CHAPTER 5. LEASES WITH THE DEPARTMENT
IC 8-14.5-5
Chapter 5. Leases With the Department
IC 8-14.5-5-1
Authority and department powers
Sec. 1. (a) In addition to its other powers, the department may
enter into a lease or leases with the authority under section 2 or 3 of
this chapter for any or all of the purposes set forth in this article.
(b) The authority has all the powers necessary and incidental to
carry out the terms and conditions of leases under this chapter.
(c) If the authority and the department decide to enter into a lease
under this chapter, the authority and the department may enter into
a separate lease for each project or may enter into one (1) or more
master leases for several projects.
As added by P.L.68-1988, SEC.12.
IC 8-14.5-5-2
Mandatory lease provisions
Sec. 2. (a) A lease entered into under this section must include the
following:
(1) A statement that the term of the lease is for a period
coextensive with the biennium used for state budgetary and
appropriation purposes with a fractional period when the lease
begins, if necessary.
(2) A statement that the term of the lease is extended from
biennium to biennium, with the extensions not to exceed a lease
term of twenty-five (25) years, unless either the authority or the
department gives notice of nonextension at least six (6) months
before the end of a biennium, in which event the lease expires
at the end of the biennium in which the notice is given.
(3) A provision plainly stating that the lease does not constitute
an indebtedness of the state within the meaning or application
of any constitutional provision or limitation, and that lease
rentals are payable by the department solely from biennial
appropriations, for the actual use or availability for use of
projects provided by the authority, with payment commencing
no earlier than the time the use or availability commences.
(4) Provisions requiring the department to pay rent at times and
in amounts sufficient to pay in full:
(A) the debt service payable under the terms of any bonds or
notes issued by the authority and outstanding with respect to
any project, including any required additions to reserves for
the bonds or notes maintained by the authority; and
(B) additional rent as provided by the lease;
subject to appropriation of money to pay lease rentals.
(5) Provisions requiring the department to operate and maintain
the project or projects during the term of the lease.
(6) A provision in each master lease for two (2) or more
projects requiring that each project added to the master lease
shall be covered by a supplemental lease describing the
particular project, stating the additional rental payable and
providing that all lease covenants, including the obligation to
pay the original and additional rent under any supplement, shall
be unitary and include all projects covered, whether by the
master lease or a supplemental lease.
(b) A lease entered into under this section may contain other terms
and conditions that the authority and the department consider
appropriate.
(c) The department shall request an appropriation for payment of
lease rentals on any lease entered into under this section in writing
at a time sufficiently in advance of the date for payment of the lease
rentals so that an appropriation may be made in the normal state
budgetary process.
(d) If the department fails at any time to pay to the authority when
due any lease rentals on any lease under this section, the chairman of
the authority shall immediately report the unpaid amount in writing
to the governor and in an electronic format under IC 5-14-6 to the
general assembly.
As added by P.L.68-1988, SEC.12. Amended by P.L.28-2004,
SEC.73.
IC 8-14.5-5-3
Mandatory lease provisions
Sec. 3. (a) A lease entered into under this section must include the
following:
(1) The term of the lease, which may not exceed weighted
average useful life of the project or projects.
(2) A provision plainly stating that the lease does not constitute
an indebtedness of the state within the meaning or application
of any constitutional provision or limitation, and that lease
rentals are payable by the department solely for the annual use
or availability for use of projects provided by the authority, with
payment commencing no earlier than the time the use or
availability commences.
(3) Provisions requiring the department to pay rent at times and
in amounts sufficient to pay in full the following:
(A) The debt service payable under the terms of any bonds
or notes issued by the authority and outstanding with respect
to any project, including any required additions to reserves
for the bonds or notes maintained by the authority.
(B) Additional rent as provided by the lease.
(4) Provisions requiring the department to operate and maintain
the project or projects during the term of the lease.
(5) A provision in each master lease for two (2) or more
projects requiring that each project added to the master lease
shall be covered by a supplemental lease describing the
particular project, stating the additional rental payable and
providing that all lease covenants, including the obligation to
pay the original and additional rent under any supplement, shall
be unitary and include all projects covered, whether by the
master lease or a supplemental lease.
(b) A lease entered into under this section may contain other terms
and conditions that the authority and the department consider
appropriate.
As added by P.L.68-1988, SEC.12.
IC 8-14.5-5-4
Sale or conveyance of transportation system
Sec. 4. The department may sell, transfer, or convey by any means
any transportation system to the authority through negotiation of a
lease. The department may lease any existing transportation system
or property under its control to the authority for construction of a
project, which project may be leased to the department.
As added by P.L.68-1988, SEC.12.
IC 8-14.5-5-5
Payment from revenues; lease rentals; grant anticipation revenue
bonds
Sec. 5. The department shall pay lease rentals for leases entered
into under this chapter and securing bonds issued under IC 8-14.5-6
from revenues transferred to the state highway road construction and
improvement fund or the crossroads 2000 fund before making any
other disbursements from those funds. The department shall pay
lease rentals for leases entered into under this chapter and for
securing grant anticipation revenue bonds or notes issued under
IC 8-14.5-7 from federal highway revenues (as defined in
IC 8-14.5-7-2) transferred to the grant anticipation fund before
making any other disbursements from the grant anticipation fund.
As added by P.L.68-1988, SEC.12. Amended by P.L.260-1997(ss),
SEC.53; P.L.246-2005, SEC.82.