Ind. Code ch. 5-1.2-8

Ind. Code ch. 5-1.2-8
in effect

Ind. Code § 5-1.2-8-1 Purposes of this chapter

Sec. 1. The general purposes of this chapter are the following: (1) To provide financing for educational facility projects. (2) To provide a measure of assistance and an alternative method to enable nonprofit colleges or universities in Indiana to refund or refinance outstanding indebtedness incurred by nonprofit colleges or universities in Indiana for the renovation, construction, acquisition, or equipping of educational facilities. (3) To establish liability or other loss insurance reserves or to contribute those insurance reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses. (4) To provide the needed additional educational facilities for the public benefit and good. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-2 Applicability

Sec. 2. This chapter applies only to educational facilities and not to any other facilities financed by the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-3 Scope of powers

Sec. 3. Except as otherwise expressly provided in this chapter, none of the powers granted to the authority under this chapter are subject to the supervision or regulation or require the approval or consent of: (1) any municipality or political subdivision; (2) any department, division, commission, board, body, bureau, official, or agency of any municipality or political subdivision; or (3) the state. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-4 Powers; educational facility projects

Sec. 4. (a) The authority may determine the location and character of any educational facility project to be financed under this chapter. (b) The authority may construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease as lessee or lessor, regulate any educational facility project, or enter into contracts for any purpose stated in this section. (c) The authority may designate a nonprofit college or university as the authority's agent for purposes of this section. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-5 Rents and charges

Sec. 5. The authority: (1) may require that the rates, rents, fees, or charges established by a nonprofit college or university are sufficient to discharge the institution's obligations to the authority; but (2) has no other jurisdiction over the rates, rents, fees, or charges. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-6 Rules for projects

Sec. 6. The authority may: (1) establish rules for the use of an educational facility project or any part of an educational facility project; and (2) designate a nonprofit college or university as the authority's agent to establish rules for the use of an educational facility project undertaken for that nonprofit college or university. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-7 Loans

Sec. 7. (a) The authority may make loans to any nonprofit college or university for the cost of an educational facility project, including the establishment of liability or other loss insurance reserves or the contribution of those reserves to a risk retention group for the purpose of providing insurance coverage against liability claims or other losses in accordance with an agreement between the authority and the nonprofit college or university. (b) A loan authorized under this section may not exceed the total cost of the educational facility project as determined by the nonprofit college or university and approved by the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-8 Loans and bonds

Sec. 8. (a) The authority may make loans to a nonprofit college or university to refund outstanding obligations or advances issued, made, or given by the nonprofit college or university for the cost of an educational facility project, including the establishment of liability or other loss insurance reserves or the contribution of those reserves to a risk retention group to provide insurance coverage against liability claims or other losses. (b) The authority may issue bonds and make loans to a nonprofit college or university to refinance indebtedness incurred or to reimburse advances made for educational facility projects undertaken before the date of the bond issue whenever the authority finds that the financing is in the public interest and: (1) alleviates a financial hardship upon the nonprofit college or university; (2) results in a lesser cost of education; or (3) enables the nonprofit college or university to offer greater security for a loan or loans to finance a new educational facility project or educational facility projects or to effect savings in interest costs or more favorable amortization terms. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-9 Costs

Sec. 9. The authority may charge to and apportion among nonprofit colleges or universities the authority's administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-10 Financing

Sec. 10. (a) The authority may, for financing purposes, combine an educational facility project or educational facility projects and some or all future educational facility projects of any nonprofit college or university or nonprofit colleges or universities if: (1) the authority obtains the consent of all of the nonprofit colleges or universities that are involved, or, when financing loans for the funding of liability or other loss insurance reserves or for the providing of those reserves or other capital to be contributed to a risk retention group, the authority obtains the consent of all of the eligible members that are involved; and (2) the money set aside in any fund or funds pledged for any series of bonds or issue of bonds is held for the sole benefit of a series or issue separate and apart from the money pledged for any other series or issue of bonds of the authority. (b) To facilitate the combining of educational facility projects, bonds may be issued in one (1) or more series under one (1) or more resolutions or trust agreements and be: (1) fully open ended, thus providing for unlimited issuance of additional series; or (2) partially open ended, limited as to additional series; all in the discretion of the authority. (c) Notwithstanding any provision of this chapter, the authority may permit a nonprofit college or university to substitute one (1) or more educational facilities of similar value (as determined by an independent appraiser satisfactory to the authority) as security for any educational facility financed under this chapter on the terms and conditions that the authority may prescribe. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-11 Mortgages

Sec. 11. The authority may mortgage all or any part of: (1) any educational facility project and any other educational facilities conveyed to the authority for an educational purpose; and (2) the site or sites of the facilities, whether presently owned or subsequently acquired; for the benefit of the holders of the bonds of the authority issued to finance an educational facility project or any portion of an educational facility project or issued to refund or refinance outstanding indebtedness of a nonprofit college or university as permitted by this chapter. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-12 Risk retention

Sec. 12. The authority may join in a risk retention group with state educational institutions or any nonprofit college or university. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-13 Payment of expenses

Sec. 13. All expenses incurred in carrying out this chapter are payable solely from funds provided under the authority of this chapter. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-14 Conveyance of title

Sec. 14. The authority shall promptly take any action and execute any deeds and conveyances necessary and required to convey the title to an educational facility project or educational facility projects to the appropriate nonprofit college or university whenever: (1) the principal of and interest on bonds of the authority issued to finance the cost of an educational facility project or educational facility projects for a nonprofit college or university, including any refunding bonds issued to refund and refinance the bonds, have been fully paid and retired; or (2) adequate provision has been made to fully pay and retire bonds of the authority issued to finance the cost of an educational facility project or educational facility projects for a nonprofit college or university, all other conditions of the bond resolution have been satisfied, and the lien created by the bond resolution has been released in accordance with the provisions of the bond resolution. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-15 Income from investments or reserves or sinking funds; allocation and use

Sec. 15. Any income received from the investment of reserves or sinking funds must be applied in reduction of the rentals or other amounts paid by the nonprofit college or university or nonprofit colleges or universities for whose educational facility project or educational facility projects the reserves or sinking funds were created. Funds held as reserves or sinking funds when invested must be allocated to a specific educational facility project or educational facility projects of the institution for which the fund was created, and the income from the investment must be used to reduce the bonded indebtedness attributable to the educational facility project or educational facility projects. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-16 Leases

Sec. 16. (a) In connection with any lease entered into between the authority and any nonprofit college or university, the authority shall fix, revise, charge, and collect rents for the use of each educational facility project and contract with any person, partnership, association, limited liability company, or corporation, or other body, public or private, with respect to the educational facility project. (b) Each lease entered into by the authority with a nonprofit college or university must provide that the rents or other money payable by the nonprofit college or university is sufficient at all times: (1) to pay the private institution's share of the administrative costs and expenses of the authority; (2) to pay the principal of, the premium on (if any), and the interest on outstanding bonds of the authority issued in respect of the educational facility project as the bonds become due and payable; and (3) to create and maintain reserves that may be required or provided for in the bond resolution relating to the bonds of the authority. (c) The authority shall pledge the revenues derived and to be derived from an educational facility project for the purposes specified in subsection (b). As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.18.

Ind. Code § 5-1.2-8-17 Issuance of bonds

Sec. 17. The authority may provide for the issuance of bonds of the authority: (1) to refund any bonds of the authority then outstanding, including the payment of any redemption premium on the bonds and any interest accrued or to accrue to the earlier or any subsequent date of redemption, purchase, or maturity of the bonds; and (2) if determined advisable by the authority, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project or any part of an addition, improvement, extension, or enlargement of an educational facility project. However, no refunding bonds may be issued unless the authority provides for the payment of rentals adequate to satisfy the requirements of section 13 of this chapter. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-18 Bonds; use of proceeds

Sec. 18. The proceeds of any bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority: (1) be applied to the purchase or retirement at maturity or redemption of the outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity of the outstanding bonds; and (2) pending the application of the proceeds, be placed in escrow to be applied to the purchase or retirement at maturity or redemption of the outstanding bonds on a date determined by the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-19 Escrowed proceeds

Sec. 19. Any escrowed proceeds, pending use for the refunding of outstanding bonds, may be invested and reinvested in: (1) direct obligations of the United States of America; or (2) obligations having the timely payment of principal and interest unconditionally guaranteed by the United States of America; maturing at a time or times that are appropriate to assure the prompt payment of the principal and interest and redemption premium, if any, on the outstanding bonds to be refunded. Any interest, income, and profits earned or realized on any investment may also be applied to the payment of the outstanding bonds to be refunded. Only after the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and any interest, income, and profits earned or realized on the investments described in this section must be returned to the nonprofit college or university for use by the nonprofit college or university in any lawful manner. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-20 Bonds; authority to refund

Sec. 20. All bonds issued to refund outstanding bonds of the authority are subject to this chapter in the same manner and to the same extent as other bonds issued under this chapter. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-21 Competitive bidding requirement

Sec. 21. Except as provided in IC 21-36-2, an educational facility project is not subject to any statutory requirement of competitive bidding or other restriction imposed on the procedure for award of contracts or the lease, sale, or other disposition of property with regard to any action taken under authority of this chapter. If, however, the prospective lessee makes a request in writing, the authority shall call for the construction bids in the manner determined by the authority with the approval of the lessee. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-22 Powers of authority; financing

Sec. 22. Notwithstanding any other provision of this chapter, the authority may: (1) finance the cost of an educational facility or refund outstanding indebtedness of a nonprofit college or university, as authorized under section 8 of this chapter; or (2) finance the establishment of liability or other loss insurance reserves or the contribution of reserves or other capital to a risk retention group to provide insurance coverage against liability claims or other losses; by issuing the authority's bonds for the purpose of loaning the proceeds to a nonprofit college or university for the cost of a project or to refund or refinance outstanding indebtedness or reimburse advances made in connection with a project in accordance with an agreement between the authority and the institution and in exchange for the institution's promissory note or notes. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-23 Promissory notes

Sec. 23. (a) Any promissory notes received under section 22 of this chapter: (1) must have the same principal amounts, maturities, and interest rates as the bonds being issued; (2) may be secured by a first mortgage lien on the educational facility being financed or by a first mortgage lien on or security interest in other real or personal property or funds acceptable to the authority subject to any exceptions that the authority may approve and created by a mortgage instrument or security agreement satisfactory to the authority; and (3) may be insured or guaranteed by others. (b) Any bonds described in section 22 of this chapter must be payable solely out of the payments to be made on the promissory notes and under the corresponding agreement. Any bonds described in section 22 of this chapter may not exceed in principal amount the cost of the educational facility, as determined by the nonprofit college or university, or the necessary amount of these liability or other loss insurance reserves, and approved by the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-24 Mortgages

Sec. 24. If an educational facility is financed and mortgaged under sections 22 and 23 of this chapter: (1) the title to the facility must remain in the nonprofit college or university owning the facility, subject to the lien of the mortgage securing the promissory notes then being purchased; and (2) there may not be a lease of the facility between the authority and the institution. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-8-25 Powers of authority; restrictions

Sec. 25. Section 15 of this chapter does not apply to any educational facility or any liability or loss insurance reserves financed under this section and sections 22 through 24 of this chapter. However, the authority shall return the promissory notes purchased through the issuance of bonds to the nonprofit college or university issuing the promissory notes when: (1) the bonds have been fully paid and retired or adequate provision has been made to pay and retire the bonds fully; (2) all other conditions of the trust agreement or indenture creating the bonds have been satisfied; and (3) the lien has been released in accordance with the provisions of the instrument creating the lien. As added by P.L.189-2018, SEC.25.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026

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