IC 5-1.4-2
Chapter 2. Establishment and Organization
IC 5-1.4-2-1 Local public improvement bond bank; establishment; nature;
purpose
Sec. 1. (a) In a city there is established a local public improvement
bond bank, to be known as "The ____________ (name of city)
__________ Local Public Improvement Bond Bank", for:
(1) the public purposes set out in this article; and
(2) in the case of a city described in IC 5-1.4-1-5(3), the
additional public purposes of:
(A) developing infrastructure;
(B) promoting education and tourism; and
(C) assisting economic development.
(b) The bank is a body corporate and politic separate from the city
in its corporate capacity.
(c) The purpose of the bank is to buy and sell securities of
qualified entities. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.3;
P.L.11-1987, SEC.9; P.L.255-1997(ss), SEC.3.
IC 5-1.4-2-1.5 Public purpose
Sec. 1.5. The general assembly finds that the establishment of a
local public improvement bond bank in a city described in
IC 5-1.4-1-5(3):
(1) is necessary as a result of:
(A) unique sources of revenues available to the city in
relation to its budget;
(B) extraordinary needs for infrastructure improvements in
the city and in the county in which the city is located;
(C) unprecedented opportunities for economic development,
including tourism development; and
(D) unique demands for education and workforce
development, including facilities for providing education
and training;
(2) will afford the city the necessary flexibility to address the
extraordinary demands and opportunities in a manner that will
best serve the interests of the city and the state; and
(3) constitutes an important public purpose and will protect and
improve the health, safety, and welfare of the people of the city
and the state. As added by P.L.255-1997(ss), SEC.4.
IC 5-1.4-2-2 Board of directors; establishment; membership; appointment;
vacancy
Sec. 2. (a) There is established a board of directors to govern the
bank. The powers of the bank are vested in this board.
(b) The board is composed of five (5) directors appointed by the
mayor of the city.
(c) Each of the five (5) directors appointed by the mayor:
(1) must be a resident of the county;
(2) serves for a term of three (3) years and until a successor is
appointed and qualified;
(3) is eligible for reappointment;
(4) shall serve without compensation, but is entitled to
reimbursement for traveling expenses and other expenses,
actually incurred in connection with the director's duties;
(5) may be removed for cause by the mayor; and
(6) may not be an officer or employee of:
(A) the city;
(B) the county; or
(C) any qualified entity.
(d) Any vacancy on the board, other than by expiration of term,
shall be filled by appointment of the mayor for the unexpired term
only. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-3 Duties of board
Sec. 3. The board shall do the following:
(1) Elect from its membership a chairman and a vice chairman.
(2) Appoint and fix the duties and compensation of an executive
director, who shall serve as both secretary and treasurer. The
executive director may be the fiscal officer of the city, in which
case the executive director will receive no compensation for
services performed as the executive director.
(3) Establish and maintain the office of the bank in the city. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-4 Quorum
Sec. 4. Three (3) directors constitute a quorum at any meeting of
the board. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-5 Action by affirmative vote of three directors; effect of vacancy
Sec. 5. Action may be taken by the board at a meeting by the
affirmative vote of at least three (3) directors. A vacancy on the
board does not impair the right of a quorum of directors to exercise
the powers and perform the duties of the board. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-6 Surety bonds; issuer; cost
Sec. 6. (a) Each director and the executive director must execute
a surety bond in an amount specified by the legislative body of the
city. Each surety bond shall be conditioned upon the faithful
performance of the duties of the office of director and executive
director, respectively. In lieu of these surety bonds, the bank may
execute a blanket surety bond covering each director, the executive
director, and any officers or employees of the bank.
(b) The surety bonds required by this section must be issued by a
surety company authorized to transact business in Indiana.
(c) The cost of the surety bonds required by this section shall be
paid by the bank. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.4.
IC 5-1.4-2-7 Disclosure of interest in contract; abstention; validity of contract
Sec. 7. (a) Notwithstanding any other law to the contrary, a
director does not violate any law, civil or criminal, if the director:
(1) has, or to the director's knowledge may have or may later
acquire, a direct or indirect pecuniary interest in a contract with
the bank; or
(2) is an officer, member, manager, director, or employee of, or
has an ownership interest in, any firm, limited liability
company, or corporation that is or may be a party to the
contract;
if the director discloses in writing to the bank the nature and extent
of the interest as soon as the director has knowledge of the interest
and abstains from discussion, deliberation, action, and voting with
respect to the contract.
(b) Notwithstanding any provision of this article or any other law,
a contract or transaction is not void or voidable because of the
existence of an interest described in subsection (a), if the provisions
of subsection (a) have been satisfied. As added by P.L.42-1985, SEC.1. Amended by P.L.8-1993, SEC.50.
IC 5-1.4-2-8 Liability of director or issuer of bonds or notes
Sec. 8. Neither a director nor a person executing bonds or notes
issued under this article is liable personally on the bonds or notes. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-9 Executive director; duties
Sec. 9. (a) The executive director appointed under section 3 of
this chapter shall, in addition to other duties fixed by the directors:
(1) administer, manage, and direct the employees of the bank;
(2) approve all amounts for salaries, allowable expenses of the
bank or of any employee or consultant of the bank, and
expenses incidental to the operation of the bank; and
(3) attend the meetings of the board, keep a record of the
proceedings of the board, and maintain all books, documents,
and papers filed with the bank, the minutes of the board, and the
bank's official seal.
(b) The executive director may:
(1) cause copies to be made of all minutes and other records and
documents of the bank; and
(2) give certificates under seal of the bank to the effect that
those copies are true copies, and all persons dealing with the
bank may rely upon those certificates. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2
Chapter 2. Establishment and Organization
IC 5-1.4-2-1 Local public improvement bond bank; establishment; nature;
purpose
Sec. 1. (a) In a city there is established a local public improvement
bond bank, to be known as "The ____________ (name of city)
__________ Local Public Improvement Bond Bank", for:
(1) the public purposes set out in this article; and
(2) in the case of a city described in IC 5-1.4-1-5(3), the
additional public purposes of:
(A) developing infrastructure;
(B) promoting education and tourism; and
(C) assisting economic development.
(b) The bank is a body corporate and politic separate from the city
in its corporate capacity.
(c) The purpose of the bank is to buy and sell securities of
qualified entities. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.3;
P.L.11-1987, SEC.9; P.L.255-1997(ss), SEC.3.
IC 5-1.4-2-1.5 Public purpose
Sec. 1.5. The general assembly finds that the establishment of a
local public improvement bond bank in a city described in
IC 5-1.4-1-5(3):
(1) is necessary as a result of:
(A) unique sources of revenues available to the city in
relation to its budget;
(B) extraordinary needs for infrastructure improvements in
the city and in the county in which the city is located;
(C) unprecedented opportunities for economic development,
including tourism development; and
(D) unique demands for education and workforce
development, including facilities for providing education
and training;
(2) will afford the city the necessary flexibility to address the
extraordinary demands and opportunities in a manner that will
best serve the interests of the city and the state; and
(3) constitutes an important public purpose and will protect and
improve the health, safety, and welfare of the people of the city
and the state. As added by P.L.255-1997(ss), SEC.4.
IC 5-1.4-2-2 Board of directors; establishment; membership; appointment;
vacancy
Sec. 2. (a) There is established a board of directors to govern the
bank. The powers of the bank are vested in this board.
(b) The board is composed of five (5) directors appointed by the
mayor of the city.
(c) Each of the five (5) directors appointed by the mayor:
(1) must be a resident of the county;
(2) serves for a term of three (3) years and until a successor is
appointed and qualified;
(3) is eligible for reappointment;
(4) shall serve without compensation, but is entitled to
reimbursement for traveling expenses and other expenses,
actually incurred in connection with the director's duties;
(5) may be removed for cause by the mayor; and
(6) may not be an officer or employee of:
(A) the city;
(B) the county; or
(C) any qualified entity.
(d) Any vacancy on the board, other than by expiration of term,
shall be filled by appointment of the mayor for the unexpired term
only. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-3 Duties of board
Sec. 3. The board shall do the following:
(1) Elect from its membership a chairman and a vice chairman.
(2) Appoint and fix the duties and compensation of an executive
director, who shall serve as both secretary and treasurer. The
executive director may be the fiscal officer of the city, in which
case the executive director will receive no compensation for
services performed as the executive director.
(3) Establish and maintain the office of the bank in the city. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-4 Quorum
Sec. 4. Three (3) directors constitute a quorum at any meeting of
the board. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-5 Action by affirmative vote of three directors; effect of vacancy
Sec. 5. Action may be taken by the board at a meeting by the
affirmative vote of at least three (3) directors. A vacancy on the
board does not impair the right of a quorum of directors to exercise
the powers and perform the duties of the board. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-6 Surety bonds; issuer; cost
Sec. 6. (a) Each director and the executive director must execute
a surety bond in an amount specified by the legislative body of the
city. Each surety bond shall be conditioned upon the faithful
performance of the duties of the office of director and executive
director, respectively. In lieu of these surety bonds, the bank may
execute a blanket surety bond covering each director, the executive
director, and any officers or employees of the bank.
(b) The surety bonds required by this section must be issued by a
surety company authorized to transact business in Indiana.
(c) The cost of the surety bonds required by this section shall be
paid by the bank. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.4.
IC 5-1.4-2-7 Disclosure of interest in contract; abstention; validity of contract
Sec. 7. (a) Notwithstanding any other law to the contrary, a
director does not violate any law, civil or criminal, if the director:
(1) has, or to the director's knowledge may have or may later
acquire, a direct or indirect pecuniary interest in a contract with
the bank; or
(2) is an officer, member, manager, director, or employee of, or
has an ownership interest in, any firm, limited liability
company, or corporation that is or may be a party to the
contract;
if the director discloses in writing to the bank the nature and extent
of the interest as soon as the director has knowledge of the interest
and abstains from discussion, deliberation, action, and voting with
respect to the contract.
(b) Notwithstanding any provision of this article or any other law,
a contract or transaction is not void or voidable because of the
existence of an interest described in subsection (a), if the provisions
of subsection (a) have been satisfied. As added by P.L.42-1985, SEC.1. Amended by P.L.8-1993, SEC.50.
IC 5-1.4-2-8 Liability of director or issuer of bonds or notes
Sec. 8. Neither a director nor a person executing bonds or notes
issued under this article is liable personally on the bonds or notes. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-9 Executive director; duties
Sec. 9. (a) The executive director appointed under section 3 of
this chapter shall, in addition to other duties fixed by the directors:
(1) administer, manage, and direct the employees of the bank;
(2) approve all amounts for salaries, allowable expenses of the
bank or of any employee or consultant of the bank, and
expenses incidental to the operation of the bank; and
(3) attend the meetings of the board, keep a record of the
proceedings of the board, and maintain all books, documents,
and papers filed with the bank, the minutes of the board, and the
bank's official seal.
(b) The executive director may:
(1) cause copies to be made of all minutes and other records and
documents of the bank; and
(2) give certificates under seal of the bank to the effect that
those copies are true copies, and all persons dealing with the
bank may rely upon those certificates. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2
Chapter 2. Establishment and Organization
IC 5-1.4-2-1 Local public improvement bond bank; establishment; nature;
purpose
Sec. 1. (a) In a city there is established a local public improvement
bond bank, to be known as "The ____________ (name of city)
__________ Local Public Improvement Bond Bank", for:
(1) the public purposes set out in this article; and
(2) in the case of a city described in IC 5-1.4-1-5(3), the
additional public purposes of:
(A) developing infrastructure;
(B) promoting education and tourism; and
(C) assisting economic development.
(b) The bank is a body corporate and politic separate from the city
in its corporate capacity.
(c) The purpose of the bank is to buy and sell securities of
qualified entities. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.3;
P.L.11-1987, SEC.9; P.L.255-1997(ss), SEC.3.
IC 5-1.4-2-1.5 Public purpose
Sec. 1.5. The general assembly finds that the establishment of a
local public improvement bond bank in a city described in
IC 5-1.4-1-5(3):
(1) is necessary as a result of:
(A) unique sources of revenues available to the city in
relation to its budget;
(B) extraordinary needs for infrastructure improvements in
the city and in the county in which the city is located;
(C) unprecedented opportunities for economic development,
including tourism development; and
(D) unique demands for education and workforce
development, including facilities for providing education
and training;
(2) will afford the city the necessary flexibility to address the
extraordinary demands and opportunities in a manner that will
best serve the interests of the city and the state; and
(3) constitutes an important public purpose and will protect and
improve the health, safety, and welfare of the people of the city
and the state. As added by P.L.255-1997(ss), SEC.4.
IC 5-1.4-2-2 Board of directors; establishment; membership; appointment;
vacancy
Sec. 2. (a) There is established a board of directors to govern the
bank. The powers of the bank are vested in this board.
(b) The board is composed of five (5) directors appointed by the
mayor of the city.
(c) Each of the five (5) directors appointed by the mayor:
(1) must be a resident of the county;
(2) serves for a term of three (3) years and until a successor is
appointed and qualified;
(3) is eligible for reappointment;
(4) shall serve without compensation, but is entitled to
reimbursement for traveling expenses and other expenses,
actually incurred in connection with the director's duties;
(5) may be removed for cause by the mayor; and
(6) may not be an officer or employee of:
(A) the city;
(B) the county; or
(C) any qualified entity.
(d) Any vacancy on the board, other than by expiration of term,
shall be filled by appointment of the mayor for the unexpired term
only. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-3 Duties of board
Sec. 3. The board shall do the following:
(1) Elect from its membership a chairman and a vice chairman.
(2) Appoint and fix the duties and compensation of an executive
director, who shall serve as both secretary and treasurer. The
executive director may be the fiscal officer of the city, in which
case the executive director will receive no compensation for
services performed as the executive director.
(3) Establish and maintain the office of the bank in the city. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-4 Quorum
Sec. 4. Three (3) directors constitute a quorum at any meeting of
the board. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-5 Action by affirmative vote of three directors; effect of vacancy
Sec. 5. Action may be taken by the board at a meeting by the
affirmative vote of at least three (3) directors. A vacancy on the
board does not impair the right of a quorum of directors to exercise
the powers and perform the duties of the board. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-6 Surety bonds; issuer; cost
Sec. 6. (a) Each director and the executive director must execute
a surety bond in an amount specified by the legislative body of the
city. Each surety bond shall be conditioned upon the faithful
performance of the duties of the office of director and executive
director, respectively. In lieu of these surety bonds, the bank may
execute a blanket surety bond covering each director, the executive
director, and any officers or employees of the bank.
(b) The surety bonds required by this section must be issued by a
surety company authorized to transact business in Indiana.
(c) The cost of the surety bonds required by this section shall be
paid by the bank. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.4.
IC 5-1.4-2-7 Disclosure of interest in contract; abstention; validity of contract
Sec. 7. (a) Notwithstanding any other law to the contrary, a
director does not violate any law, civil or criminal, if the director:
(1) has, or to the director's knowledge may have or may later
acquire, a direct or indirect pecuniary interest in a contract with
the bank; or
(2) is an officer, member, manager, director, or employee of, or
has an ownership interest in, any firm, limited liability
company, or corporation that is or may be a party to the
contract;
if the director discloses in writing to the bank the nature and extent
of the interest as soon as the director has knowledge of the interest
and abstains from discussion, deliberation, action, and voting with
respect to the contract.
(b) Notwithstanding any provision of this article or any other law,
a contract or transaction is not void or voidable because of the
existence of an interest described in subsection (a), if the provisions
of subsection (a) have been satisfied. As added by P.L.42-1985, SEC.1. Amended by P.L.8-1993, SEC.50.
IC 5-1.4-2-8 Liability of director or issuer of bonds or notes
Sec. 8. Neither a director nor a person executing bonds or notes
issued under this article is liable personally on the bonds or notes. As added by P.L.42-1985, SEC.1.
IC 5-1.4-2-9 Executive director; duties
Sec. 9. (a) The executive director appointed under section 3 of
this chapter shall, in addition to other duties fixed by the directors:
(1) administer, manage, and direct the employees of the bank;
(2) approve all amounts for salaries, allowable expenses of the
bank or of any employee or consultant of the bank, and
expenses incidental to the operation of the bank; and
(3) attend the meetings of the board, keep a record of the
proceedings of the board, and maintain all books, documents,
and papers filed with the bank, the minutes of the board, and the
bank's official seal.
(b) The executive director may:
(1) cause copies to be made of all minutes and other records and
documents of the bank; and
(2) give certificates under seal of the bank to the effect that
those copies are true copies, and all persons dealing with the
bank may rely upon those certificates. As added by P.L.42-1985, SEC.1.
