(a)Temporary loans may be made by the
board in anticipation of the collection of taxes of the authority actually
levied and in course of collection for the fiscal year in which the loans
are made. The loans must be authorized by ordinance and evidenced by
warrants in the form provided by the authorizing ordinance. The
warrants must state the total amount of the issue, the denomination of
the warrant, the time and place payable, the rate of interest, the funds
in anticipation of which they are issued and out of which they are
payable, and a reference to the ordinance authorizing them and the date
of its adoption. The ordinance authorizing temporary loans must
appropriate and pledge a sufficient amount of the current revenue in
anticipation of which they are issued and out of which they are
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(a) Temporary loans may be made by the
board in anticipation of the collection of taxes of the authority actually
levied and in course of collection for the fiscal year in which the loans
are made. The loans must be authorized by ordinance and evidenced by
warrants in the form provided by the authorizing ordinance. The
warrants must state the total amount of the issue, the denomination of
the warrant, the time and place payable, the rate of interest, the funds
in anticipation of which they are issued and out of which they are
payable, and a reference to the ordinance authorizing them and the date
of its adoption. The ordinance authorizing temporary loans must
appropriate and pledge a sufficient amount of the current revenue in
anticipation of which they are issued and out of which they are payable.
The warrants evidencing the temporary loans must be executed, sold,
and delivered as are bonds of the authority.
(b) The board may negotiate terms and borrow money from any
source under a loan contract, subject to the following requirements:
(1) The loan contract must be approved by resolution of the board.
(2) The loan contract must provide for the repayment of the loan
in not more than forty (40) years.
(3) This subdivision applies only to loan contracts entered into
under this subsection before July 1, 2013. The loan contract must
state that the indebtedness:
(A) is that of the authority;
(B) is payable solely from revenues of the authority that are
derived from either airport operations or from revenue bonds;
and
(C) may not be paid by a tax levied on property located within
the district.
(4) This subdivision applies only to loan contracts entered into
under this subsection after June 30, 2013. The loan contract must
state that the indebtedness:
(A) is that of the authority;
(B) is payable solely from:
(i) a cumulative building fund established under section 25 of
this chapter;
(ii) revenues of the authority that are derived from either
airport operations or from revenue bonds; or
(iii) both items (i) and (ii); and
(C) may not be paid by a general operating fund tax levied on
property located within the district.
(c) Any loan contract issued under this chapter is issued for
essential public and governmental purposes. A loan contract, the
interest on it, 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.
(d) After the board of an authority 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.
[Pre-Local Government Recodification Citations: 19-6-2-21;
19-6-3-22; 19-6-3.5-23.]
As added by Acts 1980, P.L.8, SEC.73. Amended by Acts 1980,
P.L.79, SEC.6; P.L.101-1987, SEC.4; P.L.90-2002, SEC.329;
P.L.61-2012, SEC.4; P.L.230-2013, SEC.6; P.L.255-2017,
SEC.29.