CHAPTER 6. COUNTY HOSPITAL BUILDING AUTHORITIES
IC 16-22-6
Chapter 6. County Hospital Building Authorities
IC 16-22-6-1
Authority defined
Sec. 1. As used in this chapter, "authority" means the hospital
association created by section 2 of this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-2
Resolution for creation of authority; name; purpose
Sec. 2. The county executive of a county owning and operating
only one (1) county hospital may, upon written request by the
governing board of the hospital, adopt a resolution for the creation
of an authority under this chapter. Upon the adoption of the
resolution an authority is created which shall be a body corporate and
politic known as the "_________ County Hospital Association". The
name includes the name of the county. The authority is created for
the purpose of financing, acquiring, constructing, renovating,
equipping, and leasing to the county land and a building, including
an existing building, for hospital purposes. The county auditor shall
file a certified copy of the resolution with the clerk of the circuit
court of the county in which the authority is created.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-3
Appointment of directors; terms
Sec. 3. (a) Not more than sixty (60) days after the filing of the
certified copy of the resolution described under section 2 of this
chapter, the county executive shall appoint five (5) residents of the
county as directors of the county hospital building authority.
(b) The initial terms of the members of the governing board as
follows:
(1) One (1) member shall be appointed for a term of one (1)
year.
(2) One (1) member for a term of two (2) years.
(3) One (1) member for a term of three (3) years.
(4) Two (2) members for terms of four (4) years.
(c) At the expiration of the respective terms of the members of the
governing board the county executive shall appoint successors for
four (4) year terms. Each member serves until a successor is
appointed and qualified.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-4
Vacancies
Sec. 4. If a member dies, resigns, ceases to be a resident of the
county, or is removed as provided in this chapter, the county
executive shall appoint another person as a member of the governing
board for the remainder of the term. If a person appointed as a
member fails to qualify not more than ten (10) days after the mailing
of notice of appointment, the county executive shall appoint another
person as member.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-5
Director's oath of office
Sec. 5. Each member, before entering office, shall take and
subscribe an oath of office to be endorsed upon the certificate of
appointment. The oath shall be filed with the clerk of the circuit
court.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-6
Removal of director from office
Sec. 6. (a) A member may be removed from office for neglect of
duty, incompetency, inability to perform duties, or other good cause
by an order of the circuit court in the county in which the authority
is located, subject to the procedure set forth in subsection (b).
(b) A complaint may be filed by any person against the director
setting forth the charges preferred. The cause shall be placed on the
advanced calendar and is tried as other civil causes are tried by the
court without the intervention of a jury. If the charges are sustained,
the court shall declare the office vacant. A change of venue from the
judge shall be granted upon motion, but no change of venue from the
county may be taken.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-7
Selection of officers; meetings; quorum
Sec. 7. (a) The members originally appointed shall hold an
organizational meeting not more than thirty (30) days after
appointment, at a time and place designated by the county executive.
The members of the governing board shall elect from among the
members a president, vice president, secretary, and treasurer. The
officers serve until the expiration of the first term to expire and the
members shall meet annually to reorganize and elect officers not
more than thirty (30) days after the appointment of each successor
member for a full term.
(b) Other regular and special meetings shall be held at the times
and upon the notice that the members determine, by resolution or in
accordance with the bylaws, rules, and regulations adopted.
(c) A majority of the members constitutes a quorum and the
concurrence of a majority is necessary to authorize any action.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-8
Bylaws, rules, and regulations
Sec. 8. The members may adopt bylaws, rules, and regulations
necessary to conduct proceedings, carry out duties, and safeguard the
funds and property of the authority.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-9
Compensation and reimbursement
Sec. 9. A member serves without pay but is entitled to
reimbursement for expenses necessarily incurred in the performance
of the member's duties.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-10
Conflicts of interest
Sec. 10. A member may not have a pecuniary interest in a
contract, an employment, a purchase, or a sale made under the
provisions of this chapter. A transaction in which a director has a
pecuniary interest is void.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-11
Preliminary expenses
Sec. 11. (a) All necessary preliminary expenses actually incurred
by the governing board to make surveys, prepare estimates of costs
and receipts, employ architects, engineers, attorneys, or other
consultants, give notices, take options, and all other expenses that
must be paid before the issue and delivery of bonds under this
chapter may be paid by the county from funds on hand or derived
from taxes levied that may be appropriated for that purpose or by the
governing board of the hospital from revenues available for that
purpose.
(b) The county or the governing board of the hospital shall be
reimbursed for the preliminary expenses described under subsection
(a) by the governing board of the authority out of the first proceeds
of the sale of bonds by the authority provided for in this chapter and
before any other disbursements are made.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-12
Powers of governing board
Sec. 12. The governing board of the authority may do the
following:
(1) Finance and construct or renovate a building for hospital use
on land owned by the authority and lease the land and building
to the county in which the authority has been created.
(2) Sue and be sued and plead and be impleaded. However, an
action against the authority shall be brought in a circuit or
superior court of the county in which the authority is located.
(3) Condemn, appropriate, purchase, and hold real property
useful in connection with a building constructed or renovated
under this chapter.
(4) Acquire by gift, devise, or bequest real property and
personal property, and hold, use, expend, or dispose of real and
personal property for the purposes authorized by this chapter.
(5) Enter upon lots or lands to survey or examine the lots or
lands and determine the location of a building.
(6) Design, order, contract for, and construct or renovate a
building and make all necessary or desirable improvements to
the grounds and premises that the board may acquire.
(7) Enter into a lease with the county and collect rentals payable
under the lease.
(8) Make and enter into the contracts and agreements necessary
or incidental to the performance of the board's duties and the
execution of the board's powers under this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-13
Leases
Sec. 13. Each county may lease land and a building from the
authority for hospital purposes. A contract of lease on a particular
building may not be entered into for more than forty (40) years but
the contract may be renewed for a like or lesser time.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-14
Anticipatory lease
Sec. 14. A county may, in anticipation of the construction,
erection, or renovation of a building, including the necessary
equipment and appurtenances, enter into a contract of lease with the
authority before the acquisition of a site and the construction,
erection, or renovation of the building. Rental payments under a
contract of lease may not commence until construction is completed
and the building is ready for occupancy. However, if a building is
acquired and renovated, a county may, in anticipation of the
acquisition and renovation, make and enter into a contract of lease
upon terms and conditions agreed upon by the county and the
authority, including terms and conditions permitting the county to
continue to operate the building until completion of the renovation
and the payment of a lease rental by the lessee during the period of
renovation.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-15
Payment of lease rental; sources
Sec. 15. A lease executed under this chapter may provide for the
payment of the lease rental in one (1) of the following ways:
(1) Entirely from the levy of taxes.
(2) Entirely from the net revenues of the hospital of which the
leased building or buildings are a part.
(3) In part from the levy of taxes and in part from the net
revenues as fixed and set forth in the lease.
(4) From a cumulative building fund established by the lessee
under any of the following:
(A) IC 16-12-16 (before its repeal on July 1, 1993).
(B) IC 16-12.1-4-4 (before its repeal on July 1, 1993).
(C) IC 16-22-5.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-16
Payment of lease rentals from hospital net revenues; reserve fund
Sec. 16. (a) If a lease provides for the payment of lease rental in
whole or in part from net revenues of the hospital, the lease may
provide that the county and the governing board of the hospital
establish a reserve fund for net revenues in excess of the amount
required to pay lease rental payable from net revenues. The reserve
fund:
(1) may not exceed an amount equal to the amount of lease
rental payable from net revenues for two (2) years;
(2) shall be held and used only for the purpose of paying lease
rental payable from net revenues if the net revenues at any time
are insufficient for that purpose; and
(3) may be invested as provided in the lease and all interest or
other income from investment becomes part of the reserve fund.
(b) If the fund contains the maximum amount and a part of the
lease rental is payable from taxes, the interest or other income shall
be transferred to the fund described in section 32 of this chapter to
be used for the payment of the lease rental provided to be paid from
taxes. If none of the rental is payable from taxes, the interest or other
income becomes a part of the reserve fund.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-17
Payment of lease rentals from a cumulative building fund
Sec. 17. (a) If a lease provides for the payment of lease rentals for
a cumulative building fund, part or all of the cumulative building
fund and the tax levied for the cumulative building fund may be
committed and pledged to the payment of lease rental. To the extent
the amount is insufficient to pay the lease rental, the lease must
provide that the remaining lease rental be paid entirely from the net
revenues of the hospital. As long as the lease remains in effect:
(1) the amount of the cumulative building fund committed and
pledged may not be expended by the lessee for any other
purpose; and
(2) the tax levy for that cumulative building fund may not be
reduced or rescinded by the county council.
(b) If a lease provides for payment of lease rental as provided in
this section, the approval of the county fiscal body is not required for
the lease or the sale of land by the county to the authority under
section 16 of this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-18
Hearing on terms of proposed lease; notice
Sec. 18. When the authority, the governing board of the hospital,
the county executive, and a majority of the county fiscal body of the
county have agreed upon the terms and conditions of a lease
proposed to be entered into under the terms and conditions of this
chapter and before the final execution of the lease, the county auditor
shall publish notice of a public hearing to be held in the county by
the county executive not less than ten (10) days after the publication
of the notice. The notice of the hearing shall be published one (1)
time in a newspaper of general circulation printed in the English
language and published in the county. The notice must name the day,
place, and hour of the hearing and must set forth a brief summary of
the principal terms of the lease, including a description of the
property to be leased, the lease rental, the term of the lease, and
where the proposed lease, drawings, plans, specifications, and
estimates may be examined. The proposed lease and the drawings,
plans, specifications, and estimates of construction cost for the
building shall be open to inspection by the public during the ten (10)
day notice period and at the meeting. All persons have a right to be
heard at the meeting on the necessity for the lease and whether the
lease rental is fair and reasonable. The hearing may be adjourned to
a later date or dates and to a place fixed before the adjournment.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-19
Authorization and execution of lease
Sec. 19. Following the hearing the county executive may
authorize the execution of the lease originally agreed on or make
modifications agreed on with the authority, the governing board, and
the county fiscal body. The authorization must be by an order entered
in the official records of the county executive. The lease shall be
executed:
(1) on behalf of the county by at least a majority of the
members of the county executive; and
(2) on behalf of the authority by the president or vice president
and secretary of the governing board of the authority.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-20
Notice of execution of authorized lease; taxpayer objections
Sec. 20. (a) If the execution of the original or a modified lease is
authorized, notice of the signing shall be published on behalf of the
county one (1) time in a newspaper of general circulation and
published in the county. Except as provided in subsection (b), at least
ten (10) taxpayers in the county whose tax rate will be affected by
the proposed lease may file a petition with the county auditor not
more than thirty (30) days after publication of notice of the execution
of the lease. The petition must set forth the objections to the lease
and facts showing that the execution of the lease is unnecessary or
unwise or that the lease rental is not fair and reasonable.
(b) The authority for taxpayers to object to a proposed lease
described in subsection (a) does not apply if the authority complies
with the procedures for the issuance of bonds and other evidences of
indebtedness described in IC 6-1.1-20.
As added by P.L.2-1993, SEC.5. Amended by P.L.35-1997, SEC.11;
P.L.146-2008, SEC.434.
IC 16-22-6-21
Submission of objections to department of local government
finance
Sec. 21. On the filing of the petition the county auditor shall
immediately certify a copy, together with other data necessary to
present the questions involved, to the department of local
government finance.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.388.
IC 16-22-6-22
Hearing by department of local government finance; notice
Sec. 22. On receipt of the certified petition and information, the
department of local government finance shall fix a time and place in
the county for the hearing that shall be not less than five (5) or more
than fifteen (15) days after receipt. Notice of the hearing shall be
given by the department of local government finance to the county
executive and to the first ten (10) taxpayer petitioners by certified
mail sent to the addresses listed on the petition at least five (5) days
before the hearing date.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.389.
IC 16-22-6-23
Time for bringing action to contest or enjoin lease
Sec. 23. An action to contest the validity of the lease or to enjoin
the performance of the terms and conditions of the lease may not be
instituted more than thirty (30) days after publication of notice of the
execution of the lease or, if an appeal is taken to the department of
local government finance, not more than thirty (30) days after the
decision of the board.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.390.
IC 16-22-6-24
Lease options; renewal or purchase
Sec. 24. (a) A lease:
(1) may provide that the lessee has an option to renew the lease
for a like or lesser term; and
(2) must contain an option to purchase at any time after ten (10)
years from the execution of the lease and before the expiration
of the term of the lease on a date fixed in the lease at a price
equal to the amount required to enable the authority to do the
following:
(A) Redeem all outstanding securities payable out of the
rentals provided for in the lease and all premiums and
accrued and unpaid interest payable on that redemption.
(B) Pay all other indebtedness and obligations of the
authority attributable to the acquisition, construction,
renovation, and leasing of the buildings, including any cost
of liquidation of the authority.
(b) The lease does not create an obligation for the county to
purchase a leased building or an obligation to a creditor or
bondholder of the authority.
(c) A county exercising an option to purchase may issue general
obligation bonds to procure funds to purchase the building. The
bonds shall be authorized, issued, and sold in accordance with the
laws authorizing the issuance and sale of bonds for other county
purposes.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-25
Plans and specifications; approval
Sec. 25. Before the execution of a lease the governing board of the
hospital and the county executive shall approve the plans,
specifications, and estimates of cost for the building, equipment, and
appurtenances that the authority proposes to lease to a lessee. The
plans and specifications also shall be submitted to and approved by
the state department, the division of fire and building safety, and
other state agencies designated by law to pass on plans and
specifications for public buildings.
As added by P.L.2-1993, SEC.5. Amended by P.L.1-2006, SEC.296.
IC 16-22-6-26
Sale of county land or building to authority; procedure
Sec. 26. (a) A county desiring to erect or renovate a building on
land owned or to be acquired by the county may sell land or a
building, or both to the authority. Before the sale may take place, the
county executive, with the approval of the county fiscal body, shall
file a petition with the circuit court of the county requesting the
appointment of:
(1) one (1) disinterested freeholder of the county as an
appraiser; and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana to determine the fair market value of the
land and buildings. One (1) of the appraisers described under
subdivision (2) must reside not more than fifty (50) miles from the
land. The appraisers shall fix the fair market value of the land and
buildings and report not more than two (2) weeks after the date of the
appraisers' appointment. The county may sell the land and buildings
to the authority for an amount not less than the amount fixed as the
fair market value by the appraisers. The amount shall be paid in cash
upon delivery of the deed by the county to the authority.
(b) If a cumulative building fund exists at the time of the sale
under IC 16-12-16 (before its repeal on July 1, 1993), IC 16-12.1-4-4
(before its repeal on July 1, 1993), or IC 16-22-5, the proceeds from
the sale shall be placed in the fund. If a cumulative building fund
does not exist at the time of the sale, the proceeds from the sale shall
be paid into the county hospital fund and the principal and interest
shall be used for the purposes set forth in IC 16-22-5. A sale of land
or buildings, or both, by a county to the authority shall be authorized
by the county executive by an order entered in the official records of
the county executive. The deed shall be executed on behalf of the
county by the county executive.
As added by P.L.2-1993, SEC.5. Amended by P.L.113-2006, SEC.10.
IC 16-22-6-27
Contiguous counties; agreements for county without hospital to
reimburse county with hospital for portion of lease rental;
procedure
Sec. 27. (a) As used in this section, "contributing county" means
a county without a county hospital that is contiguous to a county with
a county hospital.
(b) As used in this section, "lessee county" means a county with
a county hospital.
(c) A contributing county may enter into an agreement with a
lessee county to reimburse the lessee county for a part of the lease
rental each year that is payable by the lessee county upon compliance
with this section.
(d) If the county executive of the contributing county finds that
the hospital of the lessee county serves the residents of the
contributing county and provides needed hospital services to such
residents, the county executive may prepare a contribution
agreement. Before final execution of the agreement, the auditor of
the contributing county shall publish notice of a public hearing to be
held in the contributing county by the county executive not less than
ten (10) days after publication of the notice. The notice shall be
published one (1) time in a newspaper of general circulation and
published in the contributing county. The notice must name the day,
place, and hour of the hearing and must set forth a summary of the
provisions of agreement as to the amount to be paid each year during
the term of the lease by the contributing county and where a copy of
the proposed agreement may be examined. All persons interested are
entitled to be heard at the time fixed on the necessity for the
execution of the agreement. The hearing may be adjourned to a later
date at a place fixed before adjournment.
(e) Following the hearing, if a majority of the county fiscal body
of the contributing county approve the execution of the agreement,
the county executive may authorize the execution of the original
agreement or may make the modifications agreed upon with the
county fiscal body. The authorization shall be by an order entered in
the official records of the county executive. The agreement shall be
executed:
(1) on behalf of the contributing county by at least a majority of
the members of the county executive; and
(2) on behalf of the lessee county by at least a majority of the
members of the county executive.
(f) If the execution of the original or modified contribution
agreement is authorized, notice of the signing shall be published on
behalf of the contributing county by publication one (1) time in a
newspaper of general circulation and published in the contributing
county. At least ten (10) taxpayers in the contributing county whose
tax rate will be affected by the proposed agreement may file a
petition with the county auditor of the contributing county not more
than thirty (30) days after publication of notice of the execution of
the agreement. The petition must set forth the objections to the
contribution agreement and facts showing that the execution of the
contribution agreement is unnecessary and unwise or that the amount
of contribution is excessive. On the filing of the petition, the county
auditor shall immediately certify a copy together with other data
necessary to present the questions involved to the department of local
government finance. The department of local government finance
shall fix a time and place in the county for the hearing not less than
five (5) or not more than fifteen (15) days after receipt of the
certified petition and information. Notice of the hearing shall be
given by the department of local government finance to the county
executive and to the first ten (10) taxpayer petitioners by certified
mail sent to the addresses listed on the petition, at least five (5) days
before the date of the hearing.
(g) An action to contest the validity of the contribution agreement
or to enjoin the performance of the agreement may not be instituted
later than thirty (30) days after publication of notice of the execution
of the agreement or, if an appeal has been taken to the department of
local government finance, not more than thirty (30) days after the
decision of the board.
(h) A contribution agreement may extend for the full term of the
lease or for any part and may provide for reimbursement by the
contributing county to the lessee county of a part of the lease rental
each year in an amount and upon terms and conditions agreed on
between the contributing county and the lessee county. The
contributing county shall annually levy a tax sufficient to produce
each year the necessary funds sufficient to reimburse the lessee
county as provided in the contribution agreement. The tax levies
provided for in this section shall be reviewable by other bodies
vested by law with the authority to ascertain that the levies are
sufficient to raise the required payments under the contribution
agreement. The annual contribution shall be paid semiannually to the
lessee county before the date lease rental payments are due from the
lessee county.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.391.
IC 16-22-6-28
Agreements between contiguous counties; rights of county citizens
Sec. 28. The citizens of a contributing county under section 27 of
this chapter have the same rights and privileges in the hospital as the
citizens of the county where the hospital is located.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-29
Revenue bonds; authorization; legal investments; sale
Sec. 29. (a) The governing board may issue revenue bonds of the
authority to procure funds to pay the cost of a building to be built,
acquired, renovated, or acquired and renovated under this chapter,
and to repay advances for preliminary expenses made to the authority
by the county. The bonds are payable solely from the income and
revenues of the particular building financed from the proceeds of the
bonds issued.
(b) The revenue bonds must be authorized by resolution of the
governing board. The resolution must provide the following:
(1) The rate of interest that the bonds will pay if the rate is
fixed, and the manner in which the interest rate will be
determined if rates are variable.
(2) The maturity date of the bonds, which may not exceed the
term of the lease of the building for which the bonds were
issued.
(3) The extent and the manner that bonds bearing variable
interest rates may be converted to bonds bearing a fixed rate of
interest.
(4) The terms of redemption, including a provision that bonds
maturing later than ten (10) years after issuance are, at the
option of the authority to be exercised by the board, redeemable
before maturity at the par value together with premiums.
(5) The form of the bonds, including the interest coupons to be
attached, if any.
(6) The denominations of the bonds.
(7) The time and places of payment of principal and interest of
the bonds, which must be at least one (1) state or national bank
or trust company.
(8) That the principal and interest may be paid in any lawful
medium.
(c) Subject to registration provisions, the bonds have the qualities
of negotiable instruments under IC 26 and the bonds are legal
investments for a private trust fund and the funds of any banks, trust
companies, insurance companies, building and loan associations,
credit unions, banks of discount and deposit, savings banks, loan and
trust 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 the laws
of the state.
(d) The bonds may be registered in the name of the owner. The
bonds shall be executed by the president or vice president of the
board of directors. The corporate seal of the authority shall be
affixed and attested by the secretary of the board of directors, and the
interest coupons attached to the bonds, if any, shall be executed by
placing on the coupons the facsimile signature of the treasurer.
(e) Except as provided in subsection (f), the bonds shall be sold
by the governing board at public sale under IC 5-1-11, but the notice
of sale shall be published in the manner required for bonds of the
county in which the authority is located. Notwithstanding
IC 5-1-11-3(c), bonds bearing a variable rate of interest shall be
awarded to the bidder offering the best bid in the judgment of the
board.
(f) If the aggregate principal amount of bonds to be issued at any
one (1) time exceeds ten million dollars ($10,000,000), the bonds
may be sold at public or private sale at a price the governing board
determines. If the bonds are sold at public sale, the governing board
shall follow the guidelines set forth in subsection (e). If the bonds are
sold at private sale, the governing board shall, before selecting a
person with whom to negotiate the sale of the bonds:
(1) solicit and obtain written proposals from at least three (3)
persons regularly engaged in the business of underwriting
bonds; or
(2) publish notice of intent to receive written proposals one (1)
time in a newspaper or financial journal having general
circulation in Indianapolis and a newspaper or financial journal
having national circulation.
(g) The governing board shall allow each person at least fourteen
(14) days from the date of solicitation or publication to formulate,
prepare, and submit a proposal. The board of directors shall select
the proposal that the board, in the board's sole discretion, determines
to be in the best interest of the authority.
As added by P.L.2-1993, SEC.5. Amended by P.L.42-1993, SEC.14.
IC 16-22-6-30
Application of bond proceeds
Sec. 30. The proceeds of bonds issued under this chapter, after
reimbursement to the county for preliminary expenses as provided in
section 11 of this chapter, shall be applied to the payment of the costs
of acquisition, construction, or renovation of the building for which
the bonds are issued, including incidental expenses and interest
before acquisition or during construction or renovation. Until the
proceeds are applied as required in this section, the proceeds are
subject to a lien in favor of the bondholders or trustees.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-31
Security for bonds; trust indenture
Sec. 31. (a) The governing board may secure the bonds by a trust
indenture between the authority and a corporate trustee, which may
be any trust company or national or state bank in Indiana having trust
powers.
(b) The trust indenture may do the following:
(1) Mortgage the land or building, or both, for which the bonds
are issued.
(2) Contain reasonable provisions for the following:
(A) Protecting and enforcing the rights and remedies of the
bondholders, including covenants setting forth the duties of
the authority and board in relation to the following:
(i) The construction or renovation of the building and the
building's insurance.
(ii) The custody, safeguarding, and application of all
money.
(B) Setting forth the rights and remedies of the bondholders
and trustee.
(C) Restricting the individual right of action of bondholders.
(c) Except as otherwise provided in this chapter, the board of
directors may determine by resolution or in the trust indenture the
following:
(1) The officer, board, or depositary that shall have custody of
the proceeds of the sale of the bonds.
(2) The method of disbursement of the proceeds, including
safeguards and restrictions.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-32
Tax levy
Sec. 32. (a) The county fiscal body of a county that has entered
into a lease under this chapter shall annually levy a tax sufficient to
produce, with other funds available, funds sufficient to pay the lease
rental provided to be paid from taxes.
(b) Net revenues of the hospital of which the leased building is a
part shall, if any of the lease rental is payable from taxes, be
transferred to a fund used for the payment of the lease rental to be
paid from taxes unless those revenues are required:
(1) to pay lease rental under the lease;
(2) to be retained as a reserve for that purpose; or
(3) by the governing board of the hospital to be kept in reserve
for additional construction, equipment, betterment,
maintenance, or operation.
(c) In fixing and determining the amount of the levy necessary to
pay lease rental payable from taxes, the county fiscal body shall
consider the amounts transferred from the net revenues of the
hospital as provided in this chapter. This chapter does not relieve the
county from the obligation to pay from taxes any lease rental payable
from taxes if other funds are not available. The tax levies provided
for in this chapter are reviewable by other bodies with authority to
ascertain that the levies, with other funds available, are sufficient to
meet the rental under the lease that is payable from taxes. Lease
rental shall be paid semiannually to the authority following
settlements of tax collections.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-33
Hospital revenues as source of lease rental payments
Sec. 33. (a) If:
(1) a county enters into a lease under this chapter, under which
the lease rental is payable in whole or in part from the net
revenues of the hospital of which the leased buildings are a
part; and
(2) the governing board of the hospital covenants in the lease to
establish and maintain rates, fees, and charges for the use of the
hospital sufficient in each year to:
(A) pay the proper and reasonable expense of operation,
repair, replacements, and maintenance of the hospital;
(B) pay the lease rental payable from the net revenues of the
hospital; and
(C) establish the reserve fund provided for in the lease in the
full amount in not less than five (5) years;
revenues collected are the revenues of the hospital. The rates, fees,
and charges shall be increased as necessary to comply with this
section.
(b) The authority may protect and enforce the rights granted under
this chapter or under the lease and may enforce and compel
performance of all duties required by this chapter or the lease to be
performed by:
(1) the county executing the lease;
(2) the county executive;
(3) the governing board; or
(4) an officer of the county;
including setting and collecting reasonable and sufficient rates, fees,
and charges for the use of the hospital.
(c) If there is a failure to pay lease rental payable solely from the
net revenues of the hospital on the payment date, a court having
jurisdiction of the action may appoint a receiver to administer the
hospital on behalf of the county and the authority.
(d) The receiver may charge and collect rates sufficient to do the
following:
(1) Pay the proper and reasonable expense of operation, repair,
replacements, and maintenance of the hospital.
(2) Pay the lease rental payable from the net revenues of the
hospital.
(3) Establish the full amount of the reserve fund provided for in
the lease in not less than five (5) years.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-34
Exemption from state taxation
Sec. 34. The following are exempt from state taxation except for
the financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1:
(1) Property owned by the authority.
(2) Revenues of the authority.
(3) Bonds or other securities and the interest on bonds and
securities issued by the authority.
(4) Proceeds received by a holder from the sale of the bonds, to
the extent of the holder's cost of acquisition.
(5) Proceeds received upon redemption at or before maturity
and the interest on the proceeds.
As added by P.L.2-1993, SEC.5. Amended by P.L.254-1997(ss),
SEC.23.
IC 16-22-6-35
Audit of funds; officer and employee bonds; records
Sec. 35. The state board of accounts may supervise and audit the
funds of the authority. An officer or employee of the authority
authorized to receive, disburse, or in any way handle funds or
negotiable securities of the authority shall execute a bond payable to
the state, with surety to consist of a surety or guaranty corporation
qualified to do business in Indiana, in an amount determined by the
board. The bond must be conditioned upon the faithful performance
of the officer's or employee's duties and the accounting for all money
and property that may come under the officer's or employee's control.
The cost of the bonds shall be paid out of funds of the authority. The
records of the authority are public records.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-36
Liquidation of authority
Sec. 36. An authority may be liquidated after the authority's
securities are redeemed, debts are paid, and leases are terminated if
the board of directors files a report with the judge of the circuit court
showing the facts and stating that the liquidation is in the best public
interest. The court shall find the facts and make an order book entry
ordering the authority liquidated.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-37
Building additions; funding
Sec. 37. (a) A county or the governing board of the hospital may
remodel or construct an addition to a hospital building leased under
this chapter.
(b) To provide funds for that purpose, the county may issue
general obligation bonds or appropriate money from the county's
general fund or other funds available for that purpose if the hospital
building is owned by the county. The governing board of a hospital
may use funds available to the board if the hospital building is owned
by the county.
(c) A contract entered into under this chapter for a public work (as
defined in IC 5-16-7-4) is subject to IC 5-16-7.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-38
Agreements
Sec. 38. A county and an authority that have entered into or
propose to enter into a lease under this chapter may enter into a party
wall agreement or other agreement concerning the attaching of an
addition to a hospital building if the agreement is approved by the
governing board of the hospital and recorded with the recorder of the
county in which the hospital is located. The agreement may provide
for an easement or a license to construct a part of an addition over or
above the existing hospital building.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-39
Lease approval of county fiscal body
Sec. 39. For the purposes of this chapter, county executive action
or approval for the appropriation and expenditure of county tax
money includes approval by the county fiscal body. A lease entered
into by the county executive with the hospital building authority or
association is not valid or binding on the county unless the lease is
approved by a majority vote of the county fiscal body.
As added by P.L.2-1993, SEC.5.
IC 16-22-6-40
Compliance with other laws
Sec. 40. In proceeding under this chapter, it is not necessary to
comply with any other law except as otherwise expressly provided
in this chapter.
As added by P.L.2-1993, SEC.5.