§ 5-13-10.5-20 — Rail project financing; bond issuance; lease back; term of bonds; capital investment grant; expiration

Indiana § 5-13-10.5-20

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

Text

(a) The following definitions apply
throughout this section:
(1) "Bonds" means bonds of the IFA issued under IC 5-1.3-6-1(a).
(2) "Construction" means constructing, acquiring, renovating,
rehabilitating, reconstructing, improving, extending, and
equipping a rail project.
(3) "Costs" has the meaning set forth in IC 5-1.3-2-5.
(4) "FTA" means the Federal Transit Administration.
(5) "IFA" means the Indiana finance authority established by IC 5-1.2-3.
(6) "NICTD" means the northern Indiana commuter transportation
district established under IC 8-5-15.
(7) "NWIRDA" means the northwest Indiana regional
development authority established under IC 36-7.5-2-1.
(8) "Rail project" has the meaning set forth in IC 5-1.3-2-14.
(b) This section applies if the IFA, the NWIRDA, and NICTD enter
into an agreement, pursuant to which:
(1) the IFA agrees to issue bonds pursuant to a trust agreement
between the IFA and a corporate trustee for the purpose of
financing the costs of construction of a rail project before the
award of a capital investment grant for such a rail project by the
FTA;
(2) NICTD agrees to lease to the NWIRDA any real estate on
which the rail project is or will be located and any existing
improvements on the real estate;
(3) the NWIRDA agrees to lease to the IFA any or all of its
leasehold interests described in subdivision (2);
(4) the IFA agrees to lease back to the NWIRDA any or all of its
leasehold interests described in subdivision (3), and pursuant to
the lease the NWIRDA agrees to pay any rent due under the lease
from any available revenues of the NWIRDA, including revenues
derived from the interlocal agreements or from other actions taken
by local governmental entities within Lake County offering to
provide revenue under IC 6-3.6-11-7 to support and finance a rail
project; and
(5) the NWIRDA agrees to lease to NICTD any or all of its
leasehold interests described in subdivision (2);
all in accordance with IC 5-1.3-5 and IC 5-1.3-6.
(c) To qualify for an investment under this section, the IFA must
submit a request to the treasurer of state in the form and manner
required by the treasurer of state. As part of the request, the IFA shall
include the agreement described in subsection (b) and commit to pay
the IFA's obligation to the treasurer of state solely from the security,
which consists solely of the rent payable by the NWIRDA under the
lease described in subsection (b)(4), provided for in the bonds to be
issued by the IFA and to be acquired by the treasurer of state.
(d) If the IFA makes a request under subsection (c), after review by
the budget committee established by IC 4-12-1-3, the treasurer of state
shall approve the request and agree to acquire the bonds, which may
consist of draw-down bonds, pursuant to which the treasurer of state
shall provide proceeds at the request of the IFA. The maximum
principal amount of the bonds shall be two hundred five million dollars
($205,000,000).
(e) The sole source of funds available to the treasurer of state to
acquire the bonds consists of the transfers made to the treasurer of state
from the northern Indiana commuter rail account established under IC 8-14-14.3-5.
(f) The maximum term of the bonds, including all draws under the
bonds, is twenty-five (25) years. The rate of interest borne by each
draw under the bonds shall be set by the treasurer of state, at a rate then
currently applicable to a United States Treasury note that has payment
terms that are substantially the same as the bonds. No principal and
interest are due under the bonds until the date six (6) months after, nor
shall any interest accrue on the bonds until the earlier of:
(1) the date that the rail project being financed with the bonds has
been abandoned as determined by the budget director appointed
under IC 4-12-1-3; or
(2) the date on which it has been determined by the budget
director that the FTA will not award a capital investment grant for
the rail project.
(g) If the FTA awards a capital investment grant for the rail project
financed by the bonds and the IFA issues additional bonds, which are
secured by a lease with the NWIRDA, the payment of rent under the
lease is payable from any available revenues of the NWIRDA,
including revenues derived from the interlocal agreements or from
other actions taken by local governmental entities within Lake County
offering to provide revenue under IC 6-3.6-11-7 to support and finance
a rail project, the principal of and any interest due on the bonds shall
be entirely forgiven by the treasurer of state.
(h) This section expires on the later of:
(1) July 1, 2045; or
(2) the earlier of:
(A) the date on which the principal of and interest on the bonds
acquired by the treasurer of state under this section are paid in
full; or
(B) the date on which it has been determined by the budget
director, the IFA, and the treasurer of state that the obligation
of the NWIRDA to pay rent under the lease securing the bonds
has been paid in full.

Legislative History

As added by P.L.108-2019, SEC.99.