CHAPTER 4. ISSUANCE OF OBLIGATIONS
IC 5-1.4-4
Chapter 4. Issuance of Obligations
IC 5-1.4-4-1
Bonds or notes; purposes; general obligation of bank; additionalsecurity
Sec. 1. (a) The bank may issue its bonds or notes in principalamounts that it considers necessary to provide funds for any purposesunder this article, including:
(1) the purchase of securities;
(2) the payment, funding, or refunding of the principal of, orinterest or redemption premiums on, bonds or notes issued byit whether the bonds or notes or interest to be paid, funded, orrefunded have or have not become due; and
(3) the establishment or increase of reserves to secure or to paybonds or notes or interest on bonds or notes and all other costsor expenses of the bank incident to and necessary or convenientto carry out its corporate purposes and powers.
(b) Except as otherwise provided in this article or by the board,every issue of bonds or notes shall be general obligations of the bankpayable out of the revenues or funds of the bank, subject only toagreements with the holders of a particular series of bonds or notespledging a particular revenue or fund. Bonds or notes may beadditionally secured by a pledge of a grant or contributions from theUnited States, the state, a qualified entity, or a person or a pledge ofincome or revenues, funds, or money of the bank from any source.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.10.
IC 5-1.4-4-2
Nature of bonds or notes; state pledge and agreement
Sec. 2. (a) A bond or note of the bank:
(1) is not a debt, liability, loan of the credit, or pledge of thefaith and credit of any qualified entity;
(2) is payable solely from the money pledged or available for itspayment under this article, unless funded or refunded by bondsor notes of the bank; and
(3) must contain on its face a statement that the bank isobligated to pay principal and interest, and redemptionpremiums if any, and that the faith, credit, and taxing power ofany qualified entity is not pledged to the payment of the bondor note.
(b) The state pledges to and agrees with the holders of the bondsor notes issued under this article that the state will not:
(1) limit or restrict the rights vested in the bank to fulfill theterms of any agreement made with the holders of its bonds ornotes; or
(2) in any way impair the rights or remedies of the holders ofthe bonds or notes;
until the bonds or notes, together with the interest on the bonds ornotes and interest on unpaid installments of interest and all costs and
expenses in connection with an action or proceeding by or on behalfof the holders, are fully met, paid, and discharged.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.11.
IC 5-1.4-4-3
Negotiability of bonds and notes
Sec. 3. The bonds and notes of the bank are negotiableinstruments for all purposes of the Uniform Commercial Code (IC26-1), subject only to the provisions of the bonds and notes forregistration.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4-4
Authorization; issuance in series; requirements; consent of city orstate agency
Sec. 4. (a) Bonds or notes of the bank must be authorized byresolution of the board, may be issued in one (1) or more series, andmust:
(1) bear the date;
(2) mature at the time or times;
(3) bear interest at the rate or rates of interest or within amaximum rate or specify the method by which the interest rateor rates may be determined;
(4) be in the denomination;
(5) be in the form;
(6) carry the conversion or registration privileges;
(7) have the rank or priority;
(8) be executed in the manner;
(9) be payable from the sources in the medium of payment atthe place inside or outside the state; and
(10) be subject to the terms of redemption;
as the resolution of the board or the trust agreement securing thebonds or notes provides.
(b) Bonds or notes may be issued under this article withoutobtaining the consent of any agency of the state or city and withoutany other proceeding or condition other than the proceedings orconditions specified in this article.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4-5
Resolution authorizing issuance; adoption; action to set asideresolution
Sec. 5. Upon the adoption of a resolution authorizing the issuanceof bonds or notes, any action or proceeding in any court to set asidethe resolution authorizing the issuance of bonds or notes of the bankunder this article or to obtain any relief upon the ground that theresolution is invalid must be filed within fifteen (15) days followingthe adoption of the resolution. After the expiration of this fifteen (15)day period, no right of action shall be asserted nor shall the validityof the resolution or any of its provisions be open to question in any
court or agency upon any grounds whatsoever.
As added by P.L.42-1985, SEC.1. Amended by P.L.2-1989, SEC.12.
IC 5-1.4-4-6
Public or private sale; notice
Sec. 6. Bonds or notes of the bank may be sold at public or privatesale at the price the board determines. If bonds or notes of the bankare to be sold at public sale, the bank shall follow IC 5-1-11 and shallpublish notice of the sale as required by IC 5-3-1 for the sale ofbonds or notes of the city.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.12.
IC 5-1.4-4-7
Issuance of notes; payment of principal or interest
Sec. 7. The bank may from time to time issue its notes under thisarticle and pay and retire the principal of the notes or pay the interestdue thereon or fund or refund the notes from proceeds of bonds or ofother notes or from other funds or money of the bank available forthat purpose in accordance with a contract between the bank and theholders of the notes.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4-8
Trust agreement as security; provisions of trust agreement orresolution; expenses
Sec. 8. (a) Any bonds or notes issued under this chapter may besecured by the board by a trust agreement by and between the boardand a corporate trustee, which may be any trust company or bankhaving the powers of a trust company within or outside the state.
(b) The trust agreement or the resolution providing for theissuance of the bonds or notes may contain provisions for protectingand enforcing the rights and remedies of the holders of any suchbonds or notes as may be reasonable and proper and not in violationof law.
(c) The trust agreement or resolution may set forth the rights andremedies of the holders of any bonds or notes and of the trustee andmay restrict the individual right of action by the holders.
(d) In addition to subsections (a), (b), and (c), any trust agreementor resolution may contain other provisions that the board considersreasonable and proper for the security of the holders of any bonds ornotes.
(e) All expenses incurred in carrying out the provisions of thetrust agreement or resolution may be paid from revenues or assetspledged or assigned to the payment of the principal of and theinterest on bonds and notes or from any other funds available to thebank.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-4-9
Purchase of bonds or notes of bank; disposition Sec. 9. The bank may purchase bonds or notes of the bank out ofits funds or money available for the purchase of its own bonds andnotes. The bank may hold, cancel, or resell the bonds or notes subjectto, and in accordance with, agreements with holders of its bonds ornotes. Unless cancelled, bonds or notes so held shall be deemed to beheld for resale or transfer and the obligation evidenced by the bondsor notes shall not be deemed to be extinguished.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.13.
IC 5-1.4-4-10
Purchase of securities; documentation
Sec. 10. All securities purchased, held, or owned by the bank,upon delivery to the bank, must be accompanied by alldocumentation required by the board.
As added by P.L.42-1985, SEC.1.