§ 5-13-10.5-18 — Investment in capital improvement board obligations; application; terms of investment; payments to bid fund; discharge of unpaid interest under certain conditions

Indiana § 5-13-10.5-18

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 13: INVESTMENT OF PUBLIC FUNDS
• Ch. 10.5: State Investments

Text

(a) As used in this section, "capital
improvement board" refers to a capital improvement board established
under IC 36-10-9.
(b) To qualify for an investment under this section, the capital
improvement board must apply to the treasurer of state in the form and
manner required by the treasurer. As part of the application, the capital
improvement board shall submit a plan for its use of the investment
proceeds and for the repayment of the capital improvement board's
obligation to the treasurer. Within sixty (60) days after receipt of each
application, the treasurer shall consider the application and review its
accuracy and completeness.
(c) If the capital improvement board makes an application under
subsection (b) and the treasurer approves the accuracy and
completeness of the application and determines that there is an
adequate method of payment for the capital improvement board's
obligations, the treasurer of state shall invest or reinvest funds that are
held by the treasurer and that are available for investment in
obligations issued by the capital improvement board for the purposes
of the capital improvement board in calendar years 2009, 2010, and
2011. The investment may not exceed nine million dollars ($9,000,000)
per calendar year for 2009, 2010, and 2011.
(d) The treasurer of state shall determine the terms of each
investment and the capital improvement board's obligation, which must
include the following:
(1) Subject to subsections (f) and (g), the duration of the capital
improvement board's obligation, which must be for a term of ten
(10) years with an option for the capital improvement board to
pay its obligation to the treasurer early without penalty.
(2) Subject to subsections (f) and (g), the repayment schedule of
the capital improvement board's obligation, which must provide
that no payments are due before January 1, 2013.
(3) A rate of interest to be determined by the treasurer.
(4) The amount of each investment, which may not exceed the
maximum amounts established for the capital improvement board
by this section.
(5) Any other conditions specified by the treasurer.
(e) The capital improvement board may issue obligations under this
section by adoption of a resolution and, as set forth in IC 5-1-14, may
use any source of revenue to satisfy the obligation to the treasurer of
state under this section. This section constitutes complete authority for
the capital improvement board to issue obligations to the treasurer. If
the capital improvement board fails to make any payments on the
capital improvement board's obligation to the treasurer, the amount
payable shall be withheld by the state comptroller from any other
money payable to the capital improvement board. The amount withheld
shall be transferred to the treasurer to the credit of the capital
improvement board.
(f) Subject to subsection (g), if all principal and interest on the
obligations issued by the capital improvement board under this section
in calendar year 2009, are paid before July 1, 2015, the term of the
obligations issued by the capital improvement board to the treasurer of
state in calendar year 2010 is extended until 2025. The treasurer of
state shall discharge any remaining unpaid interest on the obligation
issued by the capital improvement board to the treasurer of state in
2009, if the capital improvement board submits payment of the
principal amount to the treasurer of state before the stated final
maturity of that obligation.
(g) This subsection applies if the capital improvement board before
July 1, 2015, adopts a resolution:
(1) to establish a bid fund to be used to assist the capital
improvement board, the Indianapolis Convention and Visitors
Association (VisitIndy), or the Indiana Sports Corporation in
securing conventions, sporting events, and other special events;
and
(2) to designate that principal and interest payments that would
otherwise be made on the obligation issued by the capital
improvement board under this section in calendar year 2010 shall
instead be deposited in the bid fund.
If the requirements of subdivisions (1) and (2) are satisfied and the
capital improvement board deposits in the bid fund amounts equal to
the principal and interests payments that would otherwise be made
under the repayment schedule on the obligations issued by the capital
improvement board under this section in calendar year 2010, the capital
improvement board is not required to make those principal and
interests payments to the treasurer of state at the time required under
the repayment schedule. The amounts must be deposited in the bid
fund not later than the time the principal and interest payments would
otherwise be due to the treasurer of state under the repayment schedule.
The state board of accounts shall examine the bid fund under IC 5-11-1
to determine the amount of deposits made to the bid fund under this
subsection and to ensure that the money deposited in the bid fund is
used only for purposes authorized by this subsection. To the extent that
the capital improvement board does not deposit in the bid fund an
amount equal to a payment of principal and interest that would
otherwise be due under the repayment schedule on the obligations
issued by the capital improvement board under this section in calendar
year 2010, the capital improvement board must make that payment of
principal and interest to the treasurer of state as provided in this
section. If the capital improvement board deposits in the bid fund
amounts equal to the payments of principal and interest that would
otherwise be due under the repayment schedule on the obligations
issued by the capital improvement board under this section in calendar
year 2010, the capital improvement board is only required to repay to
the treasurer of state the principal amount of the obligation.

Legislative History

As added by P.L.182-2009(ss), SEC.78. Amended by P.L.213-2015, SEC.64; P.L.204-2016, SEC.8; P.L.188-2016, SEC.6; P.L.85-2017, SEC.10; P.L.9-2024, SEC.139.