2023 Indiana Code › Title 8. Utilities and Transportation › Article 22. Airports › Chapter 3. Local Airport Authorities › 8-22-3-19. Temporary Loans; Loan Contracts; Requirements; Tax Exemption

Sec. 19. (a) Temporary loans may be made by the board in anticipation of the collection of taxes of the authority actually levied and in course of collection for the fiscal year in which the loans are made. The loans must be authorized by ordinance and evidenced by warrants in the form provided by the authorizing ordinance. The warrants must state the total amount of the issue, the denomination of the warrant, the time and place payable, the rate of interest, the funds in anticipation of which they are issued and out of which they are payable, and a reference to the ordinance authorizing them and the date of its adoption. The ordinance authorizing temporary loans must appropriate and pledge a sufficient amount of the current revenue in anticipation of which they are issued and out of which they are payable. The warrants evidencing the temporary loans must be executed, sold, and delivered as are bonds of the authority.
(b) The board may negotiate terms and borrow money from any source under a loan contract, subject to the following requirements:
(1) The loan contract must be approved by resolution of the board.
(2) The loan contract must provide for the repayment of the loan in not more than forty (40) years.
(3) This subdivision applies only to loan contracts entered into under this subsection before July 1, 2013. The loan contract must state that the indebtedness:
(A) is that of the authority;
(B) is payable solely from revenues of the authority that are derived from either airport operations or from revenue bonds; and
(C) may not be paid by a tax levied on property located within the district.
(4) This subdivision applies only to loan contracts entered into under this subsection after June 30, 2013. The loan contract must state that the indebtedness:
(A) is that of the authority;
(B) is payable solely from:
(i) a cumulative building fund established under section 25 of this chapter;
(ii) revenues of the authority that are derived from either airport operations or from revenue bonds; or
(iii) both items (i) and (ii); and
(C) may not be paid by a general operating fund tax levied on property located within the district.
(c) Any loan contract issued under this chapter is issued for essential public and governmental purposes. A loan contract, the interest on it, the proceeds received by a holder from the sale of a loan contract to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of the interest and proceeds are exempt from taxation as provided in IC 6-8-5.
(d) After the board of an authority enters into a loan contract, the board may use funds received from state or federal grants to satisfy the repayment of part or all of the loan contract.
[Pre-Local Government Recodification Citations: 19-6-2-21; 19-6-3-22; 19-6-3.5-23.]
As added by Acts 1980, P.L.8, SEC.73. Amended by Acts 1980, P.L.79, SEC.6; P.L.101-1987, SEC.4; P.L.90-2002, SEC.329; P.L.61-2012, SEC.4; P.L.230-2013, SEC.6; P.L.255-2017, SEC.29.