
or securing of obligations by the authority; or
(2) carry on a business of acting as a dealer in swap agreements.
(c) A swap agreement shall be considered as being entered into in
connection with or incidental to the issuance, carrying, or securing
of obligations if:
(1) the swap agreement is entered into not more than one
hundred eighty (180) days after the issuance of the obligations
and specifically indicates the agreement's relationship to the
obligations;
(2) the authority designates the swap agreement as having a
relationship to the obligations;
(3) the swap agreement amends, modifies, or reverses a swap
agreement described in subdivision (1) or (2); or
(4) the terms of the swap agreement bear a reasonable
relationship to the terms of the obligations.
(d) Payments to be made by the authority to any other party under
a swap agreement may be payable from:
(1) the same source or sources of funds from which the
obligations are, will be, or may be payable; or
(2) any other lawfully available source.
(e) This chapter does not create a debt or liability of the authority
or the state for purposes of any constitutional or statutory limitation. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.47. IC 8-9.5-9-6 Investment powers
Sec. 6. The provisions of this chapter shall not be construed as
limiting or restricting the investment powers otherwise provided to
the authority. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-7 Credit enhancement and liquidity agreements
Sec. 7. With regard to entering into any swap agreement, the
authority may enter into credit enhancement or liquidity agreements
with payment, security, default, remedy, and other terms and
conditions as determined by the authority. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-8 Payments under swap agreements
Sec. 8. (a) With respect to all leases and contracts entered into by
the authority with the Indiana department of transportation, the
Indiana department of administration, a fund or program established
under IC 13-18-13 or IC 13-18-21, or any other entity to support
obligations, the lease or contract may provide that payments under
a swap agreement are treated as a debt service on the obligations or
as additional rental or other payment due under the lease or contract
as the authority may determine.
(b) The authority may determine that payments under a swap
agreement may be integrated with payments on obligations for the
purpose of meeting any statutory requirements related to the issuance
of obligations. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.48.
IC 8-9.5-9-9 Enforcement of swap agreements
Sec. 9. (a) This section does not apply in cases of bad faith or
actual knowledge to the contrary by a party.
(b) A party that enters into any swap agreement with an authority
may rely on a representation by the authority that the authority is
authorized or empowered to enter into the swap agreement, and
notwithstanding the failure by the authority to comply with the
provisions of this chapter, that party may enforce the swap agreement
against the authority, subject to the terms of the swap agreement and
subject to prior claims on sources from which the swap agreement
may be payable. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9
Chapter 9. Powers and Duties of Authorities Related to Swap
Agreements
IC 8-9.5-9-1 Construction and application of chapter
Sec. 1. This chapter applies notwithstanding any other law and
shall be liberally construed. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-2 "Authority" defined
Sec. 2. As used in this chapter, "authority" means:
(1) an authority or agency established under IC 8-1-2.2 or
IC 8-9.5 through IC 8-23;
(2) when acting under an affected statute (as defined in
IC 4-4-10.9-1.2), the Indiana finance authority established by
IC 4-4-11;
(3) only in connection with a program established under
IC 13-18-13 or IC 13-18-21, the bank established under
IC 5-1.5;
(4) a fund or program established under IC 13-18-13 or
IC 13-18-21;
(5) the Indiana housing and community development authority
established by IC 5-20-1;
(6) the authority established under IC 4-4-11; or
(7) the authority established under IC 5-1-17. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.45; P.L.235-2005, SEC.108; P.L.214-2005, SEC.50;
P.L.1-2006, SEC.153 and P.L.181-2006, SEC.49; P.L.162-2007,
SEC.30.
IC 8-9.5-9-3 "Obligations" defined
Sec. 3. As used in this chapter, "obligations" means bonds, loan
contracts, notes, bond anticipation notes, commercial paper, leases,
lease-purchases, installment purchases, certificates of participation
in agreements or programs, other evidences of indebtedness, or other
agreements or purchasing programs, whether or not the obligations
have been issued or entered into. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.46.
IC 8-9.5-9-4 "Swap agreement" defined
Sec. 4. As used in this chapter, "swap agreement" refers to:
(1) an agreement (including terms and conditions incorporated
by reference in the agreement) that is a rate swap agreement,
basis swap, forward rate agreement, interest rate option, rate
cap agreement, rate floor agreement, rate collar agreement, or
any other similar agreement (including any option to enter into
any of the agreements described in this subdivision);
(2) any combination of the agreements described in subdivision
(1); or
(3) a master agreement for an agreement or a combination of
agreements described in subdivision (1) or (2), together with all
supplements to the agreement. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-5 Powers and duties of authorities
Sec. 5. (a) Subject to subsections (b) through (d), an authority
may enter into and modify, amend, or terminate one (1) or more swap
agreements that the authority determines to be necessary or desirable
in connection with or incidental to the issuance, carrying, or securing
of obligations. Swap agreements entered into by an authority shall:
(1) contain the provisions (including payment, term, security,
default, and remedy provisions); and
(2) be with the parties;
that the authority determines are necessary or desirable after due
consideration is given to the creditworthiness of the parties.
(b) The authority may not:
(1) enter into any swap agreement under this section other than
for the purpose of managing an interest rate or similar risk that
arises in connection with or incidental to the issuance, carrying,
or securing of obligations by the authority; or
(2) carry on a business of acting as a dealer in swap agreements.
(c) A swap agreement shall be considered as being entered into in
connection with or incidental to the issuance, carrying, or securing
of obligations if:
(1) the swap agreement is entered into not more than one
hundred eighty (180) days after the issuance of the obligations
and specifically indicates the agreement's relationship to the
obligations;
(2) the authority designates the swap agreement as having a
relationship to the obligations;
(3) the swap agreement amends, modifies, or reverses a swap
agreement described in subdivision (1) or (2); or
(4) the terms of the swap agreement bear a reasonable
relationship to the terms of the obligations.
(d) Payments to be made by the authority to any other party under
a swap agreement may be payable from:
(1) the same source or sources of funds from which the
obligations are, will be, or may be payable; or
(2) any other lawfully available source.
(e) This chapter does not create a debt or liability of the authority
or the state for purposes of any constitutional or statutory limitation. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.47. IC 8-9.5-9-6 Investment powers
Sec. 6. The provisions of this chapter shall not be construed as
limiting or restricting the investment powers otherwise provided to
the authority. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-7 Credit enhancement and liquidity agreements
Sec. 7. With regard to entering into any swap agreement, the
authority may enter into credit enhancement or liquidity agreements
with payment, security, default, remedy, and other terms and
conditions as determined by the authority. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-8 Payments under swap agreements
Sec. 8. (a) With respect to all leases and contracts entered into by
the authority with the Indiana department of transportation, the
Indiana department of administration, a fund or program established
under IC 13-18-13 or IC 13-18-21, or any other entity to support
obligations, the lease or contract may provide that payments under
a swap agreement are treated as a debt service on the obligations or
as additional rental or other payment due under the lease or contract
as the authority may determine.
(b) The authority may determine that payments under a swap
agreement may be integrated with payments on obligations for the
purpose of meeting any statutory requirements related to the issuance
of obligations. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.48.
IC 8-9.5-9-9 Enforcement of swap agreements
Sec. 9. (a) This section does not apply in cases of bad faith or
actual knowledge to the contrary by a party.
(b) A party that enters into any swap agreement with an authority
may rely on a representation by the authority that the authority is
authorized or empowered to enter into the swap agreement, and
notwithstanding the failure by the authority to comply with the
provisions of this chapter, that party may enforce the swap agreement
against the authority, subject to the terms of the swap agreement and
subject to prior claims on sources from which the swap agreement
may be payable. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9
Chapter 9. Powers and Duties of Authorities Related to Swap
Agreements
IC 8-9.5-9-1 Construction and application of chapter
Sec. 1. This chapter applies notwithstanding any other law and
shall be liberally construed. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-2 "Authority" defined
Sec. 2. As used in this chapter, "authority" means:
(1) an authority or agency established under IC 8-1-2.2 or
IC 8-9.5 through IC 8-23;
(2) when acting under an affected statute (as defined in
IC 4-4-10.9-1.2), the Indiana finance authority established by
IC 4-4-11;
(3) only in connection with a program established under
IC 13-18-13 or IC 13-18-21, the bank established under
IC 5-1.5;
(4) a fund or program established under IC 13-18-13 or
IC 13-18-21;
(5) the Indiana housing and community development authority
established by IC 5-20-1;
(6) the authority established under IC 4-4-11; or
(7) the authority established under IC 5-1-17. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.45; P.L.235-2005, SEC.108; P.L.214-2005, SEC.50;
P.L.1-2006, SEC.153 and P.L.181-2006, SEC.49; P.L.162-2007,
SEC.30.
IC 8-9.5-9-3 "Obligations" defined
Sec. 3. As used in this chapter, "obligations" means bonds, loan
contracts, notes, bond anticipation notes, commercial paper, leases,
lease-purchases, installment purchases, certificates of participation
in agreements or programs, other evidences of indebtedness, or other
agreements or purchasing programs, whether or not the obligations
have been issued or entered into. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.46.
IC 8-9.5-9-4 "Swap agreement" defined
Sec. 4. As used in this chapter, "swap agreement" refers to:
(1) an agreement (including terms and conditions incorporated
by reference in the agreement) that is a rate swap agreement,
basis swap, forward rate agreement, interest rate option, rate
cap agreement, rate floor agreement, rate collar agreement, or
any other similar agreement (including any option to enter into
any of the agreements described in this subdivision);
(2) any combination of the agreements described in subdivision
(1); or
(3) a master agreement for an agreement or a combination of
agreements described in subdivision (1) or (2), together with all
supplements to the agreement. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-5 Powers and duties of authorities
Sec. 5. (a) Subject to subsections (b) through (d), an authority
may enter into and modify, amend, or terminate one (1) or more swap
agreements that the authority determines to be necessary or desirable
in connection with or incidental to the issuance, carrying, or securing
of obligations. Swap agreements entered into by an authority shall:
(1) contain the provisions (including payment, term, security,
default, and remedy provisions); and
(2) be with the parties;
that the authority determines are necessary or desirable after due
consideration is given to the creditworthiness of the parties.
(b) The authority may not:
(1) enter into any swap agreement under this section other than
for the purpose of managing an interest rate or similar risk that
arises in connection with or incidental to the issuance, carrying,
or securing of obligations by the authority; or
(2) carry on a business of acting as a dealer in swap agreements.
(c) A swap agreement shall be considered as being entered into in
connection with or incidental to the issuance, carrying, or securing
of obligations if:
(1) the swap agreement is entered into not more than one
hundred eighty (180) days after the issuance of the obligations
and specifically indicates the agreement's relationship to the
obligations;
(2) the authority designates the swap agreement as having a
relationship to the obligations;
(3) the swap agreement amends, modifies, or reverses a swap
agreement described in subdivision (1) or (2); or
(4) the terms of the swap agreement bear a reasonable
relationship to the terms of the obligations.
(d) Payments to be made by the authority to any other party under
a swap agreement may be payable from:
(1) the same source or sources of funds from which the
obligations are, will be, or may be payable; or
(2) any other lawfully available source.
(e) This chapter does not create a debt or liability of the authority
or the state for purposes of any constitutional or statutory limitation. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.47. IC 8-9.5-9-6 Investment powers
Sec. 6. The provisions of this chapter shall not be construed as
limiting or restricting the investment powers otherwise provided to
the authority. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-7 Credit enhancement and liquidity agreements
Sec. 7. With regard to entering into any swap agreement, the
authority may enter into credit enhancement or liquidity agreements
with payment, security, default, remedy, and other terms and
conditions as determined by the authority. As added by P.L.55-1994, SEC.1.
IC 8-9.5-9-8 Payments under swap agreements
Sec. 8. (a) With respect to all leases and contracts entered into by
the authority with the Indiana department of transportation, the
Indiana department of administration, a fund or program established
under IC 13-18-13 or IC 13-18-21, or any other entity to support
obligations, the lease or contract may provide that payments under
a swap agreement are treated as a debt service on the obligations or
as additional rental or other payment due under the lease or contract
as the authority may determine.
(b) The authority may determine that payments under a swap
agreement may be integrated with payments on obligations for the
purpose of meeting any statutory requirements related to the issuance
of obligations. As added by P.L.55-1994, SEC.1. Amended by P.L.273-1999,
SEC.48.
IC 8-9.5-9-9 Enforcement of swap agreements
Sec. 9. (a) This section does not apply in cases of bad faith or
actual knowledge to the contrary by a party.
(b) A party that enters into any swap agreement with an authority
may rely on a representation by the authority that the authority is
authorized or empowered to enter into the swap agreement, and
notwithstanding the failure by the authority to comply with the
provisions of this chapter, that party may enforce the swap agreement
against the authority, subject to the terms of the swap agreement and
subject to prior claims on sources from which the swap agreement
may be payable. As added by P.L.55-1994, SEC.1.
