CHAPTER 22. COUNTY ROAD AND BRIDGE BONDING
IC 8-18-22
Chapter 22. County Road and Bridge Bonding
IC 8-18-22-1
Applicability of chapter
Sec. 1. This chapter applies to the issuance of bonds by countiesfor purposes authorized by IC 8-16-3, IC 8-16-3.1, IC 8-16-5, andIC 8-17 through IC 8-20. This chapter does not apply to bonds issuedunder IC 8-18-21.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-2
"Bonds" defined
Sec. 2. As used in this chapter, "bonds" has the meaning set forthin IC 36-1-2-2.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-3
Bond issues; purposes; notice and hearing; multiple projectsfunded by single issue
Sec. 3. (a) Upon request of the county executive, the county fiscalbody may borrow money and issue bonds in the name of the countyin principal amounts and maturities as the fiscal body determinesnecessary to provide sufficient funds for the purposes specified inIC 8-16 through IC 8-20, including:
(1) the payment of costs of the project for which bonds areauthorized, costs of issuance, or related costs of financing;
(2) the payment of interest on the bonds;
(3) the establishment of reserves to secure the bonds; and
(4) all other expenditures of the county incident to, necessary,and convenient to carry out this chapter.
(b) Before bonds may be issued under this chapter, the countyfiscal body shall give notice of a public hearing to disclose thepurpose for which the bond issue is proposed, the amount of theproposed issue, and other pertinent data. The county fiscal body shallpublish in accordance with IC 5-3-1 a notice of the time, place, andgeneral purpose of the hearing.
(c) The costs of more than one (1) project may be included in one(1) issue of bonds.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-4
Ordinance authorizing bonds; method of sale; price
Sec. 4. (a) The bonds must be authorized by ordinance of thefiscal body. The ordinance must provide the following with respectto the bonds:
(1) The original date of the bonds.
(2) The time or times that the bonds mature. However, a bondmay not mature more than thirty (30) years from the date it isissued. (3) The maximum interest rate or rates, including variations ofthe rates.
(4) The denominations.
(5) The form, either coupon or registered.
(6) The registration privileges.
(7) The medium of payment and the place or places of payment.
(8) The terms of redemption, including redemption beforematurity.
(b) Bonds issued under this chapter must be sold under IC 5-1-11,and at a price or prices determined by the county fiscal body in theordinance.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-5
Optional provisions of ordinance
Sec. 5. An ordinance authorizing the issuance of bonds under thischapter or trust indenture under which the bonds are issued maycontain the following provisions:
(1) Pledging revenues of the county to secure the payment ofthe bonds, subject to section 6 of this chapter and existingagreements with bondholders.
(2) Setting aside reserves or sinking funds and the regulationand disposition of these funds.
(3) Limitations on the purposes to which the proceeds from thesale of bonds may be applied.
(4) Limitations on the issuance of additional bonds, the termsupon which additional bonds may be issued and secured, andthe refunding of outstanding or other bonds.
(5) The procedure, if any, by which the terms of a contract withbondholders may be amended or abrogated and the manner inwhich the consent to the amendment or abrogation may begiven.
(6) Vesting in a trustee property, rights, powers, and trust as thecounty fiscal body determines, and limiting or abrogating theright of the bondholders to appoint a trustee or to limit therights, powers, and duties of the trustee.
(7) Defining acts or omissions that will constitute a default andthe obligations or duties of the county fiscal body to thebondholders and providing for the rights and remedies of thebondholders in the event of default. However, the rights andremedies must not be inconsistent with this chapter or otherlaws of this state.
(8) A covenant that the fiscal body will not repeal or adverselymodify the taxes or sources of revenue that are pledged tosecure the payment of the bonds.
(9) Any other matter that affects the security or protection ofthe bondholders.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-6 Pledge of revenues; covenants not to impair pledged taxes
Sec. 6. (a) Except as provided in subsection (b), the county fiscalbody may pledge revenues for the payment of principal and intereston the bonds and for other purposes under the ordinance as providedby IC 5-1-14-4, including revenues from the following sources:
(1) The motor vehicle highway account.
(2) The local road and street account.
(3) The county motor vehicle excise surtax.
(4) The county wheel tax.
(5) The county adjusted gross income tax.
(6) The county option income tax.
(7) The economic development income tax.
(8) Assessments.
(9) Any other unappropriated or unencumbered money.
(b) The county fiscal body may not pledge to levy ad valoremproperty taxes for these purposes, except for revenues from thefollowing:
(1) IC 8-16-3.
(2) IC 8-16-3.1.
(c) If the county fiscal body has pledged revenues from the countyoption income tax as set forth in subsection (a), the county incometax council (as defined in IC 6-3.5-6-1) may covenant that the councilwill not repeal or modify the tax in a manner that would adverselyaffect owners of outstanding bonds issued under this chapter. Thecounty income tax council may make the covenant by adopting anordinance using procedures described in IC 6-3.5-6.
(d) If the county fiscal body has pledged revenues from theeconomic development income tax as set forth in subsection (a), thecounty income tax council (if the council is the body that imposedthe tax) may covenant that the council will not repeal or modify thetax in a manner that would adversely affect owners of outstandingbonds issued under this chapter. The county income tax council maymake the covenant by adopting an ordinance using proceduresdescribed in IC 6-3.5-6.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-7
Trust indentures
Sec. 7. (a) The bonds may be secured by a trust indenture betweenthe county and a bank having the power of a trust company or anytrust company.
(b) The trust indenture may provide for:
(1) protecting and enforcing the rights and remedies of thebondholders as are reasonable and proper and not in violationof law;
(2) covenants setting forth the duties of the county fiscal bodyin relation to the exercise of its powers and the custody,safekeeping, and application of money related to the bondfinancing for which the trust indenture exists;
(3) the payment of the proceeds of the bonds and the revenue of
the trustee under the trust indenture; and
(4) the method of disbursement of the proceeds of the bondsand the revenue to the trustee, with safeguards and restrictionsas the county fiscal body may determine.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-8
Execution and attestation of bonds
Sec. 8. Bonds issued by the county under this chapter must beexecuted by the manual or facsimile signatures of the executive andattested to by the county auditor.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-9
Use of bond proceeds
Sec. 9. Money received from the bonds issued under this chaptershall be applied solely to the purposes for which the bonds wereissued, except as provided in IC 5-1-13 and IC 5-1-14.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-10
Bonds as negotiable instruments; registration
Sec. 10. The bonds are negotiable instruments, subject only to theprovisions of the bonds relating to registration.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-11
Tax exemption
Sec. 11. Bonds issued under this chapter are exempt from taxationin Indiana under IC 6-8-5.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-12
Exemption from securities registration laws
Sec. 12. Bonds issued by the county under this chapter are exemptfrom registration and other requirements of IC 23 and any othersecurities registration laws.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-13
State covenant not to impair bondholder rights and remedies
Sec. 13. The general assembly pledges to and covenants with theowner of any bonds issued under this chapter that the generalassembly will not limit or alter the ability of the county to fulfill theterms of the agreements or pledges made with bondholders or in anyway impair the rights or remedies of the bondholders until the bondsand related obligations are fully met and discharged.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-14 Certain statutory provisions inapplicable
Sec. 14. IC 6-1.1-20 does not apply to the issuance of bonds underthis chapter.
As added by P.L.113-1989, SEC.9.