CHAPTER 11. PROCEDURES FOR SELLING BONDS
IC 5-1-11
Chapter 11. Procedures for Selling Bonds
IC 5-1-11-1
Public sale; "bonds" defined; sale to federal government
Sec. 1. (a) Except as otherwise provided in this chapter or in thestatute authorizing their issuance, all bonds issued by or in the nameof counties, townships, cities, towns, school corporations, and specialtaxing districts, agencies or instrumentalities thereof, or by entitiesrequired to sell bonds pursuant to IC 5-1-11, whether the same begeneral obligations or issued in anticipation of the collection ofspecial taxes or be payable out of revenues, shall be sold at publicsale.
(b) The word "bonds" as used in this chapter means anyobligations issued by or in the name of any of the politicalsubdivisions or bodies referred to in subsection (a), exceptobligations payable in the year in which they are issued, obligationsissued in anticipation of the collection of delinquent taxes, andobligations issued in anticipation of the collection of frozen bankdeposits.
(c) Notwithstanding any of the provisions of subsection (a) or anyof the provisions of section 2 of this chapter, any bonds may be soldto the federal government or any agency thereof, at private sale andwithout a public offering.
As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.44-1983,SEC.3; P.L.23-1984, SEC.3.
IC 5-1-11-2
Publication of notice of sale; publication of notice of intent to sell
Sec. 2. (a) Notice of sale of bonds required to be sold at publicsale under section 1 of this chapter shall be published in accordancewith the provisions of this chapter and either IC 5-3-1 or subsection(b).
(b) If a political subdivision or body referred to in section 1 of thischapter determines to sell bonds under this subsection, notice ofintent to sell such bonds shall be published once each week for two(2) weeks in accordance with IC 5-3-1-4 and in a newspaper ofgeneral circulation published in the state capital. The notice muststate that any person interested in submitting a bid for the bonds mayfurnish in writing to the official of the political subdivision or bodyresponsible for their sale, at the address set forth in the notice, theperson's name, address, and telephone number. The person may alsofurnish a telex number. The notice of intent to sell bonds must state:
(1) the amount of the bonds to be offered;
(2) the denominations;
(3) the dates of maturity;
(4) the maximum rate or rates of interest;
(5) the place of sale; and
(6) the time within which the name, address, and telephonenumber must be furnished, which must not be less than seven
(7) days after the last publication of the notice of intent to sell.
The official of the political subdivision or body responsible for thebond sale shall notify each person so registered of the date and timebids will be received not less than twenty-four (24) hours before thedate and time of sale. The notification shall be made by telephone atthe number furnished by the person, and also by telex if the personfurnishes a telex number. Bids may not be received more than ninety(90) days after the first publication of the notice of intent to sell.
(c) This chapter does not prevent the sale of bonds under theprovisions of any statute inconsistent with this chapter so long as theprocedures required for the sale in that statute are complied with, butif notice of that sale must be published, the notice shall be publishedin accordance with IC 5-3-1.
As added by Acts 1980, P.L.8, SEC.19. Amended by Acts 1981,P.L.45, SEC.4; P.L.44-1983, SEC.4; P.L.23-1984, SEC.4.
IC 5-1-11-3
Maximum interest rate to be fixed; notice of intent to sell; biddingawards; continuation of sale; price of bonds; action to contestvalidity
Sec. 3. (a) In authorizing and advertising such bonds for sale onlya maximum interest rate shall be fixed, not exceeding the maximumrate provided for in the governing statute or bond ordinance orresolution of the issuing political subdivision or body. Bidders forsuch bonds shall be required to bid on the interest rate or rates whichthe bonds shall bear.
(b) The notice of intent to sell the bonds required under section 2of this chapter must:
(1) specify the principal amount of bonds maturing on eachmaturity date or mandatory sinking fund redemption date; or
(2) state that the principal maturity schedule or mandatorysinking fund redemption schedule will be provided at leasttwenty-four (24) hours before the scheduled time of sale uponrequest by bidders.
(c) The bonds shall be awarded to the bidder offering the lowestinterest cost to be determined by computing the total interest on allbonds from the date thereof to the date of maturity and deductingtherefrom the premium bid, if any, or adding thereto the amount ofany discount, if any. If no acceptable bid is received at the time fixedfor sale of the bonds, then the sale may be continued from day to dayfor a period not to exceed thirty (30) days without readvertising.During the continuation of the sale, no bid shall be accepted whichoffers an interest cost which is equal to or higher than the best bidreceived at the time fixed for the sale in the bond sale notice. Theacceptability of a bid is within the sole discretion of the politicalsubdivision or body referred to in section 1(a) that is issuing thebonds.
(d) Any bonds sold at public sale under this chapter may be sold,notwithstanding the provisions of any other law, at a price or pricesdetermined by the officer or body authorized by law to issue or sell
bonds, but not for less than ninety-seven percent (97%) of their parvalue.
(e) An action to contest the validity of any bonds sold under thischapter may not be brought after the fifteenth day following the firstpublication of notice of the sale of the bonds. An action to contestthe validity of any bond sale under this chapter may not be broughtafter the fifth day following the bond sale.
As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.44-1983,SEC.5; P.L.23-1984, SEC.5; P.L.35-1990, SEC.1.
IC 5-1-11-4
Prohibitions; advantage in bidding; payment before delivery;technical services
Sec. 4. (a) It shall be unlawful for any officer or body authorizedby law to issue or sell bonds to enter into a contract or agreementprior to the award of such bonds with any person, limited liabilitycompany, firm, or corporation, directly or indirectly interested inbidding on or purchasing such bonds, for the furnishing of legal,engineering, or other technical services, or for the furnishing ofprinted bond forms or any other contract or agreement which willgive to any person, firm, limited liability company, or corporation anadvantage in bidding on or purchasing such bonds or controlling thesale thereof. Any funds expended on account of any such contract oragreement shall be chargeable to the officer or officers authorizingor making such expenditure.
(b) It shall be unlawful for any officer or body authorized to issueor sell bonds to require the successful bidder therefor to pay for suchbonds prior to the time that such bonds are delivered, or prior to thetime that the successful bidder shall have had reasonable opportunityto examine such bonds and the proceedings had relative to theauthorization, issuance and sale of the same. Nothing in this chapter,however, shall prevent any county, township, city, town, schoolcorporation or special taxing district from employing or contractingfor legal, engineering or other technical services, prior to the sale ofany such bonds, provided that such services are not to be supplied byor through a person, firm, limited liability company, or corporationdirectly or indirectly interested in bidding on or purchasing suchbonds.
As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.8-1993,SEC.47.
IC 5-1-11-5
Transcript of proceedings relative to issuance of bonds to befurnished to purchaser
Sec. 5. Whenever any bonds are sold, there shall be furnished tothe purchaser thereof a transcript of the proceedings had and actionstaken relative to the authorization, issuance, and sale of such bonds,certified by the person or persons charged with recording the minutesor keeping the records of the body or bodies having to do with theauthorization and issuance of such bonds. In cases where such
transcripts relate to the issuance of general obligation bonds, orbonds payable in anticipation of the collection of special taxes, suchtranscripts shall also have attached thereto the certificate of theproper officers showing the assessed valuation of taxable property inand outstanding indebtedness of the issuing unit and other pertinentdetails bearing on the validity of said bonds. Such transcripts and thecertificates attached thereto shall import verity and shall be acceptedin evidence in any legal proceedings relating to or affecting saidbonds.
As added by Acts 1980, P.L.8, SEC.19.
IC 5-1-11-6
Other statutory authorization to issue and exchange bonds forrefunding or redeeming outstanding bonds
Sec. 6. (a) In cases where other statutes authorize the issuance andexchange of new bonds for the purpose of refunding or redeemingoutstanding bonds for the payment of which no funds are available,it shall be the duty of the officers charged with issuance andexchange of such new bonds to cause the same to be offered at publicsale as provided in this chapter.
(b) In cases where it is necessary to provide for the refunding ofbonds or interest coupons maturing at various times over a period notexceeding six (6) months, the bodies and officials charged with theduty of issuing and selling such refunding bonds may, for thepurpose of reducing the cost of issuance thereof, issue and sell one(1) issue of bonds in an amount sufficient to provide for therefunding of all of the bonds and interest coupons required to berefunded during said six (6) months period.
As added by Acts 1980, P.L.8, SEC.19.
IC 5-1-11-7
Restrictions on powers
Sec. 7. Nothing in this chapter contained shall be so construed asto enlarge the powers of counties, townships, cities, towns, schoolcorporations, and special taxing districts, or agencies orinstrumentalities thereof to issue bonds.
As added by Acts 1980, P.L.8, SEC.19.