(a)In addition to the authority given the
board for depositories in section 7 of this chapter, the board may lend,
from that part of the insurance fund reserved for economic
development, to any commuter transportation district that is established
under IC 8-5-15 an amount not to exceed two million six hundred
thousand dollars ($2,600,000).
(b)The board of trustees of a district that receives a loan under this
section shall do the following:
(1)Use the loan proceeds only for paying or reimbursing the
following costs and expenses of the district:
(A)Property and casualty insurance premiums.
(B)Trackage lease payments.
(C)Traction power expenses.
(D)Conducting a study of commuter transportation within the
district under P.L.48-1986.
(E)Any expenses incurred by the district in the ordi
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(a) In addition to the authority given the
board for depositories in section 7 of this chapter, the board may lend,
from that part of the insurance fund reserved for economic
development, to any commuter transportation district that is established
under IC 8-5-15 an amount not to exceed two million six hundred
thousand dollars ($2,600,000).
(b) The board of trustees of a district that receives a loan under this
section shall do the following:
(1) Use the loan proceeds only for paying or reimbursing the
following costs and expenses of the district:
(A) Property and casualty insurance premiums.
(B) Trackage lease payments.
(C) Traction power expenses.
(D) Conducting a study of commuter transportation within the
district under P.L.48-1986.
(E) Any expenses incurred by the district in the ordinary course
of providing commuter rail service.
(2) Develop a financial plan for commuter rail service within the
district for each year during the loan period. The financial plan
must contain the elements prescribed in, and be subject to review
and approval under, subsection (c).
(3) Repay the loan in eight (8) annual installments on dates
determined by the board for depositories, subject to the following
conditions:
(A) The first payment must be made on July 1, 1988.
(B) Each annual payment must equal one-eighth (1/8) of the
principal of the loan plus interest at a rate determined by the
board for depositories. The rate of interest must not be:
(i) lower than the lowest interest rate set by the state board of
finance for a loan under IC 4-4-8-8 (transferred to IC 5-28-9-15) before April 1, 1986; or
(ii) greater than the average yield on investments made by the
board in January, February, and March of 1986.
(4) As required by subsection (d), report annually to the board for
depositories on compliance with the financial plan developed
under subsection (c).
(5) Notwithstanding subdivision (3), pledge to repay the balance
of the loan plus interest at a time and in a manner specified by the
board for depositories whenever the board for depositories
determines that one (1) of the following has occurred:
(A) The board of trustees of the district has failed to develop a
financial plan that substantially complies with subsection (c).
(B) There has not been substantial compliance with a financial
plan.
(C) The board of trustees of the district has failed to make a
payment on the date established under subdivision (3).
If repayment is required under this subdivision, the treasurer of
state shall transfer the amount necessary to the insurance fund
from the allocation to the district from the state general fund for
the remainder of the state fiscal year in which the repayment is
required. If the amount transferred from the allocation is
insufficient, the balance shall be transferred from the commuter
rail service fund until the repayment is complete.
(c) Before December 1 of each year, the board of trustees of a
district receiving a loan under this section shall submit to the board for
depositories, the Indiana department of transportation, and the budget
committee a financial plan for the following calendar year. The plan
must provide for an annual operating budget under which expenses do
not exceed revenues from all sources. The financial plan may identify
supplemental revenue sources from within the district that will be
dedicated during the year to commuter rail service in the district.
Within sixty (60) days after the plan is submitted, the board for
depositories shall determine if the financial plan complies with this
subsection. In making its determination, the board for depositories shall
consider the recommendations of the budget committee, which shall
base its recommendations on the department of transportation's
evaluation of the financial plan.
(d) Before April 1 of the second calendar year after a loan under this
section is made and before April 1 of each year thereafter, the board of
trustees of a district receiving a loan shall submit to the board for
depositories, the Indiana department of transportation, and the budget
committee a report covering the preceding calendar year. The report
must summarize the district's compliance with the financial plan
submitted under subsection (c) and must contain other information as
the board for depositories may require. Before July 1 of that year, the
board for depositories shall determine if the district has substantially
complied with the financial plan. In making its determination, the
board for depositories shall consider the recommendations of the
budget committee, which shall base its recommendations on the
Indiana department of transportation's evaluation of the report.
(e) After January 1, 1988, the board for depositories and the board
of trustees of a district receiving a loan under this section may agree to
an early repayment of the loan. If an early repayment is agreed to, the
board for depositories may guarantee a loan obtained by the board of
trustees under conditions established by the board for depositories.
These conditions may include the requirement that the district pledge
to repay from its allocations from the state general fund and the
commuter rail fund service any loss sustained by the insurance fund as
a result of the guarantee.