Ind. Code ch. 5-1.3-6

Ind. Code ch. 5-1.3-6
in effect

Ind. Code § 5-1.3-6-1 Authorization to issue and sell bonds and notes

Sec. 1. (a) Except as provided in sections 2 and 6 of this chapter, the IFA may, by resolution, issue and sell bonds or notes of the IFA to provide funding to carry out the provisions of this article with respect to the construction of a rail project or rail projects or the refunding of any bonds or notes, together with any reasonable costs associated with a refunding. (b) Except as provided in sections 2 and 6 of this chapter, the NWIRDA may, by resolution, issue and sell bonds or notes of the NWIRDA to provide funding to carry out the provisions of this article with respect to the construction of a rail project or rail projects or the refunding of any bonds or notes, together with any reasonable costs associated with a refunding. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-2 Requirements

Sec. 2. (a) Before the issuance of bonds or notes, the IFA must: (1) receive the approval of the budget agency; and (2) receive budget committee review of a financial plan if the bonds or notes are payable from lease rental payments to be made from: (A) state appropriations; or (B) money on deposit in the next generation trust fund established under IC 8-14-15.2. (b) Before the issuance of bonds or notes, the IFA or the NWIRDA shall identify the rail project or rail projects to be financed from the proceeds of the bonds or notes. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-3 Notice; action to contest validity

Sec. 3. (a) Before issuing a series of bonds or notes, the IFA or the NWIRDA shall publish a notice of its determination to issue the bonds or notes. The notice shall be published one (1) time in two (2) newspapers published and of general circulation in the area where the rail project is located. (b) An action to contest the validity of: (1) any contract related to the bonds or notes entered into by or among the IFA, the NWIRDA, or the NICTD before the bonds or notes are issued; (2) any lease related to the bonds or notes entered into by or among the IFA, the NWIRDA, or the NICTD before the bonds or notes are issued to secure a series of bonds or notes; (3) a series of bonds or notes issued by the IFA or the NWIRDA; or (4) any pledge of financial support for the bonds or notes; may not be brought after the fifteenth day following publication of the notice required by subsection (a). (c) If a lease or contract is entered into under this chapter after bonds or notes relating to the lease or contract are issued, the IFA may publish notice of execution of the lease or contract as set forth in subsection (a). An action to contest the validity of such a lease or contract, or any pledge of financial support for such a lease or contract, may not be brought after the fifteenth day following publication of the notice. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-4 Execution

Sec. 4. (a) The bonds or notes of the IFA: (1) shall be executed by the manual or facsimile signature of the chairperson or vice chairperson of the IFA; (2) shall be attested by the manual or facsimile signature of the public finance director for the IFA; (3) shall be imprinted or impressed with the seal of the IFA by any means; (4) may be authenticated by a trustee, registrar, or paying agent; and (5) constitute valid and binding obligations of the IFA, even if the chairperson, vice chairperson, or public finance director whose manual or facsimile signature appears on the bonds or notes no longer holds that office. (b) The bonds or notes of the NWIRDA: (1) shall be executed by the manual or facsimile signature of the chairperson or vice chairperson of the NWIRDA; (2) shall be attested by the manual or facsimile signature of the secretary-treasurer of the NWIRDA; (3) may be authenticated by a trustee, registrar, or paying agent; and (4) constitute valid and binding obligations of the NWIRDA, even if the chairperson, vice chairperson, or secretary-treasurer whose manual or facsimile signature appears on the bonds or notes no longer holds that office. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-5 Attributes of bonds and notes

Sec. 5. The bonds or notes, when issued, have all the qualities of negotiable instruments, subject to provisions for registration, under IC 26 and are incontestable in the hands of a bona fide purchaser or owner of the bonds or notes for value. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-6 Sale

Sec. 6. The bonds or notes may be sold by the IFA or the NWIRDA at a public or a negotiated sale at a time or times determined by the IFA or the NWIRDA and at a premium or discount as determined by the IFA or NWIRDA. In determining the amount of bonds or notes to be issued and sold, the IFA or the NWIRDA may include the costs of construction or of refunding bonds or notes, including reasonable debt service reserves, and all other expenses necessary or incident to the construction of the rail project, a refunding, or the issuance of the bonds or notes. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-7 Proceeds; appropriation

Sec. 7. The proceeds of the bonds or notes are appropriated for the purpose for which the bonds or notes may be issued and the proceeds shall be deposited and disbursed in accordance with any provisions and restrictions that the IFA or the NWIRDA may provide in the resolution or trust agreement authorizing the issuance of the bonds or notes. The maturities of the bonds or notes, the rights of the owners, and the rights, duties, and obligations of the IFA and the NWIRDA, as applicable, are governed in all respects by this article and the resolution or trust agreement. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-8 Declaration concerning liability; sources or repayment

Sec. 8. The bonds or notes: (1) constitute the corporate obligations of the IFA or the NWIRDA; (2) do not constitute an indebtedness of the state within the meaning or application of any constitutional provision, prohibition, or limitation; and (3) are payable solely as to both principal and interest from: (A) the revenues from a lease to the NWIRDA, if any; (B) other available revenues, if any; (C) proceeds of bonds or notes, if any; or (D) investment earnings on proceeds of bonds or notes. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-9 Enforcement

Sec. 9. The provisions of this article and the covenants and undertakings of the IFA or the NWIRDA as expressed in any proceedings preliminary to or in connection with the issuance of the bonds or notes may be enforced, subject to the provisions of any resolution or trust agreement, by a bond or note owner by action for injunction or mandamus against the IFA or the NWIRDA or any officer, agent, or employee of the IFA or the NWIRDA. However, no action for monetary judgment may be brought against the state for any violations of this article or for payment of the bonds or notes of the IFA or the NWIRDA. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-10 Exemption from taxation

Sec. 10. (a) All bonds or notes issued under this article by the IFA are issued by a body corporate and politic of this state, but not a state agency, and for an essential public and governmental purpose. The bonds and notes, the interest on the bonds and notes, the proceeds received by an owner from the sale of the bonds or notes to the extent of the owner's cost of acquisition, proceeds received upon redemption for maturity, proceeds received at maturity, and the receipt of the interest and proceeds are exempt from taxation for all purposes except the financial institutions tax imposed under IC 6-5.5. (b) All bonds or notes issued under this article by the NWIRDA are issued by a body corporate and politic. The bonds and notes, the interest on the bonds and notes, the proceeds received by an owner from the sale of the bonds or notes to the extent of the owner's cost of acquisition, proceeds received upon redemption for maturity, proceeds received at maturity, and the receipt of the interest and proceeds are exempt from taxation for all purposes except the financial institutions tax imposed under IC 6-5.5. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-11 Authorization to invest

Sec. 11. Notwithstanding any other law, all financial institutions, investment companies, insurance companies, insurance associations, executors, administrators, guardians, trustees, and other fiduciaries may legally invest sinking funds or other money belonging to them or within their control in bonds or notes issued under this chapter. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-12 Exemption from registration requirements

Sec. 12. Bonds or notes issued under this chapter are exempt from the registration requirements of IC 23-19 and any other state securities registration statutes. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-13 Pledges

Sec. 13. A pledge of lease rentals, proceeds of bonds or notes, investment earnings on those proceeds, or other money pledged by the IFA or the NWIRDA is binding from the time the pledge is made. Lease rentals, proceeds of bonds or notes, investment earnings on those proceeds, or other money pledged by the IFA or the NWIRDA and received after the pledge by the IFA or the NWIRDA or its trustee or fiduciary is immediately subject to the lien of the pledge without any further act, and the lien of the pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the IFA, regardless of whether the parties have notice of the lien. A resolution, trust agreement, or any other instrument by which a pledge is created is required to be filed or recorded only in the records of the IFA. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-14 Insurance; guaranty

Sec. 14. (a) The IFA may obtain from the NWIRDA or an agency of the state or of the United States, or from a nongovernmental insurer, available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal, or any debt service reserve funds, on bonds or notes issued by the IFA, or on securities purchased or held by the IFA. (b) The NWIRDA may obtain from the IFA or an agency of the state or of the United States, or from a nongovernmental insurer, available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal, or any debt service reserve funds, on bonds or notes issued by the NWIRDA, or on securities purchased or held by the NWIRDA. As added by P.L.189-2018, SEC.26. Amended by P.L.10-2019, SEC.30.

Ind. Code § 5-1.3-6-15 Agreements for credit enhancement or liquidity support

Sec. 15. The IFA or the NWIRDA may enter into agreements with an entity to provide credit enhancement or liquidity support for any bonds or notes issued by the IFA or the NWIRDA, or for any debt service reserves securing any bonds or notes, with terms that are reasonable and proper, in the discretion of the IFA or the NWIRDA, and not in violation of law. The IFA or the NWIRDA may execute and deliver notes to evidence its obligation to make payments under such an agreement, but these notes must conform to this article in all respects. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-16 Contracts for handling securities and money

Sec. 16. The IFA or the NWIRDA may enter into agreements or contracts with any financial institution as may be necessary, desirable, or convenient in the opinion of the IFA or the NWIRDA for rendering services in connection with: (1) the care, custody, or safekeeping of securities or other investments held or owned by the IFA or the NWIRDA; (2) the payment or collection of amounts payable as to principal or interest; and (3) the delivery to the IFA or the NWIRDA of securities or other investments purchased or sold by it. The IFA or the NWIRDA may also, in connection with any of the services rendered by a financial institution as to custody and safekeeping of its securities or investments, require security in the form of collateral bonds, surety agreements, or security agreements as, in the opinion of the IFA or the NWIRDA, is necessary or desirable. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-17 Trust agreement

Sec. 17. (a) In the discretion of the IFA or the NWIRDA, any bonds and notes issued under this chapter may be secured by a trust agreement by and between the IFA or the NWIRDA and a corporate trustee, which may be any trust company or bank having the powers of a trust company in Indiana. Such a trust agreement may also provide for a co-trustee, which may be any trust company or bank in the United States. (b) The trust agreement or the resolution providing for the issuance of the bonds or notes may contain provisions for protecting and enforcing the rights and remedies of the owners of bonds or notes as may be reasonable and proper, in the discretion of the IFA or the NWIRDA, and not in violation of law. (c) The trust agreement or resolution may set forth the rights and remedies of the owners of any bonds or notes of the trustee and may restrict the individual right of action by the owners. (d) Any trust agreement or resolution may contain other provisions that the IFA or the NWIRDA considers reasonable and proper for the security of the owners of bonds or notes. (e) All expenses incurred in carrying out the provisions of the trust agreement or resolution may be paid from money pledged or assigned to the payment of the principal of and interest on bonds or notes or from funds available to the IFA or the NWIRDA. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-18 Bonds and notes; purchasing; holding; canceling; reselling

Sec. 18. (a) The IFA may purchase bonds or notes of the IFA or the NWIRDA out of its funds or money available for the purchase of its own bonds or notes. The IFA may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with owners of its bonds or notes. Unless canceled, bonds or notes so held shall be considered to be held for resale or transfer and the obligation evidenced by the bonds or notes shall not be considered to be extinguished. (b) The NWIRDA may purchase bonds or notes of the IFA or the NWIRDA out of its funds or money available for the purchase of its own bonds or notes. The NWIRDA may hold, cancel, or resell the bonds or notes subject to, and in accordance with, agreements with owners of its bonds or notes. Unless canceled, bonds or notes so held shall be considered to be held for resale or transfer and the obligation evidenced by the bonds or notes shall not be considered to be extinguished. As added by P.L.189-2018, SEC.26.

Ind. Code § 5-1.3-6-19 Investment; authorization

Sec. 19. Funds or money held by the IFA, the NWIRDA, or the NICTD under any trust agreement or resolution may be invested pending disbursement as provided in the trust agreement or the resolution. Such an investment is not restricted by or subject to the provisions of any other law. As added by P.L.189-2018, SEC.26.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026