§ 36-7.5-4.5-16.5 — Transfer of funds by a cash participant or associate member; double tracking project; pledge

Indiana § 36-7.5-4.5-16.5

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7.5: NORTHWEST INDIANA REGIONAL
• Ch. 4.5: Rail Transit Development Districts

Text

5. (a) This section applies to an associate
member or cash participant that has committed to:
(1) make a cash payment to the development authority; or
(2) provide revenues to the development authority annually to
make debt service payments annually for the life of any:
(A) bonds or obligations issued; or
(B) leases entered into;
by the development authority;
to finance the mainline double tracking project.
(b) A transfer of funds made by a cash participant or an associate
member under this section after December 31, 2018, is considered to
be a payment for services provided to residents by the mainline double
tracking project (as described in section 12 of this chapter) as those
services are rendered.
(c) A transfer of funds under this section does not constitute an
indebtedness of:
(1) an associate member;
(2) a cash participant; or
(3) the state;
within the meaning or application of any constitutional or statutory
provision or limitation.
(d) A pledge by the development authority of transferred revenue
under this section to the payment of bonds, leases, or obligations under
this article or IC 5-1.3:
(1) constitutes the obligations of the development authority; and
(2) does not constitute an indebtedness of:
(A) an associate member;
(B) a cash participant; or
(C) the state;
within the meaning or application of any constitutional or
statutory provision or limitation.
(e) Neither the transfer of revenue nor the pledge of revenue
transferred under this section is an impairment of contract within the
meaning or application of any constitutional provision or limitation
because of the following:
(1) The statutes governing local government revenues, including
the transferred revenue, have been the subject of legislation
annually since 1973, and during that time the statutes have been
revised, amended, expanded, limited, and recodified dozens of
times.
(2) Owners of bonds, leases, or other obligations to which local
government revenues have been pledged recognize that the
regulation of government revenues has been extensive and
consistent.
(3) All bonds, leases, or other obligations, due to their essential
contractual nature, are subject to relevant state and federal law
that is enacted after the date of a contract.
(4) The state of Indiana has a legitimate interest in assisting the
northwest Indiana regional development authority in financing
rail projects, including the mainline double tracking project.

Legislative History

As added by P.L.189-2018, SEC.180. Amended by P.L.10-2019, SEC.138.