CHAPTER 4. HOSPITAL BONDING AUTHORITIES
IC 5-1-4
Chapter 4. Hospital Bonding Authorities
IC 5-1-4-1
Declaration of policy
Sec. 1. Declaration of Policy. It is declared that for the benefit of
the people of the state, the increase of their commerce, welfare and
prosperity and the improvement of their health and living conditions
it is essential that hospitals within the state be provided with
appropriate additional means to expand, enlarge and establish health
care, hospital and other related facilities; and that it is the purpose of
this chapter to provide a measure of assistance and alternative
methods to enable hospitals within this state to refund or refinance
outstanding indebtedness incurred for the facilities and to provide
additional facilities and structures which are required to accomplish
the purposes of this chapter, all to the public benefit and good, to the
extent and manner provided herein.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;
Acts 1975, P.L.35, SEC.1.)
IC 5-1-4-2
Short title
Sec. 2. Short title. This chapter may be referred to and cited as the
"Indiana Hospital Authority Act."
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-3
Definitions
Sec. 3. As used in this chapter, the following words and terms
shall have the following meanings unless the context indicates
another or different meaning or intent:
(a) "Authority" means a hospital authority created by IC 5-1-4-4
or any board, body, commission, department, or officer succeeding
to the principal functions thereof or to whom the powers conferred
upon such authority by this chapter shall be given by law.
(b) "Project" means a structure or addition to an existing structure
which is suitable for use as a hospital, clinic, laboratory, laundry,
nurses' or interns' residence, administration building, research
facility, or maintenance, storage, or utility facility, and other
structures or facilities related thereto or required or useful for the
operation of the project, including the site thereof; parking and other
facilities or structures essential or convenient for the orderly
operation of such project, or equipment, machinery, and other similar
items necessary or convenient for the operation of the project in the
manner for which its use is intended, but not such items as fuel,
supplies, or other items which customarily result in a current
operating charge. "Project" also means:
(1) the construction of a part or portion of a building;
(2) the acquisition and remodeling of an existing building; or
(3) the acquisition of existing facilities of a participating
hospital in connection with the refunding or refinancing of
outstanding obligations, mortgages, or advances issued, made,
or given by such participating hospital whenever the authority
finds that such refunding or refinancing is in the public interest
and either:
(A) alleviates a financial hardship upon the participating
hospital;
(B) results in a lesser cost of patient care and a saving to
third parties and others who must pay for such care; or
(C) enables the participating hospital to offer greater security
for the financing of a new project or projects or to effect
savings in interest costs or more favorable amortization
terms.
(c) "Cost" as applied to a project or any portion thereof financed
under this chapter means all or any part of the cost of construction
and acquisition of all lands, structures, real or personal property,
rights, rights-of-way, franchises, easements, and interests acquired
or used for a project; the cost of demolishing or removing any
buildings or structures on land so acquired, including the cost of
acquiring any lands to which such buildings or structures may be
moved; the cost of all machinery and equipment, financing charges,
interest prior to, during, and for a period after completion of such
construction; provisions for working capital; reserves for principal
and interest and for extensions, enlargements, additions,
replacements, renovations, and improvements; cost of engineering,
financial and legal services, plans, specifications, studies, surveys,
estimates of cost and of revenues; administrative expenses; expenses
necessary or incident to determining the feasibility or practicability
of constructing the project; and such other expenses as may be
necessary or incident to the construction and acquisition of the
project, the financing of such construction and acquisition, and the
placing of the project in operation.
(d) "Bonds" means bonds of the authority issued under this
chapter, including refunding bonds, notwithstanding that the same
may be secured by the full faith and credit of a participating hospital
or any other lawfully pledged security of a participating hospital.
(e) "Participating hospital" means a:
(1) nonprofit corporation which is organized under the laws of
this state or which is admitted to transact business in this state
as a foreign corporation; or
(2) hospital organized and existing under IC 16-24-1;
which either operates or proposes to operate a project or undertakes
the refunding of all or part of its outstanding indebtedness as
authorized by this chapter, or both.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;
Acts 1975, P.L.35, SEC.2.) As amended by Acts 1980, P.L.23, SEC.1;
P.L.26-1986, SEC.1; P.L.2-1993, SEC.39.
IC 5-1-4-4
Creation of authority
Sec. 4. (a) The legislative body of any county, second or third
class city, or town in which is located one (1) or more participating
hospitals, upon request in writing by the board of trustees or other
governing board of any such participating hospital, may adopt a
resolution for the creation of an authority under this chapter.
(b) Upon the adoption of the resolution, there is created an
authority which shall be a body corporate and politic for the purpose
of financing, acquiring, constructing, equipping, and leasing a project
or projects to participating hospitals located in the county, city, or
town or refunding outstanding indebtedness of participating hospitals
located in the county, city, or town as authorized by this chapter, or
both.
(c) If the authority is created by a resolution of the legislative
body of a county, it shall be known as the "Hospital Authority of
__________ County" (include the name of the county).
(d) If the authority is created by resolution of the legislative body
of a second or third class city or town, it shall be known as the
"Hospital Authority of __________" (include the name of the city or
town).
(e) The county auditor, the city clerk, or the town clerk-treasurer,
as the case may be, shall file a certified copy of the resolution with
the executive of the county, city, or town, as the case may be, in
which the authority is created.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;
Acts 1975, P.L.35, SEC.3.) As amended by Acts 1980, P.L.23, SEC.2;
Acts 1981, P.L.44, SEC.1; Acts 1982, P.L.30, SEC.1; P.L.40-1985,
SEC.1; P.L.8-1989, SEC.14.
IC 5-1-4-5
Organization of authority; directors
Sec. 5. (a) Within sixty (60) days from the filing of the certified
copy of the resolution in accordance with section 4 of this chapter,
the board of commissioners of the county or the executive of the city
or town shall appoint five (5) residents of the county, city, or town,
as the case may be, as directors of the authority.
(b) Each appointment shall be evidenced by a written certificate
of appointment signed by the appointing authority who shall cause
a written notice to be sent to each appointee. One (1) director shall
be appointed for a term of one (1) year, one (1) director for a term of
two (2) years, one (1) director for a term of three (3) years, and two
(2) directors for a term of four (4) years. At the expiration of the
respective terms of the directors, the appointing authority shall
appoint successors for four (4) year terms.
(c) Each director shall serve as such until the director's successor
is appointed and qualified. In the event that any director shall die,
resign, cease to be a resident of the county, city, or town, as the case
may be, or be removed, the appointing authority shall appoint
another person as director for the remainder of such term. If any
person appointed as a director shall fail to qualify within ten (10)
days after the mailing to the appointee of notice of the appointment,
the appointing authority shall appoint another person as director for
the term.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by Acts 1982, P.L.30, SEC.2; P.L.7-1983, SEC.6;
P.L.40-1985, SEC.2; P.L.8-1989, SEC.15; P.L.4-1991, SEC.134.
IC 5-1-4-6
Oath of office
Sec. 6. Oath of Office. Each director, before entering upon his
duties shall take and subscribe an oath of office in usual form to be
endorsed upon his certificate of appointment, which shall be filed
with the clerk of the circuit court.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-7
Removal from office
Sec. 7. Removal from Office. Any director may be removed from
office for neglect of duty, incompetency, disability to perform his
duties, or any other good cause, by an order of the circuit court in the
county in which such authority is located, subject to the following
procedure: a complaint may be filed by any person against such
director, setting forth the charges preferred; the cause shall be placed
on the advanced calendar and be tried as other civil causes are tried
by the court without the intervention of a jury. If such charges be
sustained, the court shall declare such office vacant. A change of
venue from the judge shall be granted upon motion but no change of
venue from the county may be taken.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-8
Meetings; selection of officers; bylaws
Sec. 8. The directors originally appointed shall meet within thirty
(30) days after their appointment, at a time and place designated by
the board of county commissioners, for the purpose of organization.
The directors shall elect the following officers from among their
members: president, vice president, secretary, and treasurer, who
shall perform the duties usually pertaining to those offices. Such
officers shall serve until the expiration of the first term to expire and
the directors shall meet annually to reorganize within thirty (30) days
after the appointment of each successor director for a full term. The
directors are authorized to adopt such bylaws, rules and regulations
as they may deem necessary to the proper conduct of their
proceedings, the carrying out of their duties, and the safeguarding of
the funds and property of the authority. In addition to such meetings
as above provided, other regular and special meetings shall be held
at such times as they may determine and upon such notice as they
may fix, either by resolution or in accordance with the provisions of
the bylaws, rules and regulations adopted. A majority of the directors
shall constitute a quorum and the concurrence of a majority shall be
necessary to authorize any action. Directors shall serve without pay
but shall be entitled to reimbursement for any expenses necessarily
incurred in the performance of their duties.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by P.L.7-1983, SEC.7.
IC 5-1-4-9
Pecuniary interest of directors; transaction void
Sec. 9. Pecuniary Interest of Director - Transaction Void. No
director shall have any pecuniary interest in any contract,
employment, purchase or sale made under the provisions of this
chapter, and any transaction made in which any director has a
pecuniary interest shall be void.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-10
Powers of authority
Sec. 10. Powers of Authority. The purpose of each authority shall
be to assist participating hospitals in the constructing, financing and
refinancing of projects, and for this purpose each authority is
authorized and empowered:
(a) to have perpetual succession as a body politic and corporate
and to adopt by-laws for the regulation of its affairs and the conduct
of its business;
(b) to adopt an official seal and alter the same at its pleasure;
(c) to maintain an office at such place or places as it may
designate;
(d) to sue and be sued in its own name, and plead and be
impleaded;
(e) to determine the location and character of any project to be
financed under the provisions of this chapter, and to construct,
reconstruct, renovate, replace, maintain, repair, operate, lease, as
lessee or lessor, and regulate the same, to enter into contracts for any
or all of such purposes, to enter into contracts for the management
and operation of a project, and to designate a participating hospital
as its agent to determine the location and character of a project
undertaken by such participating hospital under the provisions of this
chapter and as the agent of the authority, to construct, reconstruct,
renovate, replace, maintain, repair, operate, lease, as lessee or lessor,
and regulate the same, and as the agent of the authority, to enter into
contracts for any or all of such purposes, including contracts for the
management and operation of such project;
(f) to issue bonds and other obligations of the authority for any of
its corporate purposes, and to fund or refund the same, all as
provided in this chapter;
(g) generally, to fix and revise from time to time and charge and
collect rates, rents, fees and charges for the use of and for the
services furnished or to be furnished by a project or any portion
thereof and to contract with any person, partnership, association,
limited liability company, or corporation or other body public or
private in respect thereof, including a contract with or the granting
of an option to the lessee to purchase the project for such price and
on such conditions as the authority in its sole discretion determines
to be appropriate, after retirement or redemption, or provision
therefor, of all the bonds issued to provide funds for the project;
(h) to establish rules and regulations for the use of a project or any
portion thereof and to designate a participating hospital as its agent
to establish rules and regulations for the use of a project undertaken
by such participating hospital;
(i) to employ consulting engineers, architects, attorneys,
accountants, construction and financial experts, superintendents,
managers, and such other employees and agents as may be necessary
in its judgment, and to fix their compensation;
(j) to receive and accept from any public agency loans or grants
for or in aid of the construction of a project or any portion thereof,
and to receive and accept loans, grants, aid or contributions from any
source of either money, property, labor or other things of value, to be
held, used and applied only for the purposes for which such loans,
grants, aid and contributions are made;
(k) to mortgage all or any portion of any project and any other
facilities conveyed to the authority for such purpose and the site or
sites thereof, whether presently owned or subsequently acquired, for
the benefit of the holders of the bonds of the authority issued to
finance such project or any portion thereof or issued to refund or
refinance outstanding indebtedness of a participating hospital as
permitted by this chapter;
(l) to make loans to any participating hospital for the cost of any
project in accordance with an agreement between the authority and
such participating hospital provided that no such loan shall exceed
the total cost of such project as determined by such participating
hospital and approved by the authority;
(m) to make loans to a participating hospital to refund outstanding
obligations, mortgages, or advances issued, made, or given by such
participating hospital for the cost of its facility or facilities, including
the power to issue bonds and make loans to a participating hospital
to refinance indebtedness incurred for facilities undertaken and prior
thereto whenever the authority finds that such financing is in the
public interest, and either: (1) alleviates a financial hardship upon the
participating hospital; (2) results in a lesser cost of patient care and
a saving to third parties, including state or federal governments, and
to others who must pay for such care; or (3) enables the participating
hospital to offer greater security for a loan or loans to finance a new
project or projects or to effect savings in interest costs or more
favorable amortization terms;
(n) to charge to and equitably apportion among participating
hospitals its administrative costs and expenses incurred in the
exercise of the powers and duties conferred by this chapter; and
(o) to do all things necessary or convenient to carry out the
purposes of this chapter.
In carrying out the purposes of this chapter, the authority may
undertake a project for two or more participating hospitals jointly, or
for any combination thereof, and thereupon, all other provisions of
this chapter shall apply to and for the benefit of the authority and
such joint participants.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;
Acts 1975, P.L.35, SEC.4.) As amended by P.L.8-1993, SEC.44.
IC 5-1-4-11
Payment of expenses
Sec. 11. Payment of Expenses. All expenses incurred in carrying
out the provisions of this chapter shall be payable solely from funds
provided under the provisions of this chapter and no liability or
obligation shall be incurred by an Authority hereunder beyond the
extent to which moneys shall have been provided under the
provisions of this chapter, or otherwise appropriated by law to such
Authority.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-12
Acquisition of property
Sec. 12. Acquisition of Property by Authority. Any authority is
authorized and empowered, directly or by and through a participating
hospital, as its agent, to acquire by purchase or by gift or devise such
lands, structures, property, real or personal, rights, rights-of-way,
franchises, easements and other interests in lands, including lands
lying under water and riparian rights, and including existing facilities
of a participating hospital as it may deem necessary or convenient for
the construction, acquisition or operation of a project, upon such
terms and at such prices as may be considered by it to be reasonable
and can be agreed upon between it and the owner thereof, and to take
title thereto in the name of such Authority or in the name of a
participating hospital as its agent.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1;
Acts 1975, P.L.35, SEC.5.)
IC 5-1-4-13
Bonds
Sec. 13. (a) Each authority is hereby authorized to provide by
resolution, at one time or from time to time, for the issuance of bonds
for the purpose of paying all or any part of the cost of a project.
(b) The principal of and the interest on such bond shall be payable
solely out of the revenues of such authority derived from the project
to which they relate.
(c) The bonds of each issue shall be dated, shall bear interest at
such rate or rates, shall mature at such time or times not exceeding
fifty (50) years from the date thereof, all as may be determined by the
authority, and may be made redeemable before maturity, at the
option of the authority, at such price or prices and under such terms
and conditions as may be fixed by the authority in the authorizing
resolution.
(d) The authority shall determine the form of the bonds, including
any interest coupons to be attached thereto, and shall fix the
denomination or denominations of the bonds and the place or places
of payment of principal and interest which may be at any bank or
trust company within or without the state.
(e) The bonds shall be signed in the name of the authority, by the
president or vice president, or by the facsimile signature of such
president or vice president, and the official seal of the authority, or
facsimile thereof, shall be affixed thereto and attested by the
secretary of the authority; and any coupons attached thereto shall
bear the facsimile signature of the treasurer of the authority.
(f) In case any officer whose signature or a facsimile of whose
signature shall appear on any bonds or coupons shall cease to be such
officer before the delivery of such bonds, such signature or such
facsimile shall, nevertheless, be valid and sufficient for all purposes
the same as if he had remained in office until such delivery.
(g) All bonds issued under the provisions of this chapter shall
have and are hereby declared to have all the qualities and incidents
of negotiable instruments under the law of the state of Indiana.
(h) The bonds may be issued in coupon or in registered form, or
both, as the authority may determine; and provision may be made for
the registration of any coupon bonds as to principal alone and also as
to both principal and interest, and for the reconversion into coupon
bonds of any bonds registered as to both principal and interest.
(i) The bonds may be sold in such manner, either at public or
private sale as the authority may determine; and neither the
provisions of IC 5-1-11 nor IC 21-32-3 shall be applicable to such
sale.
(j) The proceeds of the bonds of each issue shall be used solely
for the payment of the cost of the project for which such bonds shall
have been issued, and shall be disbursed in such manner and under
such restrictions, if any, as the authority may provide in the
resolution authorizing the issuance of such bonds or in the trust
agreement mentioned in this chapter securing the same.
(k) If the proceeds of the bonds of any issue, by error of estimates
or otherwise, shall be less than such cost, additional bonds may in
like manner be issued to provide the amount of such deficit, and,
unless otherwise provided in the resolution authorizing the issuance
of such bonds or in the trust agreement securing the same, shall be
deemed to be of the same issue and shall be entitled to payment from
the same fund without preference or priority of the bonds first issued.
(l) If the proceeds of the bonds of any issue shall exceed the cost
of the project for which the same shall have been issued, the surplus
shall be deposited to the credit of the sinking fund for such bonds.
(m) Prior to the preparation of definitive bonds, an authority may,
under like restrictions, issue interim receipts or temporary bonds,
with or without coupons, exchangeable for definitive bonds when
such bonds shall have been executed and are available for delivery.
(n) An authority may also provide for the replacement of any
bonds which shall become mutilated or shall be destroyed or lost.
(o) Bonds may be issued under the provisions of this chapter
without obtaining the consent of any officer, department, division,
commission, board, bureau or agency of the state, and without any
other proceedings or the happening of any other conditions or things
than those proceedings, conditions or things which are specifically
required by this chapter.
(p) An authority shall have power out of any funds available
therefor to purchase its bonds.
(q) An authority may hold, pledge, cancel or resell such bonds,
subject to and in accordance with agreements, if any, with
bondholders.
(r) Neither the members of an authority nor any person executing
the bonds or notes shall be liable personally on the bonds or notes or
be subject to any personal liability or accountability by reason of the
issuance thereof.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by Acts 1981, P.L.11, SEC.14; P.L.2-2007, SEC.66.
IC 5-1-4-14
Bond resolutions
Sec. 14. Bonds Resolution. Any resolution or resolutions
authorizing any bonds or any issue of bonds may contain provisions,
which shall be a part of the contract with the holders of the bonds to
be authorized, as to: (1) pledging or assigning the revenues of the
project with respect to which such bonds are to be issued; (2) the
rentals, fees and other amounts to be charged, and the amounts to be
raised in each year thereby, and the use and disposition of such
amounts; (3) the setting aside of reserves or sinking funds, and the
regulation, investment and disposition thereof; (4) limitations on the
use of the project; (5) limitations on the purpose to which or the
investments in which the proceeds of sale of any issue of bonds then
or thereafter to be issued may be applied and pledging such proceeds
to secure the payment of the bonds or any issue of the bonds; (6)
limitations on the issuance of additional bonds, the terms upon which
additional bonds may be issued and secured and the refunding of
outstanding bonds; (7) the procedure, if any, by which the terms of
any contract with bondholders may be amended or abrogated, the
amount of bonds the holders of which must consent thereto, and the
manner in which such consent may be given; (8) limitations on the
amount of moneys derived from the project to be expended for
operating, administrative or other expenses of an Authority; (9)
defining the acts or omissions to act which shall constitute a default
in the duties of an Authority to holders of its obligations and
providing the rights and remedies of such holders in the event of a
default; (10) the mortgaging of a project and the site thereof for the
purpose of securing the bondholders; and (11) any other matters
relating to the bonds which an Authority deems desirable.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-15
Trust agreement to secure bonds
Sec. 15. Trust Agreement to Secure Bonds. In the discretion of
any Authority any bonds issued under the provisions of this chapter
may be secured by a trust agreement by and between such Authority
and a corporate trustee or trustees, which may be any trust company
or bank having the powers of a trust company within or without the
state. Such trust agreement or the resolution providing for the
issuance of such bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledged and may
convey or mortgage the project or any portion thereof. Any pledge
or assignment made by an Authority pursuant hereto shall be valid
and binding from the time that the pledge or assignment is made, and
the revenues so pledged and thereafter received by such Authority
shall immediately be subject to the lien of such pledge or assignment
without physical delivery thereof or further act. The lien of such
pledge or assignment shall be valid and binding against all parties
having claims of any kind in tort, contract or otherwise against the
Authority irrespective of whether such parties have notice thereof.
Neither the resolution nor any trust agreement by which a pledge is
created or assignment made need be filed or recorded in any public
records in order to perfect lien thereof as against third parties except
that a copy thereof shall be filed in the records of the Authority. Such
trust agreement or resolution providing for the issuance of such
bonds may contain such provisions for protecting and enforcing the
rights and remedies of the bondholders as may be reasonable and
proper and not in violation of law, including particularly such
provisions as have hereinabove been specifically authorized to be
included in any resolution or resolutions of an Authority authorizing
bonds thereof. Any bank or trust company incorporated under the
laws of this state which may act as depository of the proceeds of
bonds or of revenues or other moneys may furnish such indemnifying
bonds or pledge such securities as may be required by an Authority.
Any such trust agreement may set forth the rights and remedies of the
bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. In addition to the
foregoing, any such trust agreement or resolution may contain such
other provisions as the Authority may deem reasonable and proper
for the security of the bondholders. All expenses incurred in carrying
out the provisions of such trust agreement or resolution may be
treated as a part of the cost of the operation of a project.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-15.5
Loans to participating hospitals
Sec. 15.5. Loans to Participating Hospitals. Notwithstanding any
other provision of this chapter to the contrary, the authority may
finance the cost of a project or refund outstanding indebtedness of a
participating hospital as authorized by section 10(m) of this chapter
by issuing its bonds for the purpose of purchasing the securities of a
participating hospital. Any such securities shall have the same
principal amounts, maturities and interest rates as the bonds so being
issued, may be secured by a first mortgage lien, subject to such
exceptions as the authority may approve and created by a mortgage
instrument satisfactory to the authority, and may be insured or
guaranteed by others. Any such bonds shall be secured by a pledge
of such securities under the trust agreement or indenture creating
such bonds, shall be payable solely out of the payments to be made
on such securities and shall not exceed in principal amount the cost
of such project or the refunding of such indebtedness as determined
by the participating hospital and approved by the authority. In other
respects any such bonds shall be subject to the provisions of this
chapter including sections 13 and 14 and the trust agreement or
indenture creating such bonds may contain such of the provisions set
forth in section 15 hereof as the authority may consider appropriate.
In the event that a project is financed pursuant to this section, the
title to such project shall remain in the participating hospital owning
the same, subject to the lien of the mortgage securing the securities
then being purchased, and there shall be no lease of such facility
between the authority and such participating hospital.
(Formerly: Acts 1975, P.L.35, SEC.6.)
IC 5-1-4-16
Refunding bonds
Sec. 16. An Authority is hereby authorized to provide by
resolution for the issuance of refunding bonds for the purpose of
refunding any bonds then outstanding which shall have been issued
by it under the provisions of this chapter, including the payment of
any redemption premium thereon and any interest accrued or to
accrue to the date of redemption of such bonds, and, if deemed
advisable by such Authority, for the additional purpose of
constructing improvements, extensions or enlargements of the
project in connection with which the bonds to be refunded shall have
been issued. Such refunding bonds shall be payable solely out of the
revenues of the project (including any such improvements,
extensions or enlargements thereto) to which the bonds being
refunded relate. The issuance of such bonds, the maturities and other
details thereof, the rights of the holders thereof and the rights, duties
and obligations of the Authority in respect of the same, shall be
governed by the provisions of this chapter insofar as the same may
be applicable.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-17
Payment of bonds
Sec. 17. Payment of Bonds. Bonds issued under the provisions of
this chapter shall not be deemed to constitute a debt of the state or of
any political subdivision thereof or a pledge of the faith and credit of
the state or of any such political subdivision, but such bonds shall be
payable solely from the funds pledged for their payment as
authorized herein, unless such bonds are refunded by refunding
bonds, issued under the provisions of this chapter, which refunding
bonds shall be payable solely from funds pledged for their payment
as authorized herein. All such revenue bonds shall contain on the
face thereof a statement to the effect that the bonds, as to both
principal and interest, are not an obligation of the State of Indiana,
or of any political subdivision thereof, but are payable solely from
revenues pledged for their payment. All expenses incurred in
carrying out the provisions of this chapter shall be payable solely
from funds provided under the authority of this chapter, and nothing
in this chapter contained shall be construed to authorize any
Authority to incur indebtedness or liability on behalf of or payable
by the state or any political subdivision thereof.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-18
Rents and charges
Sec. 18. Rents and Charges. Each Authority shall fix, revise,
charge and collect rents for the use of each project and contract with
any participating hospital, in respect thereof. Each lease entered into
by an Authority with a participating hospital shall provide that the
rents payable by the participating hospital shall be sufficient at all
times (a) to pay its share of the administrative costs and expenses of
such Authority, (b) to pay the cost of maintaining, repairing and
operating the project and each and every portion thereof, (c) to pay
the principal of, the premium, if any, and the interest on outstanding
bonds of the Authority issued in respect of such project as the same
shall become due and payable, and (d) to create and maintain
reserves which may but need not be required or provided for in the
bond resolution or trust agreement relating to such bonds of the
Authority.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-19
Bond proceeds and revenues
Sec. 19. (a) All money received by an authority or held by a
trustee under section 15 of this chapter, whether as proceeds from the
sale of bonds, from revenues, or otherwise, shall be deemed to be
trust funds to be held and applied solely as provided in this chapter,
but prior to the time when needed for use may be invested to the
extent and in the manner determined by the authority. Such funds
shall be deposited, held, and secured in accordance with the general
laws of the state relating to the handling of public funds.
(b) The resolution authorizing the issuance of bonds or the trust
agreement securing such bonds shall provide that any officer to
whom, or any bank or trust company to which, such money shall be
entrusted shall act as trustee of such money and shall hold and apply
the same for the purposes of this chapter, subject to the provisions of
this chapter and of the authorizing resolution or trust agreement.
(c) The handling and expenditure of funds coming into the
possession of an authority shall be subject to audit and supervision
by the state board of accounts. The cost of such audit may be treated
as an expense of operation.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by P.L.43-1987, SEC.1.
IC 5-1-4-20
Enforcement of rights and duties
Sec. 20. Enforcement of Rights and Duties. Any holder of bonds
issued under the provisions of this chapter or any of the coupons
appertaining thereto, and the trustee under any trust agreement,
except to the extent the rights herein given may be restricted by the
authorizing resolution or trust agreement, may, either at law or in
equity, by suit, action, mandamus or other proceedings, protect and
enforce any and all rights under the laws of the state or granted
hereunder or under such trust agreement, or the resolution
authorizing the issuance of such bonds, and may enforce and compel
the performance of all duties required by this chapter or by such trust
agreement or resolution to be performed by an Authority or by any
officer, employee or agent thereof, including the fixing, charging and
collecting of rates, rents, fees and charges herein authorized and
required by the provisions of such resolution or trust agreement to be
fixed, established and collected.
Such rights include the right to compel the performance of all
duties of an Authority required by this chapter or the bond resolution
or trust agreement; to enjoin unlawful activities; and in the event of
default with respect to the payment of any principal of, premium, if
any, and interest on any bond or in the performance of any convenant
or agreement on the part of an Authority in the bond resolution, to
apply to a court having jurisdiction of the cause to appoint a receiver
to administer and operate the project, the revenues of which are
pledged to the payment of principal of, premium, if any, and interest
on such bonds, (with full power to pay and to provide for payment
of, principal of, premium, if any, and interest on such bonds), and
with such powers, subject to the direction of the court, as are
permitted by law and are accorded receivers in general equity cases,
excluding any power to pledge additional revenues of an Authority
to the payment of such principal, premium and interest; and to
foreclose the mortgage on the project in the same manner as for real
estate of private corporations.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-21
Repealed
(Repealed by P.L.4-1988, SEC.5.)
IC 5-1-4-22
Interest in contracts
Sec. 22. A member, agent, or employee of an Authority who
knowingly is interested in any contract with the Authority or in the
sale of any property to the Authority commits a Class A
misdemeanor. Such contracts are void. This section does not apply
to contracts for purchases of property between an Authority and
other departments, municipalities, or subdivisions of state
government.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by Acts 1978, P.L.2, SEC.501.
IC 5-1-4-23
Liberal construction
Sec. 23. Liberal Construction. This chapter being necessary for
the welfare of the state and its inhabitants, shall be liberally
construed to effect the purposes thereof.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)
IC 5-1-4-24
Legal investments
Sec. 24. Legal Investments. Revenue bonds issued by an
Authority under the provisions of this chapter shall constitute legal
investments for any private trust funds, and the funds of any banks,
trust companies, insurance companies, building and loan
associations, credit unions, banks of discount and deposit, savings
banks, loan and trust and safe deposit companies, rural loan and
savings associations, guaranty loan and savings associations,
mortgage guaranty companies, small loan companies and industrial
loan and investment companies, and any other financial institutions
organized under the laws of the state of Indiana. Such bonds are
hereby made securities in which all public officers and public
agencies of the state and its political subdivisions may legally and
properly invest funds and such bonds may be properly and legally
deposited with and received by any state or municipal officer or any
agency or political subdivision of the state for any purpose for which
the deposit of bonds or other obligations of the state is now or may
hereafter be authorized by law.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by P.L.42-1993, SEC.1.
IC 5-1-4-25
Repealed
(Repealed by P.L.4-1988, SEC.5.)
IC 5-1-4-26
Tax exemption
Sec. 26. The exercise of the powers granted by this chapter will
be in all respects for the benefit of the people of the state, for the
increase of their commerce and prosperity, and for the improvement
of their health and living conditions, and as the operation and
maintenance of a project by an authority or its agent will constitute
the performance of essential governmental functions, such authority
shall not be required to pay any taxes or assessments upon or in
respect of a project or any property acquired or used by such
authority under the provisions of this chapter, or upon the income
therefrom, and the bonds issued under the provisions of this chapter,
the interest thereon, the proceeds received by a holder from the sale
of such bonds to the extent of the holder's cost of acquisition, or
proceeds received upon redemption prior to maturity or proceeds
received at maturity, and the receipt of such interest and proceeds
shall be exempt from taxation in the state of Indiana for all purposes
except the financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by P.L.21-1990, SEC.3; P.L.254-1997(ss), SEC.4.
IC 5-1-4-27
Pledge by state to bondholders and contractors
Sec. 27. Pledge by State to Bondholders and Contractors. The
State of Indiana does hereby pledge to and agree with the holders of
any obligations issued under this chapter, and with those parties who
may enter into contracts with an Authority pursuant to the provisions
of this chapter, that the state will not limit or alter the rights hereby
vested in such Authority until such obligations, together with the
interest thereon, are fully met and discharged and such contracts are
fully performed on the part of such Authority, provided nothing
herein contained shall preclude such limitation or alteration if and
when adequate provisions shall be made by law for the protection of
the holders of such obligations of such Authority or those entering
into such contracts with such Authority. An Authority as agent for
the state is authorized to include this pledge and undertaking for the
state in such obligations or contracts.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by P.L.2-1995, SEC.12.
IC 5-1-4-28
Supplemental effect
Sec. 28. (a) This chapter provides a complete, additional, and
alternative method for the doing of the things authorized in this
chapter and is supplemental and additional to powers conferred by
other laws.
(b) The issuance of bonds and refunding bonds under this chapter
need not comply with the requirements of any other law applicable
to the issuance of bonds. In the construction and acquisition of a
project under this chapter, an authority need not comply with:
(1) IC 5-17-1; or
(2) any competitive bidding law or other restrictions imposed
on the procedure for award of contracts for the construction and
equipment of a project or the lease, sale, or disposition of
property of an authority.
(c) If the prospective lessee requests in writing, an authority shall
call for construction bids in the manner as determined by the
authority with the approval of the lessee.
(d) Except as otherwise expressly provided in this chapter, none
of the powers granted to an authority under this chapter shall be
subject to the supervision or regulation or require the approval or
consent of any political subdivision, commission, board, body,
bureau, official, or agency of a political subdivision or the state.
(e) This subsection applies if the authority disposes of real
property or awards a contract for the procurement of property by
acceptance of bids, proposals, or quotations. A bid, proposal, or
quotation submitted by a trust (as defined in IC 30-4-1-1(a)) must
identify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.) As
amended by P.L.3-1989, SEC.26; P.L.336-1989(ss), SEC.13.
IC 5-1-4-29
Conflicting laws
Sec. 29. Act Controlling Over Inconsistent Law. To the extent that
the provisions of this chapter are inconsistent with the provisions of
any general statute or special act or parts thereof, the provisions of
this chapter shall be deemed controlling.
(Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.)