IC 5-1-13
    Chapter 13. Disposition of Surplus Bond Proceeds

IC 5-1-13-1
Definitions
    Sec. 1. The definitions in this section apply throughout thischapter:
        (1) "Bonds" has the same definition that the term is given inIC 5-1-11-1.
        (2) "Local issuing body" has the meaning set forth inIC 5-1-5-1.
        (3) "Political subdivision" has the same definition that the termis given in IC 36-1-2-13.
        (4) "Special benefit taxes" has the meaning set forth inIC 5-1-5-1.
        (5) "Tax increment revenues" has the meaning set forth inIC 5-1-5-1.
As added by Acts 1980, P.L.8, SEC.23. Amended by P.L.24-1984,SEC.1; P.L.146-2008, SEC.26.

IC 5-1-13-2
Use of surplus proceeds
    Sec. 2. (a) Notwithstanding any other law, whenever:
        (1) bonds are issued by any local issuing body in the state ofIndiana for any lawful purpose or project;
        (2) the purpose or project for which the bonds were issued hasbeen accomplished or abandoned; and
        (3) a surplus remains from the proceeds of the bonds orinvestment earnings derived from the proceeds of those bonds;
the local issuing body may use the surplus only in the mannerprescribed by subsection (b), (c), or (d).
    (b) The legislative body or other governing body of any such localissuing body may by an order, ordinance, or resolution entered ofrecord direct the disbursing officer of such local issuing body totransfer the surplus bond proceeds or investment earnings to the fundof the local issuing body pledged to the payment of principal andinterest on those bonds, and upon such order, ordinance, orresolution being made, the disbursing officer shall make suchtransfer. Thereafter such funds transferred shall be used for thepayment of the bonds to which the surplus bond proceeds orinvestment earnings are attributable or interest due for such bonds.
    (c) Surplus bond proceeds or investment earnings may be used bya local issuing body for the following purposes:
        (1) To maintain a debt service reserve fund for the bonds towhich the surplus bond proceeds or investment earnings areattributable, at the level required under the terms of the bonds,if the local issuing body adopts an ordinance, resolution, ororder authorizing that use of the proceeds or earnings.
        (2) To pay the principal or interest, or both, on any other bondsof the local issuing body, if the local issuing body adopts an

ordinance, a resolution, or an order authorizing the use of thesurplus proceeds to pay principal or interest on the bonds.
        (3) To reduce the rate or amount of ad valorem property taxes,special benefit taxes on property, or tax increment revenuesimposed by or allocated to the local issuing body.
    (d) This section applies to bonds that are not payable from advalorem property taxes, special benefit taxes on property, or taxincrement revenues derived from property taxes. Surplus bondproceeds or investment earnings may be used by a local issuing bodyfor the same purpose or type of project for which the bonds wereoriginally issued, if:
        (1) the fiscal officer of the local issuing body certifies before orat the time of that use that the surplus was not anticipated at thetime of issuance of the bonds; and
        (2) the board or legislative body responsible for issuing thebonds takes action approving the use of surplus bond proceedsor investment earnings for the same purpose or type of projectfor which the bonds were originally issued.
As added by Acts 1980, P.L.8, SEC.23. Amended by P.L.24-1984,SEC.2; P.L.37-1988, SEC.1; P.L.2-1989, SEC.3; P.L.146-2008,SEC.27.

IC 5-1-13-3
Income from investment of proceeds of sale of bonds; application
    Sec. 3. Notwithstanding any other law, income from theinvestment of proceeds of the sale of bonds issued by any politicalsubdivision that are payable from property taxes shall be applied tothe improvement or the public purpose for which the bonds wereissued or shall be used to pay interest on the bonds and in no eventmay such income be used for any other purpose except as providedin section 2 of this chapter.
As added by P.L.24-1984, SEC.3.