CHAPTER 9. MISCELLANEOUS PROVISIONS

IC 5-1.4-9
    Chapter 9. Miscellaneous Provisions

IC 5-1.4-9-1
Limitation of actions
    Sec. 1. (a) No action to contest the validity of any bonds or notesof the bank may be brought after the fifteenth day following theadoption of the resolution authorizing the sale of the bonds or notes.No action to contest the validity of any bond sale under this chaptermay be brought after the fifth day following the bond sale.
    (b) If an action challenging the bonds or notes of the bank is notbrought within the time prescribed by subsection (a), all bonds ornotes of the bank shall be conclusively presumed to be fullyauthorized and issued under the laws of Indiana, and a person or aqualified entity is estopped from questioning their authorization, sale,issuance, execution, or delivery by the bank.
    (c) Insofar as this article is inconsistent with the provisions of anyother law, general, special, or local, this article shall be controlling.
As added by P.L.42-1985, SEC.1. Amended by P.L.2-1989, SEC.13.

IC 5-1.4-9-2
Bank property exempt from levy and sale; judgment against banknot charge or lien on property; rights of holders of bonds or notes
    Sec. 2. All property of the bank is exempt from levy and sale byvirtue of an execution and no execution or other judicial process mayissue against the property. A judgment against the bank may not bea charge or lien upon its property. However, nothing in this sectionapplies to or limits the rights of the holder of bonds or notes topursue a remedy for the enforcement of a pledge or lien given by thebank on its revenues or other money.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-9-3
Pledge of revenues or money
    Sec. 3. A pledge of revenues or other money made by the bank isbinding from the time the pledge is made. Revenues or other moneypledged and thereafter received by the bank are immediately subjectto the lien of the pledge without any further act, and the lien of apledge is binding against all parties having claims of any kind in tort,contract, or otherwise against the bank, regardless of whether theparties have notice of the lien. Neither the resolution nor any otherinstrument by which a pledge is created needs to be filed or recordedexcept in the records of the bank.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-9-4
Insurance or guaranty for payment
    Sec. 4. The bank may obtain from a department or agency of theUnited States or a nongovernmental insurer available insurance orguaranty for the payment or repayment of interest or principal, or

both, or any part of interest or principal, on bonds or notes issued bythe bank or on securities purchased or held by the bank.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-9-5
Authority to receive appropriations or grants from federalgovernment; disposition
    Sec. 5. The chairman of the board of the bank is authorized toreceive from the United States or any department or agency thereofany amount of money as and when appropriated, allocated, granted,turned over, or in any way provided for the purposes of the bank orthis article. Those amounts shall, unless otherwise directed by thefederal authority, be credited to and deposited in the general fund andbe available to the bank.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-9-6
Undertaking by financial institution to keep and pay over fundsdeposited with it
    Sec. 6. (a) A financial institution may give to the bank a good andsufficient undertaking, with such sureties as are approved by thebank, to the effect that the financial institution shall faithfully keepand pay over to the order of or upon the warrant of the bank or itsauthorized agent all those funds deposited with it by the bank andagreed interest, at such times or upon such demands as may beagreed with the bank. However, in lieu of these sureties, the financialinstitution may deposit with the bank or its authorized agent or atrustee for the holders of bonds, as collateral, those securities as theboard may approve.
    (b) The deposits of the bank may be evidenced by an agreementin the form and upon the terms and conditions that may be agreedupon by the bank and the financial institution.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-9-7
Agreements with financial institutions; care and custody ofsecurities or other investments
    Sec. 7. The board may enter into agreements or contracts with afinancial institution inside or outside the state as may be necessary,desirable, or convenient in the opinion of the board for renderingservices in connection with the care, custody, or safekeeping ofsecurities or other investments held or owned by the bank, forrendering services in connection with the payment or collection ofamounts payable as to principal or interest, and for renderingservices in connection with the delivery to the bank of securities orother investments purchased by it or sold by it and to pay the cost ofthose services. The board may also, in connection with any of theservices to be rendered by a financial institution as to the custody andsafekeeping of its securities or investments, require security in theform of collateral bonds, surety agreements, or security agreements

in such form and amount as, in the opinion of the board, is necessaryor desirable.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-9-8
Financial institutions and fiduciaries; investment in bonds or notes
    Sec. 8. Notwithstanding the restrictions of any other law, allfinancial institutions, investment companies, insurance companies,insurance associations, executors, administrators, guardians, trustees,and other fiduciaries may legally invest sinking funds, money, orother funds belonging to them or within their control in bonds ornotes issued under this article.
As added by P.L.42-1985, SEC.1.

IC 5-1.4-9-9
Nature of bank property; bonds and notes; exemption fromtaxation
    Sec. 9. All property of the bank is public property devoted to anessential public and governmental function and purpose and isexempt from all taxes and special assessments of the state or apolitical subdivision of the state. All bonds or notes issued under thisarticle are issued by a body corporate and public of this state, but nota state, city, or county agency, and for an essential public andgovernmental purpose. The bonds and notes, the interest thereon, theproceeds received by a holder from the sale of the bonds or notes tothe extent of the holder's cost of acquisition, proceeds received uponredemption before maturity, proceeds received at maturity, and thereceipt of the interest and proceeds shall be exempt from taxation inthe state for all purposes except the financial institutions tax imposedunder IC 6-5.5 or a state inheritance tax imposed under IC 6-4.1.
As added by P.L.42-1985, SEC.1. Amended by P.L.21-1990, SEC.5;P.L.254-1997(ss), SEC.5.

IC 5-1.4-9-10
Officers and departments of state; rendering of services to bank;costs and expenses
    Sec. 10. All officers, departments, boards, agencies, divisions, andcommissions of the city shall render services to the bank that arewithin the area of their respective governmental functions and thatmay be requested by the board and must comply promptly with anyreasonable request by the board relating to the making of a study orreview as to desirability, need, cost, expense, or financial feasibilitywith respect to a public project, purpose, or improvement, or thefinancial or fiscal responsibility or ability of a qualified entitymaking application for the purchase by the bank of securities to beissued by that qualified entity. The cost and expense of a servicerequested by the board, at the request of the officer, department,board, agency, division, or commission rendering the service, shallbe paid by the bank.
As added by P.L.42-1985, SEC.1.
IC 5-1.4-9-11
Dissolution of bank; assets and property of bank
    Sec. 11. Upon the dissolution of the bank, all interest in the assetsand property of the bank reverts to the city.
As added by P.L.42-1985, SEC.1.