CHAPTER 6. REVENUE BONDS; VINCENNES UNIVERSITY
IC 21-35-6
Chapter 6. Revenue Bonds; Vincennes University
IC 21-35-6-1
Applicability of chapter
Sec. 1. This chapter applies to Vincennes University.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-2
Applicable property
Sec. 2. This chapter applies to all property acquired or improvedfor Vincennes University.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-3
Issuance and sale of bonds
Sec. 3. For the purpose of:
(1) raising funds for improving property;
(2) acquiring property;
(3) the interim financing of the cost of any such improvementor acquisition;
(4) the reimbursing of the trustees for funds expended oradvanced for interim financing of the cost of any suchimprovement or acquisition, or, subject to existing covenantsand agreements with the holders of outstanding bonds, forfunding or refunding bonds issued under this chapter; or
(5) for any one (1) or more of the activities described insubdivisions (1) through (4);
the board of trustees may issue and sell revenue bonds.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-4
Security of bonds
Sec. 4. The revenue bonds and the interest on revenue bonds ofVincennes University may be secured in any one (1) or more of thefollowing ways, as the board of trustees may determine:
(1) By pledge or mortgage of any property, real or personal,used or acquired or to be acquired and used for the purposes ofVincennes University and the improvements made or to bemade on the property.
(2) By pledge or mortgage of the net income from the property.
(3) By the pledge or mortgage of the unobligated net revenuesof any one (1) or more other properties of the board of trustees.
(4) In the case of revenue bonds issued under this chapter forinterim financing of any property, by pledge of the fundsderived from the sale of the bonds issued and sold under thischapter for the permanent financing of property.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-5 Liens
Sec. 5. (a) The lien of a pledge or mortgage under section 4 of thischapter, as determined and provided by the board of trustees and asauthorized by this chapter, shall be a first and primary lien for thepayment of the bonds and the interest on the bonds. In authorizingthe issuance of the revenue bonds for any particular property orproperties, the board of trustees may:
(1) limit the amount of bonds that may be issued as a first lienand charge against the property or properties and the net incomefrom the properties; or
(2) subsequently authorize the issuance periodically ofadditional obligations secured by the same lien:
(A) to provide funds for the completion of the property orproperties on account of which the original bonds wereissued;
(B) for any other purpose for which Vincennes Universityhas authority to issue bonds; or
(C) for purposes of both clauses (A) and (B).
(b) Additional bonds:
(1) shall be issued on the terms and conditions that the board oftrustees determines; and
(2) may be secured equally and ratably, without preference,priority, or distinction, with the original issue of bonds or maybe made junior to the original bonds.
As added by P.L.2-2007, SEC.276. Amended by P.L.3-2008,SEC.143.
IC 21-35-6-6
Authority to exchange funding or refund bonds
Sec. 6. If the board of trustees determines that it would beadvantageous to Vincennes University to exchange funding orrefunding bonds for bonds being refunded, the exchange may bemade, if the actual interest cost is not increased.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-7
Maximum amount of bonds
Sec. 7. Bonds authorized under this chapter may be issued in anamount or amounts as the board of trustees determines. However, thebonds may not exceed:
(1) the total estimated cost of any proposed building, facility,work, act, or undertaking authorized, including interest duringconstruction, incidental expenses, debt service reserves, andfinancing costs; or
(2) the amount required to effect any proposed funding orrefunding operation.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-8
Bonds; form; terms and conditions; rates of interest Sec. 8. The bonds authorized under this chapter may be issued inthe form, upon the terms and conditions, at the rates of interest, andin the denominations (which may be made convertible into differentdenominations) determined by:
(1) the adoption of a resolution;
(2) approval of a form of trust indenture between VincennesUniversity and a designated corporate trustee; or
(3) both subdivisions (1) and (2).
As added by P.L.2-2007, SEC.276.
IC 21-35-6-9
Resolution and indenture for bonds; contents
Sec. 9. The resolution or the indenture for bonds authorized underthis chapter may include:
(1) provisions for protecting and enforcing the rights andremedies of the holders of the bonds being issued;
(2) covenants setting forth the duties of Vincennes Universityand its officers in relation to the acquisition, construction,operation, maintenance, use, abandonment, insurance to becarried on its property, and the maintenance of fees and chargesto be collected on account of its property;
(3) provisions for the custody, safeguarding, application of allmoney, and the rights and remedies of the trustee and theholders of the bonds being issued;
(4) provisions for the issuance of additional bonds as providedin the resolution or indenture; and
(5) other terms, conditions, limitations, and covenants as theboard of trustees of Vincennes University considers proper.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-10
Public sale of bonds
Sec. 10. The bonds authorized under this chapter shall be sold atpublic sale or negotiated sale to the highest bidder as provided byIC 21-32-3. All bonds and the interest coupons appertaining to thebonds issued under this chapter are negotiable instruments within themeaning and for all purposes under the laws of Indiana, subject onlyto the provisions of the bonds for registration as to principal, or as toprincipal and interest. Any bonds registered as to principal andinterest may be made convertible to bearer bonds with coupons.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-11
Actions to contest validity of bonds
Sec. 11. An action to contest the validity of any bonds issuedunder this chapter may not be brought after the fifteenth dayfollowing:
(1) the first publication of notice of the sale or intent to sell thebonds under IC 21-32-3 if the bonds are sold at public sale; or
(2) the publication one (1) time in newspapers described in
IC 21-32-3-3 of notice of execution and delivery of the contractof sale for the bonds if the bonds are sold at negotiated sale.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-12
Bonds; notice of sale
Sec. 12. Vincennes University shall publish notice under section11(2) of this chapter if it sells bonds at negotiated sale not later thanthirty (30) days after the execution of the contract of sale for thebonds.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-13
Bonds; rates of interest
Sec. 13. The rate or rates of interest of the bonds may be fixed orvariable. Variable rates are determined under the procedures set forthin the resolution or indenture authorizing the issuance of the bonds.Bonds bearing a variable rate of interest may be converted to bondsbearing a fixed rate or rates of interest as set forth in the resolutionor indenture. The interest may be payable semiannually, annually, orat other intervals provided in the resolution or indenture, or theinterest may be compounded and paid at maturity or at any other timespecified in the resolution or indenture.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-14
Bonds and coupons; seal
Sec. 14. The bonds and coupons pertaining to the bonds shall beexecuted in the corporate name by the manual or facsimile signaturesof the officer or officers of Vincennes University that the board oftrustees designates. The signature of at least one (1) designatedofficer on each bond must be a manual signature. The seal or afacsimile of Vincennes University must be affixed, imprinted,engraved, or otherwise reproduced on each bond. In case any officerwhose manual or facsimile signature appears on any bond or couponceases to be a designated officer before the delivery of the bonds, thesignature is valid and sufficient for all purposes as if the officer hadremained in office until delivery. The resolution or trust agreementunder which the bonds are issued may provide for the authenticationof the bonds by the trustee designated in the resolution of trustagreement.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-15
Bonds; eligible investments
Sec. 15. Any bonds issued under this chapter are eligibleinvestments for the funds of any kind or character of every financialinstitution, insurance company, or private trust. The bonds areeligible for deposit by any financial institution, insurance company,or trustee under any law of Indiana providing for the deposit of
securities or funds.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-16
Liability of institution limited
Sec. 16. Indebtedness, a bond, or an obligation incurred or createdunder the authority of this chapter may not be or become a lien,charge, or liability against Vincennes University or against theproperty or funds of Vincennes University except to the extentauthorized by this chapter.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-17
Tax exemption
Sec. 17. All bonds issued under the authority of this chaptertogether with the interest on the bonds are exempt from taxation asprovided by IC 6-8-5.
As added by P.L.2-2007, SEC.276.