IC 14-27-5
    Chapter 5. Levee Associations; Federal Loans

IC 14-27-5-1
Applicability of chapter
    Sec. 1. This chapter applies to the following:
        (1) A levee association incorporated before March 10, 1967,under Acts 1913, c.165, or a successor of the association.
        (2) An association existing before March 10, 1967, underIC 23-7-1 (repealed September 2, 1971) for the purpose of usinga statute:
            (A) concerning levees, ditches, and improvements relatingto levees or ditches; and
            (B) repealed by IC 19-3-2-106 (repealed April 1, 1980).
        (3) A levee association complying with IC 14-27-4.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-2
Application for loan
    Sec. 2. The board of directors of an association described insection 1 of this chapter may apply to the federal Farmers HomeAdministration, the United States Department of Housing and UrbanDevelopment, or any other agency of the federal governmentauthorized by federal law to make loans for works of improvementfor a long term or short term loan to cover the association's expensesin connection with the construction of a levee or ditch and any otherrequired or related improvements, including the following expenses:
        (1) General, legal, and administrative expenses.
        (2) The acquisition of land rights.
        (3) Costs of engineering.
        (4) Other costs of necessary construction and maintaining andoperating the works of improvement authorized by applicablegovernmental authority.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-3
Evidence and security of loan
    Sec. 3. A loan may be:
        (1) evidenced by one (1) installment note or by a series ofnotes; and
        (2) secured by the collection of a special assessment levied asprovided in section 11 of this chapter.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-4
Terms of loan subject to agreement and federal law
    Sec. 4. The following are subject to the agreement of the board ofdirectors and the federal agency and applicable federal law:
        (1) The time repayment of a loan must begin.
        (2) The term within which the loan is repaid.        (3) The amount of interest.
        (4) The time of making payments of interest.
        (5) The interval at which interest shall be paid.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-5
Petition for approval of loan
    Sec. 5. Before making financial commitments described in thischapter with a federal agency, the board of directors must file apetition for approval of the proposed action in the circuit court of thecounty in which the most land affected by the construction orimprovements lies. The petition must state the following for theproposed loan:
        (1) The purpose.
        (2) The amount.
        (3) The terms.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-6
Hearing on petition for approval of loan
    Sec. 6. The court shall do the following:
        (1) Set a date for a hearing.
        (2) Allow at least twenty-one (21) days for an interested personto file objections.
        (3) Order notice for the hearing that the court considersnecessary. However, publication must at least be made in eachof the counties containing land within the affected area inaccordance with IC 5-3-1. The notice must set forth in summaryform the contents of the petition.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-7
Court approval of loan
    Sec. 7. If at the hearing the court finds that:
        (1) the loan as proposed in the petition is necessary for theaccomplishment of the purposes set forth in this chapter; and
        (2) the terms and conditions are reasonable and probably are asbeneficial to accomplish the purposes as would be obtainable inprivate competitive financial markets;
the court shall approve the petition and authorize the board ofdirectors to enter into the loan agreement.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-8
Levy of special assessment upon court approval
    Sec. 8. Upon approval by the court, the board of directors maylevy the special assessments necessary for the repayment of the loan.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-9 Purposes of loan
    Sec. 9. The board of directors may secure part or all of the moneynecessary for the project under this chapter. The board of directorsmay make the loan for any of the board's needs to cover the expensesfor which the loan is sought and maintaining and operating the worksof improvement that have been authorized by applicablegovernmental authority. The loan may also be used to refinance aprior loan whose proceeds have been used for any of the purposesdescribed in section 2 of this chapter.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-10
Offer of bond issue for sale to federal agency
    Sec. 10. If the board of directors:
        (1) decides not to enter into a loan agreement with a federalagency by installment note or series of notes; and
        (2) instead prepares a bond issue, in whole or in part;
the board of directors may offer the bond issue for sale to a federalagency without a public offering or the securing of competitive bidson the bond offering.
As added by P.L.1-1995, SEC.20.

IC 14-27-5-11
Repayment of loan by levy of special assessment
    Sec. 11. A loan made under this chapter or under IC 13-2-29-1(before its repeal) shall be repaid by levy of the special assessmentauthorized on the real property within the proposed project. Theassessment against the landowners must be in the proportion that thebenefits assessed against each tract of real property bear to the totalbenefits assessed as shown by the report of the appraisers appointedby the board of commissioners of the county under Acts 1913, c.165, s. 16. Statutes regulating:
        (1) the payment and collection of state and county taxes;
        (2) the placing of assessments on the tax rolls and the recordingof the assessments;
        (3) the validity of the assessments;
        (4) the assessment of penalties and interest; and
        (5) the sale of property for delinquent taxes;
apply to the assessments.
As added by P.L.1-1995, SEC.20.