CHAPTER 21. COUNTY TOLL ROAD FINANCING
IC 8-18-21
Chapter 21. County Toll Road Financing
IC 8-18-21-1
Application of chapter
Sec. 1. This chapter applies to all toll road authorities established
under IC 8-18-20.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-2
Preliminary expenses; payment; charge against bonds
Sec. 2. All necessary preliminary expenses that must be paid by
the board of directors of a toll road authority before the issuance and
delivery of bonds or the negotiation of a loan under this chapter,
including expenses incurred in:
(1) making surveys;
(2) estimating costs and receipts;
(3) employing engineers or other employees;
(4) giving notices; and
(5) taking options;
may be paid out of money provided by the county and county seat,
or either of them, from money on hand or derived from taxes levied
for that purpose. The fund or funds from which the payments are
made shall be fully reimbursed by the board out of the first proceeds
of the sale of bonds or the loan negotiated by the authority before any
other disbursements are made from those proceeds. The amount
advanced to pay preliminary expenses under this section is a first
charge against the proceeds resulting from the sale of the bonds or
the negotiation of the loan until that amount has been repaid.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-3
Powers of board of directors
Sec. 3. Except as provided in section 4 of this chapter, the board
of directors of a toll road authority, acting in the name of the
authority, may:
(1) finance, construct, reconstruct, operate, maintain, and
manage any toll road project acquired or financed under this
chapter;
(2) sue, be sued, plead, and be impleaded, but all actions against
the authority must be brought in the circuit court for the county
in which the authority is located;
(3) condemn, appropriate, purchase, and hold any real or
personal property needed or considered useful in connection
with a toll road facility;
(4) acquire real or personal property by gift, devise, or bequest
and hold, use, or dispose of that property for the purposes
authorized by this chapter;
(5) enter upon any lots or lands for the purpose of surveying or
examining them to determine the location of a toll road facility;
(6) collect all money that is due on account of the operation,
maintenance, or management of, or otherwise related to, a toll
road facility, and expend that money for proper purposes;
(7) employ the managers, superintendents, architects, engineers,
attorneys, auditors, clerks, foremen, custodians, and other
employees, necessary for the proper operation of a toll road
facility and fix the compensation of those employees, but a
contract of employment may not be made for a period of more
than four (4) years although it may be extended or renewed
from time to time;
(8) make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution
of its powers under this chapter; and
(9) provide coverage for its employees under IC 22-3 and
IC 22-4.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-4
Counties with consolidated cities; approval
Sec. 4. The toll road authority in a county having a consolidated
city may not construct or finance unless that action is first approved
by:
(1) the city-county legislative body; and
(2) the legislative body of the unit involved.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-5
Revenue bonds; issuance; source of payment
Sec. 5. (a) For the purpose of obtaining money to pay the cost of:
(1) constructing toll road facilities;
(2) acquiring land;
(3) repaying any advances for preliminary expenses made to the
authority by an eligible entity; or
(4) refinancing any loan made under this chapter;
the board of directors of a toll road authority may issue revenue
bonds of the authority.
(b) The bonds are payable solely from the income and revenues
of the toll road facilities for which the bonds were issued.
As added by P.L.386-1987(ss), SEC.21. Amended by P.L.3-1990,
SEC.32.
IC 8-18-21-6
Revenue bonds; resolution; interest; maturity
Sec. 6. The revenue bonds must be authorized by resolution of the
board. The bonds:
(1) bear interest payable semiannually; and
(2) mature serially, either annually or semiannually, at times
determined by the resolution authorizing the bonds.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-7
Revenue bonds; redemption before maturity; resolution; contents;
negotiable instruments
Sec. 7. (a) The revenue bonds may, and all bonds maturing after
ten (10) years from date of issuance shall, be made redeemable
before maturity at the option of the board of directors of the toll road
authority. Such a redemption must be at the par value of the bonds,
together with the premiums and under the terms and conditions fixed
by the resolution authorizing the issuance of the bonds.
(b) The principal of and interest on the bonds may be made
payable in any lawful medium.
(c) The resolution authorizing the issuance of the bonds must:
(1) determine the form of the bonds, including the interest
coupons to be attached to them;
(2) fix the denomination or denominations of the bonds; and
(3) fix the place or places of payment of the principal and
interest of the bonds, which must be at a state or national bank
or trust company within Indiana and may also be at one (1) or
more state or national banks or trust companies outside Indiana.
(d) The bonds are negotiable instruments under IC 26-1.
(e) The resolution authorizing the issuance of the bonds may
provide for the registration of any of the bonds in the name of the
owner as to principal alone.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-8
Revenue bonds; execution; notice of sale; sale
Sec. 8. (a) The revenue bonds shall be executed by the president
of the board of directors, the corporate seal of the authority shall be
affixed to the bonds and attested by the secretary of the board, and
the interest coupons attached to the bonds shall be executed by
placing the facsimile signature of the treasurer of the board on them.
(b) Notice of the sale of the bonds shall be published in
accordance with IC 5-3-1.
(c) The board of directors shall sell the bonds at public sale, for
not less than their par value. The board shall award the bonds to the
highest bidder, as determined by computing the total interest on the
bonds from the date of sale to the dates of maturity and deducting
from that amount the premium bid, if any. Any premium received
from the sale of the bonds shall be used solely for the payment of
principal and interest on the bonds. If the bonds are not sold on the
date fixed for the sale, then the sale may be continued from day to
day until a satisfactory bid has been received.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-9
Temporary bonds
Sec. 9. The board of directors may issue temporary bonds, with or
without coupons. These bonds, which must be issued in the manner
prescribed by this chapter, may be exchanged for the bonds that are
subsequently issued.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-10
Loans; resolutions; notice
Sec. 10. (a) In lieu of authorizing and selling bonds under this
chapter, the board of directors of a toll road authority may adopt a
resolution authorizing the negotiation of a loan or loans for the
purpose of obtaining the required money.
(b) The resolution authorizing the loan must set out:
(1) the total amount of the loan desired;
(2) the approximate dates on which money will be required, and
the amounts of the money that will be required on those dates;
and
(3) any terms, conditions, and restrictions concerning the
proposed loan or the submission of proposals that the board
considers advisable.
(c) Before the consideration of proposals for such a loan, a notice
shall be published in accordance with IC 5-3-1. The notice must set
out:
(1) the amount and purpose of the proposed loan;
(2) a brief summary of other provisions of the resolution; and
(3) the time and place where proposals will be considered.
(d) The board of directors may accept the proposal it considers
most advantageous to the authority.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-11
Trust indentures
Sec. 11. (a) The board of directors of an authority may secure
bonds issued or loans made under this chapter by a trust indenture
between the authority and a corporate trustee, which may be any trust
company or national or state bank within Indiana that has trust
powers.
(b) The trust indenture may:
(1) mortgage all or part of the toll road facility for which the
bonds are issued or loan is made;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders or lenders,
including covenants setting forth the duties of the authority and
board concerning:
(A) the construction, operation, repair, maintenance, and
insurance of the toll road facility; and
(B) the custody, safeguarding, and application of all money
received or to be received by the authority on account of the
toll road facility financed by the bonds or loan;
(3) set forth the rights and remedies of the bondholders or
lenders and trustee; and
(4) restrict the individual right of action of bondholders or
lenders.
(c) Except as otherwise provided in this chapter, the board of
directors may, by resolution or in the trust indenture, specify:
(1) the officer, board, or depository to which the proceeds of the
bonds or loan shall be paid; and
(2) the method of disbursing those proceeds.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-12
Proceeds of bonds or loans; application; lien
Sec. 12. (a) The proceeds of any bonds issued or loans made
under this chapter shall first be applied to the reimbursement of all
amounts advanced for preliminary expenses under this chapter. The
proceeds shall then be applied solely to the payment of the costs for
which the bonds are issued or the loan is negotiated, including
incidental expenses and interest during construction.
(b) The bondholders, lenders, or trustees under this chapter have
a lien upon the proceeds of the bonds or the loan until those proceeds
are applied as prescribed by this section.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-13
Review of annual operating budget
Sec. 13. The annual operating budget of a toll road authority is
subject to:
(1) review by the county board of tax adjustment; and
(2) review by the department of local government finance;
as in the case of other political subdivisions.
As added by P.L.386-1987(ss), SEC.21. Amended by P.L.90-2002,
SEC.326; P.L.224-2007, SEC.96; P.L.146-2008, SEC.363.
IC 8-18-21-14
Tax exemption; property and revenue of authority
Sec. 14. All the property and revenues of a toll road authority are
exempt from taxation for all purposes.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-15
Tax exemption; bonds and securities
Sec. 15. All the bonds and other securities issued by a toll road
authority, including the interest on them, are exempt from taxation
as provided in IC 6-8-5.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-16
Handling and expenditure of authority money; surety bonds
Sec. 16. (a) Except as otherwise provided in this chapter, all
money coming into possession of the toll road authority shall be
deposited, held, and secured in accordance with the general statutes
concerning the handling of public funds. The handling and
expenditure of money coming into possession of the authority is
subject to audit and supervision by the state board of accounts.
(b) Any employee of the toll road authority authorized to receive,
disburse, or in any other way handle money or negotiable securities
of the authority shall execute a bond payable to the state, with surety
to consist of a surety or guaranty corporation qualified to do business
in Indiana. The bond must be in an amount determined by the board
of directors of the authority and must be conditioned upon the
faithful performance of the employee's duties and the accounting for
all money and property that may come into his hands or under his
control. The cost of the bond shall be paid by the authority.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-17
Contracts subject to public works statutes
Sec. 17. All contracts let by a toll road authority for the
construction and equipment of a toll road facility must be let in
accordance with the general statutes concerning public works.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-18
Public records
Sec. 18. The records of a toll road authority are public records.
As added by P.L.386-1987(ss), SEC.21.
IC 8-18-21-19
Dissolution of authority
Sec. 19. (a) The county fiscal body and the municipal fiscal body
of the county seat may by concurrent resolution dissolve a toll road
authority. They may consider dissolving the toll road authority at any
time, but they shall consider dissolving the toll road authority when
they are presented with a petition signed by twenty percent (20%) of
the registered voters residing in the county or thirty-five percent
(35%) of the registered voters residing in the county seat.
(b) The concurrent resolution must provide a plan for paying any
obligations, including bonds, of the toll road authority and for the
disposition of the funds and property of the toll road authority.
As added by P.L.386-1987(ss), SEC.21.