2014 Indiana Code TITLE 21. HIGHER EDUCATION ARTICLE 35. STATE EDUCATIONAL INSTITUTIONS: REVENUE BONDS AND OTHER FINANCING ARRANGEMENTS CHAPTER 5. REVENUE PRODUCING PROPERTY; SUPPLEMENTAL PROCEDURES FOR FINANCING REVENUE PRODUCING PROPERTIES WITH REVENUE OBLIGATIONS
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IC 21-35-5
Chapter 5. Revenue Producing Property; Supplemental
Procedures for Financing Revenue Producing Properties With
Revenue Obligations
IC 21-35-5-1
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 21-35-5-2
Applicable property
Sec. 2. This chapter applies to the following property:
(1) Property described in IC 21-35-2.
(2) Property described in IC 21-35-3.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-3
Construction of chapter
Sec. 3. This chapter may not be construed to repeal, modify, or
amend any law of Indiana in force on March 9, 1959.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-4
Supplemental effect of chapter
Sec. 4. This chapter may be construed as supplemental to
IC 21-35-2 and IC 21-35-3.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-5
Issuance of revenue obligations; use
Sec. 5. The board of trustees of a state educational institution may
issue revenue obligations under IC 21-35-2 or IC 21-35-3 for any one
(1) or more of the following:
(1) For any purpose or purposes for which IC 21-35-2 or
IC 21-35-3 authorizes the borrowing of money.
(2) To reimburse the state educational institution for funds
expended or advanced for interim financing of the cost of any
revenue producing property before the issuance of revenue
obligations on account of revenue producing property.
(3) Subject to applicable covenants and agreements with the
holders of outstanding obligations, to fund or refund revenue
obligations.
If the board of trustees determines that it would be advantageous to
the state educational institution to exchange funding or refunding
obligations for the revenue obligations being funded or refunded, the
exchange may be made, if the actual interest cost is not increased.
As added by P.L.2-2007, SEC.276. Amended by P.L.3-2008,
SEC.142.
IC 21-35-5-6
Security of revenue obligations
Sec. 6. Revenue obligations:
(1) must be secured in the manner provided in IC 21-35-2 and
IC 21-35-3; and
(2) in addition, may be secured by the pledge or mortgage of the
unobligated net revenues of any one (1) or more other revenue
producing properties of the issuing state educational institution
and by any other available income or funds.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-7
Board; power to limit amount of obligations or issue additional
obligations
Sec. 7. In authorizing the issuance of revenue obligations for any
particular property or properties, the board of trustees may:
(1) limit the amount of the obligations that may be issued as a
first lien and charge against the property or properties and the
net income from the property or properties; or
(2) authorize the issuance periodically thereafter of additional
obligations secured by the same lien to provide funds:
(A) for the completion of the property or properties on
account of which the original obligations were issued;
(B) to pay the cost of additional revenue producing
properties under IC 21-35-2 or IC 21-35-3; or
(C) for the purposes described in clauses (A) and (B).
The additional obligations shall be issued on the terms and
conditions as the board may determine, and may be secured equally
and ratably, without preference, priority, or distinction, with the
original issue of obligations or may be made junior to the original
issue of bonds.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-8
Revenue obligations authorized by resolution; terms; conditions
Sec. 8. Revenue obligations must be authorized by resolution
adopted by the board of trustees. The terms, conditions, and form of
the revenue obligations must be set out in the resolution or in a form
of trust indenture between the state educational institution and a
designated corporate trustee, or both.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-9
Revenue obligations; contents
Sec. 9. The resolution or the indenture for revenue obligations
may include:
(1) provisions for protecting and enforcing the rights and
remedies of the holders of the revenue obligations being issued;
(2) covenants setting forth the duties of the state educational
institution and its officers in relation to:
(A) the:
(i) acquisition, construction, operation, and maintenance
of; and
(ii) insurance to be carried on;
the property or properties on account of which the revenue
obligations are being issued; and
(B) the maintenance of fees and charges to be collected on
account of the properties;
(3) provisions for:
(A) the custody, safeguarding, and application of all money;
(B) the rights and remedies of the trustee and the holders of
the obligations being issued; and
(C) the issuance of additional parity obligations or junior
lien obligations secured by pledge or mortgage of the
revenues and property described in the resolution or
indenture; and
(4) the other terms, conditions, limitations, and covenants that
the board of trustees determines proper.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-10
Revenue obligations and interest coupons
Sec. 10. Revenue obligations and any interest coupons
appertaining to revenue obligations are negotiable instruments within
the meaning and for all purposes under the laws of Indiana, subject
only to the provisions of the obligations for registration.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-11
Authority to furnish heat, light, power, and other like services with
or without charge
Sec. 11. In connection with the issuance of revenue obligations,
a board of trustees of a state educational institution may covenant to
and furnish or supply heat, light, power, and other like services to
any building, structure, or improvement with or without charge so
long as any of the revenue obligations are outstanding.
As added by P.L.2-2007, SEC.276.
IC 21-35-5-12
Revenue obligations; eligible investments
Sec. 12. Any revenue obligations issued under IC 21-35-2 or
IC 21-35-3 are eligible investments for the funds of any kind or
character of every financial institution, insurance company, or
private trust. The revenue obligations are eligible for deposit by any
financial institution, insurance company, or trustee under any law of
Indiana providing for the deposit of securities or funds.
As added by P.L.2-2007, SEC.276.
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