Ind. Code § 5-1.2-15-1 Request
Sec. 1. At the request of the Indiana department of transportation, the authority shall carry out this chapter.
As added by P.L.189-2018, SEC.25.
Ind. Code ch. 5-1.2-15
Ind. Code ch. 5-1.2-15
in effectInd. Code § 5-1.2-15-2 Funds
Sec. 2. The authority may establish local transportation infrastructure revolving funds for the purpose of providing funds to participants for local transportation infrastructure projects. A separate fund may be established for any purpose listed in section 8(a) of this chapter. Each fund shall be administered by the authority.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-3 Fund administration
Sec. 3. (a) In administering a fund, the authority shall do the following:
(1) Monitor applicable infrastructure finance needs and the availability and cost of capital.
(2) Provide financial management of investment pools and financial services associated with loans.
(3) Explore and evaluate capital financing techniques.
(4) Explore methods for the state to enhance the credit quality of bond issues of participants at a minimum cost to the state.
(b) The Indiana department of transportation, the department of environmental management, and any other appropriate state agency, department, or instrumentality, in consultation with the authority, shall advise participants on methods for financing infrastructure.
(c) The authority shall annually present a report to the budget committee and the budget agency that describes the projects funded under this chapter during the year.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-4 Powers
Sec. 4. Subject to the written procedures developed by the authority under section 7 of this chapter, the authority may do the following:
(1) Accept money from any agency, department, or instrumentality of the United States, the state, or another state for deposit in a fund.
(2) Issue bonds and deposit proceeds in a fund.
(3) Loan money to a participant.
(4) Use the money in a fund:
(A) for debt financing;
(B) for grants;
(C) for loan guarantees;
(D) to manage leveraged loan programs for new construction of local transportation infrastructure projects through recapitalization of funds;
(E) to refinance and purchase participant debt;
(F) to guarantee participant loans;
(G) to make bond and debt service reserve insurance payments;
(H) to guarantee debt service reserve funds; and
(I) to provide other financial assistance;
to or for a participant.
(5) Deposit loan repayments by a participant in a fund.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-5 Default; withholding of distributions
Sec. 5. (a) If the authority uses bond proceeds to loan money to or purchase bonds of a participant, the authority may, by the resolution approving the bonds, provide that subsection (b) is applicable to the participant.
(b) 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 participant (other than for goods or services provided by the participant), at any time after written notice to the department or agency head from the authority that the participant is in default on the payment of principal of or interest on the bonds 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 participant and pay over the money to the authority for the purpose of paying the principal of and interest on the related bonds. However, the withholding of payment from the participant and payment to the authority under this section must not adversely affect the validity of the bonds in default.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-6 Financial assistance agreement
Sec. 6. (a) If the authority finds that the local transportation infrastructure project:
(1) will be of benefit to the health, safety, morals, and general welfare of the area where the local transportation infrastructure project is to be located; and
(2) complies with the purposes and provisions of this chapter;
the authority may by resolution approve the proposed financial assistance agreement.
(b) A financial assistance agreement approved under this section in connection with bonds must provide for payments in an amount sufficient to pay the principal of, premium on (if any), and interest on the bonds issued for the financing of the local transportation infrastructure project. 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 financial assistance agreement may not exceed twenty (20) years from the date of any bonds issued under the financial assistance agreement. However, a financial assistance agreement does not terminate after twenty (20) years if a default under that financial assistance agreement remains uncured, unless the termination is authorized by the terms of the financial assistance agreement.
(c) The authority may do any of the following:
(1) Establish eligibility standards for a participant and local transportation infrastructure projects, without complying with IC 4-22-2. However, these standards have the force of law if the standards are adopted after a public hearing for which notice has been given by publication under IC 5-3-1.
(2) Contract with any entity securing, in whole or in part, the payment of bonds issued under this chapter and authorizing the entity to approve the participant that can finance or refinance local transportation infrastructure projects with proceeds from the bond issue secured by that entity.
(3) Finance for participants in connection with their local transportation infrastructure projects:
(A) the cost of their local transportation infrastructure projects, including costs of planning, designing, feasibility studies, construction, expansion, renovation, or improvement;
(B) capitalized interest for the anticipated construction period plus one (1) year; and
(C) in the case of a program funded from the proceeds of taxable bonds or sources other than tax exempt bonds, working capital associated with the operation of such local transportation infrastructure projects;
in amounts determined to be appropriate by the authority.
(d) The authority may provide financial assistance to participants in the form of forgiveness of principal of a loan.
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.25.
Ind. Code § 5-1.2-15-7 Allocation of money to projects; procedure
Sec. 7. (a) The authority shall establish a written procedure, in coordination with a state agency, department, or instrumentality providing funds under section 4(1) of this chapter and for allocating money to projects described in section 8 of this chapter.
(b) The procedure established under this section must include at least the following:
(1) An application procedure to identify projects that qualify for funding.
(2) Criteria for establishing priority of projects.
(3) Procedures for selecting projects.
(4) Procedures for reporting the results of the selection process and the status of projects to the budget committee.
(c) To apply for a loan or other financial assistance from a fund, a participant must submit an application that contains at least the following information:
(1) A description of the infrastructure for which the loan or other financial assistance is sought.
(2) An estimate of the cost of constructing or improving the infrastructure, including the cost of designing the infrastructure.
(3) Any other information required by the authority in accordance with the procedure established under this section.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-8 Loans or other financial assistance; uses; condition
Sec. 8. (a) A loan of proceeds of the authority's bonds or a loan or other financial assistance from a fund must be used by a participant to establish or improve highways, roads, streets, bridges, or any other public way, and public mass transportation systems.
(b) Financial assistance from the fund must be made in conjunction with the adoption of a resolution by a participant that sets forth the participant's commitment of revenues or other money or property to the local transportation infrastructure project for which the financial assistance is made.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-9 Loans or other financial assistance; interest rates
Sec. 9. (a) A loan from a fund may:
(1) not have a term of more than twenty (20) years;
(2) provide for amortization to begin not later than one (1) year after construction of the project ends; and
(3) have an interest rate established by the authority in accordance with subsection (c).
(b) Unless otherwise provided by the procedure established by the authority under section 7 of this chapter, a participant that receives financial assistance from the fund shall enter into a financial assistance agreement. A financial assistance agreement is a valid, binding, and enforceable agreement of the participant.
(c) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:
(1) Credit risk.
(2) Affordability.
(3) Other fiscal factors the authority considers relevant, including the program's cost of funds.
Based on the factors set forth in subdivisions (1) through (3), more than one (1) interest rate may be established and used for loans to different participants or for different loans or other financial assistance to the same participants.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-10 Loans or other financial assistance; necessary documents
Sec. 10. A loan or other financial assistance from the fund must be accompanied by the following:
(1) All papers and opinions required by the authority.
(2) Unless otherwise provided by the guidelines of the authority, the following:
(A) An approving opinion of nationally recognized bond counsel.
(B) A certification and guarantee of signatures.
(C) A certification that, as of the date of the loan or other financial assistance:
(i) no litigation is pending challenging the validity of or entry into the loan or other financial assistance or any security for the loan or other financial assistance; or
(ii) if litigation is pending, the litigation will not have a material adverse effect on the validity of the loan or other financial assistance or any security for the loan or other financial assistance.
(D) If litigation is pending, as an alternative to the certification described in clause (C), an opinion of legal counsel that the litigation will not have a material adverse effect on the validity of the loan or other financial assistance.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-11 Expenses
Sec. 11. The expenses of administering a fund shall be paid from money in that fund.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-12 Investment
Sec. 12. The authority may invest money in funds as provided in IC 5-1.2-4-1(a)(17) and IC 5-1.2-4-1(a)(40).
As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.26.
Ind. Code § 5-1.2-15-13 Reversion
Sec. 13. Money in any fund at the end of a state fiscal year does not revert to the state general fund.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-14 Other statutes
Sec. 14. The following apply to bonds issued under this chapter for local transportation infrastructure projects:
(1) IC 5-1.2-1-2.
(2) IC 5-1.2-4-7 through IC 5-1.2-4-16.
(3) IC 5-1.2-4-19 through IC 5-1.2-4-20.
(4) IC 5-1.2-4-23.
(5) IC 5-1.2-4-24.
(6) IC 5-1.2-4-26 through IC 5-1.2-4-29.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-15 Compensation
Sec. 15. The authority may fix and pay the compensation of persons employed for purposes of this chapter from money:
(1) available in a fund; or
(2) otherwise made available for the program.
As added by P.L.189-2018, SEC.25.
Ind. Code § 5-1.2-15-16 Fees
Sec. 16. A participant may pay fees charged by the authority to carry out this chapter.
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