CHAPTER 37. BARRETT LAW FUNDING FOR MUNICIPALITIES
IC 36-9-37
Chapter 37. Barrett Law Funding for Municipalities
IC 36-9-37-1
Application of chapter
Sec. 1. This chapter applies to all municipalities.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-2
Repealed
(Repealed by P.L.97-2004, SEC.133.)
IC 36-9-37-3
Municipalities owning and operating water utilities; water mainextensions
Sec. 3. For municipalities that own and operate a water utility,water main extensions from the water utility may be made under thischapter only within the corporate boundaries of the municipality.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-4
Prerequisites for enforcement and collection of special assessments
Sec. 4. If a municipality levies special assessments againstspecific parcels of property under the Barrett Law, the municipalfiscal officer shall collect and enforce the special assessments andpay the bonds issued in anticipation of the collections of the specialassessments if the following conditions are met:
(1) The municipal legislative body has by ordinance declaredthat the proposed improvement will be:
(A) a general benefit to the municipality and the citizens ofthe municipality; and
(B) a special benefit to the property owners in the area wherethe improvement is to be located.
(2) The ordinance has established the following:
(A) The general and special benefits described insubdivision (1).
(B) The proportions of the general and special benefitsdescribed in subdivision (1).
(3) The provisions of the Barrett Law have been followed.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-5
Assumption by municipality of responsibility for payment of bonds
Sec. 5. (a) A municipality may assume primary responsibility forthe full payment of principal and interest of all bonds issued underthis chapter (or under IC 36-9-19 before its repeal in 1993) for theimprovement.
(b) The following apply if the municipality assumes theresponsibility under subsection (a) for the full payment of principaland interest: (1) All payments of principal and interest shall be made by themunicipal fiscal officer out of appropriations for the project.
(2) The municipality shall be reimbursed by the collection ofspecial assessments under the Barrett Law.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-6
Responsibility for payment of bonds; election to pay assessment ininstallments; collection
Sec. 6. If a property owner elects to pay the property owner'sassessments in installments, the assessment shall be entered forcollection on the improvement duplicate and shall be collected in thesame manner as other taxes.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-7
Municipal fiscal officers; surety bonds; personal liability
Sec. 7. (a) A municipal fiscal officer acting under this chaptershall, in the manner prescribed by IC 5-4-1, obtain, execute, and filea bond conditioned upon the following:
(1) The faithful compliance of the municipal fiscal officer withthis chapter.
(2) The faithful accounting for all money coming into themunicipal fiscal officer's possession under the Barrett Law.
(b) A municipal fiscal officer who does any of the following ispersonally liable to a person suffering loss due to that action and maybe removed from office by proper action filed under IC 5-8-1-35:
(1) Fails to collect the interest or penalties provided for by thischapter on delinquent assessments and installments ofassessments.
(2) Fails to enforce the collection of the assessments by the saleof the property. However, this subdivision does not apply to amunicipal fiscal officer of a municipality that has adopted anordinance under section 24(a) of this chapter.
(3) Otherwise fails to comply with this chapter.
(c) The surety on the municipal fiscal officer's bond is also liableto the extent of the bond.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-8
Payment of expenses
Sec. 8. (a) Each year the municipal legislative body shall includein the municipal legislative body's annual budget and tax levy thenecessary expense of any of the following that will enable themunicipal fiscal officer to perform the duties prescribed by thischapter:
(1) Employing additional clerks.
(2) Furnishing suitable quarters.
(3) Obtaining necessary records, books, forms, and othersupplies. (b) If money for the purposes described in subsection (a) isneeded before the collection of the tax levy, the money shall be:
(1) supplied by appropriation from the general fund of themunicipality; or
(2) obtained from temporary loans in anticipation of the taxeslevied.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-8.5
Assessments; installment payments
Sec. 8.5. (a) With respect to assessments imposed after June 30,2001, the municipal works board shall establish a procedure topermit owners of real property in the unit to elect whether to payassessments in:
(1) ten (10), twenty (20), or thirty (30) annual installments; or
(2) a number of monthly installments that corresponds to ten(10), twenty (20), or thirty (30) annual installments.
(b) The municipal works board shall establish the timing of theelection under subsection (a) to permit the municipal works board tostructure the maturities of the principal of the bonds in a number ofannual series that is consistent with the installment periods electedby owners of real property under subsection (a).
(c) A person who elects to pay the person's assessment ininstallments under this section must, when directed by the municipalworks board, enter into a written agreement stating that inconsideration of that privilege the person:
(1) will not make an objection to an illegality or irregularityregarding the assessment against the person's property; and
(2) will pay the assessment as required by law with specifiedinterest.
(d) The agreement under subsection (c) shall be filed in the officeof the disbursing officer.
(e) The interest rate specified for the installments of theassessment may be equal to or greater than the interest rate on bondsissued under section 28 of this chapter.
(f) An assessment of less than one hundred dollars ($100) may notbe paid in installments.
(g) If the property owner is not an individual, the election undersubsection (a) must be made in the following manner:
(1) For a partnership, at least one (1) of the partners must signthe waiver and other instruments required for the election.
(2) For a corporation, the president or vice president must do allof the following:
(A) Sign the waiver and other instruments required for theelection.
(B) File a certified copy of the resolution of the board ofdirectors or trustees authorizing the president or vicepresident to execute those instruments on behalf of thecorporation.
(3) For a church, a lodge, a charitable institution, or other
organization, the person or persons acting on behalf of theorganization must sign the waiver and other instrumentsrequired for the election, but only after being instructed to do soby a resolution adopted at a meeting of the organization calledfor that purpose.
As added by P.L.62-2001, SEC.4.
IC 36-9-37-9
Certification of assessment roll; liens
Sec. 9. (a) When the assessment roll for an improvement orderedby the works board of a municipality is finally approved, theassessment roll shall be certified to the municipal fiscal officer. Thefiscal officer shall then collect the special assessments listed on theassessment roll.
(b) Each special assessment constitutes a lien against the propertyon which the special assessment is levied.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-10
Liability of municipalities for assessments for public improvements
Sec. 10. (a) A political subdivision has the same powers and issubject to the same duties and liability in respect to municipalassessments for the cost of public improvements affecting thepolitical subdivision's real property as private owners of realproperty.
(b) The real property of a political subdivision is subject to liensfor the assessments if the real property would have been subject ifowned by a private owner at the time the lien attached. However, apenalty or attorney's fees arising from such an assessment may not becollected from a political subdivision.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-11
Assessment installments; interest
Sec. 11. If a municipal works board orders any of the followingimprovements and assessments are imposed after June 30, 2001, topay for the improvements or to repay bonds issued under this chapterafter June 30, 2001, each owner of property assessed for thatimprovement may elect to pay the owner's assessment in installmentswith interest as described in section 8.5(a) of this chapter:
(1) Streets.
(2) Alleys.
(3) Other paved public places.
(4) Lighting.
(5) For municipalities that own and operate a water utility,water main extensions from the water utility.
(6) Sanitary sewers.
(7) Emergency warning systems.
As added by P.L.98-1993, SEC.8. Amended by P.L.62-2001, SEC.5;P.L.45-2004, SEC.1; P.L.42-2006, SEC.2.
IC 36-9-37-12
Payment of assessment in deferred installments; time for makingpayments
Sec. 12. (a) If a property owner has elected to pay the propertyowner's assessment in installments and the assessment roll for thecost of the improvement was finally approved before July 1 of a year,the first installment of the principal of the assessment, together withaccrued interest, is payable on November 10 of that year.
(b) If a property owner has elected to pay the property owner'sassessment in installments and the assessment roll for the cost of theimprovement was finally approved after June 30 of a year, the firstinstallment of the principal of the assessment, together with accruedinterest, is payable on May 10 of the following year.
(c) Subsequent installments of principal and interest are payableat:
(1) one (1) year intervals after the date of payment of the firstinstallment under subsection (a) or (b) if the property ownerelected annual payments; or
(2) one (1) month intervals after the date of payment of the firstinstallment under subsection (a) or (b) if the property ownerelected monthly payments.
(d) This subsection applies if the property owner elected annualinstallment payments. With the first installment of principal, andinterest to the first bond maturity date, an amount sufficient to coversix (6) months interest in advance on the assessment shall also becollected. With each succeeding installment of principal, except thelast installment, six (6) months interest shall be collected in advance,so that only one (1) annual payment is made by the property owneron the assessment.
(e) This subsection applies if the property owner elected monthlyinstallment payments. With each of the first six (6) installments ofprincipal, and interest to the first bond maturity date, an amountsufficient to cover one (1) additional month's interest in advance onthe assessment shall also be collected. With each succeedinginstallment of principal, except the last six (6) installments, one (1)month's interest shall be collected in advance.
As added by P.L.98-1993, SEC.8. Amended by P.L.62-2001, SEC.6.
IC 36-9-37-13
Payment of assessment in installments; proceeds; special fund
Sec. 13. Proceeds from assessments for the payment of aparticular improvement may not be used for the payment of otherimprovements. The proceeds from assessments for the payment of aparticular improvement constitute a special fund for the following:
(1) Payment of contractors for the particular improvement ifallowance of the estimates has been made by the works boardof the municipality.
(2) Security and payment of bonds issued in anticipation of thecollection of the assessments for the improvements, includingdebt service reserves to secure the payment of the bonds. (3) Payment of expenses incurred by the municipal fiscal officerin performing the municipality's duties under this chapter,IC 36-9-36, IC 36-9-38, or IC 36-9-39 (or under IC 36-9-18through IC 36-9-21, before the repeal of those provisions in1993), including any expenses, duties, and costs associated withthe issuance, sale, or payment of the bonds.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-14
Prepayment of assessment installments
Sec. 14. (a) A property owner who has secured the right to pay theproperty owner's assessments in deferred installments by the filingof a waiver may, at any time after the expiration of the first year afterthe filing, pay the entire balance of the assessment and be relieved ofthe lien on the property owner's property. A property owner may notpay the property owner's entire balance under this subsection unlessat the same time the property owner pays all interest due at the nextinterest paying period.
(b) If a person who exercises the right to prepay the person'sassessment fully pays the assessment and interest, all interest andliability as to the assessed property ceases.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-15
Prepaid assessments; proceeds; special fund; investment;redemption of outstanding bonds
Sec. 15. (a) Prepaid assessments constitute a special fund to beheld in trust by the municipality for the owner or owners of the bondsupon which the prepayments have been made.
(b) The municipal fiscal officer shall promptly invest and reinvestthe special fund in securities of the federal government so that theprincipal will be available to pay the bonds upon which prepaymentswere collected as the bonds become due. The interest collected onthese securities shall be applied to the payment of the interest lost onaccount of the prepayment of the assessments. The differencebetween the interest lost on account of the prepayment ofassessments and the amount of interest earned by the investment infederal securities shall be paid by the municipal corporation thatissued the improvement bonds.
(c) If the terms of the bonds allow early redemption for and to theextent of prepayments of the assessments in anticipation of which thebonds were issued, the municipality may use prepaid assessments toredeem outstanding bonds. However, if the bonds are issued on eachparcel of real property covering the assessment against the realproperty, the municipality shall pay the prepayment to the holder ofthe bonds and cancel the bonds.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-16
Negligent investment of special fund money; liability of
municipality
Sec. 16. If a municipality negligently fails to invest or reinvest thespecial fund in the manner prescribed by section 15 of this chapter,the municipality is liable to the special fund for interest on the fund,calculated at the rate of interest of the bonds issued on account of theassessments. A holder of bonds upon which prepayments have beenmade may compel compliance with section 15 of this chapter bymandamus or other appropriate remedy. However, the failure of abondholder to compel compliance does not relieve the municipalityor any of the municipality's officers from liability under this chapter.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-17
Special fund created under IC 36-9-37-15; warrants fordisbursements
Sec. 17. Warrants for disbursements from the special fundestablished under section 15 of this chapter shall be drawn and issuedin the manner provided by statute for disbursements from municipalfunds. The officer having custody of the special fund shall honor andpay those warrants.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-18
Notice; payments to bond owner; proceeds collectable by fiscalofficer
Sec. 18. If a bond owner receives a payment of interest orprincipal, or both, that was to have been collected by the fiscalofficer of a municipality under this chapter (or under IC 36-9-19before its repeal in 1993), the bond owner shall notify the fiscalofficer of the payment.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-19
Notice of default on installment payments
Sec. 19. (a) If a person defaults in the payment of a waiveredinstallment of principal or interest of an assessment, the municipalfiscal officer shall mail notice of the default to the person. The noticemust meet the following conditions:
(1) Be mailed not more than sixty (60) days after the default.
(2) Show the amount of the default, plus interest on that amountfor the number of months the person is in default at one-half(1/2) the rate prescribed by IC 6-1.1-37-9(b).
(3) State that the amount of the default, plus interest, is due bythe date determined as follows:
(A) If the person selected monthly installments under section8.5(a)(2) of this chapter, within sixty (60) days after the datethe notice is mailed.
(B) If the person selected annual installments under section8.5(a)(1) of this chapter, within six (6) months after the datethe notice is mailed. (b) A notice that is mailed to the person in whose name theproperty is assessed and addressed to the person within themunicipality is sufficient notice. However, the fiscal officer shallalso attempt to determine the name and address of the current ownerof the property and send a similar notice to the current owner.
(c) Failure to send the notice required by this section does notpreclude or otherwise affect the following:
(1) The sale of the property for delinquency as prescribed byIC 6-1.1-24.
(2) The foreclosure of the assessment lien by the bondholder.
(3) The preservation of the assessment lien under section 22.5of this chapter.
As added by P.L.98-1993, SEC.8. Amended by P.L.172-1994, SEC.2;P.L.45-2004, SEC.2; P.L.67-2006, SEC.16; P.L.113-2010, SEC.156.
IC 36-9-37-20
Collection of delinquent assessments; interest penalties
Sec. 20. (a) If any principal and interest, or an installment ofprincipal and interest, is not paid in full when due, the municipalfiscal officer shall enforce payment of the following:
(1) The unpaid amount of principal and interest.
(2) A penalty of interest at the rate prescribed by subsection (b).
(b) If payment is made after a default, the municipal fiscal officershall also collect a penalty of interest on the delinquent amount atone-half (1/2) the rate prescribed by IC 6-1.1-37-9(b) for each six (6)month period, or fraction of a six (6) month period, from the datewhen payment should have been made.
As added by P.L.98-1993, SEC.8. Amended by P.L.67-2006, SEC.17;P.L.113-2010, SEC.157.
IC 36-9-37-21
Interest penalty collections; surplus Barrett Law account; use offunds
Sec. 21. (a) Interest penalties collected under section 20(b) of thischapter shall be credited to an account to be known as the surplusBarrett Law account. The amount credited shall be a part of thewaivered municipal improvement funds. The money in the surplusBarrett Law account may be used as follows:
(1) To pay the interest on improvement assessments that is lostor forgiven due to the prepayment of installments ofassessments.
(2) If the amount of money in the account exceeds five (5) timesthe average annual amount of lost or forgiven interest paidunder subdivision (1) during the preceding three (3) years, thatexcess may be used for any of the following:
(A) The purchase of equipment for or pay expenses incurredby the municipal fiscal officer in performing the municipalfiscal officer's duties under the Barrett Law.
(B) Providing debt service reserves or other security forbonds issued by the municipality under this chapter,
IC 36-9-36, IC 36-9-38, or IC 36-9-39 (or under IC 36-9-18through IC 36-9-21 before the repeal of those provisions in1993).
(b) If payments of delinquent principal, delinquent interest, andinterest penalties that are collected during any six (6) month periodending on May 10 or November 10 are sufficient to pay one percent(1%) of the face value of the bonds, all payments during that six (6)month period shall be applied to the payment of bonds after the nextFebruary 1 or August 1. However, if there are no more delinquentcollections to be made, payment of the amounts collected shall bemade in full.
(c) The fact that collections during a six (6) month period areinsufficient to pay one percent (1%) of the face value of the bondsdoes not require the bonds to be marked "not paid for want of funds".
As added by P.L.98-1993, SEC.8.
IC 36-9-37-22
Default on single installment
Sec. 22. Except as provided in section 22.5 of this chapter, thefollowing apply if at least one (1) installment of an assessment is indefault:
(1) The total amount of the assessment that remains unpaid isconsidered to be in default.
(2) The assessed property is subject to sale under sections 23through 24 of this chapter to pay that amount.
(3) The assessment is subject to the:
(A) requirements and duties imposed;
(B) rights and remedies provided; and
(C) procedures available to the county treasurer;
for the collection of delinquent property taxes.
As added by P.L.98-1993, SEC.8. Amended by P.L.45-2004, SEC.3.
IC 36-9-37-22.5
Preservation of assessment in default as a lien
Sec. 22.5. (a) The municipal fiscal officer and the municipalworks board may jointly establish procedures allowing amunicipality to avoid a sale, on property that is not delinquent forproperty taxes, penalties, and other special assessments, that:
(1) is required under section 22 of this chapter; and
(2) would be conducted under IC 6-1.1-24;
by preserving an assessment that is in default as a lien against theproperty on which the assessment was imposed. A lien created underthis section applies to the total assessment principal, interest, andpenalties owed by the property owner on the date on which themunicipality determines that the assessment is in default.
(b) Except as provided in subsection (c), an assessment preservedas a lien under this section shall be paid by the person liable for theassessment when ownership of the property is transferred.
(c) The following apply to an assessment preserved as a lien underthis section: (1) Additional penalties do not accrue to the lien after the datedescribed in subsection (a).
(2) The procedures established under subsection (a) mustspecify when additional interest shall accrue to the lien after thedate described in subsection (a).
(3) The lien must be recorded.
(4) The amount owed by the property owner must be paid bythe person liable for the assessment before the final bondmaturity date.
(d) When the person liable pays an assessment preserved as a lienunder this section, the proceeds of the collection are subject to thesame requirements as the proceeds of a sale conducted under section24 of this chapter.
As added by P.L.45-2004, SEC.4.
IC 36-9-37-23
Certification of delinquent assessments
Sec. 23. (a) This section does not apply to a municipality if thelegislative body of the municipality adopts an ordinance providingthat this section does not apply to the municipality.
(b) Except as provided in subsection (d), before June 1 of eachyear the municipal fiscal officer shall certify to the county auditor alist of all delinquent waivered and nonwaivered assessments. The listmust include the following:
(1) The name or names of the owner or owners of each piece ofreal property on which the assessments for principal andinterest are in default.
(2) The description of each of those pieces of property as shownby the records of the county auditor.
(3) The total amount of principal, interest, and penalty due oneach of those pieces of property.
(c) The county auditor shall immediately enter the list in a specialduplicate and transmit the list to the county treasurer for collection.
(d) After the county treasurer receives the list, payments on thedelinquent assessments shall be made only to the county treasurerand may not be accepted by the municipal fiscal officer. However,this subsection does not apply to payments from the county undersection 24 of this chapter.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-24
Delinquent assessments; sale of property
Sec. 24. (a) This section does not apply to a municipality if thelegislative body of the municipality adopts an ordinance providingthat this section does not apply to the municipality.
(b) After the county auditor receives the list of delinquencies fromthe municipal fiscal officer under section 23 of this chapter, the realproperty on the list is subject to collection by the county treasurer inthe same way that delinquent property taxes are collected and maybe sold in the manner that property is sold for taxes. The owners and
purchasers of the property have the same rights and remedies as theowners and purchasers would have at a tax sale.
(c) The county auditor shall issue a county warrant for theprincipal, interest, and penalty to the municipal fiscal officeroriginally charged with the collection of the principal, interest, andpenalty after the following:
(1) The collection of the principal, interest, and penalty.
(2) Settlement for principal, interest, and penalty by the countytreasurer.
(d) This section does not require a county or any of the county'sofficers to include the amount of delinquent principal, interest, orpenalty in a certificate of sale to the county.
(e) If a county or municipal officer fails to perform the officer'sduties under this section or section 20(a) of this chapter, a personaggrieved by the failure may bring an action against the officer tocompel performance.
As added by P.L.98-1993, SEC.8. Amended by P.L.172-1994, SEC.3.
IC 36-9-37-25
Procedures to avoid a foreclosure action
Sec. 25. (a) To avoid a foreclosure action on a special assessment,a municipality may:
(1) defer collection of the assessment under section 22.5 of thischapter; or
(2) accept a conveyance in satisfaction of the assessment fromthe owner of the assessed property.
(b) If there are bondholders other than the municipality holdingbonds on the improvement for which the assessment was made, themunicipality may do any of the following:
(1) Join with the other bondholders in accepting a conveyanceof an undivided interest in the property.
(2) Cause a conveyance of the property to be made to a bank ortrust company in the municipality and held under a trustagreement by the bank or trust company for the use and benefitof the municipality and the other bondholders.
(c) A conveyance under this section may be accepted by themunicipality only if the head of the municipal legal departmentmakes a written recommendation to the city executive or townlegislative body that the conveyance be accepted.
As added by P.L.98-1993, SEC.8. Amended by P.L.45-2004, SEC.5.
IC 36-9-37-26
Disposition of property acquired by foreclosure or conveyance;procedure
Sec. 26. (a) If a municipality acquires an undivided interest in realproperty by foreclosure of a special assessment or by a voluntaryconveyance under section 25(a) of this chapter, the municipality maydispose of the municipality's interest in the manner prescribed by thissection.
(b) The municipality must have the municipality's interest in the
property appraised by two (2) disinterested appraisers residing in themunicipality. After appraisal, the city executive or town legislativebody may sell the property interest for not less than the full appraisedvalue of the property interest. Before selling the property interest, thecity executive or the town legislative body must first provide noticeof the proposed sale by publication in accordance with IC 5-3-1.
(c) This subsection applies if the municipality sells the propertyby acceptance of bids. A bid submitted by a trust (as defined inIC 30-4-1-1(a)) must identify all of the following:
(1) Each beneficiary of the trust.
(2) Each settlor empowered to revoke or modify the trust.
(d) A conveyance under this section must be executed by themunicipal executive and attested by the municipal clerk.
(e) The municipality shall return all money received from salesunder this section to the fund for the use and benefit of which theproperty interest is held. Any money in excess of the amountnecessary to provide full compensation to the fund for the obligationsof the person liable for the assessment shall be returned to thatperson.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-27
Disposition of property held by bank or trust company
Sec. 27. (a) If property is held by a bank or trust company undersection 25(b)(2) of this chapter, the trust agreement between themunicipality and the bank or trust company may provide for the saleor conveyance of the property by the bank or trust company. The salemay not be made for less than the full appraised value of theproperty.
(b) The municipality may, in case of a sale, join in the conveyanceof the property.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-28
Bonds; contents; issuance; denominations
Sec. 28. (a) When property owners have elected to pay specialassessments for a public improvement in installments, the bondsissued in anticipation of the collection of those assessments mustbear the date of the final acceptance of the improvement by themunicipal works board. The bonds begin to bear interest on this dateat a rate determined by the works board.
(b) Except as provided in subsection (d), the bonds may be issuedin any denomination.
(c) Except as provided in subsection (d), the municipal fiscalofficer shall choose the denomination that the municipal fiscalofficer finds appropriate for the following:
(1) The circumstances of the particular improvement project.
(2) The efficient administration of the municipal fiscal officer'soffice.
(d) The last bond in a series need not be issued in a denomination
of a multiple of one hundred dollars ($100) if the total cost of theparticular improvement project for which the series is issued is notan exact multiple of one hundred dollars ($100).
As added by P.L.98-1993, SEC.8.
IC 36-9-37-29
Bonds; series; redemption; time for payment; computation ofinterest; actions challenging validity
Sec. 29. (a) The municipal legislative body shall provide in thepreliminary resolution that the bonds issued in anticipation of thecollection of the assessments shall be issued so as to mature not lessthan ten (10) years and not more than thirty (30) years from the dateof issuance.
(b) The terms of the bonds may allow early redemption of thebonds for and to the extent of prepayment of the assessments inanticipation of which the bonds were issued.
(c) If the assessment roll for the cost of an improvement wasfinally approved before July 1 of a year, the first of the series ofbonds issued for the payment of the improvement is payable onFebruary 1 of the following year, and the interest on the bonds shallbe computed accordingly.
(d) If the assessment roll for the cost of an improvement wasfinally approved after June 30 of a year, the first of the series ofbonds issued for the payment of the improvement is payable onAugust 1 of the following year, and the interest on the bonds shall becomputed accordingly.
(e) Interest on the bonds is payable semiannually, beginning onthe date prescribed by subsection (c) or (d).
(f) The municipal works board may by ordinance or resolutionchoose to:
(1) sell the bonds by negotiated private sale to a financialinstitution; and
(2) remit the proceeds of the bonds to the contractor for thepublic improvement.
(g) An action to challenge the validity of the bonds or the sale ofthe bonds may not be brought after issuance of the bonds.
As added by P.L.98-1993, SEC.8. Amended by P.L.62-2001, SEC.7.
IC 36-9-37-30
Payment of bonds at maturity
Sec. 30. (a) Bonds issued in anticipation of the collection ofspecial assessments bear interest until the date of maturity ifsufficient money is available to pay the principal of and interest onthe bonds at that date.
(b) If sufficient money is not available to pay the principal of andinterest on the bonds, any available money that was assessed to paythe bonds shall be paid to the holders of the bonds on a pro ratabasis. The unpaid balances of the principal of and interest on thebonds bear interest until the delinquent assessments have beencollected. The rate of interest on the unpaid balances must be the
same as the rate paid by the bonds before their maturity.
(c) If the principal of and interest on the bonds are not paid in fullat their maturity, the bonds must be marked with the following:
(1) The date of payment.
(2) The amount of principal and interest paid.
(3) The balance unpaid.
(d) At every six (6) month period after the maturity of the bonds,the delinquent collections for the payment of the principal of andinterest on the bonds and interest on the unpaid balances of the bondsshall be paid on a pro rata basis. Each bond shall be marked with thefollowing:
(1) The amount of principal and interest paid.
(2) The balance unpaid.
(3) The amount of interest paid on unpaid balances.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-31
Bonds; presentation for payment; receipts
Sec. 31. (a) A person who holds bonds issued in anticipation ofthe collection of special assessments shall present the bonds forpayment and arrange for the payment of interest with sufficient timebefore the maturity date or due date of the delinquencies so that themunicipal fiscal officer has time to process the payment.
(b) The bondholder shall file with the bonds a list setting forth thefollowing for the bonds:
(1) The roll numbers.
(2) The series numbers.
(3) The face values or unpaid balances.
(4) The total presented for payment.
(c) The municipal fiscal officer shall give a receipt to abondholder presenting bonds for payment or receiving a payment ofinterest. The receipt holds the municipality responsible to thebondholders for the following:
(1) The unpaid principal of and interest on the bonds that werepresented for payment.
(2) The unpaid balances of principal of and interest on thosebonds.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-32
Schedule of amounts paid on bonds
Sec. 32. (a) If payment is made of principal or interest on bondsissued in anticipation of the collection of special assessments, themunicipal fiscal officer shall prepare a schedule showing thefollowing:
(1) All bonds on which payment of principal or interest is made,with the amount paid on each. If payment is not made in full,the fiscal officer shall specify the balance of principal andinterest unpaid on each bond.
(2) The total of all principal of and interest on bonds on which
no payment is made.
(3) Interest paid on delinquency.
(4) The total amount of principal of and interest on bonds forwhich a receipt was issued.
(5) The total amount of principal and interest paid on bonds.
(6) The total amount of interest on delinquency paid.
(7) The total balance of principal of and interest on bondsunpaid.
(b) The fiscal officer shall give a copy of the schedule to thebondholder on the surrender of the bondholder's receipt.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-33
Matured bonds; notice to holder of money available for payment
Sec. 33. Upon request of the holder of any bond on whichprincipal or interest has become due, the municipal fiscal officershall do the following:
(1) Make a record of the following:
(A) The maturity of the principal of the bond or interest onthe bond.
(B) The name and address of the holder.
(2) Notify the holder by mail immediately when money isavailable to pay the principal or interest.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-34
Bonds; tax exemption
Sec. 34. Bonds issued in anticipation of the collection of specialassessments for public improvements are exempt from taxation forall purposes.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-35
Bonds; insufficient funds for payment; issuance of certificates ofindebtedness
Sec. 35. (a) When the principal of or interest on bonds issued inanticipation of the collection of special assessments is due forpayment, the municipal fiscal officer shall issue certificates ofindebtedness to the owner of the bonds if:
(1) there is not enough money in the municipal improvementfund to pay the principal of or interest on the bonds in full; and
(2) at least one (1) of the conditions listed in subsection (b) ismet.
(b) The municipal fiscal officer shall issue certificates ofindebtedness for the amounts unpaid if the principal of or interest onthe bonds cannot be paid because of any of the following:
(1) The stoppage of interest due to the prepayment ofassessments.
(2) The failure to collect interest to the due date of the prepaidinstallments. (3) The failure to reinvest prepaid assessments in the mannerprescribed by this chapter.
(4) The diversion of money paid on one (1) assessment roll andaccount to the payment of the principal of or interest on bondsto another assessment roll and account.
(5) The loss of improvement money due to the closing andinsolvency of a bank or trust company in which the money wason deposit.
(6) Any other diversion or misapplication of money collectedfor payment of the principal of or interest on bonds for whichthe municipality is liable.
(c) The amounts of certificates of indebtedness issued under thissection shall be computed in the following manner:
(1) If the certificates are issued for a deficiency resulting fromprepayment of assessments, the amount:
(A) is limited to the amount of interest that would have beenpayable at the respective due dates of the installments ofassessments if the assessments had not been prepaid; and
(B) does not include interest between the time of the duedates and the issuance of the certificates.
(2) If the certificates are issued for a deficiency resulting froma diversion of money, the amount:
(A) is limited to the amount that would have been due if thediversion had not occurred; and
(B) does not include any interest after the date on whichpayment of the principal of or interest on the bonds is due.
(3) If the certificates are issued for a deficiency resulting fromthe loss of improvement money due to the closing andinsolvency of a bank or trust company in which the money wason deposit, the amount is limited to:
(A) the actual amount deposited, plus interest at thedepository rate up to the time of the closing of the bank ortrust company; less
(B) any amounts that are recovered from any source byreason of the deposits and loss.
(d) No part of any delinquent assessments or installments, or ofany interest on the delinquent assessments after the due date of theassessments, may be included in a certificate of indebtedness.
(e) The deficiency and diversion remedial provisions of thissection do not make a municipality liable in any manner for any ofthe following:
(1) Assessments or installments of assessments not paid by theowner of the property assessed.
(2) Interest on any unpaid assessment or installment.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-36
Bonds; certificates of indebtedness; payment
Sec. 36. (a) Upon the delivery of certificates of indebtedness inpayment of part of the principal of or interest on any bonds because
of a deficiency, the municipality shall, by proper endorsement of thebonds:
(1) reduce the face value of the bonds or the interest payable onthe bonds by a corresponding amount; or
(2) cancel the bonds if the principal of and interest on the bondsare paid in full.
(b) The certificates of indebtedness shall be authorized, issued,and paid in the same manner as certificates of indebtedness issuedunder IC 36-9-36-62 and IC 36-9-36-64. However, the certificatesdraw interest only from the date of issue and the rate of interest shallbe fixed by the resolution authorizing the issuance of the certificates.
(c) A municipality is not required to provide for or pay upon thecertificates of indebtedness issued under section 35 of this chapter(or under IC 36-9-19 before its repeal in 1993) a total amount in anyone (1) year in excess of the following:
(1) Fifty thousand dollars ($50,000) for a municipality havinga population of at least thirty-five thousand (35,000).
(2) Twenty-five thousand dollars ($25,000) for a municipalityhaving a population of at least ten thousand (10,000) but lessthan thirty-five thousand (35,000).
(3) Ten thousand dollars ($10,000) for a municipality having apopulation of less than ten thousand (10,000).
(d) A municipality shall make payments on the certificates ofindebtedness issued under section 35 of this chapter (or underIC 36-9-19 before its repeal in 1993) in the order of the tender anddemand for payment of outstanding certificates in each year. Themunicipality is not required to prorate the payments among all theoutstanding certificates. The municipal fiscal officer is the sole judgeof the order of tender and priorities of the certificates ofindebtedness.
(e) Before issuing payment on a certificate, the fiscal officer shall,by audit and other investigation of the facts, determine the right topayment and the proper amount of the payment. The fiscal officer'sdetermination is final and conclusive upon all the parties involved.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-37
Refunding bonds
Sec. 37. (a) Instead of issuing certificates of indebtedness undersection 35 of this chapter, the municipal legislative body may byordinance issue refunding bonds to meet a deficiency arising in themunicipal improvement fund if the following conditions are met:
(1) At least one (1) of the conditions listed in section 35(b) ofthis chapter is met.
(2) The amount of the deficiency is clearly established.
(3) The liability of the municipality for the deficiency isestablished. However, this subdivision does not require theliability of the municipality to be established by a judgmentagainst the municipality.
(b) Refunding bonds issued under this section shall be issued in
the manner prescribed by IC 5-1-9. The proceeds of the bonds maybe used only to discharge the liability of the municipality for thedeficiency.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-38
Overpayment of special assessments; refunds
Sec. 38. (a) If excess payments have been made and collected onspecial assessments for public improvements, the municipal fiscalofficer shall, not later than thirty (30) days after the discovery of theoverpayment, give notice of the amount of the overpayment by mailto the owner of record of the property on which the payment wasmade.
(b) When the municipal fiscal officer determines the amount ofthe overpayment and the person or persons to whom thereimbursement should be made, the fiscal officer shall issue a refundof the overpayment to the proper person or persons.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-39
Overpayments; annual statement; notice; disposition
Sec. 39. (a) During January of each year, the municipal fiscalofficer shall determine all amounts of overpayments on the specialassessment rolls for public improvements that have been unclaimedfor at least five (5) years. The fiscal officer shall prepare a detailedstatement showing the following information for each overpayment:
(1) The date.
(2) The number of the receipt.
(3) The amount overpaid.
(4) The book and page where the overpayment is recorded.
(5) The owner of record of the property on which theoverpayment was made.
(b) After preparing the statement described in subsection (a), themunicipal fiscal officer shall give notice by publication inaccordance with IC 5-3-1. The notice must do all of the following:
(1) Contain the names of the owners of record of the propertyaffected by the assessment.
(2) State the amounts of the respective overpayments.
(3) State that the overpayments will be transferred to thegeneral fund of the municipality unless the owners or theowners' legal successors or assigns appear and provide proof oftheir claims to the overpayments not later than thirty (30) daysafter the date of the first publication of the notice.
(c) At the expiration of the thirty (30) day redemption periodunder subsection (b), the municipal fiscal officer shall transfer andpay the unclaimed overpayments into the general fund of themunicipality. The amounts transferred shall be used and expended inthe same manner as other money in the general fund.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-40
Money collected as special assessments; disposition after five years
Sec. 40. (a) If:
(1) all or part of any money collected as nonwaivered specialassessments for public improvements has been in the possessionof the municipal fiscal officer for at least five (5) years; and
(2) a demand for the money has not been made by a partyentitled to the money within one (1) year preceding the end ofthe five (5) year period;
the municipal fiscal officer shall prepare a detailed list of theunclaimed money.
(b) The fiscal officer shall then give notice of the list bypublication in the manner prescribed by section 39 of this chapter.
(c) At the expiration of the thirty (30) day redemption periodprovided by section 39 of this chapter, the municipal fiscal officershall transfer and pay all of the unclaimed money into the generalfund of the municipality. Money transferred under this subsectionmay be used and expended in the same manner as other money in thegeneral fund is used and expended.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-41
Money deposited in general fund; claims
Sec. 41. (a) A person who is legally entitled to any money paidinto the municipal general fund under sections 39 and 40 of thischapter may file a claim for the money with the municipal fiscalofficer.
(b) A claim under subsection (a) must be filed as follows:
(1) In the same manner as other claims are filed against themunicipality.
(2) Not later than five (5) years after the money is paid into thegeneral fund.
(c) The fiscal officer shall pay the claim out of the general fundof the municipality if, upon investigation and proper proof of theclaim, the municipal officials charged with the duty of makingpayments from Barrett Law funds do the following:
(1) Determine that the claimant is legally entitled to the money.
(2) Approve the refund of the money.
(d) The payment of the claim by the fiscal officer undersubsection (c) shall be made without an appropriation.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-42
Transfer of unclaimed money to surplus Barrett Law account
Sec. 42. Balances of money may be transferred to the surplusBarrett Law account established under section 21 of this chapter (orunder IC 36-9-19 before its repeal in 1993) if the followingconditions are met:
(1) The balances have been on hand for at least ten (10) years.
(2) The balances were collected as waivered assessments for the
payment of bonds.
(3) At least one (1) of the following conditions is met:
(A) Bonds have not been presented for payment.
(B) Bonds have:
(i) been presented for payment;
(ii) been withdrawn; and
(iii) have not been not presented for payment again for atleast ten (10) years.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-43
Unpaid warrants or checks; cancellation
Sec. 43. (a) A warrant or check shall be canceled on December 31of a year if the warrant or check:
(1) is for:
(A) the payment of principal or interest on bonds;
(B) the payment of nonwaivered funds to contractors forpublic improvements; or
(C) damages sustained by a property owner on account ofthe operation of the public improvement assessment laws;and
(2) has been written and not cashed for a period of at least two(2) years.
(b) The proceeds of the canceled warrants or checks shall becredited to the funds on which the warrants or checks were originallydrawn. If the funds on which the checks or warrants were originallydrawn cannot be determined, the proceeds shall be credited to thefollowing:
(1) The surplus Barrett Law account if the warrants or checkswere drawn on waivered accounts.
(2) The nonwaivered account if the proceeds were drawn on thenonwaivered account.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-44
Prepaid interest; reimbursement
Sec. 44. (a) If:
(1) a municipality purchased under threat of condemnation realproperty upon which there were any unpaid Barrett Lawassessments; and
(2) because of the purchase the vendor paid, under protest, theinterest on the Barrett Law assessment for a period of ten (10)years in advance;
the vendor is entitled to a reimbursement for the interest paid inadvance, less the interest for one (1) year.
(b) The vendor must present and prove a claim for the interest tothe municipal fiscal officer. The reimbursement under this sectionshall be paid out of the surplus Barrett Law account of themunicipality.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-45
Municipalities no longer using Barrett Law; transfer of surplusmoney
Sec. 45. Notwithstanding any other statute, a municipality may byordinance transfer the surplus Barrett Law account money to thegeneral fund or general improvement fund of the municipality if thefollowing conditions are met:
(1) The municipality:
(A) has money in the surplus Barrett Law account;
(B) has established a general improvement fund underIC 36-9-17 or a similar statute; and
(C) no longer uses the Barrett Law for public improvements.
(2) There are no obligations or potential obligations arising outof the operation of the Barrett Law for which the surplus BarrettLaw account money was accumulated or may be used.
(3) Notice of intention to transfer the surplus Barrett Lawaccount money to the general fund or general improvement fundhas been published in accordance with IC 5-3-1.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-46
Barrett Law revolving improvement fund
Sec. 46. (a) A Barrett Law revolving improvement fund may beestablished under the municipal fiscal officer. This fund shall beinitially funded by transferring to the fund from the surplus BarrettLaw account any amount approved by the municipal legislative body.
(b) If the legislative body decides that payment from the BarrettLaw revolving improvement fund will increase the probability thatcompetent contractors will bid on the project, the fiscal officer maypay all or part of th