§ 36-7.6-4-1 — Development authority fund; accounts; debt service

Indiana § 36-7.6-4-1

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7.6: REGIONAL DEVELOPMENT AUTHORITIES
• Ch. 4: Financing; Issuance of Bonds; Leases

Text

(a) A development board shall establish and
administer a development authority fund.
(b) A development authority fund consists of the following:
(1) Amounts transferred under section 2 of this chapter by each
county and municipality that is a member of the development
authority.
(2) Amounts transferred to the fund by each county or
municipality that is a member of the development authority,
including any payments required under an interlocal agreement
entered into under section 3(h) of this chapter. The transfers
allowed by this subdivision may be made from any local revenue
of the county or municipality, including property tax revenue,
distributions, incentive payments, money deposited in the county's
or municipality's local major moves construction fund under IC 8-14-16, money received by the county or municipality under a
development agreement (as defined by IC 36-1-8-9.5), or any
other local revenue that is not otherwise restricted by law or
committed for the payment of other obligations.
(3) Appropriations, grants, or other distributions made to the fund
by the state.
(4) Money received from the federal government.
(5) Gifts, contributions, donations, and private grants made to the
fund.
(c) On the date a development authority issues bonds for any
purpose under this article, which are secured in whole or in part by the
development authority fund, the development board shall establish and
administer two (2) accounts within the development authority fund.
The accounts must be the general account and the lease rental account.
After the accounts are established, all money transferred to the
development authority fund under subsection (b)(1) shall be deposited
in the lease rental account and used only for the payment of or to secure
the payment of obligations of an eligible political subdivision under a
lease entered into by the eligible political subdivision and the
development authority under this chapter. However, any money
deposited in the lease rental account and not used for the purposes of
this subsection shall be returned by the secretary-treasurer of the
development authority to the unit that contributed the money to the
development authority.
(d) Notwithstanding subsection (c), if the amount of all money
transferred to a development authority fund under subsection (b)(1) for
deposit in the lease rental account in any one (1) calendar year is
greater than an amount equal to the product of:
(1) one and twenty-five hundredths (1.25); multiplied by
(2) the total of the highest annual debt service on any bonds then
outstanding to their final maturity date, which have been issued
under this article and are not secured by a lease, plus the highest
annual lease payments on any leases to their final maturity, which
are then in effect under this article;
then all or a part of the excess may instead be deposited in the general
account.
(e) All other money and revenue of a development authority may be
deposited in the general account or the lease rental account at the
discretion of the development board. Money on deposit in the lease
rental account may be used only to make rental payments on leases
entered into by the development authority under this article. Money on
deposit in the general account may be used for any purpose authorized
by this article.
(f) A development authority fund shall be administered by the
development authority that established the development authority fund.
(g) Money in a development authority fund shall be used by the
development authority to carry out this article and does not revert to
any other fund.

Legislative History

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.20.