IC 5-1-7
    Chapter 7. Redemption Bonds of Counties and Townships

IC 5-1-7-1
Contract with bond owner to pay matured bond by issuingredemption bond
    Sec. 1. Whenever the bond fund of any county or of any townshipin this state is, for any reason, insufficient to pay the bonds of suchcounty or township or any of them, at the date of the maturitythereof, together with the interest which shall have accrued thereon,the board of commissioners of such county is hereby authorized torepresent and as representing the taxing district liable for thepayment of any such bond to enter into a contract with the owner ofany such bond to pay such matured bond by the issuance of aredemption bond, in the same amount and at any rate of interest andto pay such redemption bond and the accrued interest thereon, in notmore than ten (10) annual installments, in the manner and subject tothe conditions prescribed in this chapter.
As added by Acts 1980, P.L.8, SEC.12.

IC 5-1-7-2
Partial payments of principal with interest accrued; form ofcontract; cancellation of matured bond
    Sec. 2. The contract entered into by the board of commissionersof any county and any such bondholder shall be signed by the partiesto such contract, shall be attested on behalf of the county by thecounty auditor, and shall stipulate and agree that the board ofcommissioners of the county will pay all interest on such maturedbond to the date of the maturity thereof, and that a new bond(referred to in this chapter as a redemption bond) in the same amountas the matured bond, will be issued to pay and retire such maturedbond, and that such redemption bond will be and continue to be avalid and binding obligation of the county and that during the periodfixed in the contract not exceeding ten (10) years the board ofcommissioners will pay annually to the owner of such redemptionbond, one-tenth (1/10) of the principal amount of such redemptionbond and, in addition thereto, will pay semiannually all interestwhich shall have accrued thereon to the date when such payment isto be made. The date on which such partial payments of the principalof such bond will be made shall be fixed and prescribed in suchcontract and may be on June 1 or December 1 of the year nextsucceeding the year in which such contract is executed and signedand June 1 or December 1 of each and every year thereafter untilpaid. The interest accrued on such bond shall be paid semiannuallyon June 1 and December 1, beginning on the same date as the firstpartial payment on such bond. The board of commissioners shallfurther agree to levy a tax on the taxable property of such county inan amount sufficient to make the payments on such redemptionbonds as they fall due, together with all interest which shall haveaccrued thereon. Any bondholder who elects to avail himself or

herself of the provisions of this chapter shall agree that inconsideration of the privilege hereby afforded the bondholder willnot maintain or attempt to maintain a suit for the collection or theenforcement of the lien of any such bond, other than in accordancewith the remedies afforded by the provisions of this chapter. Theform of the contract herein contemplated shall be prescribed by thestate board of accounts with the approval of the attorney general. Atthe time when the contract is executed and the redemption bond isissued, the matured bond shall be surrendered to the county auditorand shall be canceled by writing across the face of the matured bondthe words "Canceled by issuing to ______ a redemption bond in thesame principal sum as this bond, due and payable on the ______ dayof ______, 20____.".
As added by Acts 1980, P.L.8, SEC.12. Amended by P.L.2-2005,SEC.11.

IC 5-1-7-3
Execution of contract; procedure
    Sec. 3. All contracts so entered into shall be executed in duplicateand one (1) copy thereof shall be kept by the county auditor and one(1) copy shall be delivered to the owner of such bond. At the time ofthe execution of such contract, the county auditor shall register allsuch matured bonds as may be presented for redemption, and all suchredemption bonds which are issued to redeem such matured bondsand which are merged in any contract entered into in accordance withthe provisions of this chapter, in a record kept in the county auditor'soffice for that purpose, showing the name and address of the ownerof the matured and redemption bond, the amount thereof, the rate ofinterest, the number of the bond or other identification mark and theamount of the annual payment, including both the partial payment onthe principal sum of the redemption bond and the interest which willfall due and be payable on each of the ten (10) dates, respectively,when the county has obligated itself to make such payment, andappropriate entries shall be made in such record as the payments onsuch redemption bond, principal and interest, are made.
As added by Acts 1980, P.L.8, SEC.12.

IC 5-1-7-4
Calculation of tax levy necessary to make payments on principaland interest on redemption bonds; submission to county council
    Sec. 4. At the time when the annual estimates are made for thecounty budget, the county auditor shall calculate the amount of thetax levy which will be necessary to make the payments on theprincipal and interest on such redemption bonds during the ensuingfiscal year of the county and shall submit his calculation, togetherwith a detailed statement of all bonds outstanding and payable underthe provisions of this chapter, to the county council at its annualmeeting, and the county council shall levy the amount found to benecessary to make such payments as they fall due during the ensuingfiscal year.As added by Acts 1980, P.L.8, SEC.12.

IC 5-1-7-5
"Bond owner" or "bondholder" defined
    Sec. 5. The term "bond owner" or "bondholder" shall be construedto mean the person who owns the bond at the time of the executionof such contract and the provisions of such contract shall inure to andbe binding upon any subsequent grantee, executor, administrator,heir, devisee, trustee, receiver or assign of such matured and/orredemption bond owner or bondholder.
As added by Acts 1980, P.L.8, SEC.12.

IC 5-1-7-6
Validity or priority of lien of bond against taxable property
    Sec. 6. Neither the provisions of this chapter nor any contractexecuted under this chapter shall release, waive, or destroy thevalidity or priority of any lien of any such bond against the taxableproperty of such county or any taxing district coterminous with suchcounty, or any taxing district coterminous with any civil township ofsuch county.
As added by Acts 1980, P.L.8, SEC.12.

IC 5-1-7-7
"Bond" and "bond fund" defined
    Sec. 7. The term "bond" as used in this chapter shall mean andinclude any bond issued by and which is an obligation of the countyin its civil capacity; and any so-called county unit road bond whichhas been issued by the board of commissioners and is an obligationof the taxing district which is coterminous with the county; and anyso-called gravel road bond which has been issued by the board ofcommissioners and is an obligation of the taxing district which iscoterminous with any civil township. The term "bond fund" meansany fund from which any of such bonds so issued or the interestthereon is paid.
As added by Acts 1980, P.L.8, SEC.12.