2014 Indiana Code TITLE 4. STATE OFFICES AND ADMINISTRATION ARTICLE 10. STATE FUNDS GENERALLY CHAPTER 19. LOCAL INFRASTRUCTURE REVOLVING FUND
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IC 4-10-19
Chapter 19. Local Infrastructure Revolving Fund
IC 4-10-19-1
"Fund" defined
Sec. 1. As used in this chapter, "fund" refers to the local
infrastructure revolving fund established by this chapter.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-2
"Political subdivision" defined
Sec. 2. As used in this chapter, "political subdivision" has the
meaning set forth in IC 36-1-2-13.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-3
Purpose; administration by budget agency
Sec. 3. The local infrastructure revolving fund is established for
the purpose of providing funds to local governments for
infrastructure projects. The fund shall be administered by the budget
agency.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-4
Administration of fund; methods for financing infrastructure;
annual report on projects funded
Sec. 4. (a) In administering the fund, the budget agency shall do
the following:
(1) Monitor infrastructure finance needs and the availability and
cost of capital.
(2) Provide financial management of investment pools and
financial services associated with loans.
(3) Explore and evaluate capital financing techniques.
(4) Explore methods for the state to enhance the credit quality
of municipal bond issues at a minimum cost to the state.
(b) The Indiana department of transportation, Indiana department
of environmental management, and any other appropriate state
agency, in consultation with the budget agency, shall advise political
subdivisions on methods for financing infrastructure.
(c) The budget agency shall annually present a report to the
budget committee that describes the projects funded under this
chapter.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-5
Powers of budget agency
Sec. 5. Subject to the written procedures developed under section
6 of this chapter, the budget agency may do the following:
(1) Loan money from the fund to a political subdivision.
(2) Use the money in the fund:
(A) for debt financing;
(B) for grants;
(C) for loan guarantees;
(D) to manage leverage loan programs for new construction
through recapitalization of funds;
(E) to refinance and purchase political subdivision debt;
(F) to guarantee political subdivision loans;
(G) to make bond and debt service reserve insurance
payments; and
(H) to guarantee debt service reserve funds;
for a political subdivision.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-6
Procedures for allocation of money to projects; application
Sec. 6. (a) The budget agency shall establish a written procedure
for allocating money to projects described in section 7 of this
chapter.
(b) The procedure established under this section must include at
least the following:
(1) An application procedure to identify projects that qualify for
funding.
(2) Criteria for establishing priority of projects.
(3) Procedures for selecting projects.
(4) Procedures for reporting the results of the selection process
and the status of projects to the budget committee.
(c) To apply for a loan or grant from the fund, a political
subdivision must submit an application that contains at least the
following information:
(1) A description of the infrastructure for which the loan or
grant is sought;
(2) An estimate of the cost of constructing or improving the
infrastructure, including the cost of designing the infrastructure;
(3) Any other information required by the budget agency in
accordance with the procedure established under this section.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-7
Use of loan or grant; requirements for grant
Sec. 7. (a) A loan or grant from the fund must be used by a
political subdivision to establish or improve only the following
infrastructure needs:
(1) Wastewater treatment projects, sewer systems, and drinking
water systems, and extending water lines and installing hydrants
for fire protection.
(2) Cargo, reliever, and general aviation airports, as classified
by the Federal Aviation Administration on January 1, 1996.
(3) Juvenile detention centers.
(4) Infrastructure or local public improvements needed for the
rehabilitation, redevelopment, economic development, and
reuse of military base property acquired from the federal
government by a reuse authority established under IC 36-7-30
or a redevelopment authority operating under
IC 36-7-14.5-12.5.
(5) Highways, roads, streets, and public mass transportation
systems for communities.
(b) A grant from the fund must:
(1) not exceed ten percent (10%) of the total project cost or five
million dollars ($5,000,000), whichever is less; and
(2) be made in conjunction with the adoption of a resolution by
a political subdivision that sets forth the political subdivision's
commitment of revenues to the infrastructure project for which
the grant is made.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-8
Requirements for loan; loan agreement; exceptions to loan amount
limitations
Sec. 8. (a) A loan from the fund must:
(1) have an interest rate of not more than a rate that the state
board of finance determines does not exceed current market
rates for that type of loan;
(2) have a term of not more than twenty (20) years;
(3) except as provided in subsection (c), not exceed ten percent
(10%) of the total project cost or five million dollars
($5,000,000), whichever is less;
(4) be made in conjunction with the adoption of a resolution by
a political subdivision that sets forth the political subdivision's
commitment of revenues to the infrastructure project for which
the loan is made;
(5) provide for amortization to begin not later than one (1) year
after construction of the project ends;
(6) be accompanied by:
(A) all papers and opinions required by the budget agency;
(B) an opinion of a bond counsel;
(C) a certification and guarantee of signatures; and
(D) a certification that, as of the date of the loan, no
litigation is pending challenging the validity of, or entry into,
the loan or any security for the loan; and
(7) be repaid.
(b) Unless otherwise provided by the procedure established under
section 6 of this chapter, a political subdivision that receives a loan
from the fund shall enter into a loan agreement. A loan agreement is
a valid, binding, and enforceable agreement of the political
subdivision.
(c) A loan from the fund that is associated with a project under
Section 350 of the National Highway System Act of 1995, Public
Law 104-59, or subsequent laws authorizing the state infrastructure
bank program may exceed the loan amount limitations described in
subsection (a)(3).
As added by P.L.13-1996, SEC.1. Amended by P.L.20-1997, SEC.1.
IC 4-10-19-9
Expenses
Sec. 9. The expenses of administering the fund shall be paid from
money in the fund.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-10
Investment of money in fund
Sec. 10. The treasurer of state shall invest the money in the fund
not currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested. Interest that accrues
from these investments shall be deposited in the fund.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-11
No reversion to state general fund
Sec. 11. Money in the fund at the end of a state fiscal year does
not revert to the state general fund.
As added by P.L.13-1996, SEC.1.
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