2014 Indiana Code TITLE 21. HIGHER EDUCATION ARTICLE 35. STATE EDUCATIONAL INSTITUTIONS: REVENUE BONDS AND OTHER FINANCING ARRANGEMENTS CHAPTER 3. ACQUISITION OF CERTAIN SUPPORT FACILITIES AND RESEARCH FACILITIES; REVENUE BONDS
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IC 21-35-3
Chapter 3. Acquisition of Certain Support Facilities and
Research Facilities; Revenue Bonds
IC 21-35-3-1
Applicability of chapter
Sec. 1. This chapter applies to the following state educational
institutions:
(1) Ball State University.
(2) Indiana University.
(3) Indiana State University.
(4) Purdue University.
(5) University of Southern Indiana.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-2
Applicable properties
Sec. 2. This chapter applies to the following property:
(1) With respect to any state educational institution to which
this chapter applies, the following support facilities:
(A) Dormitories and other housing facilities for single and
married students and school personnel.
(B) Food service facilities.
(C) Student infirmaries and other health service facilities,
including revenue producing hospital facilities serving the
general public, together with parking facilities and other
appurtenances in connection with student infirmaries and
other health service facilities.
(D) Parking facilities in connection with academic facilities.
(2) With respect to Indiana University and Purdue University
only, the following research facilities:
(A) Facilities used for clinical, medical, scientific, or
engineering research.
(B) Facilities used for other similar qualitative, quantitative,
or experimental research.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-3
Supplemental effect of chapter
Sec. 3. This chapter does not repeal, modify, or amend any
Indiana law in force on March 9, 1927, but shall be considered as
supplemental to that law.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-4
Prior contracts and bonds unaffected; limited applicability of
chapter
Sec. 4. This chapter may not be construed to affect the validity of
any contracts executed before March 10, 1965, or the validity of any
bonds contracted to be sold before March 10, 1965. This chapter
does not apply to any facilities approved by the budget agency or any
predecessor of the budget agency and the governor before March 10,
1965, or to any facilities for which temporary or interim financing
commitments were made before March 10, 1965, or to the issuance
of bonds for any such facilities.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-5
Effect of Acts 1977 P.L. 250
Sec. 5. (a) Acts 1977, P.L.250 does not affect the issuance of
bonds for projects approved by the budget committee and the
governor before July 1, 1977.
(b) The termination of bonding authority under Acts 1977,
P.L.250 does not prevent, limit, or affect the issuance of bonds under
IC 5-1-5.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-6
Construction, improvement, operation, and control of various
facilities; acquisition of real and personal property for facilities;
authorized
Sec. 6. The board of trustees of a state educational institution
may, if the board of trustees finds that a necessity exists, erect,
construct, reconstruct, extend, remodel, improve, complete, equip,
furnish, operate, control, and manage support facilities at or in
connection with the state educational institution or another state
educational institution for purposes of the respective state
educational institutions.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-7
Indiana University and Purdue University boards; power to
construct, improve, operate, and control various facilities;
limitations on use of fees
Sec. 7. (a) This section and any other provisions of this chapter
related to implementing this section apply only to the following state
educational institutions:
(1) Indiana University.
(2) Purdue University.
(b) The board of trustees of Indiana University and the board of
trustees of Purdue University may, if the boards of trustees of the
state educational institutions find that a necessity exists, erect,
construct, reconstruct, extend, remodel, improve, complete, equip,
furnish, operate, control, and manage research facilities, if revenue
from state, federal, local, or private gifts, grants, contractual
payments, or reimbursements is available in an amount that is
reasonably expected to at least equal the annual debt service
requirements of the bonds and the costs to operate the research
facility for each fiscal year that the bonds are outstanding at or in
connection with any of the following campuses of Indiana University
or Purdue University:
(1) Purdue University-West Lafayette Campus.
(2) Indiana University-Purdue University at Indianapolis
(IUPUI).
(3) Indiana University-Bloomington Campus.
(c) Student fees and money appropriated by the general assembly
may not be used to pay the debt service requirements or the
maintenance expenses of a research facility.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-8
Authority to acquire personal and real property
Sec. 8. A state educational institution may acquire by:
(1) purchase;
(2) lease;
(3) condemnation;
(4) gift; or
(5) other means;
any property, real or personal, that in the judgment of the state
educational institution is necessary for a support facility or a research
facility.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-9
Authority to improve and use acquired property
Sec. 9. A state educational institution may improve and use any
property acquired for a support facility or a research facility.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-10
Title to acquired property
Sec. 10. Title to all property acquired by a state educational
institution, including the improvements located on the property, shall
be taken and held by and in the name of the state educational
institution.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-11
Acquisition of real property; approval of governor; conveyance
and execution of deed
Sec. 11. (a) If the board of trustees of any state educational
institution determines that real estate, the title to which is in the name
of the state, for the use and benefit of the board of trustees or the
state educational institution under the board's control, is reasonably
required for use as a support facility or a research facility, the real
estate may, upon:
(1) request in writing of the board of trustees of the state
educational institution to the governor; and
(2) the approval of the governor;
be conveyed by deed from the state to the board of trustees of the
state educational institution.
(b) The governor may execute and deliver the deed:
(1) in the name of the state of Indiana;
(2) signed on behalf of the state by the governor;
(3) attested by the auditor of state; and
(4) with the seal of the state affixed to the deed.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-12
Issuance and sale of bonds
Sec. 12. To raise funds for the acquisition of property and the
erection, construction, reconstruction, extension, remodeling,
improvement, completion, equipping, and furnishing of property, the
board of trustees of a state educational institution may issue and sell
bonds of the state educational institution.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-13
Bonds and interest on bonds secured by pledge or mortgage
Sec. 13. The bonds and the interest on the bonds may be secured
by pledge or mortgage of:
(1) any property, real or personal, used or acquired or to be
acquired and used for the property and the improvements made
or to be made on the property;
(2) the net income from the property;
(3) the property and the net income from the property; or
(4) any unobligated net income of any property financed under
this chapter;
as the board of trustees may determine.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-14
Liens
Sec. 14. The lien of the pledge or mortgage, to the extent of the
lien:
(1) as determined and provided by the board of trustees; and
(2) as authorized under this chapter;
is a first and primary lien for the payment of the bonds and the
interest on the bonds.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-15
Maximum bond amounts
Sec. 15. The bonds may be issued for an amount or amounts as the
board of trustees determines. However, these amounts may not
exceed:
(1) the total estimated cost of acquiring property for and
erecting, constructing, reconstructing, extending, remodeling,
improving, completing, equipping, furnishing, and financing the
proposed property as the board of trustees determines the cost
to be; plus
(2) incidental expenses, financing costs, underwriter's discount,
funded or capitalized interest, municipal bond insurance
premiums, or funding debt service reserve funds from bond
proceeds.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-16
Determination of denominations and maturation of bonds; rates of
interest
Sec. 16. (a) The bonds may be:
(1) issued in the denominations and with the maturities as the
board of trustees determines; and
(2) in the discretion of the board of trustees, sold either at
public or negotiated sale, as provided by IC 21-32-3-1.
(b) The rate or rates of interest on the bonds may be fixed or
variable. Variable rates must be determined in the manner and in
accordance with the procedures set forth in the resolution or
indenture authorizing the issuance of the bonds. Bonds bearing a
variable rate of interest may be converted to bonds bearing a fixed
rate or rates of interest to the extent and in the manner set forth in the
resolution or indenture under which the bonds are issued.
(c) Interest on bonds may be:
(1) payable semiannually, annually, or at any other interval or
intervals provided in the resolution; or
(2) compounded and paid at maturity or at any other time as
specified in the resolution or indenture.
(d) The bonds may be made subject to redemption by the state
educational institution at the times and under the circumstances set
forth in the authorizing resolution or indenture.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-17
Bonds and pledges or mortgages made in the name of the state
educational institution
Sec. 17. Bonds and the pledge or mortgage securing bonds, shall
be issued and made in the name and on behalf of the state
educational institution by the officer or officers that the board of
trustees designates.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-18
Limitation on state or institutional liability for indebtedness
Sec. 18. Indebtedness, a bond, or an obligation incurred or created
under the authority of this chapter may not be or become a lien,
charge, or liability against:
(1) the state of Indiana;
(2) the state educational institution issuing the bonds; or
(3) the property or funds of the state or the state educational
institution issuing the bonds, except to the extent of the
property or income authorized to be pledged or mortgaged.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-19
Authority to furnish heat, light, power, and other like facilities or
services with or without charge
Sec. 19. The board of trustees of a state educational institution
may furnish heat, light, power, and other like services to any or all
property with or without charge.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-20
Tax exemption
Sec. 20. All:
(1) property:
(A) acquired under authority of this chapter; or
(B) used as a support facility or a research facility; and
(2) bonds issued under the authority of this chapter, together
with the interest on the bonds;
are exempt from taxation.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-21
Contracts; approval of the budget agency and governor
Sec. 21. (a) Subject to this section, contracts to:
(1) acquire land for;
(2) construct, purchase, lease, sublease, or otherwise acquire; or
(3) engage architectural or engineering services in connection
with;
any property to be financed in whole or in part by the issuance of
bonds under this chapter may not be made by any state educational
institution without the specific approval of the budget agency and the
governor.
(b) This section does not apply to any contract relating to
property, the cost of which does not exceed fifty thousand dollars
($50,000).
As added by P.L.2-2007, SEC.276.
IC 21-35-3-22
Issuance of bonds; approval of the budget agency, budget
committee, and governor; recommendations; refunds
Sec. 22. (a) Bonds may not be issued by a state educational
institution under this chapter without the specific approval of:
(1) the budget agency, if:
(A) the bonds are issued for the refunding or advance
refunding of any outstanding bonds approved under this
chapter; and
(B) the board of trustees of the issuing state educational
institution makes the findings described in subsection (b); or
(2) the budget committee, the budget agency, and the governor,
if subdivision (1) does not apply.
The budget agency may request and consider the recommendation of
the staff of the Indiana finance authority with respect to the approval
of a bond issue under this section.
(b) The board of trustees of a state educational institution may
provide for refunding or advance refunding of any outstanding bonds
under subsection (a)(1) whenever the board of trustees of the state
educational institution finds that the refunding or advance refunding
will benefit the state educational institution because:
(1) a net savings to the state educational institution will be
effected; or
(2) the net present value of principal and interest payments on
the bonds is less than the net present value of the principal and
interest payments on the outstanding bonds to be refunded.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-23
Maximum aggregate principal amount of bonds each biennium
Sec. 23. The general assembly may establish each biennium in the
appropriation act the maximum aggregate principal amount of bonds
that any one (1) or more state educational institution may issue
during the ensuing biennium under this chapter.
As added by P.L.2-2007, SEC.276.
IC 21-35-3-24
Actions to contest validity of bonds
Sec. 24. An action to contest the validity of any bonds issued
under this chapter may not be brought after the fifteenth day
following:
(1) the first publication of notice of the sale or intent to sell the
bonds under IC 21-32-3 if the bonds are sold at public sale; or
(2) the publication one (1) time in newspapers described in
IC 21-32-3-3 of notice of the execution and delivery of the
contract of sale for the bonds if the bonds are sold at negotiated
sale.
The state educational institution shall publish notice under
subdivision (2) if the state educational institution sells bonds at
negotiated sales no later than thirty (30) days after the execution of
the contract of sale for the bonds.
As added by P.L.2-2007, SEC.276.
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