IC 5-1.4-8
    Chapter 8. Purchase of Securities of Qualified Entities

IC 5-1.4-8-1
Purchase of securities offered by qualified entity; private sale;issuance of bonds or notes for purpose of purchase
    Sec. 1. The bank, to carry out the purposes and policies of thisarticle, may purchase securities offered by a qualified entity.Notwithstanding any law to the contrary, a qualified entity may sellits securities to the bank at a negotiated, private sale. The bank, forthis purpose, may issue its bonds and notes payable solely from therevenues or funds available to the bank for such payment and mayotherwise assist qualified entities as provided in this article.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-8-2
Securities to be purchased and held in name of bank; requireddocumentation
    Sec. 2. (a) All securities at any time purchased, held, or owned bythe bank shall at all times be purchased and held in the name of thebank.
    (b) All securities at any time purchased by the bank, upon deliveryto the bank, shall be accompanied by all documentation required bythe board. The documentation must include an approving opinion ofrecognized bond counsel, certification and guarantee of signatures,and certification as to no litigation pending as of the date of deliveryof the securities challenging the validity or issuance of the securities.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-8-3
Contracts with bank for purchase of securities; terms andconditions; fees and charges; denomination; prices; private sale
    Sec. 3. Every qualified entity is authorized and empowered tocontract with the bank with respect to the purchase of its securities,and the contracts shall contain the terms and conditions of thepurchase and may be in any form agreed to by the bank and thequalified entity, including a customary form of bond ordinance orresolution. Every qualified entity is authorized and empowered topay fees and charges required to be paid to the bank for its services.Notwithstanding any statute applicable to or constituting anylimitation on the sale of bonds or notes, any qualified entity may sellits securities to the bank, without limitation as to denomination, at aprivate sale at such price or prices as may be determined by the bankand the qualified entity.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-8-4
Agreement with bank; waiver of statutory defenses tononpayment; rights and remedies of bank
    Sec. 4. Upon the sale and delivery by a qualified entity of any

securities to the bank, the qualified entity shall be deemed to haveagreed that upon its failure to pay interest or principal on thesecurities owned or held by the bank when payable, all statutorydefenses to nonpayment are waived. Upon nonpayment and demandon the qualified entity for payment, if the securities are payable fromproperty taxes and funds are not available in the treasury of thequalified entity to make payment, an action in mandamus for the levyof a tax to pay the interest and principal on the securities shall lie,and the bank shall be constituted a holder or owner of the securitiesas being in default. The bank may thereupon avail itself of allremedies, rights, and provisions of law applicable in thecircumstances, and the failure to exercise or exert any rights orremedies within a time or period provided by law may not be raisedas a defense by the qualified entity. The bank may carry out thissection and exercise all the rights, remedies, and provisions of lawprovided or referred to in this section.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-8-5
Bond anticipation notes of qualified entities; purchase by bank;renewal or extension; maturity; terms and conditions
    Sec. 5. (a) Notwithstanding any law applicable to a qualifiedentity concerning the issuance of bonds, a qualified entity that hascomplied with all statutory requirements for the issuance of its bondsmay (in lieu of issuing bonds at that time and without complyingwith any other law applicable to the issuance of bonds, notes, orother evidences of indebtedness) issue to the bank the qualifiedentity's notes in anticipation of the issuance of bonds, and the bankmay purchase these bond anticipation notes. The bond anticipationnotes may be issued on terms set forth in a resolution authorizingtheir issuance and in any amount equal to or less than the amount ofbonds authorized to be issued.
    (b) The qualified entity may renew or extend the bondanticipation notes from time to time on terms agreed to with thebank, and the bank may purchase these renewals or extensions. Theamount of the accrued interest on the date of renewal or extensionmay be paid or added to the principal amount of the note beingrenewed or extended so long as the aggregate principal amount ofbond anticipation notes outstanding at any time does not exceed themaximum principal amount permitted by this section.
    (c) The bond anticipation notes of the qualified entity, includingany renewals or extensions, must mature in the amounts and at thetimes (not exceeding five (5) years from the date of the originalissuance of the bond anticipation notes) as are agreed to by thequalified entity and the bank. The bond anticipation notes shall be,and interest thereon may be, finally paid with the proceeds of thebonds issued by the qualified entity. In connection with the issuanceof bonds part or all of the proceeds of which shall be used to retirethe bond anticipation notes, the qualified entity is not required torepeat the procedures for the issuance of bonds because the

procedures followed before the issuance of the bond anticipationnotes are for all purposes sufficient to authorize the issuance of suchbonds.
    (d) In connection with the purchase of bond anticipation notes, thebank may by agreement with the qualified entity impose any terms,conditions, and limitations as in its opinion are proper for thesecurity of the bank and the holders of its bonds or notes. If thequalified entity fails to comply with the agreement or to issue itsbonds to retire its bond anticipation notes, the bank may enforce allrights and remedies provided in the agreement or at law, including anaction in mandamus to compel the issuance of bonds by the qualifiedentity.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.21.

IC 5-1.4-8-6
Notes of qualified entities; purchase by bank; renewal or extension;maturity; compliance with other laws; terms and conditions
    Sec. 6. (a) Notwithstanding any other law applicable to a qualifiedentity as to borrowing money, a qualified entity may issue and sell itsnotes to the bank, and the bank may purchase these notes. The notesmust be issued pursuant to a resolution of the qualified entity, andthe proceeds must be applied to costs for which the qualified entitymay issue bonds.
    (b) The qualified entity may renew or extend the notes from timeto time on terms agreed to with the bank, and the bank may purchasethese renewals or extensions. The amount of accrued interest on thedate of renewal or extension may be paid or added to the principalamount of the note being renewed or extended.
    (c) The notes of the qualified entity, including any renewals orextensions, must mature in the amounts and at the times (notexceeding two (2) years from the date of original issuance) as areagreed to by the qualified entity and the bank. However, thelegislative body of the city in the case of a qualified entity defined inIC 5-1.4-1-10(1) through (3) or the governing body of the qualifiedentity in the case of a qualified entity defined in IC 5-1.4-1-10(4)through (6), by resolution, may authorize an extension of thematurity beyond two (2) years for an additional period of no morethan three (3) years. Any such extension may be authorized in theresolution originally authorizing issuance of the notes. The notes ofthe qualified entity and accrued interest thereon shall be paid withproceeds from the issuance of its bonds, when and if the bonds areissued, or other money available to the qualified entity, which moneythe qualified entity may pledge to the payment of its notes.
    (d) Compliance with this section constitutes full authority for aqualified entity to issue its notes and sell them to the bank, and thequalified entity is not required to comply with any other lawapplicable to the authorization, approval, issuance, and sale of bonds,notes, or other evidences of indebtedness. However, if the qualifiedentity decides to issue bonds, neither the provisions of this sectionnor the actual issuance by a qualified entity of its notes shall relieve

the qualified entity of completing the requirements for the issuanceof its bonds all or part of the proceeds of which will be used to retirethe notes.
    (e) In connection with the purchase of notes, the bank may byagreement with the qualified entity impose any terms, conditions,and limitations as in its opinion are proper for the security of thebank and the holders of its bonds or notes. If the qualified entity failsto comply with the agreement or to retire its notes, the bank mayenforce all rights and remedies provided in the agreement or at law.
As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.22;P.L.46-1987, SEC.2.