CHAPTER 3. SALE OF BONDS
IC 21-32-3
Chapter 3. Sale of Bonds
IC 21-32-3-1
Power to issue bonds
Sec. 1. A state educational institution with power to issue bondsmay sell bonds at public or negotiated sale:
(1) for the price or prices;
(2) in the manner; and
(3) at the time or times;
determined by the state educational institution.
As added by P.L.2-2007, SEC.273.
IC 21-32-3-2
Sale of bonds; value
Sec. 2. A state educational institution may not sell bonds:
(1) for less than ninety percent (90%); or
(2) with an underwriter's discount that exceeds three percent(3%);
of the par value of the bonds.
As added by P.L.2-2007, SEC.273.
IC 21-32-3-3
Sale of bonds; conditions
Sec. 3. (a) A state educational institution that determines to sellbonds at public sale shall give notice under subsection (b) or (c).
(b) A state educational institution that gives notice under thissubsection shall:
(1) publish the notice once each week for two (2) weeks in:
(A) an English language newspaper of general circulationpublished in the county in which the principal office of thestate university or college is located; and
(B) an English language newspaper of general circulationpublished in the state capital;
(2) publish the last of the publications under subdivision (1) atleast seven (7) days before the date of sale; and
(3) include in the notice the following with respect to the bonds:
(A) The amount to be offered.
(B) The denominations.
(C) The dates of maturity.
(D) The maximum rate or rates of interest or the maximumnet interest cost.
(E) The date, time, and place of sale.
(F) The minimum price to be paid for the bonds.
(c) A state educational institution that gives notice under thissection shall:
(1) publish the notice once each week for two (2) weeks in:
(A) an English language newspaper of general circulationpublished in the county in which the principal office of thestate university or college is located; and (B) an English language newspaper of general circulationpublished in the state capital; and
(2) include in the notice:
(A) a statement that any person interested in submitting a bidfor the bonds may furnish in writing to the treasurer of thestate educational institution at the address set forth in thenotice the person's:
(i) name, address, and telephone number; and
(ii) telex number, if any; and
(B) the following with respect to the bonds:
(i) The amount to be offered.
(ii) The denominations.
(iii) The dates of maturity.
(iv) The maximum rate or rates of interest or the maximumnet interest cost.
(v) The place of sale.
(vi) The time within which the information referred to inclause (A) must be furnished. The time within which theinformation referred to in clause (A) must be furnishedmust be at least seven (7) days after the last publication ofthe notice of intent to sell.
(vii) The minimum price to be paid.
As added by P.L.2-2007, SEC.273.
IC 21-32-3-4
Notice of sale of bond
Sec. 4. (a) This section applies when notice is given under section3 of this chapter for a public sale.
(b) The treasurer of the state educational institution:
(1) shall cause each person furnishing the information requiredunder section 3(c) of this chapter to be notified of the date andtime bids will be received at least twenty-four (24) hours beforethe date and time;
(2) shall give the notification under subdivision (1):
(A) by telephone at the number furnished by the person; and
(B) by telex if the person furnishes a telex number; and
(3) may not receive bids for more than ninety (90) days after thefirst publication of the notice of intent to sell bonds.
As added by P.L.2-2007, SEC.273.
IC 21-32-3-5
Determination of interest cost
Sec. 5. A state educational institution shall award bonds sold atpublic sale to the bidder offering the lowest interest cost to bedetermined by:
(1) computing the total interest on the bonds from the date ofthe sale to the date of maturity; and
(2) either:
(A) deducting from the total interest the amount of anypremium bid; or (B) adding to the total interest the amount of any discount.
As added by P.L.2-2007, SEC.273.
IC 21-32-3-6
Acceptability of bids
Sec. 6. If no acceptable bid is received at the time fixed for saleof the bonds at a public sale, the state educational institution:
(1) may continue the sale from day to day for a period not toexceed thirty (30) days without readvertising; and
(2) may not accept a bid during the continuation of the sale thatoffers a higher interest cost than the best bid received at thetime fixed for the sale under section 3 of this chapter.
The acceptability of a bid is within the sole discretion of the stateeducational institution issuing the bonds. A state educationalinstitution may not negotiate a sale for an issue of bonds withoutpublic bidding under section 1 of this chapter until the thirty (30) dayperiod required by this section has passed for that issue if the stateeducational institution has conducted a public sale for that issueunder sections 3 and 4 of this chapter.
As added by P.L.2-2007, SEC.273.
IC 21-32-3-7
Restrictions on the acceptability of bids
Sec. 7. (a) As used in this section, "check" includes electronictransfer by wire transfer or other similar means.
(b) A state educational institution may not:
(1) accept a bid for the bonds, other than a bid submitted by thefederal government or any agency of the federal government; or
(2) execute and deliver a contract of sale for the bonds;
unless the bid or contract is accompanied by a certified check orcashier's check in an amount equal to one percent (1%) of theprincipal amount of the bonds sold.
(c) The check required by subsection (b) must be:
(1) payable to the state educational institution issuing thebonds; and
(2) drawn on a bank or trust company, in or out of state, that isinsured by the Deposit Insurance Fund of the Federal DepositInsurance Corporation.
(d) The state educational institution shall:
(1) hold the check required by subsection (b) as a guaranty ofthe performance of:
(A) the bid, if the bid is accepted; or
(B) the contract, if the contract is signed; and
(2) return the check required under subsection (b) to a bidder ifthat bidder's bid is not accepted.
(e) If a bid is accepted and the bidder fails to perform the bid, thecheck required under subsection (b) and the proceeds of the checkare:
(1) the property of the state educational institution; and
(2) considered liquidated damages to the state educational
institution arising from the default.
(f) A contract for the purchase of bonds at negotiated sale mustprovide that if the purchaser fails to perform the purchaser'sobligation to pay for the bonds, the check required under subsection(b) and the proceeds from the check are:
(1) the property of the state university or college; and
(2) considered liquidated damages to the state educationalinstitution arising from the default.
As added by P.L.2-2007, SEC.273. Amended by P.L.79-2010, SEC.3.
IC 21-32-3-8
Filing of affidavit
Sec. 8. Before the delivery of the bonds to a successful bidder ata public sale, other than the federal government or any agency of thefederal government, the bidder shall cause to be filed with thesecretary of state before the published date of sale a sworn affidavitthat:
(1) is acceptable to the secretary of state; and
(2) states that no collusion or binding agreement existedbetween:
(A) the successful bidder; and
(B) an official of the issuing state university or college;
As added by P.L.2-2007, SEC.273.
IC 21-32-3-9
Applicability of chapter
Sec. 9. This chapter is not applicable to bonds advertised for saleor sold or contracted to be sold before March 13, 1959.
As added by P.L.2-2007, SEC.273.