CHAPTER 7. HOSPITAL BUILDING AUTHORITIES IN COUNTY WITH HOSPITAL OPERATED UNDER IC16-23-1
IC 16-22-7
Chapter 7. Hospital Building Authorities in County With Hospital
Operated Under IC 16-23-1
IC 16-22-7-1
Authority defined
Sec. 1. As used in this chapter, "authority" means the hospital
association created by section 5 of this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-2
Governing body defined
Sec. 2. As used in this chapter, "governing body" means the
county executive of a county or the legislative and fiscal body of a
city.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-3
Net operating revenue defined
Sec. 3. As used in this chapter, "net operating revenue" means the
revenues of the hospital, exclusive of any property tax levy
remaining after provision for reasonable expenses of operation,
repair, replacements, and maintenance of the hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-4
Recording officer defined
Sec. 4. As used in this chapter, "recording officer" when used in
reference to a county means the county auditor and when used in
reference to a city means the city clerk or clerk-treasurer.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-5
Creation of authority; resolution
Sec. 5. (a) In a county where a city hospital is operated under
IC 16-23-1, the county executive may, upon written request of the
governing board of the city hospital, adopt a resolution for the
creation of an authority under this chapter.
(b) The adoption of a resolution creates an authority, which is a
body corporate and politic to be known as the "___________ County
Hospital Association". The authority is created for the purpose of
financing, acquiring, constructing, equipping, and leasing to the
county or the city in which the authority is created land and buildings
for the use and benefit of the city hospital.
(c) The county auditor shall file a certified copy of the resolution
with the judge of the circuit court of the county in which the
authority is created.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-6
Governing board; appointment; terms
Sec. 6. (a) Not more than thirty (30) days after the adoption of the
resolution, the county executive shall appoint five (5) residents of the
county as the governing board of the hospital building authority.
Written notice shall be sent to each appointee.
(b) The initial terms are as follows:
(1) One (1) member for a term of one (1) year.
(2) One (1) member for a term of two (2) years.
(3) One (1) member for a term of three (3) years.
(4) Two (2) members for a term of four (4) years.
(c) At the expiration of the term of a member, the county
executive shall appoint a successor for a four (4) year term. Each
member serves until a successor is appointed and qualified.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-7
Disqualification or removal of appointee; successor
Sec. 7. If a member dies, resigns, ceases to be a resident of the
county, or is removed, the county executive shall appoint another
person as director for the remainder of the term. If a person
appointed as a member fails to qualify not more than ten (10) days
after the mailing of notice of appointment, the county executive shall
appoint another person as member for that term.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-8
Oath of office of director
Sec. 8. Each member, before entering upon the director's duties,
shall take and subscribe an oath of office in the usual form to be
endorsed upon the director's certificate of appointment. The oath
shall be filed with the clerk of the circuit court.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-9
Removal of member from office
Sec. 9. (a) A member of the governing board may be removed
from office for neglect of duty, incompetency, inability to perform
duties, or other good cause by an order of the circuit court in the
county in which the authority is located, subject to the procedure in
subsection (b).
(b) A complaint may be filed by any person against a member
setting forth the charges preferred. The cause shall be placed on the
advanced calendar and be tried as other civil causes are tried by the
court without the intervention of a jury. If the charges are sustained,
the court shall declare the office vacant. A change of venue from the
judge shall be granted upon motion, but a change of venue from the
county may not be taken.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-10
Meetings of the governing board
Sec. 10. (a) The governing board originally appointed shall hold
an organizational meeting not more than thirty (30) days after
appointment at a time and place designated by the judge of the circuit
court. The governing board shall elect a president, vice president,
secretary, and treasurer from among the members. The officers serve
until the expiration of the first term to expire.
(b) The governing board shall meet annually to reorganize not
more than thirty (30) days after the appointment of each successor
member for a full term.
(c) Other regular and special meetings shall be held at the times
and on the notice that the governing board determines by resolution
or in accordance with the bylaws, rules, and regulations adopted.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-11
Bylaws, rules, and regulations
Sec. 11. The governing board may adopt bylaws, rules, and
regulations to conduct proceedings, carry out duties, and safeguard
the funds and property of the authority.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-12
Quorum; reimbursement of expenses
Sec. 12. A majority of the governing board constitutes a quorum
and the concurrence of a majority is necessary to authorize any
action. Members serve without pay but are entitled to reimbursement
for expenses necessarily incurred in the performance of the members'
duties.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-13
Conflicts of interest
Sec. 13. If a member of the governing board has any pecuniary
interest in a contract, an employment, a purchase, or a sale made
under this chapter, the director shall disclose that interest and shall
not vote on the matter. If the member fails to disclose the interest, the
transaction is voidable if a suit is filed in circuit court in not less than
thirty (30) days.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-14
Preliminary expenses
Sec. 14. (a) All necessary preliminary expenses actually incurred
by the governing board to make surveys, prepare estimates of cost
and receipts, employ architects, engineers, attorneys, or other
consultants, give notices, take options, and all other expenses
necessary to be paid before the issue and delivery of bonds under this
chapter may be paid by the:
(1) city hospital or city, from funds on hand or derived from
taxes levied that may be appropriated for that purpose; or
(2) board of trustees or board of managers of the hospital from
revenues available for such purposes.
(b) The city or the governing board of the hospital from which the
payments are made shall be fully reimbursed by the governing board
out of the first proceeds of the sale of bonds by the authority before
any other disbursements are made.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-15
Authority to finance and construct hospital building
Sec. 15. The governing board of the authority may finance and
construct a hospital building for use by the city hospital operating
under IC 16-23-1, on land owned or leased by the authority as set
forth in section 28 of this chapter, and lease the land and buildings
to the county or city for the use and benefit of the city hospital in
accordance with this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-16
Powers of governing board
Sec. 16. The governing board, acting in the name of the authority,
may do the following:
(1) Sue and be sued and plead and be impleaded. Actions
against the authority shall be brought in the circuit or superior
courts of the county in which the authority is located.
(2) Condemn, appropriate, purchase, and hold real property
needed or considered useful in connection with buildings
constructed under this chapter.
(3) Acquire by gift, devise, or bequest real and personal
property, and hold, use, expend, or dispose of the real and
personal property for the purposes authorized by this chapter.
(4) Enter upon real property to survey or examine the real
property and determine the location of a building.
(5) Design, order, contract for, and construct buildings and
make improvements to the grounds and premises that are
acquired.
(6) Enter into a lease with the county or city for the use and
benefit of a city hospital operated under IC 16-23-1 and collect
rentals payable under the lease.
(7) Make and enter into contracts and agreements necessary or
incidental to the performance of the board's duties and the
execution of the board's powers under this chapter.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-17
Leasing land and buildings for hospital
Sec. 17. The county or city may lease land and buildings from the
authority for the city hospital. A lease on the buildings may not be
entered into for more than forty (40) years but the lease may be
renewed for a like or lesser time.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-18
Time for making leases
Sec. 18. The county or city may, in anticipation of the
construction and erection of buildings, including necessary
equipment and appurtenances, enter into a lease with the authority
before the acquisition of a site and the construction and erection of
the buildings. Rental payments under the lease may not begin until
construction is completed and the building is ready for occupancy.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-19
Source of lease rental payments
Sec. 19. (a) A lease from the authority to the county may provide
for the payment of the lease rental from the levy of taxes reduced by
net revenues of the hospital and other funds available as provided in
section 37 of this chapter.
(b) A lease from the authority to the city may provide for the
payment of lease rental from the net revenues of the hospital of
which the buildings are a part.
(c) A lease from the authority to the city providing for the
payment of a lease rental from net revenues of the hospital may
provide that the board of trustees or board of directors of the hospital
establish a reserve for net revenues in excess of the amount required
to pay the lease rental payable from net revenues. The reserve fund
may not exceed an amount equal to the amount of lease rental
payable from net revenues for two (2) years. The reserve fund shall
be held and used only for the purpose of paying lease rental payable
from net revenues if the net revenues are insufficient for that
purpose. The amount in the reserve fund may be invested as provided
in the lease and all interest or other income from the investment
becomes part of the reserve fund. If the fund contains the maximum
amount the interest or income shall be transferred to the city hospital
and be a part of the general revenues of that hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-20
Cumulative building fund as lease rental payment source
Sec. 20. Part or all of the cumulative building fund of the city
hospital in existence at the time of execution of the lease to the
lessee, or during the term of the lease, may be used to pay lease
rental or may be held as a reserve for the payment of future lease
rentals. The reserve fund described in this section is distinct from a
reserve fund established under section 19 of this chapter. The board
of directors of the hospital may decrease or eliminate the reserve
fund unless the lease provides otherwise. The reserve fund may not
exceed an amount equal to the amount of lease rental payable from
net revenues for two (2) years. Interest or income on the reserve fund
shall be transferred to the cumulative building fund of the city
hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-21
Notice and hearing on proposed lease
Sec. 21. (a) When the authority, the governing board of the
hospital, the county executive, and the county fiscal body of the
county or the city fiscal body have agreed on the terms and
conditions of a proposed lease and before the final execution of the
lease, the recording officer shall publish notice of a public hearing to
be held in the county or city by the governing body of the proposed
lessee. The hearing shall be held not earlier than ten (10) days after
the date of publication of the notice. The notice must name the day,
place, and hour of the hearing and must set forth a brief summary of
the principal terms of the lease, including the character and location
of the property to be leased, the lease rental to be paid, the lease
term, and where the proposed lease, drawings, plans, specifications,
and estimates may be examined.
(b) The proposed lease and the drawings, plans, specifications,
and estimates of construction cost for the buildings are open to
inspection by the public during the ten (10) days before the meeting
and at the meeting.
(c) Interested persons are entitled to be heard at the meeting
concerning the necessity for and fairness of the lease. The hearing
may be adjourned to a later date and to a place fixed before
adjournment.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-22
Authorization and execution of lease
Sec. 22. Following the hearing the governing body may authorize
the execution of the lease as originally agreed upon or make
modifications as agreed upon with the authority. Authorization shall
be by ordinance, order, or resolution entered in the official record of
the hospital governing board and the governing body. The lease shall
be executed as follows:
(1) On behalf of the county, by the county executive.
(2) On behalf of the city, by the city executive and the recording
officer.
(3) On behalf of the city hospital, by the president or vice
president and secretary of the governing board.
(4) On behalf of the authority, by the president or vice president
and secretary of the governing board.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-23
Notice of execution of lease; petition of objectors; presentment to
department of local government finance
Sec. 23. (a) If execution of the original or modified lease is
authorized under section 38 of this chapter, notice of the signing
shall be published.
(b) Ten (10) taxpayers in the county whose tax rate will be
affected by the proposed lease and who believe the lease is
unnecessary or the lease rental is not fair and reasonable may file a
petition in the office of the county auditor not more than thirty (30)
days after publication of notice of the execution of the lease, setting
forth the objections and stating facts showing that the lease is
unnecessary or unwise or that the lease rental is not fair and
reasonable.
(c) On the filing of the petition, the county auditor shall
immediately certify a copy, together with other data necessary to
present the questions involved, to the department of local
government finance.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.392.
IC 16-22-7-24
Notice and hearing on objections
Sec. 24. On receipt of the certified petition and information, the
department of local government finance shall fix a time and place in
the county for a hearing of the matter, which shall be not less than
five (5) or more than fifteen (15) days after receipt of the certified
petition and information. Notice of the hearing shall be given by the
department of local government finance to the city hospital board
and to the first ten (10) taxpayer petitioners on the petition by
certified mail sent to the addresses listed on the petition, at least five
(5) days before the date of the hearing.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.393.
IC 16-22-7-25
Time to contest or enjoin lease
Sec. 25. An action to contest the validity of the lease or to enjoin
the performance of the terms and conditions of the lease may not be
instituted later than thirty (30) days after publication of notice of the
execution of the lease or, if an appeal is taken to the department of
local government finance, not more than thirty (30) days after the
decision of the board.
As added by P.L.2-1993, SEC.5. Amended by P.L.90-2002, SEC.394.
IC 16-22-7-26
Terms of lease
Sec. 26. (a) A lease may provide the lessee with an option to
renew the lease, with approval of the board of directors of the city
hospital, for a like or lesser term. The lease must contain an option
for the city hospital to purchase at any time after ten (10) years from
the execution of the lease and before the expiration of the lease on
dates in each year fixed in the lease, at a price equal to the amount
required to enable the authority to do the following:
(1) Redeem all outstanding securities payable out of the rentals
provided in the lease and all premiums payable on the
redemption and accrued and unpaid interest.
(2) Pay all other indebtedness and obligations of the authority
attributable to the construction and leasing of the buildings,
including the cost of liquidation of the authority.
(b) A lease may not create an obligation for the lessee or city
hospital to purchase the leased buildings or create any obligation to
creditors or bondholders of the authority.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-27
Issuance of bonds
Sec. 27. The county fiscal body may issue general obligation
bonds to procure funds to purchase the building. The bonds shall be
authorized, issued, and sold in accordance with the laws authorizing
the issuance and sale of bonds for other county purposes.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-28
Approval of plans and specifications
Sec. 28. Before executing a lease, the governing board of the
hospital shall approve the plans, specifications, and estimates of cost
for the building, including equipment and appurtenances, that the
authority proposes to lease to a lessee. The plans and specifications
shall be submitted to and approved by the state department, the
division of fire and building safety, and other state agencies
designated by law to pass on plans and specifications for public
buildings.
As added by P.L.2-1993, SEC.5. Amended by P.L.1-2006, SEC.297.
IC 16-22-7-29
Lease of land to authority by hospital, municipality, or county;
option to purchase; price
Sec. 29. (a) The city hospital, city, or county desiring to erect
buildings on land owned or acquired by the city hospital, city, or
county may lease land to the authority for a nominal rental for the
same period, including renewal periods, that the lessee proposes to
lease the particular land or buildings to be constructed from the
authority. The city hospital, city, or county may grant an option to
the authority to purchase the land not more than six (6) months after
the expiration of the lease from the authority on the land or buildings
if the city hospital or lessee does not exercise an option to purchase
the buildings within the terms of the lease. If the option price on the
land is not fixed in the original lease, the price shall be determined
by an appraisal made by:
(1) one (1) disinterested freeholder residing in the county; and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana appointed by the judge of the circuit
court. One (1) of the appraisers appointed under subdivision (2) must
reside not more than fifty (50) miles from the land.
(b) A lease of land by the city hospital, city, or county must be
authorized by the city legislative body, the county executive, or
governing board of the hospital, respectively, and a resolution, an
order, or an ordinance must be entered in the official records of the
governing body. Authorization may be given before or concurrently
with the authorization of the lease from the authority to the lessee.
The authorization to lease land to the authority is contingent upon the
authorization to lease land from the authority. The lease to the
authority shall be executed on behalf of the following:
(1) The city by the city executive and the recording officer.
(2) The county by the county executive and auditor.
(3) The authority by the president or vice president and
secretary of the governing board.
As added by P.L.2-1993, SEC.5. Amended by P.L.113-2006, SEC.11.
IC 16-22-7-30
Sale of land to authority by hospital, municipality, or county
Sec. 30. (a) The city hospital, city, or county desiring to have
buildings erected on land owned or acquired by the city hospital,
city, or county may sell the land to the authority. Before the sale may
take place, the legislative body of the city, the governing board of the
hospital, or executive of the county having authorized the sale shall
file a petition with the circuit court of the county requesting the
appointment of:
(1) one (1) disinterested freeholder of the county as an
appraiser; and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana to determine the fair market value of the
land. One (1) of the appraisers appointed under subdivision (2) must
reside not more than fifty (50) miles from the land. Upon
appointment, the appraisers shall fix the fair market value of the land
and shall report not more than two (2) weeks after the date of the
appraisers' appointment. The city hospital, city, or county may sell
the land to the authority for an amount not less than the amount fixed
as the fair market value by the appraisers. The amount may be paid
from proceeds of bonds of the authority.
(b) The city legislative body must authorize the sale of land
owned by the city by resolution or ordinance and the deed shall be
executed by the city executive and city clerk.
(c) The governing board must authorize the sale of land owned by
the city hospital by resolution and the deed shall be executed by the
president or vice president and the secretary of the governing board.
(d) The county executive must authorize the sale of land owned
by the county by resolution or order, and the deed shall be executed
by the county executive and the county auditor.
As added by P.L.2-1993, SEC.5. Amended by P.L.113-2006, SEC.12.
IC 16-22-7-31
Issuance of revenue bonds by authority
Sec. 31. (a) The governing board may issue revenue bonds of the
authority to procure funds for buildings to be built or acquired under
this chapter and to repay advances for preliminary expenses. The
bonds are payable from the income and revenues of the buildings
financed from the proceeds of the bonds.
(b) The revenue bonds must be authorized by resolution of the
board. The resolution must provide the following:
(1) That the bonds bear interest, payable annually or
semiannually.
(2) The maturity dates of the bonds, which may not exceed the
term of the lease of the buildings for which the bonds are
issued.
(3) The terms of redemption, including a provision that bonds
maturing after ten (10) years from the date of issuance are, at
the option of the authority, redeemable before maturity at the
bonds' par value together with premiums.
(4) The form of the bonds, including the interest coupons
attached, if any.
(5) The denominations of the bonds.
(6) The places of payment of principal and interest, which shall
be at least one (1) state or national bank or trust company.
(7) That the principal and interest may be paid in any lawful
medium.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-32
Nature of revenue bonds
Sec. 32. The bonds are negotiable instruments under IC 26-1, and
legal investments for private trust funds and the funds of any banks,
trust companies, insurance companies, building and loan
associations, credit unions, banks of discount and deposit, savings
banks, loan and trust safe deposit companies, rural loan and savings
associations, guaranty loan and savings associations, mortgage
guaranty companies, small loan companies, industrial loan and
investment companies, and other financial institutions organized
under Indiana law. The bonds may be registered in the name of the
owner as to principal alone.
As added by P.L.2-1993, SEC.5. Amended by P.L.42-1993, SEC.15.
IC 16-22-7-33
Execution of bonds
Sec. 33. The bonds shall be executed by signature or facsimile
signature of the president of the governing board. The corporate seal
of the authority or a facsimile shall be affixed and attested by the
secretary. The interest coupons attached to the bonds shall be
executed by facsimile signature of the treasurer.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-34
Terms of bond sale
Sec. 34. The bonds shall be sold by the board at public sale in the
manner described under IC 5-1-11-3(c). However, the bonds may not
be sold for less than the bonds' par value. Notice of sale shall be
published in the manner required for bonds of a county. Any
premium received from the sale of the bonds shall be used solely for
the payment of principal and interest on the bonds.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-35
Disposition of bond proceeds
Sec. 35. The proceeds from bonds issued under this chapter, after
reimbursement for preliminary expenses as provided in section 14 of
this chapter and payment for land, shall be applied to the payment of
the costs of the buildings on account of which the bonds are issued,
including incidental expenses and interest during construction. Until
the proceeds are applied as required in this section, the proceeds are
subject to a lien in favor of the bondholders or the trustees.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-36
Security for bonds; trust indenture
Sec. 36. (a) The governing board may secure the bonds by a trust
indenture between the authority and a corporate trustee, which may
be any trust company or national or state bank in Indiana having trust
powers.
(b) The trust indenture may do the following:
(1) Mortgage all or part of the land or buildings, or both, for
which the bonds are issued.
(2) Contain reasonable provisions for protecting and enforcing
the rights and remedies of the bondholders, including covenants
concerning the following:
(A) Construction of the buildings.
(B) Insurance for the buildings.
(C) Custody, safeguarding, and application of all money.
(3) Set forth the rights and remedies of the bondholders and
trustee.
(4) Restrict the individual right of action of bondholders.
(c) Except as restricted by this chapter, the governing board may
determine by resolution or in the trust indenture the officer, board,
or depositary who shall have custody of the proceeds of the sale of
bonds and the method of disbursement of the proceeds, including
safeguards and restrictions.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-37
Tax levy for lease rental payments
Sec. 37. (a) The county fiscal body shall annually levy a tax
sufficient to produce funds that, with other funds available, are
sufficient to pay the lease rental provided to be paid from taxes.
(b) If the lease rental is payable from taxes, net revenues of the
hospital of which the leased buildings are a part that are not required
to be kept in reserve for additional construction, equipment,
betterment, maintenance, or operation shall be transferred to a fund
for the payment of the lease rental. To the extent that the transferred
funds are insufficient to pay the lease rental, cumulative building
funds reserved for lease rental payable from taxes under section 20
of this chapter shall be transferred.
(c) In fixing and determining the necessary levy to pay lease
rentals payable from taxes, the county council shall consider the
amounts transferred from the net revenues of the hospital and may
appropriate and pay funds from any available sources, including
revenues derived under IC 6-3.5. This subsection does not relieve the
county from the obligation to pay from taxes any lease rental payable
from taxes if other funds are not available. The tax levies are
reviewable by other bodies vested by law with the authority to
ascertain that the levies are sufficient to meet the rental under the
lease contract that is payable from taxes. The lease rental shall be
paid semiannually to the authority.
(d) A lease by the authority to the county may not provide for
rentals payable from the levy of a tax by a county unless the lease is
approved by a majority vote of the county fiscal body.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-38
Lease rentals payable solely from hospital revenues
Sec. 38. (a) A city hospital that enters into a lease under this
chapter under which the lease rental is payable solely from the net
revenues of the hospital that contains the leased building shall
covenant in the lease to establish and maintain rates, fees, and
charges sufficient in each year to do the following:
(1) Pay the proper and reasonable expense of operation, repair,
replacements, and maintenance of the hospital.
(2) Pay the lease rental.
(3) Establish the reserve fund provided for in the lease in the
full amount within not less than five (5) years.
(b) Revenues collected are revenues of the hospital. Rates, fees,
and charges shall be increased as necessary to comply with this
section.
(c) The authority may protect and enforce the rights granted under
this chapter or under the lease and may enforce and compel
performance of all duties required under this chapter or under the
lease, including setting and collecting reasonable and sufficient rates,
fees, and charges. If there is a failure to pay lease rental on the
payment date named in the lease, any court having jurisdiction of the
action may appoint a receiver to administer the hospital on behalf of
the city and the authority. The receiver may charge and collect rates
sufficient to do the following:
(1) Pay the proper and reasonable expense of operation, repair,
replacements, and maintenance of the hospital.
(2) Pay the lease rental payable solely from the net revenues of
the hospital.
(3) Establish the full amount of reserve fund provided for in the
lease within not less than five (5) years as may be provided in
the lease.
(d) A lease by the authority may not provide for rentals payable
from net revenues of the city hospital unless the lease is approved by
a majority of the board of directors of the city hospital.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-39
Exemptions from state taxation
Sec. 39. The following are exempt from state taxation except the
financial institutions tax and the state inheritance tax:
(1) All property owned by the authority.
(2) All revenues of the authority.
(3) All bonds or other securities issued by the authority and the
interest on the bonds or other securities, the proceeds received
by a holder from the sale of bonds to the extent of the holder's
cost of acquisition, proceeds received upon redemption at or
before maturity and the interest on the proceeds.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-40
Audit of funds; bond of officers and employees
Sec. 40. The state board of accounts may supervise and audit the
funds of the authority. Any officer or employee of the authority
authorized to receive or disburse funds or negotiable securities of the
authority shall execute a bond of a surety or guaranty corporation
qualified to do business in Indiana and payable to the state in an
amount determined by the board. The bond must be conditioned
upon the faithful performance of the officer's or employee's duties
and the accounting for all money and property under the officer's or
employee's control. The cost of bonds shall be paid by the authority.
The records of the authority are public records.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-41
Liquidation of authority
Sec. 41. An authority may be liquidated after redemption of the
authority's securities, payment of the authority's debts, and
termination of the authority's leases if the governing board files a
report with the judge of the circuit court showing the facts and
stating that liquidation is in the best public interest. If the court finds
the facts, the court shall make an order book entry ordering the
authority liquidated.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-42
Remodeling and additions to hospital
Sec. 42. (a) The governing board of the hospital may remodel or
construct an addition to a hospital building leased by the hospital
under this chapter.
(b) To provide funds for that purpose, the county may issue
general obligation aid bonds or the city hospital or city may
appropriate money from the city hospital's or city's general fund or
other funds available for that purpose if the hospital building is
owned by the city hospital or city. The governing board of the
hospital may use any funds available to the board if the hospital
building is owned by the city.
(c) A contract entered into under this chapter for a public work (as
defined in IC 5-16-7-4) is subject to IC 5-16-7.
As added by P.L.2-1993, SEC.5.
IC 16-22-7-43
Party wall or other agreements for attaching additions
Sec. 43. A city hospital, city, or county and an authority may enter
into a party wall agreement or other agreements concerning the
attaching of an addition to a hospital building. The agreements shall
be recorded in the office of the recorder of the county in which the
hospital building is located. The agreements may provide for an
easement or a license to construct a part of an addition over or above
the existing hospital building.
As added by P.L.2-1993, SEC.5.