CHAPTER 2. ESTABLISHMENT AND ORGANIZATION
IC 5-1.4-2
Chapter 2. Establishment and Organization
IC 5-1.4-2-1
Local public improvement bond bank; establishment; nature;purpose
Sec. 1. (a) In a city there is established a local public improvementbond bank, to be known as "The ____________ (name of city)__________ Local Public Improvement Bond Bank", for:
(1) the public purposes set out in this article; and
(2) in the case of a city described in IC 5-1.4-1-5(3), theadditional public purposes of:
(A) developing infrastructure;
(B) promoting education and tourism; and
(C) assisting economic development.
(b) The bank is a body corporate and politic separate from the cityin its corporate capacity.
(c) The purpose of the bank is to buy and sell securities ofqualified entities.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.3;P.L.11-1987, SEC.9; P.L.255-1997(ss), SEC.3.
IC 5-1.4-2-1.5
Public purpose
Sec. 1.5. The general assembly finds that the establishment of alocal public improvement bond bank in a city described inIC 5-1.4-1-5(3):
(1) is necessary as a result of:
(A) unique sources of revenues available to the city inrelation to its budget;
(B) extraordinary needs for infrastructure improvements inthe city and in the county in which the city is located;
(C) unprecedented opportunities for economic development,including tourism development; and
(D) unique demands for education and workforcedevelopment, including facilities for providing educationand training;
(2) will afford the city the necessary flexibility to address theextraordinary demands and opportunities in a manner that willbest serve the interests of the city and the state; and
(3) constitutes an important public purpose and will protect andimprove the health, safety, and welfare of the people of the cityand the state.
As added by P.L.255-1997(ss), SEC.4.
IC 5-1.4-2-2
Board of directors; establishment; membership; appointment;vacancy
Sec. 2. (a) There is established a board of directors to govern thebank. The powers of the bank are vested in this board. (b) The board is composed of five (5) directors appointed by themayor of the city.
(c) Each of the five (5) directors appointed by the mayor:
(1) must be a resident of the county;
(2) serves for a term of three (3) years and until a successor isappointed and qualified;
(3) is eligible for reappointment;
(4) shall serve without compensation, but is entitled toreimbursement for traveling expenses and other expenses,actually incurred in connection with the director's duties;
(5) may be removed for cause by the mayor; and
(6) may not be an officer or employee of:
(A) the city;
(B) the county; or
(C) any qualified entity.
(d) Any vacancy on the board, other than by expiration of term,shall be filled by appointment of the mayor for the unexpired termonly.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-3
Duties of board
Sec. 3. The board shall do the following:
(1) Elect from its membership a chairman and a vice chairman.
(2) Appoint and fix the duties and compensation of an executivedirector, who shall serve as both secretary and treasurer. Theexecutive director may be the fiscal officer of the city, in whichcase the executive director will receive no compensation forservices performed as the executive director.
(3) Establish and maintain the office of the bank in the city.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-4
Quorum
Sec. 4. Three (3) directors constitute a quorum at any meeting ofthe board.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-5
Action by affirmative vote of three directors; effect of vacancy
Sec. 5. Action may be taken by the board at a meeting by theaffirmative vote of at least three (3) directors. A vacancy on theboard does not impair the right of a quorum of directors to exercisethe powers and perform the duties of the board.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-6
Surety bonds; issuer; cost
Sec. 6. (a) Each director and the executive director must executea surety bond in an amount specified by the legislative body of the
city. Each surety bond shall be conditioned upon the faithfulperformance of the duties of the office of director and executivedirector, respectively. In lieu of these surety bonds, the bank mayexecute a blanket surety bond covering each director, the executivedirector, and any officers or employees of the bank.
(b) The surety bonds required by this section must be issued by asurety company authorized to transact business in Indiana.
(c) The cost of the surety bonds required by this section shall bepaid by the bank.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.4.
IC 5-1.4-2-7
Disclosure of interest in contract; abstention; validity of contract
Sec. 7. (a) Notwithstanding any other law to the contrary, adirector does not violate any law, civil or criminal, if the director:
(1) has, or to the director's knowledge may have or may lateracquire, a direct or indirect pecuniary interest in a contract withthe bank; or
(2) is an officer, member, manager, director, or employee of, orhas an ownership interest in, any firm, limited liabilitycompany, or corporation that is or may be a party to thecontract;
if the director discloses in writing to the bank the nature and extentof the interest as soon as the director has knowledge of the interestand abstains from discussion, deliberation, action, and voting withrespect to the contract.
(b) Notwithstanding any provision of this article or any other law,a contract or transaction is not void or voidable because of theexistence of an interest described in subsection (a), if the provisionsof subsection (a) have been satisfied.
As added by P.L.42-1985, SEC.1. Amended by P.L.8-1993, SEC.50.
IC 5-1.4-2-8
Liability of director or issuer of bonds or notes
Sec. 8. Neither a director nor a person executing bonds or notesissued under this article is liable personally on the bonds or notes.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-9
Executive director; duties
Sec. 9. (a) The executive director appointed under section 3 ofthis chapter shall, in addition to other duties fixed by the directors:
(1) administer, manage, and direct the employees of the bank;
(2) approve all amounts for salaries, allowable expenses of thebank or of any employee or consultant of the bank, andexpenses incidental to the operation of the bank; and
(3) attend the meetings of the board, keep a record of theproceedings of the board, and maintain all books, documents,and papers filed with the bank, the minutes of the board, and thebank's official seal. (b) The executive director may:
(1) cause copies to be made of all minutes and other records anddocuments of the bank; and
(2) give certificates under seal of the bank to the effect thatthose copies are true copies, and all persons dealing with thebank may rely upon those certificates.
As added by P.L.42-1985, SEC.1.