§ 8-21-12-15 — Finances of authority; bonds

Indiana § 8-21-12-15

• Jurisdiction: Indiana
• Art. 21: AERONAUTICS
• Ch. 12: Airport Financing

Text

(a) The authority may:
(1) finance improvements related to an airport or aviation related
property or facilities, including the acquisition of real estate;
(2) refund any bonds; or
(3) pay any loan contract;
by borrowing money and issuing revenue bonds from time to time
under this section.
(b) The issuance of revenue bonds must be authorized by a
resolution of the authority.
(c) The bonds or the trust agreement securing the bonds must
indicate:
(1) the maturity date or dates;
(2) the interest rate or rates (whether fixed, variable, or a
combination of fixed or variable) or the manner in which the
interest rate or rates will be determined if a variable or an
adjustable rate is used;
(3) the registration privileges and the place of payment;
(4) the conditions and terms under which the bonds may be
redeemed or prepaid before maturity; and
(5) the source of payment.
(d) The bonds must be executed in the name of the authority by the
chairman or vice chairman of the authority and attested by the
secretary-treasurer, and interest coupons may be executed by placing
on the interest coupons the facsimile signature of the chairman or vice
chairman of the authority. The bonds are valid and binding obligations
of the authority for all purposes, notwithstanding that before delivery
of the bonds any of the persons whose signatures appear on the bonds
have ceased to be officers of the authority, as if the persons had
continued to be officers of the authority until after delivery. The
validity of the authorization and issuance of the bonds is not dependent
on or affected in any way by proceedings taken for the improvement for
which the bonds are to be issued, or by contracts made in connection
with the improvement. A resolution authorizing revenue bonds must
provide that a revenue bond contain a recital that the bond is issued
under this chapter, and a bond containing the recital under authority of
a resolution is considered valid and issued in conformity with this
chapter.
(e) At the discretion of the authority, the revenue bonds shall be sold
either under the procedures for selling public bonds or at a negotiated
sale with such terms as are consistent with the provisions of the
resolution authorizing the sale. The resolution may delegate to the
chairman or the secretary-treasurer the authority to conduct the sale.
The bonds may be sold in installments at different times, or an entire
issue or series may be sold or exchanged at one (1) time. Any issue or
series of the bond may be sold in part or sold in part in installments at
different times or at one (1) time.
(f) The bonds are special obligations of the authority and are
payable solely from and secured by a lien upon the revenues of all or
part of the facilities of the authority, as shall be more fully described in
the resolution of the authority or trust agreement authorizing the
issuance of the bonds, and, subject to the constitution and to the prior
or superior rights of any person, the authority may by resolution pledge
and assign for the security of the bonds all or part of the gross or net
revenues of the authority and the authority's facilities.
(g) The bonds and interest on the bonds are not a debt of the
authority, nor a charge, a lien, or an encumbrance, legal or equitable,
upon property of the authority, or upon income, receipts, or revenues
of the authority other than those revenues of the facilities that have
been pledged to the payment of the bonds. Every bond must recite in
substance that the bond, including interest, is payable solely from the
revenues pledged to the bond's payment, and that the authority is under
no obligation to pay the bond, except from those revenues.
(h) The bonds, when issued, have all the qualities of negotiable
instruments, subject to provisions for registration, under IC 26 and are
incontestable in the hands of a bona fide purchaser or owner of the
bonds for value.
(i) The proceeds of the bonds are appropriated for the purpose for
which the bonds may be issued and the proceeds shall be deposited and
disbursed in accordance with any provisions and restrictions that the
authority may provide in the resolution or trust agreement authorizing
the issuance of the bonds.
(j) All bonds issued under this article are issued by a body corporate
and politic of this state, but not a state agency, and for an essential
public and governmental purpose. The bonds, the interest on the bonds,
the proceeds received by an owner from the sale of the bonds to the
extent of the owner's cost of acquisition, the proceeds received upon
redemption before maturity, the proceeds received at maturity, and the
receipt of the interest and proceeds are exempt from taxation as
provided in IC 6-8-5.
(k) Notwithstanding any other law, all financial institutions,
investment companies, insurance companies, insurance associations,
executors, administrators, guardians, trustees, and other fiduciaries may
legally invest sinking funds, money, or other funds belonging to them
or within their control in bonds issued under this chapter.
(l) Bonds issued under this chapter are exempt from the registration
requirements of IC 23-19 and any other state securities registration
statutes.
(m) The authority may obtain from a department or agency of the
state or of the United States, or from a nongovernmental insurer,
available insurance or guaranty for the payment or repayment of
interest or principal, or both, or any part of the interest or principal, or
any debt service reserve funds, on bonds issued by the authority, or on
securities purchased or held by the authority.
(n) The authority may enter into agreements with an entity to
provide credit enhancement or liquidity support for any bonds issued
by the authority, or for any debt service reserves securing any bonds,
with terms that are reasonable and proper, in the discretion of the
authority, and not in violation of law.
(o) The authority may enter into agreements or contracts with any
financial institution as may be necessary, desirable, or convenient in
the opinion of the authority for rendering services in connection with:
(1) the care, custody, or safekeeping of securities or other
investments held or owned by the authority;
(2) the payment or collection of amounts payable as to principal
or interest; and
(3) the delivery to the authority of securities or other investments
purchased or sold by it.
The authority may also, in connection with any of the services rendered
by a financial institution as to custody and safekeeping of the
authority's securities or investments, require security in the form of
collateral bonds, surety agreements, or security agreements as, in the
opinion of the authority, is necessary or desirable.
(p) In the discretion of the authority, any bonds issued under this
chapter may be secured by a trust agreement by and between the
authority and a corporate trustee, which may be any trust company or
bank having the powers of a trust company in Indiana. Such a trust
agreement may also provide for a cotrustee, which may be any trust
company or bank in Indiana or another state.
(q) The trust agreement or the resolution providing for the issuance
of the bonds may contain provisions for protecting and enforcing the
rights and remedies of the owners of bonds as may be reasonable and
proper, in the discretion of the authority, and not in violation of law.
(r) Any trust agreement or resolution may contain other provisions
that the authority considers reasonable and proper for the security of
the owners of bonds.
(s) All expenses incurred in carrying out the provisions of the trust
agreement or resolution may be paid from money pledged or assigned
to the payment of the principal of and interest on bonds or from any
other funds available to the authority.
(t) Funds or money held by the authority under any trust agreement
or resolution may be invested pending disbursement as provided in the
trust agreement or the resolution. Such an investment is not restricted
by or subject to the provisions of any other law.
(u) Refunding or refunding and improvement revenue bonds may be
issued in accordance with the provisions for the refinancing or
refinancing and improving of any of the facilities for which revenue
bonds or a loan contract have been issued or made under this section
or section 16 of this chapter.
(v) This section constitutes full authority for the issuance of revenue
bonds. No procedure, proceedings, publications, notices, consents,
approvals, orders, acts, or things by the authority, by a board, an
officer, a commission, a department, an agency, or an instrumentality
of the state, or by an eligible entity is required to issue revenue bonds
or to do any act or perform anything under this chapter, except as
presented by this chapter. The powers conferred by this chapter are in
addition to, and not in substitution for, and the limitations imposed by
this section do not affect the powers conferred in another section of this
chapter or by any other statute.

Legislative History

As added by P.L.28-1991, SEC.2. Amended by P.L.27-2007, SEC.8.