CHAPTER 9. MARION COUNTY CAPITAL IMPROVEMENT BOARD
IC 36-10-9
Chapter 9. Marion County Capital Improvement Board
IC 36-10-9-1
Application of chapter
Sec. 1. This chapter applies to each county having a consolidated
city.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-2
Definitions
Sec. 2. As used in this chapter:
"Board" refers to a capital improvement board of managers
created under this chapter.
"Bonds" means bonds issued under section 12 or section 15 of this
chapter and, except as used in section 12 of this chapter or unless the
context otherwise requires, lease agreements entered into under
section 6(15) of this chapter.
"Excise taxes" refers to the excise taxes imposed by IC 6-9-8,
IC 6-9-12, and IC 6-9-13.
"Issue", "issued", or "issuance" means in the case of lease
agreements "execute", "executed", or "execution" respectively.
"Lease agreements" means lease agreements entered into under
section 6(15) of this chapter.
"Net income" means the gross income from the operation of a
capital improvement after deducting the necessary operating
expenses of the board.
"Notes" means notes issued under section 21 of this chapter.
"Operating expenses" means:
(1) the necessary operational expenses of the board in
performing its duties under this chapter, including maintenance,
repairs, replacements, alterations, and costs of services of
architects, engineers, accountants, attorneys, and consultants;
(2) the expenses for any other purpose that has been approved
under section 8 of this chapter; and
(3) the maintenance of reasonable reserves for any of the items
listed in subdivisions (1) and (2) of this definition or for other
purposes required under a resolution, ordinance, or trust
agreement.
"Principal and interest" or "principal on and interest of" includes,
unless the context otherwise requires, payments required by lease
agreements.
"Pre-1981 general obligation bonds" means general obligation
bonds issued before January 1, 1981.
"Trust agreements", except as used in section 13 of this chapter
or unless the context otherwise requires, includes lease agreements.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.82-1985,
SEC.9.
IC 36-10-9-3
Creation of county board of managers; powers of county
Sec. 3. (a) A capital improvement board of managers is created in
the county.
(b) The county may finance, construct, equip, operate, and
maintain a capital improvement under this chapter.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-4
County board of managers; membership; terms; vacancies; oath
of office; compensation
Sec. 4. (a) The board is composed of nine (9) members. Six (6)
members shall be appointed by the executive of the consolidated city,
one (1) member shall be appointed by the board of commissioners of
the county, one (1) member shall be appointed by the legislative
body of the consolidated city from among the members of the
legislative body, and one (1) member shall be appointed jointly by
majority vote of a body consisting of one (1) member of the board of
county commissioners of each county in which a food and beverage
tax is in effect under IC 6-9-35 on January 1 of the year of the
appointment. The board of county commissioners that has the
greatest population of all counties in which a food and beverage tax
is in effect under IC 6-9-35 on January 1 of the year of the
appointment shall convene the meeting to make the joint
appointment. Each county in which a food and beverage tax is in
effect under IC 6-9-35 on January 1 of the year of the appointment
is entitled to be represented at the meeting by one (1) member of the
county's board of county commissioner, who shall be selected by that
county's board of county commissioners. One (1) of the members
appointed by the executive must be engaged in the hotel or motel
business in the county. Not more than four (4) of the members
appointed by the executive may be affiliated with the same political
party.
(b) The terms of members are for two (2) years beginning on
January 15 and until a successor is appointed and qualified. A
member may be reappointed after the member's term has expired.
(c) If a vacancy occurs on the board, the appointing authority shall
appoint a new member. That member serves for the remainder of the
vacated term.
(d) A board member may be removed for cause by the appointing
authority who appointed the member.
(e) Each member, before entering upon the duties of office, shall
take and subscribe an oath of office in the usual form. The oath shall
be endorsed upon the member's certificate of appointment, which
shall be promptly filed with the records of the board.
(f) A member does not receive a salary, but is entitled to
reimbursement for any expenses necessarily incurred in the
performance of the member's duties.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.116-1995,
SEC.8; P.L.182-2009(ss), SEC.454.
IC 36-10-9-5
County board of managers; organizational meetings
Sec. 5. (a) Immediately after January 15 each year, the board shall
hold an organizational meeting. It shall elect one (1) of the members
president, another vice president, another secretary, and another
treasurer to perform the duties of those offices. The officers serve
from the date of their election until their successors are elected and
qualified.
(b) The 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. 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 Acts 1982, P.L.77, SEC.28.
IC 36-10-9-6
County board of managers; powers and duties as capital
improvement board of managers
Sec. 6. The board may, acting under the title "capital improvement
board of managers of __________ County", do the following:
(1) Acquire by grant, purchase, gift, devise, lease,
condemnation, or otherwise, and hold, use, sell, lease, or
dispose of, real and personal property and all property rights
and interests necessary or convenient for the exercise of its
powers under this chapter.
(2) Construct, reconstruct, repair, remodel, enlarge, extend, or
add to any capital improvement built or acquired by the board
under this chapter.
(3) Control and operate a capital improvement, including letting
concessions and leasing all or part of the capital improvement.
(4) Fix charges and establish rules governing the use of a capital
improvement.
(5) Accept gifts or contributions from individuals, corporations,
limited liability companies, partnerships, associations, trusts, or
political subdivisions, foundations, and funds, loans, or
advances on the terms that the board considers necessary or
desirable from the United States, the state, and any political
subdivision or department of either, including entering into and
carrying out contracts and agreements in connection with this
subdivision.
(6) Exercise within and in the name of the county the power of
eminent domain under general statutes governing the exercise
of the power for a public purpose.
(7) Receive and collect money due for the use or leasing of a
capital improvement and from concessions and other contracts,
and expend the money for proper purposes.
(8) Receive excise taxes, income taxes, and ad valorem property
taxes and expend the money for operating expenses, payments
of principal or interest of bonds or notes issued under this
chapter, and for all or part of the cost of a capital improvement.
(9) Retain the services of architects, engineers, accountants,
attorneys, and consultants and hire employees upon terms and
conditions established by the board, so long as any employees
or members of the board authorized to receive, collect, and
expend money are covered by a fidelity bond, the amount of
which shall be fixed by the board. Funds may not be disbursed
by an employee or member of the board without prior specific
approval by the board.
(10) Provide coverage for its employees under IC 22-3 and
IC 22-4.
(11) Purchase public liability and other insurance considered
desirable.
(12) 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, including the enforcement of
them.
(13) Sue and be sued in the name and style of "capital
improvement board of managers of ___________ County"
(including the name of the county), service of process being had
by leaving a copy at the board's office.
(14) Prepare and publish descriptive material and literature
relating to the facilities and advantages of a capital
improvement and do all other acts that the board considers
necessary to promote and publicize the capital improvement,
including the convention and visitor industry, and serve the
commercial, industrial, and cultural interests of Indiana and its
citizens. The board may assist, cooperate, and fund
governmental, public, and private agencies and groups for these
purposes.
(15) Enter into leases of capital improvements and sell or lease
property under IC 5-1-17 or IC 36-10-9.1.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.82-1985,
SEC.10; P.L.8-1993, SEC.520; P.L.255-1997(ss), SEC.21;
P.L.214-2005, SEC.75.
IC 36-10-9-7
Procurement of materials and work; emergency procedure; title to
or interest in property
Sec. 7. (a) The purchase or lease of material and work on a capital
improvement shall be done by the board under statutes governing
these activities by counties. However, if the total cost of construction
or equipping of a capital improvement or of the alteration,
maintenance, or repair of any building is estimated to be fifty
thousand dollars ($50,000) or less, the board may procure materials
and perform the work by its own employees and with owned or
leased equipment without awarding a contract. In addition, in an
emergency determined and declared by the board and entered in its
records, the board may make emergency alterations, repairs, or
replacements and contract for them without advertising for bids.
(b) Title to or interest in any property acquired shall be held in the
name of the county, and the board has complete and exclusive
authority to sell, lease, or dispose of it and to execute all
conveyances, leases, contracts, and other instruments in connection
with it. However, real property may not be sold without the approval
of the executive of the consolidated city.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-8
Annual budget; capital improvement; issuance of bonds
Sec. 8. (a) The board shall prepare a budget for each calendar year
covering the projected operating expenses, projected expenditures
for capital improvements or land acquisition, and estimated income
to pay the operating expenses and capital expenditures, including
amounts, if any, to be received from excise taxes and ad valorem
property taxes. It shall submit the operating and capital budget for
review, approval, or rejection to the city-county legislative body. The
board may make expenditures only as provided in the budget as
approved, unless additional expenditures are approved by the
legislative body. However, payments to users of any capital
improvement that constitute a contractual share of box office receipts
are neither an operating expense nor an expenditure within the
meaning of this section.
(b) If the board desires to finance a capital improvement in whole
or in part by the issuance of bonds under section 12 or 15 of this
chapter, the board shall submit the following information to the
city-county legislative body at least thirty (30) days before the
adoption of a resolution authorizing the issuance of the bonds:
(1) A description of the project to be financed through the
issuance of bonds.
(2) The total amount of the project anticipated to be funded
through the issuance of bonds.
(3) The total amount of other anticipated revenue sources for
the project.
(4) Any other terms upon which the bonds will be issued.
(c) The city-county legislative body must discuss the information
provided in subsection (b) in a public hearing held before the
resolution may be adopted by the board.
(d) The board shall post the board's proposed budget and adopted
budget on the board's Internet web site.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.42-1994,
SEC.14; P.L.182-2009(ss), SEC.455.
IC 36-10-9-8.1
Long range financial plan
Sec. 8.1. (a) During 2009, the board shall prepare a long range
financial plan covering the period beginning with the year 2010 and
ending with the year 2041. The long range financial plan must set
forth the following:
(1) The schedule for the retirement of all debt that is
outstanding as of January 1, 2010.
(2) An estimated operating and capital budget for each calendar
year that covers the projected operating expenses, debt
obligations, expenditures for capital improvements and land
acquisition, and estimated income to pay these items, including
the source of each type of income.
(b) Before January 1, 2010, the board shall deliver a copy of the
long range financial plan to each member of the city-county
legislative body and to the legislative council in an electronic format
under IC 5-14-6.
(c) The city-county legislative body shall discuss the long range
financial plan in a public hearing.
As added by P.L.182-2009(ss), SEC.456.
IC 36-10-9-9
Treasurer; controller; duties; board of accounts audits
Sec. 9. (a) The treasurer of the board is the official custodian of
all funds and assets of the board and is responsible for their
safeguarding and accounting. The treasurer shall give bond for the
faithful performance and discharge of all duties required of the
treasurer by law in the amount and with surety and other conditions
that may be prescribed and approved by the board. All funds and
assets in the capital improvement fund and the capital improvement
bond fund created by this chapter and all other funds, assets, and tax
revenues held, collected, or received by the treasurer of the county
for the use of the board shall be promptly remitted and paid over by
the county treasurer to the treasurer of the board, who shall issue
receipts for them.
(b) The treasurer of the board shall deposit all funds coming into
the treasurer's hands as required by this chapter and by IC 6-7-1-30.1,
and in accordance with IC 5-13. Money so deposited may be invested
and reinvested by the treasurer in accordance with general statutes
relating to the investment of public funds and in securities that the
board specifically directs. All interest and other income earned on
investments becomes a part of the particular fund from which the
money was invested, except as provided in a resolution, ordinance,
or trust agreement providing for the issuance of bonds or notes. All
funds invested in deposit accounts as provided in IC 5-13-9 must be
insured under IC 5-13-12.
(c) The board shall appoint a controller to act as the auditor and
assistant treasurer of the board. The controller shall serve as the
official custodian of all books of account and other financial records
of the board and has the same powers and duties as the treasurer of
the board or the lesser powers and duties that the board prescribes.
The controller and any other employee or member of the board
authorized to receive, collect, or expend money, shall give bond for
the faithful performance and discharge of all duties required of the
controller in the amount and with surety and other conditions that
may be prescribed and approved by the board. The controller shall
keep an accurate account of all money due the board and of all
money received, invested, and disbursed in accordance with
generally recognized governmental accounting principles and
procedure. All accounting forms and records shall be prescribed or
approved by the state board of accounts.
(d) The controller shall issue all warrants for the payment of
money from the funds of the board in accordance with procedures
prescribed by the board but a warrant may not be issued for the
payment of a claim until an itemized and verified statement of the
claim has been filed with the controller, who may require evidence
that all amounts claimed are justly due. All warrants shall be
countersigned by the treasurer of the board or by the executive
manager. Warrants may be executed with facsimile signatures.
(e) If there are bonds or notes outstanding issued under this
chapter, the controller shall deposit with the paying agent or other
paying officer within a reasonable period before the date that any
principal or interest becomes due sufficient money for the payment
of the principal and interest on the due dates. The controller shall
make the deposit with money from the sources provided in this
chapter, and he shall make the deposit in an amount that, together
with other money available for the payment of the principal and
interest, is sufficient to make the payment. In addition, the controller
shall make other deposits for the bonds and notes as is required by
this chapter or by the resolutions, ordinances, or trust agreements
under which the bonds or notes are issued.
(f) The controller shall submit to the board at least annually a
report of the board's accounts exhibiting the revenues, receipts, and
disbursements and the sources from which the revenues and receipts
were derived and the purpose and manner in which they were
disbursed. The board may require that the report be prepared by an
independent certified public accountant designated by the board. The
state board of accounts shall audit annually the accounts, books, and
records of the board and prepare a financial report and a compliance
audit report. The board shall submit to the city-county legislative
body financial and compliance reports of the state board of accounts.
The board shall post the reports of the state board of accounts on the
board's Internet web site. The city-county legislative body shall
discuss the financial and compliance reports of the state board of
accounts in a public hearing. The handling and expenditure of funds
is subject to supervision by the state board of accounts.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.19-1987,
SEC.57; P.L.46-1997, SEC.17; P.L.182-2009(ss), SEC.457.
IC 36-10-9-10
Capital improvement fund
Sec. 10. (a) Unless there are bonds or notes outstanding under this
chapter and secured in whole or in part by money deposited in the
capital improvement bond fund, the proceeds of excise taxes
received from the treasurer of the state shall be deposited in a
separate and distinct fund called the "capital improvement fund". The
gross income received by the board from the operation of capital
improvements under this chapter shall be deposited in the capital
improvement fund, regardless of whether or not there are any bonds
or notes outstanding. Any money in the fund may be expended by the
board without the necessity of an appropriation to pay or provide for
the payment of operating expenses. Money in the fund may also be
used by the board without appropriation or approval to pay the
principal on, or interest of, any bonds or notes issued under this
chapter that cannot be paid from funds in the capital improvement
bond fund or may be used for the payment of the principal of,
redemption premium, if any, for, and interest on any bonds or notes
issued under this chapter, upon prior redemption, or for all or part of
the cost of a capital improvement.
(b) The board may covenant in any resolution, ordinance, or trust
agreement providing for the issuance of bonds or notes as to the
order of application of money deposited in the capital improvement
fund, including the holding or disposing of any surplus in that fund.
(c) The net income from the operation of capital improvements
under this chapter shall be transferred from the capital improvement
fund to the capital improvement bond fund to the extent of any
deficiency in the amount required to be in the capital improvement
bond fund.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-11
Capital improvement bond fund
Sec. 11. (a) If there are any outstanding bonds or notes issued
under this chapter and secured in whole or in part by money
deposited in the capital improvement bond fund, the treasurer of the
board shall, except as otherwise provided in this section, deposit the
following amounts in a separate and distinct fund called the "capital
improvement bond fund":
(1) Excise tax proceeds received by the treasurer.
(2) Net income transferred to the capital improvement bond
fund under section 10 of this chapter.
(3) Any other amounts received for deposit in the capital
improvement bond fund.
(b) Principal and interest subaccounts shall be maintained in the
capital improvement bond fund. The lesser of the following amounts
shall be deposited in the principal and interest subaccounts:
(1) The total of the amounts listed in subsection (a).
(2) The total of the following amounts:
(A) In the principal and interest subaccount for the pre-1981
general obligation bonds, the amount required to provide
sufficient funds to pay the principal of and interest coming due
within the next twelve (12) months on the pre-1981 general
obligation bonds.
(B) In the principal and interest subaccounts for all outstanding
bonds and notes issued under this chapter, other than the
pre-1981 general obligation bonds, the amounts required by the
resolutions, ordinances, and trust agreements under which the
bonds or notes are issued.
The deposits shall be made pro rata as between pre-1981 general
obligation bonds, if any, and all other bonds and notes issued under
this chapter. Deposits to principal and interest subaccounts for notes
and for bonds, other than pre-1981 general obligation bonds, shall be
made in the manner and in the order of priority that is provided in the
resolutions, ordinances, and trust agreements under which the bonds
or notes are issued. Amounts in a principal and interest subaccount
may be used solely to pay the principal of and interest on the issue
or issues of bonds or notes for which the principal and interest
subaccount was established.
(c) The treasurer of the board shall maintain in the capital
improvement bond fund a bond reserve subaccount for the pre-1981
general obligation bonds. The treasurer shall maintain the subaccount
in an amount equal to the maximum amount of principal and interest
coming due on the pre-1981 general obligation bonds in any
subsequent year. Reserve subaccounts shall also be maintained for
other bonds and for notes secured in whole or in part by money
deposited in the capital improvement bond fund; these subaccounts
shall be maintained to the extent and in the amount required by the
resolutions, ordinances, and trust agreements under which the bonds
or notes are issued. Amounts described in subsection (a) that are not
required to be deposited in principal and interest subaccounts under
subsection (b) shall be deposited in the reserve subaccounts to the
extent of any deficiency in those subaccounts. The deposits shall be
made pro rata as between the reserve subaccount for pre-1981
general obligation bonds and all other reserve subaccounts. Deposits
to the reserve subaccounts for notes and for bonds, other than
pre-1981 general obligation bonds, shall be made in the manner and
in the order of priority that is provided in the resolutions, ordinances,
and trust agreements under which the bonds or notes are issued.
Subject to subsection (e), amounts in a reserve subaccount may be
used solely to pay the principal of and interest on the issue or issues
of bonds or notes for which the reserve subaccount was established
and only to the extent amounts in the principal and interest
subaccount for the issue or issues of bonds or notes are not sufficient
for that purpose.
(d) Amounts described in subsection (a) that are not required to
be deposited in principal and interest subaccounts or bond reserve
subaccounts under subsections (b) and (c) shall be deposited in the
capital improvement fund rather than the capital improvement bond
fund.
(e) Unless otherwise provided in any resolution, ordinance, or
trust agreement under which bonds or notes are issued, amounts in
the capital improvement bond fund in excess of the amount required
by this section to be on deposit in that fund shall be transferred to the
capital improvement fund.
(f) The principal and interest subaccount and bond reserve
subaccount for the pre-1981 general obligation bonds shall be held
by the treasurer of the board. Other principal and interest
subaccounts and bond reserve subaccounts shall be held by the
treasurer or by an escrow agent, depository, or trustee provided in the
resolutions, ordinances, or trust agreements establishing the
subaccounts. One (1) principal and interest subaccount or bond
reserve subaccount may be established for two (2) or more issues of
bonds or notes.
(g) Amounts in the capital improvement bond fund on June 1,
1981, shall be first used to establish the principal and interest
subaccount for the pre-1981 general obligation bonds in the required
amount and then to establish the bond reserve subaccount for those
bonds in the required amount. Any excess remaining shall be
deposited in the capital improvement fund.
(h) For purposes of this section and section 10 of this chapter,
bonds issued under section 15 of this chapter shall be considered to
be secured by money deposited in the capital improvement bond
fund, if provided in the resolution, ordinance, or trust agreement
providing for the issuance of the bonds.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-11.1
Defeased bonds; use of funds in capital improvement bond fund
and capital improvement fund
Sec. 11.1. (a) Upon the defeasance of an issue of capital
improvement board bonds, the board may use funds in its capital
improvement bond fund for those defeased bonds for the purposes
set forth in subsection (b) if the board:
(1) has sold all or part of a capital improvement to a county
convention and recreation facilities authority and leased it back;
or
(2) has leased all or part of a capital improvement to a county
convention and recreation facilities authority and leased it back.
(b) The board may use the funds in the capital improvement fund
for the defeased bonds for the following:
(1) As payment of lease rental or as a reserve for lease rental.
(2) As a deposit with the county convention and recreation
facilities authority or a trustee for the authority's bond owners
to be used for payment of those bonds or as a reserve for those
bonds.
(3) For any purpose for which the board is authorized to expend
or apply funds.
(4) For any combination of the purposes set forth in
subdivisions (1), (2), and (3).
As added by P.L.82-1985, SEC.11.
IC 36-10-9-12
Revenue bonds
Sec. 12. (a) A capital improvement may be financed in whole or
in part by the issuance of bonds payable, to the extent stated in the
resolution or trust agreement providing for the issuance of the bonds,
solely from one (1) or more of the following sources:
(1) Net income received from the operation of the capital
improvement and not required to be deposited in the capital
improvement bond fund under section 11 of this chapter.
(2) Net income received from the operation of any other capital
improvement or improvements and not required to be deposited
in the capital improvement bond fund under section 11 of this
chapter.
(3) Money in the capital improvement bond fund available for
that purpose.
(4) Money in the capital improvement fund available for that
purpose.
(5) Any other funds made available for that purpose.
The resolution or trust agreement may pledge all or part of those
amounts to the repayment of the bonds and may secure the bonds by
a lien on the amounts pledged.
(b) If the board desires to finance a capital improvement in whole
or in part as provided in this section, it shall adopt a resolution
authorizing the issuance of revenue bonds. The resolution must state
the date or dates on which the principal of the bonds will mature (not
exceeding forty (40) years from the date of issuance), the maximum
interest rate to be paid, and the other terms upon which the bonds
will be issued.
(c) If the city-county legislative body approves issuance of bonds
under IC 36-3-6-9, the board shall submit the resolution to the
executive of the consolidated city, who shall review it. If the
executive approves the resolution, the board shall take all actions
necessary to issue bonds in accordance with the resolution. The
board may, under section 13 of this chapter, enter into a trust
agreement with a trust company as trustee for the bondholders. An
action to contest the validity of bonds to be issued under this section
may not be brought after the fifteenth day following:
(1) the receipt of bids for the bonds, if the bonds are sold at
public sale; or
(2) the publication one (1) time in a newspaper of general
circulation published in the county of notice of the execution
and delivery of the contract of sale for the bonds;
whichever occurs first.
(d) Bonds issued under this section may be sold at public or
private sale for the price or prices that are provided in the resolution
authorizing the issuance of bonds. All bonds and interest are exempt
from taxation in Indiana as provided in IC 6-8-5.
(e) When issuing revenue bonds, the board may covenant with the
purchasers of the bonds that any funds in the capital improvement
fund may be used to pay the principal on, or interest of, the bonds
that cannot be paid from any other funds.
(f) The revenue bonds may be made redeemable before maturity
at the price or prices and under the terms that are determined by the
board in the authorizing resolution. The board shall determine the
form of bonds, including any interest coupons to be attached, and
shall fix the denomination or denominations of the bonds and the
place or places of payment of the principal and interest, which may
be at any bank or trust company within or outside Indiana. All bonds
must have all the qualities and incidents of negotiable instruments
under statute. Provision may be made for the registration of any of
the bonds as to principal alone or to both principal and interest.
(g) The revenue bonds shall be issued in the name of the county
and must recite on the face that the principal of and interest on the
bonds is payable solely from the amounts pledged to their payment.
The bonds shall be executed by the manual or facsimile signature of
the president of the board, and the seal of the county shall be affixed
or imprinted on the bonds. The seal shall be attested by the manual
or facsimile signature of the auditor of the county. However, one (1)
of the signatures must be manual, unless the bonds are authenticated
by the manual signature of an authorized officer or a trustee for the
bondholders. Any coupons attached must bear the facsimile signature
of the president of the board.
(h) This chapter constitutes full and complete authority for the
issuance of revenue bonds. No law, procedure, proceedings,
publications, notices, consents, approvals, orders, acts, or things by
the board or any other officer, department, agency, or instrumentality
of the state or any political subdivision is required to issue any
revenue bonds except as prescribed in this chapter.
(i) Revenue bonds issued under this section are legal investments
for private trust funds and the funds of banks, trust companies,
insurance companies, building and loan associations, credit unions,
banks of discount and deposit, savings 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 statute.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.42-1993,
SEC.100; P.L.182-2009(ss), SEC.458.
IC 36-10-9-13
Revenue bonds; trust agreement; resolution; operating expenses
Sec. 13. (a) Revenue bonds issued under this chapter may be
secured by a trust agreement by and between the board and a
corporate trustee, which may be any trust company or bank having
the powers of a trust company in Indiana. Any resolution adopted by
the board providing for the issuance of revenue bonds and any trust
agreement under which the revenue bonds are issued may pledge or
assign, subject only to valid prior pledges, all or a part of the
amounts authorized by this chapter, but the board may not convey or
mortgage any capital improvement or any part of a capital
improvement.
(b) In authorizing the issuance of revenue bonds, the board may:
(1) limit the amount of revenue bonds that may be issued as a
first lien against the amounts pledged to the payment of those
revenue bonds; or
(2) authorize the issuance from time to time of additional
revenue bonds secured by the same lien.
Additional revenue bonds shall be issued on the terms and conditions
provided in the bond resolution or resolutions adopted by the board
and in the trust agreement or any agreement supplemental to the trust
agreement. Additional revenue bonds may be secured equally and
ratably without preference, priority, or distinction with the original
issue of revenue bonds or may be made junior to the original issue of
revenue bonds.
(c) Any pledge or assignment made by the board under this
section is valid and binding from the time that the pledge or
assignment is made, and the amounts pledged and received by the
board are immediately subject to the lien of the pledge or assignment
without physical delivery of those amounts or further act. The lien of
the pledge or assignment is valid and binding against all parties
having claims of any kind in tort, contract, or otherwise against the
board irrespective of whether these parties have notice of the lien.
Neither the resolution nor any trust agreement by which a pledge is
created or an assignment need be filed or recorded in order to perfect
the resulting lien against third parties. However, a copy of the pledge
or assignment shall be filed in the records of the board.
(d) Any trust agreement or resolution providing for the issuance
of revenue bonds may contain provisions for protecting and
enforcing the rights and remedies of the bondholders that are
reasonable and proper and not in violation of law. The provisions
may include convenants stating the duties of the board in relation to:
(1) the acquisition of property;
(2) the construction, improvement, maintenance, repair,
operation, and insurance of the capital improvement or capital
improvements in connection with which the bonds have been
authorized;
(3) the rates of fees, rentals, or other charges to be collected for
the use of the capital improvement or capital improvements;
(4) the custody, safeguarding, investment, and application of all
money received or to be received by the board or trustee;
(5) the establishment of funds, reserves, and accounts; and
(6) the employment of consulting engineers in connection with
the construction or operation of the capital improvement or
capital improvements.
(e) It is lawful for any bank or trust company incorporated under
statute, and any national banking association that may act as
depository of the proceeds of bonds or other funds of the board, to
furnish indemnifying bonds or to pledge securities that are required
by the board.
(f) Any trust agreement entered into under this section may state
the rights and remedies of the bondholders and of the trustee, and
may restrict the individual right of action by bondholders as is
customary in trust agreements or trust indentures securing bonds or
debentures of private corporations. In addition, the trust agreement
may contain other provisions that the board considers reasonable and
proper for the security of the bondholders.
(g) All expenses incurred in carrying out a trust agreement entered
into under this section may be treated as a part of the necessary
operating expenses of the board.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-14
Tax covenant with bond purchasers
Sec. 14. (a) The Indiana general assembly covenants with the
purchasers of any bonds or notes issued under this chapter that:
(1) the excise taxes pledged to the payment of those bonds and
notes will not be repealed, amended, or altered in any manner
that would reduce or adversely affect the levy and collection of
those taxes; and
(2) it will not reduce the rates or amounts of those taxes;
as long as the principal of, or interest on, any bonds or notes is
unpaid.
(b) The board, on behalf of the county, may make a similar pledge
or covenant in any agreement with the purchasers of any bonds or
notes issued under this chapter.
(c) For purposes of this section, the principal of or interest on
bonds or notes is considered paid if provision has been made for their
payment in such a manner that the bonds or notes are not considered
to be outstanding under the resolution, ordinance, or trust agreement
under which the bonds or notes are issued.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-15
General obligation bonds
Sec. 15. (a) A capital improvement may be financed in whole or
in part by the issuance of general obligation bonds of the county.
(b) If the board desires to finance a capital improvement in whole
or in part as provided in this section, it shall have prepared a
resolution to be adopted by the board of commissioners of the county
authorizing the issuance of general obligation bonds. The resolution
must state the date or dates on which the principal of the bonds is
payable, the maximum interest rate to be paid, and the other terms
upon which the bonds shall be issued. The board shall submit the
proposed resolution to the city-county legislative body for approval
under IC 36-3-6-9, together with a certificate to the effect that the
issuance of bonds in accordance with the resolution will be in
compliance with this section. The certificate must also state the
estimated annual net income of the capital improvement to be
financed by the bonds, the estimated annual tax revenues, and the
maximum amount payable in any year as principal and interest on the
bonds issued under this chapter, including the bonds proposed to be
issued, at the maximum interest rate set forth in the resolution. The
bonds issued may mature over a period not exceeding forty (40)
years from the date of issue.
(c) If the city-county legislative body approves the issuance of
bonds under IC 36-3-6-9, the board shall submit the resolution to the
executive of the consolidated city, who shall review the resolution.
If the executive approves the resolution, the board shall take all
action necessary to issue the bonds in accordance with the resolution.
An action to contest the validity of bonds issued under this section
may not be brought after the fifteenth day following the receipt of
bids for the bonds.
(d) The provisions of all general statutes relating to:
(1) the filing of a petition requesting the issuance of bonds and
giving notice;
(2) the right of:
(A) taxpayers and voters to remonstrate against the issuance
of bonds in the case of a proposed bond issue described by
IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a);
(3) the giving of notice of the determination to issue bonds;
(4) the giving of notice of a hearing on the appropriation of the
proceeds of bonds;
(5) the right of taxpayers to appear and be heard on the
proposed appropriation;
(6) the approval of the appropriation by the department of local
government finance; and
(7) the sale of bonds at public sale for not less than par value;
are applicable to the issuance of bonds under this section.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.90-2002,
SEC.521; P.L.219-2007, SEC.147; P.L.146-2008, SEC.797;
P.L.182-2009(ss), SEC.459.
IC 36-10-9-16
Bond revenue; use
Sec. 16. All money received from any bonds issued under this
chapter shall be applied solely to the payment of the construction
cost of the capital improvement or capital improvements or the cost
of refunding or refinancing outstanding bonds or notes, for which the
bonds are issued. The cost may include:
(1) planning and development of the capital improvement and
all buildings, facilities, structures, and improvements related to
it;
(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 capital improvement suitable
for use and operation;
(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 and for operations,
extensions, replacements, renovations, and improvements;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums, if any, for, and interest on
the bonds or notes being refunded or refinanced.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.5-1988,
SEC.223.
IC 36-10-9-17
Rights of holders of notes or bonds
Sec. 17. Unless their rights are restricted by the appropriate bond
resolution, ordinance, or trust agreement, any holder of notes or
bonds (except pre-1981 general obligation bonds) issued under this
chapter or a trustee under a trust agreement entered into under this
chapter may, by any suitable form of legal proceeding, protect and
enforce any rights provided under statute or granted by the bond
resolution, ordinance, or trust agreement.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-18
Tax exemptions
Sec. 18. All property owned or used and all income and revenues
received by the board are exempt from special assessments and
taxation in Indiana for all purposes.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-19
Contracts of board, state, and political subdivisions
Sec. 19. The board and the state, any department, agency, or
commission of the state, or any department, agency, or commission
of municipal or county government, may enter into agreements,
contracts, or leases with each other on the terms that are agreed upon,
providing for joint and cooperative planning, financing, construction,
operation, or maintenance of a capital improvement or of the
buildings, facilities, structures, or improvements that are necessary
or desirable in connection with the use and operation of a capital
improvement.
As added by Acts 1982, P.L.77, SEC.28.
IC 36-10-9-20
State appropriation
Sec. 20. (a) Four million dollars ($4,000,000) has been
appropriated out of money in the general fund of the state not
otherwise appropriated for distribution by the auditor and treasurer
of state to a board that was in existence on March 11, 1967, to be
expended by the board for the purpose of financing a convention
center to be known as the Indiana convention exposition center.
However, the four million dollar ($4,000,000) appropriation could
not be spent by the board until funds and assets, exclusive of real
property, in addition to this appropriation, had been received by the
board under section 6 of this chapter of a total value of two million
dollars ($2,000,000) in excess of the cost of the funds and assets to
the board. The valuation of the funds and assets shall be conclusively
determined by the board and the executive of the consolidated city.
This appropriation does not lapse at the end of any biennium.
(b) The four million dollars ($4,000,000), including accrued
interest, shall be repaid to the treasurer of state by December 31,
2000, in annual installments. The first payment shall be made on or
before December 31, 1992. The amount of the payment must include
interest at two percent (2%) per year The repayment shall be made
by the board from net income received from the operation of the
convention center, from available amounts in the capital
improvement fund, and from any contributions, bequests, or other
sources available to the board for this purpose.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.27-1992,
SEC.29.
IC 36-10-9-21
Borrowing in anticipation of funds
Sec. 21. (a) In anticipation of funds to be received from any
source, the board may borrow money and issue notes for a term not
exceeding ten (10) years and at a rate or rates of interest determined
by the board. The notes shall be issued in the name of the "capital
improvement board of managers of __________ county" and may be
secured (either on a parity with or junior and subordinate to any
outstanding bonds or notes) by:
(1) the pledge of income and revenues of any capital
improvement;
(2) the proceeds of excise taxes; or
(3) any other funds anticipated to be received.
The notes are payable solely from the income, excise taxes, revenues,
and anticipated funds.
(b) The financing may be negotiated directly by the board with
any bank, insurance company, savings association, or other financial
institution licensed to do business in Indiana upon the terms and
conditions that are agreed upon, except as specifically provided in
this section, and may be consummated without public offering. The
notes plus interest are exempt from taxation in Indiana as provided
for bonds in IC 6-8-5.
As added by Acts 1982, P.L.77, SEC.28. Amended by P.L.79-1998,
SEC.111.
IC 36-10-9-22
Defense and indemnity of officers and employees in legal actions
Sec. 22. A board established under this chapter may defend any
current or former member of the board or its officers, employees, or
agents in a claim or suit, at law or in equity, that arises from the
exercise of powers or the performance of duties or services for the
board or that arises from official acts as a member of the board. The
board may indemnify a person for any liability, cost, or damages
related to a claim or suit, including the payment of legal fees. Before
taking action authorized by this section, the board must, by
resolution, determine that the action or conduct in question was
taken, done, or omitted in good faith.
As added by Acts 1982, P.L.77, SEC.28.