CHAPTER 11. BONDS
IC 14-33-11
Chapter 11. Bonds
IC 14-33-11-1
Purpose of bonds
Sec. 1. The board may issue bonds to pay the following:
(1) The cost of the works that are provided in the district plan.
(2) Necessary engineering, legal, and administrative fees.
(3) The repayment or refinancing of a loan.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-2
Total amount of bonds
Sec. 2. The total amount of bonds issued may not exceed the costless the following:
(1) Money on hand from the collection of assessments.
(2) Money on hand or obligated to the district by the state orfederal government.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-3
Method of issuance
Sec. 3. Bonds may be issued by either of the following methods:
(1) Solely against the revenues expected to be produced by theoperation of the district. The board may make propercontractual arrangements to pay the bonds from the netrevenues produced.
(2) Against the real property of the district in anticipation of thecollection of special benefits taxes. Bonds issued against thereal property of the district may be paid in part:
(A) by revenues derived from reasonable charges forservices or property produced incident to the operation of thedistrict; or
(B) from the collection of assessments for exceptionalbenefits.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-4
Payment of bonds
Sec. 4. (a) Revenue bonds issued for the payment of works ofimprovement for the collection, treatment, and disposal of sewageand other liquid wastes may provide that the principal and interestshall be paid:
(1) solely from the net revenue of the sewage works, which isgross revenues after deduction only for the reasonable expensesof operation and maintenance; or
(2) from a combination of net revenue and other moneyavailable to a district by:
(A) levy;
(B) special benefits taxes; or (C) assessment of exceptional benefits.
(b) The board may covenant with the holders of the bonds to pay:
(1) a certain percentage of principal and interest from therevenue;
(2) a certain percentage from the other money to maintain areasonable reserve from the other money that may be used forpayment of principal and interest if the revenue is not sufficient;or
(3) both.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-5
Restrictions in issuance
Sec. 5. (a) Bonds:
(1) may be issued in any denomination;
(2) may bear interest at any rate, with interest payable onJanuary 1 and July 1;
(3) shall be issued in not less than ten (10) series and not morethan fifty (50) series; and
(4) are payable, one (1) series each year, beginning on January1 of the second year following the date of issue and subject tothe following:
(A) If the bond issue is authorized in a year after the regularlevymaking period, the first series matures on January 1 ofthe third succeeding year.
(B) The balance of the issue is payable at annual intervals.
(C) The annual maturities do not have to be in an equalamount.
(b) The bonds issued are exempt from taxation by the state.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-6
Negotiability, registration, advertisement, and sale
Sec. 6. Bonds issued:
(1) must be negotiable;
(2) may be registered; and
(3) shall be advertised and sold in the manner provided bygeneral statutes concerning the sale of bonds.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-7
Interest of directors; disclosure
Sec. 7. (a) This section applies to a district:
(1) that has been established with a few freeholders or evenonly one (1) freeholder; and
(2) for which the accomplishment of the district's purposes isnecessary and desirable primarily for persons purchasing andusing the land after subdivision and development.
(b) Notwithstanding other statutes, the board may enter into acontract agreement, before the award of bonds, with a person directly
or indirectly interested in bidding on or purchasing the bonds ifapproval is received from the Indiana utility regulatory commissionafter a petition is filed by the board containing disclosure of theinterest that any of the directors have in the land involved and in theperson who is interested in bidding on or purchasing the bonds.
(c) The Indiana utility regulatory commission shall give approvalif the Indiana utility regulatory commission finds that:
(1) full disclosure has been made; and
(2) persons who are using or will be using the land willprobably receive the benefits from the proposed works ofimprovement at a fair and reasonable cost comparable to thecost for benefits from the improvements in similar locations andsituations.
Profits or loss to the person bidding on the bonds may not be thedetermining factor in approval.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-8
Notice of sale; right to remonstrate against or vote against bonds
Sec. 8. (a) Before offering bonds for sale, the board shall givenotice in the same manner as is required by IC 6-1.1-20 for the saleof bonds by municipal corporations.
(b) Persons affected are entitled to:
(1) remonstrate against issuance of the bonds (in the case of apreliminary determination made before July 1, 2008, to issuebonds); or
(2) vote on the proposed issuance of bonds in an election on alocal public question (in the case of a preliminary determinationmade after June 30, 2008, to issue bonds).
(c) An action to question the validity of the bonds may not beinstituted after the date fixed for sale, and the bonds are incontestableafter that time.
As added by P.L.1-1995, SEC.26. Amended by P.L.146-2008,SEC.429.
IC 14-33-11-9
Denial of right to issue bonds
Sec. 9. If the board is denied the right to issue bonds as a result ofremonstrance proceedings or an election on a local public questionheld under IC 6-1.1-20-3.6:
(1) all contracts let by the board for work to be paid from thesale of bonds are void; and
(2) no liability accrues to the district or to the board.
As added by P.L.1-1995, SEC.26. Amended by P.L.146-2008,SEC.430.