IC 5-1.4-7
    Chapter 7. Default of the Bank

IC 5-1.4-7-1
Achievement of purpose of article without jeopardizing holders ofbonds or notes
    Sec. 1. In order to:
        (1) carry out its purpose under this article by purchasingsecurities of qualified entities and by receipt of its income fromservice charges and from payments of interest on and thematuring principal of securities purchased and held by it; and
        (2) produce revenues or income to the bank sufficient at alltimes to meet its costs and expenses of operation under thisarticle and to pay the principal of and interest on its outstandingbonds and notes when due;
the bank must at all times, and to the greatest extent possible, plan toissue its bonds and notes and purchase securities of qualified entitiesso that the purpose is achieved without in any way jeopardizing anyrights of the holders of bonds or notes of the bank or adverselyaffecting other matters under this article.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.19.

IC 5-1.4-7-2
Default; appointment of trustee to represent holders of bonds ornotes
    Sec. 2. If the bank:
        (1) defaults in the payment of principal or interest on an issueof notes or bonds after they become due, whether at maturity orupon call for redemption; or
        (2) fails or refuses to comply with this article or defaults in anagreement made with the holders of an issue of notes or bonds;
and there is no trustee under a trust agreement, then the holders oftwenty-five percent (25%) in the aggregate principal amount of theoutstanding notes or bonds of that issue, by instrument filed in theoffice of the clerk of the county and executed in the same manner asa deed to be recorded, may appoint a trustee to represent the holdersof those notes or bonds for the purposes provided in this article.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-7-3
Trustee; duties; powers; venue; notice
    Sec. 3. (a) A trustee appointed under section 2 of this chaptershall, in the trustee's name, upon written request of the holders oftwenty-five percent (25%) in principal amount of the outstandingnotes or bonds:
        (1) by civil action enforce all rights of the holders, including theright to require the bank to:
            (A) collect rates, charges, and other fees and to collectinterest and principal payments on securities held by itadequate to carry out an agreement as to, or pledge of, the

rates, charges, and other fees and of the interest andprincipal payments; and
            (B) carry out any other agreements with the holders of thenotes or bonds and to perform its duties under this article;
        (2) bring a civil action upon the notes or bonds;
        (3) by civil action require the bank to account as if it were thetrustee of an express trust for the holders of the notes or bonds;
        (4) by civil action enjoin anything that may be unlawful or inviolation of the rights of the holders of the notes or bonds; and
        (5) declare all the notes or bonds due and payable, and if alldefaults are made good, then with the consent of the holders oftwenty-five percent (25%) of the principal amount of theoutstanding notes or bonds, annul the declaration and itsconsequences.
    (b) The trustee also has all the powers necessary for the exerciseof functions specifically set out or incident to the generalrepresentation of holders in the enforcement and protection of theirrights.
    (c) The venue of any suit, action, or proceeding brought by thetrustee on behalf of the holders shall be laid in the county in whichthe bank is located.
    (d) Before declaring the principal of notes or bonds due andpayable, the trustee must first give not less than thirty (30) daysnotice in writing to the chairman of the board and the board'sattorney.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.20.