CHAPTER 14. BONDS
IC 8-24-14
Chapter 14. Bonds
IC 8-24-14-1
Service board bonding; requirements; repayment; terms
Sec. 1. (a) A service board may contract with the Indiana financeauthority (IC 4-4-11) to borrow money, make guaranties, issuebonds, and otherwise incur indebtedness for any of the servicedivision's purposes, and issue debentures, notes, or other evidencesof indebtedness, whether secured or unsecured, to any person.
(b) The indebtedness is payable solely from:
(1) the lease rentals from the lease of the projects for which thebonds were issued, insurance proceeds, and any other fundspledged or available; and
(2) to the extent designated in the agreements for the bonds,revenue received by the service board and amounts deposited ina service division's fund.
(c) The indebtedness must be authorized by a resolution of theservice board.
(d) The terms and form of the indebtedness must either be set outin the resolution or in a form of trust indenture approved by theresolution.
(e) The indebtedness must be paid within twenty-five (25) years.
(f) All money received from any indebtedness under this articleshall be applied solely to the payment of the cost of acquiring,constructing, improving, reconstructing, or renovating one (1) ormore projects, or the cost of refunding or refinancing outstandingbonds, for which the indebtedness was incurred. The cost mayinclude:
(1) planning and development of equipment or a facility and allbuildings, facilities, structures, equipment, and improvementsrelated to the facility;
(2) acquisition of a site and clearing and preparing the site forconstruction;
(3) equipment, facilities, structures, and improvements that arenecessary or desirable to make the project suitable for use andoperations;
(4) architectural, engineering, consultant, and attorney's fees;
(5) incidental expenses in connection with the issuance and saleof bonds;
(6) reserves for principal and interest;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) bond insurance, debt service reserve insurance, letters ofcredit, or other credit enhancement; and
(11) funding or refunding bonds or other evidences ofindebtedness issued under this article, IC 8-5-15, IC 8-9.5-7,IC 8-22-3, IC 36-7.5, IC 36-7.6, IC 36-9-3, IC 36-9-4, or priorlaw to finance a public transportation system, including
payment of the principal of, redemption premiums (if any) for,and interest on the bonds being refunded or refinanced.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-2
Applicable bonding authority
Sec. 2. This article contains full and complete authority for theissuance of bonds. No law, procedure, proceedings, publications,notices, consents, approvals, orders, or acts by a service divisionboard or any other officer, department, agency, or instrumentality ofthe state or of any political subdivision is required to issue anybonds, except as prescribed in this article.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-3
Trust indenture between Indiana finance authority and servicedivision; terms
Sec. 3. (a) The Indiana finance authority may secure bonds issuedunder this article by a trust indenture between the service divisionand a corporate trustee, which may be any trust company or nationalor state bank in Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign revenue received by the service division,amounts deposited in a service division fund, and lease rentals,receipts, and income from leased projects, but may notmortgage land or projects;
(2) contain reasonable and proper provisions for protecting andenforcing the rights and remedies of the bondholders, includingcovenants setting forth the duties of the service division and theservice board;
(3) set forth the rights and remedies of bondholders andtrustees; and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the service division underthis section is valid and binding in accordance with IC 5-1-14-4 fromthe time that the pledge or assignment is made, against all personswhether they have notice of the lien. Any trust indenture by which apledge is created or an assignment made need not be filed orrecorded. The lien is perfected against third parties in accordancewith IC 5-1-14-4.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-4
Investment in bonds
Sec. 4. Bonds issued under this article are legal investments forprivate trust funds and the funds of banks, trust companies, insurancecompanies, building and loan associations, credit unions, savingsbanks, private banks, loan and trust and safe deposit companies, ruralloan and savings associations, guaranty loan and savingsassociations, mortgage guaranty companies, small loan companies,
industrial loan and investment companies, and other financialinstitutions organized under Indiana law.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-5
Actions to contest validity of bonds
Sec. 5. An action to contest the validity of bonds to be issuedunder this article may not be brought after the time limitations setforth in IC 5-1-14-13.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-6
Covenants
Sec. 6. The general assembly covenants that it will not:
(1) repeal or amend this article in a manner that wouldadversely affect owners of outstanding bonds, or the paymentof lease rentals, secured by the amounts pledged under thisarticle; or
(2) in any way impair the rights of owners of bonds of a district,or the owners of bonds secured by lease rentals or by a pledgeof revenues under this article.
As added by P.L.182-2009(ss), SEC.282.