Sec. 20. (a) The following definitions apply throughout this section:

(1) "Bonds" means bonds of the IFA issued under IC 5-1.3-6-1(a).

(2) "Construction" means constructing, acquiring, renovating, rehabilitating, reconstructing, improving, extending, and equipping a rail project.

(3) "Costs" has the meaning set forth in IC 5-1.3-2-5.

(4) "FTA" means the Federal Transit Administration.

(5) "IFA" means the Indiana finance authority established by IC 5-1.2-3.

(6) "NICTD" means the northern Indiana commuter transportation district established under IC 8-5-15.

(7) "NWIRDA" means the northwest Indiana regional development authority established under IC 36-7.5-2-1.

(8) "Rail project" has the meaning set forth in IC 5-1.3-2-14.

(b) This section applies if the IFA, the NWIRDA, and NICTD enter into an agreement, pursuant to which:

(1) the IFA agrees to issue bonds pursuant to a trust agreement between the IFA and a corporate trustee for the purpose of financing the costs of construction of a rail project before the award of a capital investment grant for such a rail project by the FTA;

(2) NICTD agrees to lease to the NWIRDA any real estate on which the rail project is or will be located and any existing improvements on the real estate;

(3) the NWIRDA agrees to lease to the IFA any or all of its leasehold interests described in subdivision (2);

(4) the IFA agrees to lease back to the NWIRDA any or all of its leasehold interests described in subdivision (3), and pursuant to the lease the NWIRDA agrees to pay any rent due under the lease from any available revenues of the NWIRDA, including revenues derived from the interlocal agreements or from other actions taken by local governmental entities within Lake County offering to provide revenue under IC 6-3.6-11-7 to support and finance a rail project; and

(5) the NWIRDA agrees to lease to NICTD any or all of its leasehold interests described in subdivision (2);

all in accordance with IC 5-1.3-5 and IC 5-1.3-6.

(c) To qualify for an investment under this section, the IFA must submit a request to the treasurer of state in the form and manner required by the treasurer of state. As part of the request, the IFA shall include the agreement described in subsection (b) and commit to pay the IFA's obligation to the treasurer of state solely from the security, which consists solely of the rent payable by the NWIRDA under the lease described in subsection (b)(4), provided for in the bonds to be issued by the IFA and to be acquired by the treasurer of state.

(d) If the IFA makes a request under subsection (c), after review by the budget committee established by IC 4-12-1-3, the treasurer of state shall approve the request and agree to acquire the bonds, which may consist of draw-down bonds, pursuant to which the treasurer of state shall provide proceeds at the request of the IFA. The maximum principal amount of the bonds shall be two hundred five million dollars ($205,000,000).

(e) The sole source of funds available to the treasurer of state to acquire the bonds consists of the transfers made to the treasurer of state from the northern Indiana commuter rail account established under IC 8-14-14.3-5.

(f) The maximum term of the bonds, including all draws under the bonds, is twenty-five (25) years. The rate of interest borne by each draw under the bonds shall be set by the treasurer of state, at a rate then currently applicable to a United States Treasury note that has payment terms that are substantially the same as the bonds. No principal and interest are due under the bonds until the date six (6) months after, nor shall any interest accrue on the bonds until the earlier of:

(1) the date that the rail project being financed with the bonds has been abandoned as determined by the budget director appointed under IC 4-12-1-3; or

(2) the date on which it has been determined by the budget director that the FTA will not award a capital investment grant for the rail project.

(g) If the FTA awards a capital investment grant for the rail project financed by the bonds and the IFA issues additional bonds, which are secured by a lease with the NWIRDA, the payment of rent under the lease is payable from any available revenues of the NWIRDA, including revenues derived from the interlocal agreements or from other actions taken by local governmental entities within Lake County offering to provide revenue under IC 6-3.6-11-7 to support and finance a rail project, the principal of and any interest due on the bonds shall be entirely forgiven by the treasurer of state.

(h) This section expires on the later of:

(1) July 1, 2045; or

(2) the earlier of:

(A) the date on which the principal of and interest on the bonds acquired by the treasurer of state under this section are paid in full; or

(B) the date on which it has been determined by the budget director, the IFA, and the treasurer of state that the obligation of the NWIRDA to pay rent under the lease securing the bonds has been paid in full.

As added by P.L.108-2019, SEC.99.