CHAPTER 2. ESTABLISHMENT AND ORGANIZATION
IC 5-1.5-2
Chapter 2. Establishment and Organization
IC 5-1.5-2-1
Indiana bond bank; establishment; nature; purpose
Sec. 1. There is established the Indiana bond bank, a separatebody corporate and politic, constituting an instrumentality of thestate for the public purposes set out in this article, but not a stateagency. The bank is separate from the state in its corporate andsovereign capacity. The purpose of the bank as described inIC 5-1.5-4 is to buy and sell securities and to make loans to qualifiedentities.
As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.4.
IC 5-1.5-2-2
Board of directors; establishment; powers; 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:
(1) the treasurer of state, who shall be the chairman ex officio;
(2) the public finance director appointed under IC 4-4-11-9,who shall be the director ex officio; and
(3) five (5) directors appointed by the governor.
(c) Each of the five (5) directors appointed by the governor:
(1) must be a resident of Indiana;
(2) must have substantial expertise in the buying, selling, andtrading of municipal securities, in municipal administration orin public facilities management;
(3) serves for a term of three (3) years and until his successor isappointed and qualified;
(4) is eligible for reappointment;
(5) is entitled to receive the same minimum salary per diem asis provided in IC 4-10-11-2.1(b) while performing the director'sduties. Such a director is also entitled to the samereimbursement for traveling expenses and other expenses,actually incurred in connection with the director's duties as isprovided in the state travel policies and procedures, establishedby the department of administration and approved by the budgetagency; and
(6) may be removed by the governor for cause.
(d) Any vacancy on the board, other than by expiration of term,shall be filled by appointment of the governor for the unexpired termonly.
As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.5;P.L.235-2005, SEC.75.
IC 5-1.5-2-2.5
Board meetings where four members or more are physicallypresent; physically absent member participating through accepted
means of communication
Sec. 2.5. (a) This section applies to a meeting of the board atwhich at least four (4) members of the board are physically presentat the place where the meeting is conducted.
(b) A member of the board may participate in a meeting of theboard by using a means of communication that permits:
(1) all other members participating in the meeting; and
(2) all members of the public physically present at the placewhere the meeting is conducted;
to simultaneously communicate with each other during the meeting.
(c) A member who participates in a meeting under subsection (b)is considered to be present at the meeting.
(d) The memoranda of the meeting prepared under IC 5-14-1.5-4must also state the name of each member who:
(1) was physically present at the place where the meeting wasconducted;
(2) participated in the meeting by using a means ofcommunication described in subsection (b); and
(3) was absent.
As added by P.L.38-1988, SEC.2.
IC 5-1.5-2-3
Duties of board
Sec. 3. The board shall:
(1) elect one (1) of its members vice chairman;
(2) appoint and fix the duties and compensation of an executivedirector, who shall serve as both secretary and treasurer; and
(3) establish and maintain the office of the bank in Indianapolis.
As added by P.L.25-1984, SEC.1.
IC 5-1.5-2-4
Quorum
Sec. 4. Four (4) directors constitute a quorum at any meeting ofthe board.
As added by P.L.25-1984, SEC.1. Amended by P.L.38-1988, SEC.3.
IC 5-1.5-2-5
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 four (4) directors. A vacancy on the boarddoes not impair the right of a quorum of directors to exercise thepowers and perform the duties of the board.
As added by P.L.25-1984, SEC.1. Amended by P.L.38-1988, SEC.4.
IC 5-1.5-2-6
Surety bonds; issuer; cost
Sec. 6. (a) Each director and the executive director must executea surety bond in an amount specified by the treasurer of state. Eachsurety bond shall be conditioned upon the faithful performance of theduties of the office of director and executive director, respectively.
In lieu of these surety bonds, the bank may execute a blanket suretybond covering each director, the executive director, and any officersor 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.25-1984, SEC.1. Amended by P.L.43-1985, SEC.5.
IC 5-1.5-2-7
Disclosure of interest in contracts; abstention with respect tocontract; validity of contract
Sec. 7. (a) Notwithstanding any other law to the contrary, adirector does not violate any law, civil or criminal, if he:
(1) has, or to his knowledge, may have or may later acquire adirect or indirect pecuniary interest in a contract with the bank;or
(2) is an officer, member, manager, director, or employee of orhas an ownership interest in any firm, limited liability company,or corporation that is or may be a party to the contract;
if he discloses in writing to the bank the nature and extent of hisinterest as soon as he has knowledge of the interest and abstains fromdiscussion, deliberation, action, and voting with respect to thecontract.
(b) Notwithstanding any provision of this article or any other law,a contract or transaction shall not be 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.25-1984, SEC.1. Amended by P.L.8-1993, SEC.51.
IC 5-1.5-2-8
Liability on 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.25-1984, SEC.1.
IC 5-1.5-2-9
Executive director; duties
Sec. 9. The executive director appointed under section 3 of thischapter shall, in addition to other duties fixed by the directors,administer, manage, and direct the employees of the bank. Theexecutive director shall approve all amounts for salaries, allowableexpenses of the bank or of any employee or consultant of the bank,and expenses incidental to the operation of the bank. The executivedirector shall attend the meetings of the board, keep a record of theproceedings of the board, and maintain all books, documents, andpapers filed with the bank, the minutes of the board, and the bank'sofficial seal. The executive director may cause copies to be made ofall minutes and other records and documents of the bank and maygive certificates under seal of the bank to the effect that those copies
are true copies, and all persons dealing with the bank may rely uponthose certificates.
As added by P.L.25-1984, SEC.1. Amended by P.L.1-2010, SEC.10.
IC 5-1.5-2-10
Code of ethics
Sec. 10. (a) The bank shall:
(1) adopt:
(A) rules under IC 4-22-2; or
(B) a policy;
establishing a code of ethics for its employees; or
(2) decide it wishes to be under the jurisdiction and rulesadopted by the state ethics commission.
(b) A code of ethics adopted by rule or policy under this sectionmust be consistent with state law and approved by the governor.
As added by P.L.5-1996, SEC.5.