§ 8-22-2-18.5 — Payment of costs of airport capital improvements; loans; requirements

Indiana § 8-22-2-18.5

• Jurisdiction: Indiana
• Art. 22: AIRPORTS
• Ch. 2: Local Boards of Aviation Commissioners

Text

5. (a) The board may negotiate terms and
borrow money from any source for the payment of the costs of airport
capital improvements, including the acquisition of real property or
construction or improvement of revenue producing buildings or
facilities located on an airport and owned and operated by the eligible
entity, subject to the following requirements:
(1) The loan contract must be approved by resolution of the board
and the fiscal body of the eligible entity that established the
board.
(2) The loan contract must provide for the repayment of the loan
in not more than forty (40) years.
(3) The loan contract must state that the indebtedness is that of
the board, is payable solely from revenues of the board that are
derived from either airport operations or from revenue bonds, and
may not be paid by a tax levied on property located within the
district.
(b) A loan contract issued under this chapter is issued for essential
public and governmental purposes. A loan contract, the interest on the
contract, the proceeds received by a holder from the sale of a loan
contract to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of the interest and proceeds are exempt from
taxation as provided in IC 6-8-5.
(c) After a board enters into a loan contract, the board may use
funds received from state or federal grants to satisfy the repayment of
part or all of the loan contract.

Legislative History

As added by P.L.77-1990, SEC.2. Amended by P.L.90-2002, SEC.327; P.L.61-2012, SEC.2; P.L.174-2022, SEC.49.