Sec. 5. (a) Before a lease may be entered into by the NWIRDA under this chapter, the NWIRDA must find that the lease rental provided for is fair and reasonable.

(b) A lease of a rail project from the IFA to the NWIRDA:

(1) may not have a term exceeding forty (40) years;

(2) may not require payment of lease rentals for a newly constructed rail project or for improvements to an existing rail project until the rail project or improvements to the rail project have been completed and are ready for availability or use or for partial availability or use;

(3) may contain provisions:

(A) allowing the NWIRDA to continue to operate an existing rail project or cause an existing rail project to be operated until completion of the acquisition, improvements, reconstruction, or renovation of that rail project or any other rail project; and

(B) requiring payment of lease rentals for land, for an existing rail project being used, reconstructed, or renovated, or for any other existing rail project;

(4) may contain an option to renew the lease for the same or shorter term on the conditions provided in the lease;

(5) must contain an option for the NWIRDA to purchase the rail project upon the terms stated in the lease during the term of the lease for a price equal to the amount required to pay all indebtedness incurred on account of the rail project, including indebtedness incurred for the refunding of that indebtedness;

(6) may be entered into before acquisition or construction of a rail project;

(7) may provide that the NWIRDA must agree to:

(A) pay or cause to be paid, any taxes and assessments on the rail project;

(B) maintain or cause to be maintained, insurance on the rail project for the benefit of the NWIRDA;

(C) assume or cause to be assumed, responsibility for utilities, repairs, alterations, and any costs of operation; and

(D) pay or cause to be paid, a deposit or series of deposits to the IFA from any funds legally available to the NWIRDA before the commencement of the lease to secure the performance of the NWIRDA's obligations under the lease;

(8) must provide that the lease rental payments by the NWIRDA shall be made from the fund established under IC 36-7.5-4-1 and may provide that the lease rental payments by the NWIRDA shall be made from:

(A) net revenues of the rail project;

(B) any other funds available to the NWIRDA; or

(C) both sources described in clauses (A) and (B);

(9) must provide that the IFA is not responsible for the operation and maintenance of the rail project or rail projects upon completion of construction; and

(10) does not create a debt of the:

(A) IFA;

(B) NWIRDA; or

(C) state;

within the meaning or application of any constitutional or statutory provision, prohibition, or limitation.

As added by P.L.189-2018, SEC.26.