§ 8-9.5-8-7 — Contracts; purposes; requisite additional provisions

Indiana § 8-9.5-8-7

• Jurisdiction: Indiana
• Art. 9.5: TRANSPORTATION AGENCIES
• Ch. 8: Indiana Finance Authority: Additional Duties

Text

(a) If the authority and the department decide
to enter into a contract as authorized under section 6 of this chapter for
the purposes enumerated in subsection (b), the authority and the
department shall enter into a separate contract for each toll road project
or toll bridge.
(b) The contract may be entered into for any or all of the following
purposes:
(1) The construction of the toll road project or toll bridge.
(2) The reconstruction of the toll road project or toll bridge.
(3) Improvements to the toll road project or toll bridge.
(4) The maintenance of the toll road project or toll bridge.
(5) Repairs to the toll road project or toll bridge.
(6) The operation of the toll road project or toll bridge.
(c) In addition to the provisions required to be included under
section 6 of this chapter, the contract must include the following:
(1) A provision for the collection of tolls and their deposit in a
designated depository to the account of the authority or to the
account of a trustee in accordance with any applicable trust
agreement.
(2) A provision for the purchase by the department on behalf of
the authority of property, machinery, and equipment required to
carry out the contract, along with provision that such property,
machines, and equipment:
(A) remain the property of the authority;
(B) shall be maintained by the department;
(C) shall be identified as the property of the authority;
(D) shall be used exclusively in connection with the
performance of the contract; and
(E) shall be accounted for by the department to the authority at
specified times.
(3) A provision authorizing the department to enter into contracts
with third parties for carrying out the contract and requiring all
such contracts to be in the name of the department but performed
on behalf of the authority.
(4) A provision requiring the department to:
(A) maintain records and books of account reflecting the
receipts and disbursements under the contract and the assets of
the authority relating to the toll road project or toll bridge; and
(B) prepare or have prepared all books, records, and any reports
required to be prepared, maintained, or delivered under any
applicable trust agreement.
(5) Provisions for the payment by the authority to the department
of:
(A) the cost of construction, reconstruction, or improvement
undertaken under the contract; and
(B) the cost of maintenance, repair, and operation under the
contract.
These costs include all costs incurred by the department in the
performance of the contracts (such as salaries, wages, and
associated costs of department personnel attributable to
performance of the contract).
(6) Provisions for the payment to the department from time to
time of funds necessary to maintain a revolving fund balance of
not less than two hundred thousand dollars ($200,000) to be used
in paying costs incurred under the contract so that the department
is not required to advance funds for the cost of performance.
(7) A provision stating that the contract is for a term of not more
than two (2) years and is extended for successive two (2) year
periods, unless either party gives notice of its intention to
terminate the contract not later than six (6) months before the end
of a two (2) year term.
(8) Such other terms and conditions as the authority and the
department consider appropriate.

Legislative History

As added by P.L.109-1983, SEC.3.