§ 5-1-17.5-36 — Commission approval of financed improvements; liens and security interests; transfer of controlling ownership interest in qualified motorsports facility; credits against obligations of owners

Indiana § 5-1-17.5-36

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 17.5: Motorsports Investment District

Text

(a) Improvements financed under this
chapter must be approved by the commission. The commission shall
secure the obligations of the owner or owners of the qualified
motorsports facility to the commission under a lease or sublease under
this chapter with liens or security interests, which may include:
(1) perfected security interests in personal property;
(2) a mortgage lien on the real property; or
(3) such other security determined to be appropriate by the
commission and the authority.
(b) On the date that the aggregate amount of credits provided to the
owner or owners of the qualified motorsports facility under IC 4-10-23
equals or exceeds the aggregate of the amount of the appropriations
made to the commission and used to pay rent by the commission to the
authority under any lease entered into between the authority and the
commission under this chapter and any expenses that are incurred by
the authority or the commission under this chapter and are not paid out
of such rent, and all bonds issued by the authority under section 37 of
this chapter are no longer deemed outstanding, the commission shall
take the legal steps required to terminate each of its security interests
in and mortgage liens on the improvements described in subsection (a).
(c) If a controlling ownership interest in a qualified motorsports
facility is sold after the authority issues bonds under this chapter, the
commission shall determine whether there exists good cause not to
allow the purchaser to assume the motorsports facility's obligations
under this chapter. If the commission determines that no such good
cause exists, the commission shall be deemed to have accepted the
purchaser's assumption of the motorsports facility's obligations under
this chapter, and the purchaser shall be deemed to have assumed and
become obligated to fully perform those obligations. If the commission
determines that there exists good cause not to approve the purchaser's
assumption of the motorsports facility's obligations under this chapter,
the commission shall be deemed to have disapproved such assumption
and the commission may require that the owner or owners of the
qualified motorsports facility shall pay or cause to be paid to the
commission an amount to be deposited in the motorsports investment
district fund sufficient to pay the cost of defeasing all outstanding
bonds issued by the authority under section 37 of this chapter and
paying all expenses of the commission and the authority incurred in
connection with such defeasance. For purposes of this section, the
following shall not be deemed to be the sale of a controlling ownership
interest:
(1) Transfers among the qualified motorsports facility and its
subsidiaries and affiliates existing at the time the owner or owners
of the qualified motorsports facility enter into the written
agreement under this chapter concerning the terms of the
financing of the improvements under this chapter.
(2) Transfers among the qualified motorsports facility's existing
equity owners (as determined at the time the owner or owners of
the qualified motorsports facility enter into the written agreement
under this chapter concerning the terms of the financing of the
improvements under this chapter).
(3) Transfers between the qualified motorsports facility's existing
equity owners (as determined at the time the owner or owners of
the qualified motorsports facility enter into the written agreement
under this chapter concerning the terms of the financing of the
improvements under this chapter) and trusts, family limited
partnerships, and other entities for estate planning purposes.
(d) Money deposited in the motorsports investment district fund
may be used to pay the cost of defeasing all outstanding bonds issued
by the authority under section 37 of this chapter and paying all other
expenses of the commission and the authority incurred in connection
with such defeasance.
(e) If, after the date payments are received by the commission from
the owner or owners of the qualified motorsports facility under
subsection (c), all bonds issued by the authority under section 37 of this
chapter are no longer deemed outstanding, and all expenses incurred
by the commission or the authority in connection with the exercise of
its duties and obligations set forth in this chapter have been paid, all
money then remaining in the motorsports investment district fund
reverts to the state general fund.

Legislative History

As added by P.L.233-2013, SEC.5.