Sec. 6. (a) If the authority finds that the local transportation infrastructure project:

(1) will be of benefit to the health, safety, morals, and general welfare of the area where the local transportation infrastructure project is to be located; and

(2) complies with the purposes and provisions of this chapter;

the authority may by resolution approve the proposed financial assistance agreement.

(b) A financial assistance agreement approved under this section in connection with bonds must provide for payments in an amount sufficient to pay the principal of, premium on (if any), and interest on the bonds issued for the financing of the local transportation infrastructure project. Interest payments for the anticipated construction period, plus a period of not more than one (1) year, may be funded in the bond issue. The term of a financial assistance agreement may not exceed twenty (20) years from the date of any bonds issued under the financial assistance agreement. However, a financial assistance agreement does not terminate after twenty (20) years if a default under that financial assistance agreement remains uncured, unless the termination is authorized by the terms of the financial assistance agreement.

(c) The authority may do any of the following:

(1) Establish eligibility standards for a participant and local transportation infrastructure projects, without complying with IC 4-22-2. However, these standards have the force of law if the standards are adopted after a public hearing for which notice has been given by publication under IC 5-3-1.

(2) Contract with any entity securing, in whole or in part, the payment of bonds issued under this chapter and authorizing the entity to approve the participant that can finance or refinance local transportation infrastructure projects with proceeds from the bond issue secured by that entity.

(3) Finance for participants in connection with their local transportation infrastructure projects:

(A) the cost of their local transportation infrastructure projects, including costs of planning, designing, feasibility studies, construction, expansion, renovation, or improvement;

(B) capitalized interest for the anticipated construction period plus one (1) year; and

(C) in the case of a program funded from the proceeds of taxable bonds or sources other than tax exempt bonds, working capital associated with the operation of such local transportation infrastructure projects;

in amounts determined to be appropriate by the authority.

(d) The authority may provide financial assistance to participants in the form of forgiveness of principal of a loan.

As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.25.