CHAPTER 11. INDIANA FINANCE AUTHORITY
IC 4-4-11
Chapter 11. Indiana Finance Authority
IC 4-4-11-1
Title
Sec. 1. This chapter may be cited as "The Indiana finance
authority law".
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.16; P.L.235-2005, SEC.6.
IC 4-4-11-2
Legislative findings of fact; purpose
Sec. 2. (a) The legislature makes the following findings of fact:
(1) That there currently exists in certain areas of the state
critical conditions of unemployment, inadequate drinking water,
inadequate wastewater and storm water management, or
environmental pollution, including water pollution, air
pollution, sewage and solid waste, radioactive waste, thermal
pollution, radiation contamination, and noise pollution, and that
these conditions may well exist, from time to time, in other
areas of the state.
(2) That in some areas of the state such conditions are chronic
and of long standing and that without remedial measures they
may become so in other areas of the state.
(3) That economic insecurity due to unemployment, inadequate
drinking water, inadequate wastewater and storm water
management, or environmental pollution is a menace to the
health, safety, morals, and general welfare of not only the
people of the affected areas but of the people of the entire state.
(4) That involuntary unemployment and its resulting burden of
indigency falls with crushing force upon the unemployed
worker and ultimately upon the state in the form of public
assistance and unemployment compensation.
(5) That security against unemployment and the resulting spread
of indigency and economic stagnation in the areas affected can
best be provided by:
(A) the promotion, attraction, stimulation, rehabilitation, and
revitalization of industrial development projects, rural
development projects, mining operations, and agricultural
operations that involve the processing of agricultural
products;
(B) the promotion and stimulation of international exports;
and
(C) the education, both formal and informal, of people of all
ages throughout the state by the promotion, attraction,
construction, renovation, rehabilitation, and revitalization of
and assistance to educational facility projects.
(6) That the present and prospective health, safety, morals, right
to gainful employment, and general welfare of the people of the
state require as a public purpose the provision of safe drinking
water, the provision of wastewater and storm water
management, the abatement or control of pollution, the
promotion of increased educational enrichment (including
cultural, intellectual, scientific, or artistic opportunities) for
people of all ages through new, expanded, or revitalized
educational facility projects or through assisting educational
facility projects, and the promotion of employment creation or
retention through development of new and expanded industrial
development projects, rural development projects, mining
operations, and agricultural operations that involve the
processing of agricultural products.
(7) That there is a need to stimulate a larger flow of private
investment funds from commercial banks, investment bankers,
insurance companies, other financial institutions, and
individuals into such industrial development projects, rural
development projects, mining operations, international exports,
and agricultural operations that involve the processing of
agricultural products in the state.
(8) That the authority can encourage the making of loans or
leases for creation or expansion of industrial development
projects, rural development projects, mining operations,
international exports, and agricultural operations that involve
the processing of agricultural products, thus putting a larger
portion of the private capital available in Indiana for investment
to use in the general economic development of the state.
(9) That the issuance of bonds of the authority to create a
financing pool for industrial development projects and carrying
out the purposes of IC 13-18-13 and IC 13-18-21 promoting a
substantial likelihood of opportunities for:
(A) gainful employment;
(B) business opportunities;
(C) educational enrichment (including cultural, intellectual,
scientific, or artistic opportunities);
(D) the abatement, reduction, or prevention of pollution;
(E) the provision of safe drinking water;
(F) the provision of wastewater and storm water
management;
(G) the removal or treatment of any substances in materials
being processed that otherwise would cause pollution when
used; or
(H) increased options for and availability of child care;
will improve the health, safety, morals, and general welfare of
the people of the state and constitutes a public purpose for
which the authority shall exist and operate.
(10) That the issuance of bonds of the authority to create a
funding source for the making of guaranteed participating loans
will promote and encourage an expanding international exports
market and international exports sales and will promote the
general welfare of all of the people of Indiana by assisting
Indiana businesses through stimulation of the expansion of
international exports sales for Indiana products and services,
especially those of small and medium-sized businesses, by
providing financial assistance through the authority.
(b) The Indiana finance authority shall exist and operate for the
public purposes of:
(1) promoting opportunities for gainful employment and
business opportunities by the promotion and development of
industrial development projects, rural development projects,
mining operations, international exports, and agricultural
operations that involve the processing of agricultural products,
in any areas of the state;
(2) promoting the educational enrichment (including cultural,
intellectual, scientific, or artistic opportunities) of all the people
of the state by the promotion, development, and assistance of
educational facility projects;
(3) promoting affordable farm credit and agricultural loan
financing at interest rates that are consistent with the needs of
borrowers for farming and agricultural enterprises;
(4) preventing and remediating environmental pollution,
including water pollution, air pollution, sewage and solid waste
disposal, radioactive waste, thermal pollution, radiation
contamination, and noise pollution affecting the health and
well-being of the people of the state by:
(A) the promotion and development of industrial
development projects; and
(B) carrying out the purposes of IC 13-18-13 and
IC 13-18-21;
(5) promoting the provision of safe and adequate drinking water
and wastewater and storm water management to positively
affect the public health and well-being by carrying out the
purposes of IC 13-18-13 and IC 13-18-21;
(6) otherwise positively affecting the public health and
well-being by carrying out the purposes of IC 13-18-13 and
IC 13-18-21; and
(7) promoting affordable and accessible child care for the
people of the state by the promotion and development of child
care facilities.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.24-1983,
SEC.1; P.L.20-1985, SEC.2; P.L.25-1987, SEC.4; P.L.20-1988,
SEC.7; P.L.11-1990, SEC.17; P.L.24-1995, SEC.9; P.L.227-1999,
SEC.6 and P.L.273-1999, SEC.195; P.L.4-2002, SEC.2;
P.L.235-2005, SEC.7.
IC 4-4-11-2.5
Legislative findings of fact; purpose
Sec. 2.5. (a) The general assembly makes the following findings
of fact in addition to those set forth in section 2 of this chapter:
(1) There are currently numerous bodies corporate and politic
of the state, with separate decision making and borrowing
authority, that may issue bonds, notes, and obligations, and
otherwise access the financial markets.
(2) Consolidation of this decision making and borrowing
authority may provide economic efficiencies and management
synergies and enable the state to communicate, with a single
voice, with the various participants in the financial markets,
including credit rating agencies, investment bankers, investors,
and municipal bond insurers and other credit enhancers.
(b) In addition to the purposes set forth in section 2 of this
chapter, the authority is established for the purpose of permitting the
consolidation of certain bodies in a single body of decision making
concerning access to the capital and financial markets in the name of,
or for the benefit of, the state.
(c) The authority is authorized to carry out the public purposes
provided for in the affected statutes through a single entity in order
to achieve the purposes of this section.
As added by P.L.235-2005, SEC.8. Amended by P.L.1-2006, SEC.27.
IC 4-4-11-2.7
Construction of article; priority of definitions
Sec. 2.7. (a) This article and the affected statutes shall be liberally
construed to effect the purposes of this article and the affected
statutes.
(b) To the extent that the definitions in an affected statute are
inconsistent with the definitions in this chapter or IC 4-4-10.9, the
definitions in the affected statute prevail.
(c) Except as otherwise provided by subsection (b), to the extent
that the provisions of this article are inconsistent with the provisions
of any other general, special, or local law, the provisions of this
article are controlling and supersede all other laws.
As added by P.L.235-2005, SEC.9. Amended by P.L.162-2007,
SEC.5.
IC 4-4-11-3
Repealed
(Repealed by P.L.20-1985, SEC.18(b).)
IC 4-4-11-4
Creation; membership
Sec. 4. (a) There is created for the public purposes set forth in
section 2.5 of this chapter a body politic and corporate, not a state
agency but an independent instrumentality exercising essential public
functions, to be known as the Indiana finance authority. The
authority is separate and apart from the state in its corporate and
sovereign capacity, and though separate from the state, the exercise
by the authority of its powers constitutes an essential governmental,
public, and corporate function.
(b) The authority shall be composed of the following five (5)
members:
(1) The budget director, or the budget director's designee, who
shall serve as chairman of the authority.
(2) The treasurer of state, or the treasurer of state's designee.
(3) Three (3) members appointed by the governor, no more than
two (2) of whom may be from the same political party.
(c) All members shall be residents of the state.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.18; P.L.235-2005, SEC.10.
IC 4-4-11-5
Members; terms of office
Sec. 5. Appointments to the authority under section 4(b)(3) of this
chapter are for terms of four (4) years. Each member appointed to the
authority under section 4(b)(3) of this chapter:
(1) holds office for the term of this appointment;
(2) continues to serve after expiration of the appointment until
a successor is appointed and qualified;
(3) is eligible for reappointment; and
(4) may be removed from office by the governor with or
without cause and serves at the pleasure of the governor.
The governor shall fill a vacancy for the unexpired term of any
member appointed under section 4(b)(3) of this chapter.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.19; P.L.235-2005, SEC.11.
IC 4-4-11-6
Officers; compensation of members
Sec. 6. (a) The members shall elect from among their number a
vice chairman and other officers as they may determine.
(b) The members of the authority are entitled to reimbursement
for traveling expenses and other expenses actually incurred in
connection with their duties as provided by law. Members are not
entitled to the salary per diem provided by IC 4-10-11-2.1(b) or any
other compensation while performing their duties.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.20-1985,
SEC.3; P.L.11-1990, SEC.20; P.L.235-2005, SEC.12.
IC 4-4-11-7
Vesting of powers; quorum; voting
Sec. 7. The powers of the authority are vested in the members.
Three (3) members of the authority constitute a quorum for the
transaction of business. The affirmative vote of at least three (3)
members is necessary for any action to be taken by the authority.
Members may vote by written proxy delivered in advance to any
other member who is present at the meeting. A vacancy in the
membership of the authority does not impair the right of a quorum to
exercise all rights and perform all duties of the authority.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.21; P.L.235-2005, SEC.13.
IC 4-4-11-8
Meetings
Sec. 8. Meetings of the members of the authority shall be held at
the call of the chairman or whenever any three (3) members so
request. In any event, the members shall meet at least once every
three (3) months to attend to the business of the authority.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.22.
IC 4-4-11-9
Public finance director; powers and duties
Sec. 9. The governor shall appoint the public finance director,
who shall serve at the pleasure of the governor. The public finance
director shall:
(1) administer, manage, and direct the affairs and activities of
the authority and the employees of the authority in accordance
with the policies and under the control and direction of the
members of the authority;
(2) approve all accounts for salaries, allowable expenses of the
authority or of any employee or consultant, and expenses
incidental to the operation of the authority; and
(3) perform other duties as may be directed by the members of
the authority in carrying out the purposes of the affected
statutes.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.23; P.L.24-1995, SEC.10; P.L.235-2005, SEC.14.
IC 4-4-11-10
Public finance director; attendance; record keeping duties;
certification of copies
Sec. 10. The public finance director shall attend the meetings of
the members of the authority, shall keep a record of the proceedings
of the authority, and shall maintain and be custodian of all books,
documents, and papers filed with the authority and its official seal.
The public finance director may make copies of all minutes and other
records and documents of the authority and may give certificates
under seal of the authority to the effect that the copies are true
copies. All persons dealing with the authority may rely upon these
certificates.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.24; P.L.235-2005, SEC.15.
IC 4-4-11-11
Employment; delegation of administrative duties
Sec. 11. (a) The authority may, without the approval of the
attorney general or any other state officer, employ bond counsel,
other legal counsel, technical experts, and such other officers, agents,
and employees, permanent or temporary, as it considers necessary to
carry out the efficient operation of the authority, and shall determine
their qualifications, duties, compensation, and terms of service. The
authority shall fix the compensation of the public finance director.
(b) The members of the authority may adopt a resolution
delegating to:
(1) a member of the authority;
(2) the public finance director; or
(3) one (1) or more agents or employees of the authority;
administrative duties that they consider proper, including the powers
of the authority set forth in this section.
(c) Employees of the authority shall not be considered employees
of the state.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.25; P.L.18-1992, SEC.2; P.L.235-2005, SEC.16.
IC 4-4-11-12
Members; conflicts of interest; disclosure
Sec. 12. Any member or employee of the authority who has, will
have, or later acquires an interest, direct or indirect, in any
transaction with the authority shall immediately disclose the nature
and extent of the interest in writing to the authority as soon as he has
knowledge of the actual or prospective interest. The disclosure shall
be announced in open meeting and entered upon the minutes of the
authority. Upon disclosure, the member or employee shall not
participate in any action by the authority authorizing the transaction.
However, such an interest shall not invalidate actions by the
authority with the participation of the disclosing member prior to the
time when the member became aware of the interest or should
reasonably have become aware of the interest.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.26.
IC 4-4-11-13
State officers and employees; nonforfeiture of offices and
employment
Sec. 13. Notwithstanding the provisions of any other law, no
officer or employee of the state forfeits his office or employment by
reason of his acceptance of membership in the authority or by reason
of his providing services to the authority.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.27.
IC 4-4-11-14
Members; surety bonds
Sec. 14. (a) Each member of the authority, the public finance
director, and any other employee or agent of the authority authorized
by resolution of the authority to handle funds or sign checks, before
beginning the individual's duties, shall execute a surety bond in the
penal sum of fifty thousand dollars ($50,000). To the extent an
individual described in this section is already covered by a bond
required by state law, the individual need not obtain another bond so
long as the bond required by state law is in at least the penal sum
specified in this section and covers the individual's activities for the
authority. In lieu of a bond, the chairman of the authority may
execute a blanket surety bond covering each member and the
employees or other officers of the authority. Each surety bond shall
be conditioned upon the faithful performance of the individual's
duties and shall be issued by a surety company authorized to transact
business in this state as surety. At all times after the issuance of any
surety bonds, each individual described in this section shall maintain
the surety bonds in full force and effect. All costs of the surety bonds
shall be borne by the authority.
(b) The public finance director, before beginning the public
finance director's duties, must:
(1) execute a surety bond as provided in subsection (a); or
(2) be included in the coverage of a blanket surety bond
described in subsection (a).
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.11-1990,
SEC.28; P.L.24-1995, SEC.11; P.L.235-2005, SEC.17.
IC 4-4-11-14.5
State debt management plan; requirements
Sec. 14.5. The authority, after consulting with the treasurer of
state, the Indiana bond bank, the budget agency, and the commission
for higher education, shall establish and periodically update a state
debt management plan. The plan must include at least the following
provisions with respect to debt issued or to be issued by the
authority, other bodies corporate and politic of the state, and state
educational institutions:
(1) An inventory of existing debt.
(2) Projections of future debt obligations.
(3) Recommended criteria for the appropriate use of debt as a
means to finance capital projects.
(4) Recommended strategies to minimize costs associated with
debt issuance.
(5) An analysis of the impact of debt issued by all bodies
corporate and politic and state educational institutions on the
state budget.
(6) Recommended guidelines for the prudent issuance of debt
that creates a moral obligation of the state to pay all or part of
the debt.
(7) Recommended policies for the investment of:
(A) proceeds of bonds, notes, or other obligations issued by
bodies corporate and politic and state educational
institutions; and
(B) other money, funds, and accounts owned or held by a
body corporate and politic.
(8) Recommended policies for the establishment of a system of
record keeping and reporting to meet the arbitrage rebate
compliance requirements of the Internal Revenue Code.
(9) Recommended policies for the preparation of financial
disclosure documents, including official statements
accompanying debt issues, comprehensive annual financial
reports, and continuing disclosure statements. The
recommended policies must include a provision for approval by
the budget director of any statements or reports that include a
discussion of the state's economic and fiscal condition.
(10) Potential opportunities to more effectively and efficiently
authorize and manage debt.
(11) Recommendations to the budget director, the governor, and
the general assembly with respect to financing of capital
projects.
The recommendations to the general assembly under subdivision (11)
must be in an electronic format under IC 5-14-6.
As added by P.L.235-2005, SEC.18. Amended by P.L.2-2007,
SEC.22.
IC 4-4-11-15
Powers
Sec. 15. (a) The authority is granted all powers necessary or
appropriate to carry out and effectuate its public and corporate
purposes under the affected statutes, including but not limited to the
following:
(1) Have perpetual succession as a body politic and corporate
and an independent instrumentality exercising essential public
functions.
(2) Without complying with IC 4-22-2, adopt, amend, and
repeal bylaws, rules, guidelines, and policies not inconsistent
with the affected statutes, and necessary or convenient to
regulate its affairs and to carry into effect the powers, duties,
and purposes of the authority and conduct its business under the
affected statutes. These bylaws, rules, guidelines, and policies
must be made by a resolution of the authority introduced at one
(1) meeting and approved at a subsequent meeting of the
authority.
(3) Sue and be sued in its own name.
(4) Have an official seal and alter it at will.
(5) Maintain an office or offices at a place or places within the
state as it may designate.
(6) Make, execute, and enforce contracts and all other
instruments necessary, convenient, or desirable for the purposes
of the authority or pertaining to:
(A) a purchase, acquisition, or sale of securities or other
investments; or
(B) the performance of the authority's duties and execution
of any of the authority's powers under the affected statutes.
(7) Employ architects, engineers, attorneys, inspectors,
accountants, agriculture experts, silviculture experts,
aquaculture experts, and financial experts, and such other
advisors, consultants, and agents as may be necessary in its
judgment and to fix their compensation.
(8) Procure insurance against any loss in connection with its
property and other assets, including loans and loan notes in
amounts and from insurers as it may consider advisable.
(9) Borrow money, make guaranties, issue bonds, and otherwise
incur indebtedness for any of the authority's purposes, and issue
debentures, notes, or other evidences of indebtedness, whether
secured or unsecured, to any person, as provided by the affected
statutes. Notwithstanding any other law, the:
(A) issuance by the authority of any indebtedness that
establishes a procedure for the authority or a person acting
on behalf of the authority to certify to the general assembly
the amount needed to restore a debt service reserve fund or
another fund to required levels; or
(B) execution by the authority of any other agreement that
creates a moral obligation of the state to pay all or part of
any indebtedness issued by the authority;
is subject to review by the budget committee and approval by
the budget director.
(10) Procure insurance or guaranties from any public or private
entities, including any department, agency, or instrumentality of
the United States, for payment of any bonds issued by the
authority, including the power to pay premiums on any
insurance or reinsurance.
(11) Purchase, receive, take by grant, gift, devise, bequest, or
otherwise, and accept, from any source, aid or contributions of
money, property, labor, or other things of value to be held, used,
and applied to carry out the purposes of the affected statutes,
subject to the conditions upon which the grants or contributions
are made, including but not limited to gifts or grants from any
department, agency, or instrumentality of the United States, and
lease or otherwise acquire, own, hold, improve, employ, use,
and otherwise deal in and with real or personal property or any
interest in real or personal property, wherever situated, for any
purpose consistent with the affected statutes.
(12) Enter into agreements with any department, agency, or
instrumentality of the United States or this state and with
lenders and enter into loan agreements, sales contracts, and
leases with contracting parties, including participants (as
defined in IC 13-11-2-151.1) for any purpose permitted under
IC 13-18-13 or IC 13-18-21, borrowers, lenders, developers, or
users, for the purpose of planning, regulating, and providing for
the financing and refinancing of any agricultural enterprise (as
defined in IC 5-28-31-1), rural development project (as defined
in IC 5-28-31-20), industrial development project, purpose
permitted under IC 13-18-13 and IC 13-18-21, or international
exports, and distribute data and information concerning the
encouragement and improvement of agricultural enterprises and
agricultural employment, rural development projects, industrial
development projects, international exports, and other types of
employment in the state undertaken with the assistance of the
authority under this chapter.
(13) Enter into contracts or agreements with lenders and lessors
for the servicing and processing of loans and leases pursuant to
the affected statutes.
(14) Provide technical assistance to local public bodies and to
profit and nonprofit entities in the development or operation of
agricultural enterprises, rural development projects, and
industrial development projects.
(15) To the extent permitted under its contract with the holders
of the bonds of the authority, consent to any modification with
respect to the rate of interest, time, and payment of any
installment of principal or interest, or any other term of any
contract, loan, loan note, loan note commitment, contract, lease,
or agreement of any kind to which the authority is a party.
(16) To the extent permitted under its contract with the holders
of bonds of the authority, enter into contracts with any lender
containing provisions enabling it to reduce the rental or carrying
charges to persons unable to pay the regular schedule of charges
when, by reason of other income or payment by any department,
agency, or instrumentality of the United States of America or of
this state, the reduction can be made without jeopardizing the
economic stability of the agricultural enterprise, rural
development project, or industrial development project being
financed.
(17) Notwithstanding IC 5-13, but subject to the requirements
of any trust agreement entered into by the authority, invest:
(A) the authority's money, funds, and accounts;
(B) any money, funds, and accounts in the authority's
custody; and
(C) proceeds of bonds or notes;
in the manner provided by an investment policy established by
resolution of the authority.
(18) Fix and revise periodically, and charge and collect, fees
and charges as the authority determines to be reasonable in
connection with:
(A) the authority's loans, guarantees, advances, insurance,
commitments, and servicing; and
(B) the use of the authority's services or facilities.
(19) Cooperate and exchange services, personnel, and
information with any federal, state, or local government agency,
or instrumentality of the United States or this state.
(20) Sell, at public or private sale, with or without public
bidding, any loan or other obligation held by the authority.
(21) Enter into agreements concerning, and acquire, hold, and
dispose by any lawful means, land or interests in land, building
improvements, structures, personal property, franchises,
patents, accounts receivable, loans, assignments, guarantees,
and insurance needed for the purposes of the affected statutes.
(22) Take assignments of accounts receivable, loans,
guarantees, insurance, notes, mortgages, security agreements
securing notes, and other forms of security, attach, seize, or take
title by foreclosure or conveyance to any industrial development
project when a guaranteed loan thereon is clearly in default and
when in the opinion of the authority such acquisition is
necessary to safeguard the industrial development project
guaranty fund, and sell, or on a temporary basis, lease or rent
such industrial development project for any use.
(23) Expend money provided to the authority by the Indiana
economic development corporation from the industrial
development project guaranty fund created by IC 5-28-30,
subject to the terms of any agreement with the Indiana
economic development corporation governing the expenditure
of that money.
(24) Purchase, lease as lessee, construct, remodel, rebuild,
enlarge, or substantially improve industrial development
projects, including land, machinery, equipment, or any
combination thereof.
(25) Lease industrial development projects to users or
developers, with or without an option to purchase.
(26) Sell industrial development projects to users or developers,
for consideration to be paid in installments or otherwise.
(27) Make direct loans from the proceeds of the bonds to users
or developers for:
(A) the cost of acquisition, construction, or installation of
industrial development projects, including land, machinery,
equipment, or any combination thereof; or
(B) eligible expenditures for an educational facility project
described in IC 4-4-10.9-6.2(a)(2);
with the loans to be secured by the pledge of one (1) or more
bonds, notes, warrants, or other secured or unsecured debt
obligations of the users or developers.
(28) Lend or deposit the proceeds of bonds to or with a lender
for the purpose of furnishing funds to such lender to be used for
making a loan to a developer or user for the financing of
industrial development projects under this chapter.
(29) Enter into agreements with users or developers to allow the
users or developers, directly or as agents for the authority, to
wholly or partially construct industrial development projects to
be leased from or to be acquired by the authority.
(30) Establish reserves from the proceeds of the sale of bonds,
other funds, or both, in the amount determined to be necessary
by the authority to secure the payment of the principal and
interest on the bonds.
(31) Adopt rules and guidelines governing its activities
authorized under the affected statutes.
(32) Use the proceeds of bonds to make guaranteed
participating loans.
(33) Purchase, discount, sell, and negotiate, with or without
guaranty, notes and other evidences of indebtedness.
(34) Sell and guarantee securities.
(35) Make guaranteed participating loans under IC 4-4-21-26.
(36) Procure insurance to guarantee, insure, coinsure, and
reinsure against political and commercial risk of loss, and any
other insurance the authority considers necessary, including
insurance to secure the payment of principal and interest on
notes or other obligations of the authority.
(37) Provide performance bond guarantees to support eligible
export loan transactions, subject to the terms of the affected
statutes.
(38) Provide financial counseling services to Indiana exporters.
(39) Accept gifts, grants, or loans from, and enter into contracts
or other transactions with, any federal or state agency,
municipality, private organization, or other source.
(40) Sell, convey, lease, exchange, transfer, or otherwise
dispose of property or any interest in property, wherever the
property is located.
(41) Cooperate with other public and private organizations to
promote export trade activities in Indiana.
(42) Cooperate with the Indiana economic development
corporation in taking any actions necessary for the
administration of the agricultural loan and rural development
project guarantee fund established by IC 5-28-31.
(43) In cooperation with the Indiana economic development
corporation, take assignments of notes and mortgages and
security agreements securing notes and other forms of security,
and attach, seize, or take title by foreclosure or conveyance to
any agricultural enterprise or rural development project when
a guaranteed loan to the enterprise or rural development project
is clearly in default and when in the opinion of the Indiana
economic development corporation the acquisition is necessary
to safeguard the agricultural loan and rural development project
guarantee fund, and sell, or on a temporary basis, lease or rent
the agricultural enterprise or rural development project for any
use.
(44) Expend money provided to the authority by the Indiana
economic development corporation from the agricultural loan
and rural development project guarantee fund created by
IC 5-28-31, subject to the terms of any agreement with the
Indiana economic development corporation governing the
expenditure of that money.
(45) Reimburse from bond proceeds expenditures for industrial
development projects under this chapter.
(46) Acquire, hold, use, and dispose of the authority's income,
revenues, funds, and money.
(47) Purchase, acquire, or hold debt securities or other
investments for the authority's own account at prices and in a
manner the authority considers advisable, and sell or otherwise
dispose of those securities or investments at prices without
relation to cost and in a manner the authority considers
advisable.
(48) Fix and establish terms and provisions with respect to:
(A) a purchase of securities by the authority, including dates
and maturities of the securities;
(B) redemption or payment before maturity; and
(C) any other matters that in connection with the purchase
are necessary, desirable, or advisable in the judgment of the
authority.
(49) To the extent permitted under the authority's contracts with
the holders of bonds or notes, amend, modify, and supplement
any provision or term of:
(A) a bond, a note, or any other obligation of the authority;
or
(B) any agreement or contract of any kind to which the
authority is a party.
(50) Subject to the authority's investment policy, do any act and
enter into any agreement pertaining to a swap agreement (as
defined in IC 8-9.5-9-4) related to the purposes of the affected
statutes in accordance with IC 8-9.5-9-5 and IC 8-9.5-9-7,
whether the action is incidental to the issuance, carrying, or
securing of bonds or otherwise.
(51) Do any act necessary or convenient to the exercise of the
powers granted by the affected statutes, or reasonably implied
from those statutes, including but not limited to compliance
with requirements of federal law imposed from time to time for
the issuance of bonds.
(b) The authority's powers under this chapter shall be interpreted
broadly to effectuate the purposes of this chapter and may not be
construed as a limitation of powers. The omission of a power from
the list in subsection (a) does not imply that the authority lacks that
power. The authority may exercise any power that is not listed in
subsection (a) but is consistent with the powers listed in subsection
(a) to the extent that the power is not expressly denied by the
Constitution of the State of Indiana or by another statute.
(c) This chapter does not authorize the financing of industrial
development projects for a developer unless any written agreement
that may exist between the developer and the user at the time of the
bond resolution is fully disclosed to and approved by the authority.
(d) The authority shall work with and assist the Indiana housing
and community development authority established by IC 5-20-1-3,
the ports of Indiana established under IC 8-10-1-3, and the state fair
commission established by IC 15-13-2-1 in the issuance of bonds,
notes, or other indebtedness. The Indiana housing and community
development authority, the ports of Indiana, and the state fair
commission shall work with and cooperate with the authority in
connection with the issuance of bonds, notes, or other indebtedness.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.24-1983,
SEC.3; P.L.20-1985, SEC.4; P.L.2-1987, SEC.2; P.L.25-1987,
SEC.5; P.L.20-1988, SEC.8; P.L.11-1990, SEC.29; P.L.24-1995,
SEC.12; P.L.4-2002, SEC.3; P.L.235-2005, SEC.19; P.L.232-2005,
SEC.3; P.L.1-2006, SEC.28 and P.L.181-2006, SEC.1;
P.L.162-2007, SEC.6; P.L.2-2008, SEC.15; P.L.98-2008, SEC.2.
IC 4-4-11-15.1
Code of ethics
Sec. 15.1. (a) The authority shall:
(1) without complying with IC 4-22-2, adopt a policy
establishing a code of ethics for its employees; or
(2) decide it wishes to be under the jurisdiction and rules
adopted by the state ethics commission.
(b) A code of ethics adopted under this section must be consistent
with state law and approved by the governor.
As added by P.L.5-1996, SEC.2. Amended by P.L.235-2005, SEC.20.
IC 4-4-11-15.2
Guaranteed participating loans; export loans required to be sold;
bond issuance
Sec. 15.2. (a) Before using the proceeds of bonds to make a
guaranteed participating loan, the authority shall require the financial
institution to which the authority makes the guaranteed participating
loan to make eligible export loans and sell them to the authority
within a reasonable period of time.
(b) Issuance of bonds by the authority to fund the program of the
authority under IC 4-4-21 is subject to the general provisions for the
issuance of bonds set forth in this chapter, except for the
requirements for the issuance of bonds under sections 17 and 17.5 of
this chapter.
As added by P.L.20-1988, SEC.9. Amended by P.L.11-1990, SEC.30.
IC 4-4-11-15.3
Prohibited activities
Sec. 15.3. The authority:
(1) may not deal in securities within the meaning of or subject
to any securities law, securities exchange law, or securities
dealers law of the United States of America or of the state or of
any other state or jurisdiction, domestic or foreign, except as
authorized in the affected statutes;
(2) may not:
(A) emit bills of credit;
(B) accept deposits of money for time or demand deposit;
(C) administer trusts;
(D) engage in any form or manner, or in the conduct of, any
private or commercial banking business; or
(E) act as a savings bank, savings association, or any other
kind of financial institution; and
(3) may not engage in any form of private or commercial
banking business.
As added by P.L.235-2005, SEC.21. Amended by P.L.1-2006,
SEC.29.
IC 4-4-11-15.4
Issuance of bonds for the wastewater revolving loan program and
the drinking water revolving loan program
Sec. 15.4. (a) The authority may issue bonds or notes and invest
or loan the proceeds of those bonds or notes to a participant (as
defined in IC 13-11-2-151.1) for the purposes of:
(1) the wastewater revolving loan program established by
IC 13-18-13-1; and
(2) the drinking water revolving loan program established by
IC 13-18-21-1.
(b) If the authority loans money to or purchases debt securities of
a political subdivision (as defined in IC 13-11-2-164(a) and
IC 13-11-2-164(b)), the authority may, by the resolution approving
the bonds or notes, provide that subsection (c) is applicable to the
political subdivision.
(c) Notwithstanding any other law, to the extent that any
department or agency of the state, including the treasurer of state, is
the custodian of money payable to the political subdivision (other
than for goods or services provided by the political subdivision), at
any time after written notice to the department or agency head from
the authority that the political subdivision is in default on the
payment of principal or interest on the obligations then held or
owned by or arising from an agreement with the authority, the
department or agency shall withhold the payment of that money from
that political subdivision and pay over the money to the authority for
the purpose of paying principal of and interest on bonds or notes of
the authority. However, the withholding of payment from the
political subdivision and payment to the authority under this section
must not adversely affect the validity of the obligation in default.
As added by P.L.235-2005, SEC.22.
IC 4-4-11-15.5
Public offering for sale or lease of property or interests acquired
for an industrial development project
Sec. 15.5. (a) In addition to the powers enumerated in section
15(a) of this chapter, the authority may, in lieu of a private sale or
leasing as authorized by section 15(a) of this chapter or a financing
of an industrial development project under section 17 of this chapter,
decide to hold a public offering under this section for the sale or
leasing of any land or interests in land, building improvements,
structures, personal property, and franchises and patents acquired by
the authority under this chapter for an industrial development
project. If the authority decides to hold a public offering for the sale
or leasing of any property or interests acquired for an industrial
development project, the offering shall be made in accordance with
this section.
(b) Before offering for sale or lease to the public any property or
interests acquired for an industrial development project under this
section, the authority shall prepare an offering sheet showing the
property or interests to be offered and copies of the offering sheets
shall be furnished to prospective buyers or lessees. Maps and plats
of the property and any additional information considered
appropriate by the authority shall also be kept available for
inspection at the office of the authority.
(c) The authority shall publish a notice of the offering in
accordance with IC 5-3-1. The notice must state that at a designated
time the authority will open and consider written offers for the
purchase or lease of the property or interests being offered. In giving
the notice, it is not necessary to describe specifically the property or
interests or to specify the exact terms of the disposition, but the
notice must state the general location of the property or interests and
call attention generally to any requirements or limitations that the
authority may establish in respect to the industrial development
project.
(d) At the time fixed in the notice, the authority shall open and
consider any offers received. All offers received shall be opened at
public meetings of the authority and shall be kept open for public
inspection.
(e) The authority may reject any or all bids or may make awards
to the highest and best bidder or bidders. In determining the highest
and best bids, the authority may take into consideration the
following:
(1) The size and character of the improvements for the
industrial development project as proposed by the bidder to be
made on the property and the terms and conditions of the
consideration offered by the bidder.
(2) The bidder's plans and ability to carry out the industrial
development project with reasonable promptness.
(3) Whether the property and interests to be acquired by the
bidder will be leased or released for the industrial development
project.
(4) The nature and extent of any obligations to be undertaken by
the authority in conjunction with the improvement of the
property or interests to be acquired for the industrial
development project as proposed by the bidder.
(5) The potential impact of the bidder's proposal on the creation
of new employment or the retention of existing employment
resulting from the industrial development project.
(6) The potential impact of the bidder's proposal to attract or
establish a major new business enterprise or to retain or expand
a significant existing business enterprise that will provide or
preserve gainful employment for the citizens of the state.
(7) The economic benefits to the state and its citizens that will
result from the industrial development project, as proposed by
the bidder, including the dollar volume of new or preserved
wages and salaries, increases in or preservation of state and
local government tax revenues, the incremental economic
benefits to the citizens of the state, the state, and local
governmental units potentially resulting from the industrial
development project as proposed by the bidder, and any other
direct or indirect economic benefit to the state and its citizens
resulting from the industrial development project as proposed
by the bidder.
(8) The potential impact and benefit to the state and its citizens
of the industrial development project as proposed by the bidder
from the standpoint of both human and economic welfare.
(f) In making an award to the highest and best bidder as provided
in subsection (e), the authority shall determine whether in its
judgment the potential benefits to the state and its citizens of the
industrial development project as proposed by the bidder exceed the
direct costs to the authority of acquiring the property and interests
being offered for sale or lease for the industrial development project
less any sums to be paid by the successful bidder pursuant to its bid.
The authority's judgment concerning this determination shall be
based on the economic studies, analyses, and projections that the
authority determines are reasonably necessary. The authority's
determination is final and conclusive.
(g) The authority may contract with a bidder concerning any of
the factors listed in subsection (e), and the contract may provide for
the deposit of surety bonds, the making of good faith deposits,
liquidated damages, the right of reversion or repurchase, or other
rights and remedies if the bidder fails to comply with the contract.
(h) After the opening, consideration, and determination of the
written offers filed in response to the notice, the authority may
dispose of all or part of the remaining available property or interests
for any approved use, either at public sale or by private negotiation
carried on by the authority, its regular employees, or real estate
experts employed for that purpose. For a period of thirty (30) days
after the opening of the written offers and determination on them, no
sale, exchange, or lease may be made on terms less than that shown
on the offering sheet, but after that period the authority may adjust
the offering terms it considers necessary to further the industrial
development project.
(i) An action to contest the validity of any sale or lease awarded
and approved by the authority under this section may not be
commenced more than thirty (30) days following the authority's
adoption of a resolution designating the successful bidder or bidders
and stating and approving the basic terms and conditions of the sale
or lease.
As added by P.L.24-1987, SEC.4. Amended by P.L.11-1990, SEC.31.
IC 4-4-11-15.6
Additional authority powers
Sec. 15.6. In addition to the powers listed in section 15 of this
chapter, the authority may:
(1) issue bonds under terms and conditions determined by the
authority and use the proceeds of the bonds to acquire
obligations issued by any entity authorized to acquire, finance,
construct, or lease capital improvements under IC 5-1-17;
(2) issue bonds under terms and conditions determined by the
authority and use the proceeds of the bonds to acquire any
obligations issued by the northwest Indiana regional
development authority established by IC 36-7.5-2-1; and
(3) after December 31, 2009, issue bonds under terms and
conditions determined by the authority and use the proceeds of
the bonds to acquire any obligations issued by either the
commuter rail service board established under IC.8-24-5 or the
regional demand and scheduled bus service board established
under IC.8-24-6.
As added by P.L.214-2005, SEC.1. Amended by P.L.182-2009(ss),
SEC.50.
IC 4-4-11-16
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 4-4-11-16.1
Repealed
(Repealed by P.L.2-2005, SEC.131.)
IC 4-4-11-16.3
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 4-4-11-16.5
Repealed
(Repealed by P.L.162-2007, SEC.42.)
IC 4-4-11-17
Industrial development projects; financing; procedure; approval
Sec. 17. (a) The authority may enter into negotiations with one (1)
or more persons concerning the terms and conditions of financing
agreements for industrial development projects. The authority shall
consider whether a proposed industrial development project may
have an adverse competitive effect on similar industrial development
projects already constructed or operating in the local governmental
unit where the industrial development project will be located.
Preliminary expenses in connection with negotiations under this
section may be paid from:
(1) money furnished by the proposed user or developer;
(2) money made available by the state or federal government, or
by any of their departments or agencies; or
(3) money of the authority.
(b) The authority shall prepare a report that:
(1) briefly describes the proposed industrial development
project;
(2) estimates the number and expense of public works or
services that would be made necessary or desirable by the
proposed industrial development project, including public ways,
schools, water, sewers, street lights, and fire protection;
(3) estimates the total costs of the proposed industrial
development project;
(4) for an industrial development project that is not exclusively
either a pollution control facility or an educational facility
project, estimates the number of jobs and the payroll to be
created or saved by the project;
(5) for pollution control facilities, describes the facilities and
how they will abate, reduce, or prevent pollution;
(6) for educational facility projects, describes how the project
promotes the educational enrichment (including cultural,
intellectual, scientific, or artistic opportunities) of the people of
the state; and
(7) for child care facility projects, describes the facilities and
how the facilities promote accessibility to and increased options
for child care for the people of the state.
The report shall be submitted to the executive director or chairman
of the plan commission, if any, having jurisdiction over the industrial
development project and, if the number of new jobs estimated
exceeds one hundred (100), to the superintendent of the school
corporation where the industrial development project will be located.
The executive director or chairman of the plan commission and the
school superintendent may formulate their written comments
concerning the report and transmit their comments, if any, to the
authority within five (5) days from the receipt of the report.
(c) The authority shall hold a public hearing, which may be
conducted by the authority, or any officer, member, or agent
designated thereby, on the proposed financing agreement for the
industrial development project, after giving notice by publication in
one (1) newspaper of general circulation in the city, town, or county
where the industrial development project is to be located at least ten
(10) days in advance of this public hearing.
(d) If the authority finds that the industrial development project
will be of benefit to the health, safety, morals, and general welfare of
the area where the industrial development project is to be located,
and complies with the purposes and provisions of this chapter, it may
by resolution approve the proposed financing agreement. This
resolution may also authorize the issuance of bonds payable solely
from revenues and receipts derived from the financing agreement or
from payments made under an agreement to guarantee obligations of
the developer, a user, a related person, or the authority by a
developer, a user, a related person thereto, or the authority and the
Indiana economic development corporation pursuant to the industrial
development project guaranty fund under IC 5-28-30. The bonds are
not in any respect a general obligation of the state, nor are they
payable in any manner from revenues raised by taxation.
(e) A financing agreement approved under this section must
provide for payments in an amount sufficient to pay the principal of,
premium, if any, and interest on the bonds authorized for the
financing of the industrial development project. However, interest
payments for the anticipated construction period, plus a period of not
more than one (1) year, may be funded in the bond issue. The term
of a financing agreement may not exceed fifty (50) years from the
date of any bonds issued under the financing agreement. However,
a financing agreement does not terminate after fifty (50) years if a
default under that financing agreement remains uncured, unless the
termination is authorized by the terms of the financing agreement. If
the authority retains an interest in the industrial development project,
the financing agreement must require the user or the developer to pay
all costs of maintenance, repair, taxes, assessments, insurance
premiums, trustee's fees, and any other expenses relating to the
industrial development projects, so that the authority will not incur
any expenses on account of the industrial development projects other
than those that are covered by the payments provided for in the
financing agreement.
As added by Acts 1982, P.L.16, SEC.1. Amended by P.L.20-1985,
SEC.6; P.L.24-1987, SEC.6; P.L.11-1990, SEC.33; P