§ 8-9.5-8-8 — Leases; purposes; requisite additional provisions

Indiana § 8-9.5-8-8

• 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 lease 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 lease for each toll road project or
each toll bridge.
(b) The lease 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.
(7) The conversion to a toll road project of a state highway
transferred to the authority under IC 8-23-7-23.
(c) In addition to the provisions required to be included under
section 6 of this chapter, the lease must include the following:
(1) A statement that the term of the lease is for a period
coextensive with the biennium used for state budgetary and
appropriation purposes, with a fractional period when the lease
begins if necessary.
(2) A statement that the term of the lease is extended from
biennium to biennium, unless either the authority or the
department gives notice of nonextension at least six (6) months
before the end of a biennium, in which event the lease expires at
the end of the biennium in which the notice is given.
(3) A statement of all toll road bonds or toll bridge bonds of the
authority that are outstanding or that are to be issued by the
authority related to the toll road project or toll bridge for which
the lease is entered.
(4) Provisions requiring the department to pay the costs of
operating, maintaining, and repairing the toll road project or toll
bridge, including major repairs, replacements, and improvements.
(5) Provisions requiring the department to pay rent at times and
in amounts sufficient to pay in full the debt service payable under
the terms of the toll road bonds or toll bridge bonds issued and
outstanding with respect to the toll road project or toll bridge,
including any required additions to reserves maintained by the
authority, and to pay additional rent as provided by the lease.
(6) Provisions requiring the department to fix, impose, and collect
tolls on the toll road project or toll bridge that are at least
sufficient, together with other money available to the department,
to pay:
(A) the cost of operation, maintenance, and repair, including
major repairs, replacements, and improvements; and
(B) the rent to be paid under the lease.
However, the obligation of the department to pay the costs of
operation, maintenance, and repair of a toll road project or toll
bridge and to pay rent during the term is not limited to the tolls
collected or that should be collected by the department but is
subject only to the appropriation of funds therefore by an act of
the general assembly.
(7) Provisions requiring:
(A) tolls and other revenues collected by the department to be
segregated from all other funds under the control of the
department; and
(B) the department to make a separate accounting of all receipts
and disbursements under the lease.
(8) Provisions requiring the department to maintain all books and
records and to prepare and deliver all reports required of the
authority under the terms of any applicable trust agreement.
(9) Such other terms and conditions as the authority and the
department consider appropriate.

Legislative History

As added by P.L.109-1983, SEC.3. Amended by P.L.386-1987(ss), SEC.1; P.L.18-1990, SEC.105.