IC 5-1.4-8
Chapter 8. Purchase of Securities of Qualified Entities
IC 5-1.4-8-1 Purchase of securities offered by qualified entity; private sale;
issuance of bonds or notes for purpose of purchase
Sec. 1. The bank, to carry out the purposes and policies of this
article, may purchase securities offered by a qualified entity.
Notwithstanding any law to the contrary, a qualified entity may sell
its securities to the bank at a negotiated, private sale. The bank, for
this purpose, may issue its bonds and notes payable solely from the
revenues or funds available to the bank for such payment and may
otherwise assist qualified entities as provided in this article. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-2 Securities to be purchased and held in name of bank; required
documentation
Sec. 2. (a) All securities at any time purchased, held, or owned by
the bank shall at all times be purchased and held in the name of the
bank.
(b) All securities at any time purchased by the bank, upon delivery
to the bank, shall be accompanied by all documentation required by
the board. The documentation must include an approving opinion of
recognized bond counsel, certification and guarantee of signatures,
and certification as to no litigation pending as of the date of delivery
of the securities challenging the validity or issuance of the securities. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-3 Contracts with bank for purchase of securities; terms and
conditions; fees and charges; denomination; prices; private sale
Sec. 3. Every qualified entity is authorized and empowered to
contract with the bank with respect to the purchase of its securities,
and the contracts shall contain the terms and conditions of the
purchase and may be in any form agreed to by the bank and the
qualified entity, including a customary form of bond ordinance or
resolution. Every qualified entity is authorized and empowered to
pay fees and charges required to be paid to the bank for its services.
Notwithstanding any statute applicable to or constituting any
limitation on the sale of bonds or notes, any qualified entity may sell
its securities to the bank, without limitation as to denomination, at a
private sale at such price or prices as may be determined by the bank
and the qualified entity. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-4 Agreement with bank; waiver of statutory defenses to
nonpayment; rights and remedies of bank
Sec. 4. Upon the sale and delivery by a qualified entity of any
securities to the bank, the qualified entity shall be deemed to have
agreed that upon its failure to pay interest or principal on the
securities owned or held by the bank when payable, all statutory
defenses to nonpayment are waived. Upon nonpayment and demand
on the qualified entity for payment, if the securities are payable from
property taxes and funds are not available in the treasury of the
qualified entity to make payment, an action in mandamus for the levy
of a tax to pay the interest and principal on the securities shall lie,
and the bank shall be constituted a holder or owner of the securities
as being in default. The bank may thereupon avail itself of all
remedies, rights, and provisions of law applicable in the
circumstances, and the failure to exercise or exert any rights or
remedies within a time or period provided by law may not be raised
as a defense by the qualified entity. The bank may carry out this
section and exercise all the rights, remedies, and provisions of law
provided or referred to in this section. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-5 Bond anticipation notes of qualified entities; purchase by bank;
renewal or extension; maturity; terms and conditions
Sec. 5. (a) Notwithstanding any law applicable to a qualified
entity concerning the issuance of bonds, a qualified entity that has
complied with all statutory requirements for the issuance of its bonds
may (in lieu of issuing bonds at that time and without complying
with any other law applicable to the issuance of bonds, notes, or
other evidences of indebtedness) issue to the bank the qualified
entity's notes in anticipation of the issuance of bonds, and the bank
may purchase these bond anticipation notes. The bond anticipation
notes may be issued on terms set forth in a resolution authorizing
their issuance and in any amount equal to or less than the amount of
bonds authorized to be issued.
(b) The qualified entity may renew or extend the bond
anticipation notes from time to time on terms agreed to with the
bank, and the bank may purchase these renewals or extensions. The
amount of the accrued interest on the date of renewal or extension
may be paid or added to the principal amount of the note being
renewed or extended so long as the aggregate principal amount of
bond anticipation notes outstanding at any time does not exceed the
maximum principal amount permitted by this section.
(c) The bond anticipation notes of the qualified entity, including
any renewals or extensions, must mature in the amounts and at the
times (not exceeding five (5) years from the date of the original
issuance of the bond anticipation notes) as are agreed to by the
qualified entity and the bank. The bond anticipation notes shall be,
and interest thereon may be, finally paid with the proceeds of the
bonds issued by the qualified entity. In connection with the issuance
of bonds part or all of the proceeds of which shall be used to retire
the bond anticipation notes, the qualified entity is not required to
repeat the procedures for the issuance of bonds because the
procedures followed before the issuance of the bond anticipation
notes are for all purposes sufficient to authorize the issuance of such
bonds.
(d) In connection with the purchase of bond anticipation notes, the
bank may by agreement with the qualified entity impose any terms,
conditions, and limitations as in its opinion are proper for the
security of the bank and the holders of its bonds or notes. If the
qualified entity fails to comply with the agreement or to issue its
bonds to retire its bond anticipation notes, the bank may enforce all
rights and remedies provided in the agreement or at law, including an
action in mandamus to compel the issuance of bonds by the qualified
entity. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.21.
IC 5-1.4-8-6 Notes of qualified entities; purchase by bank; renewal or extension;
maturity; compliance with other laws; terms and conditions
Sec. 6. (a) Notwithstanding any other law applicable to a qualified
entity as to borrowing money, a qualified entity may issue and sell its
notes to the bank, and the bank may purchase these notes. The notes
must be issued pursuant to a resolution of the qualified entity, and
the proceeds must be applied to costs for which the qualified entity
may issue bonds.
(b) The qualified entity may renew or extend the notes from time
to time on terms agreed to with the bank, and the bank may purchase
these renewals or extensions. The amount of accrued interest on the
date of renewal or extension may be paid or added to the principal
amount of the note being renewed or extended.
(c) The notes of the qualified entity, including any renewals or
extensions, must mature in the amounts and at the times (not
exceeding two (2) years from the date of original issuance) as are
agreed to by the qualified entity and the bank. However, the
legislative body of the city in the case of a qualified entity defined in
IC 5-1.4-1-10(1) through (3) or the governing body of the qualified
entity in the case of a qualified entity defined in IC 5-1.4-1-10(4)
through (6), by resolution, may authorize an extension of the
maturity beyond two (2) years for an additional period of no more
than three (3) years. Any such extension may be authorized in the
resolution originally authorizing issuance of the notes. The notes of
the qualified entity and accrued interest thereon shall be paid with
proceeds from the issuance of its bonds, when and if the bonds are
issued, or other money available to the qualified entity, which money
the qualified entity may pledge to the payment of its notes.
(d) Compliance with this section constitutes full authority for a
qualified entity to issue its notes and sell them to the bank, and the
qualified entity is not required to comply with any other law
applicable to the authorization, approval, issuance, and sale of bonds,
notes, or other evidences of indebtedness. However, if the qualified
entity decides to issue bonds, neither the provisions of this section
nor the actual issuance by a qualified entity of its notes shall relieve
the qualified entity of completing the requirements for the issuance
of its bonds all or part of the proceeds of which will be used to retire
the notes.
(e) In connection with the purchase of notes, the bank may by
agreement with the qualified entity impose any terms, conditions,
and limitations as in its opinion are proper for the security of the
bank and the holders of its bonds or notes. If the qualified entity fails
to comply with the agreement or to retire its notes, the bank may
enforce all rights and remedies provided in the agreement or at law. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.22;
P.L.46-1987, SEC.2.
IC 5-1.4-8
Chapter 8. Purchase of Securities of Qualified Entities
IC 5-1.4-8-1 Purchase of securities offered by qualified entity; private sale;
issuance of bonds or notes for purpose of purchase
Sec. 1. The bank, to carry out the purposes and policies of this
article, may purchase securities offered by a qualified entity.
Notwithstanding any law to the contrary, a qualified entity may sell
its securities to the bank at a negotiated, private sale. The bank, for
this purpose, may issue its bonds and notes payable solely from the
revenues or funds available to the bank for such payment and may
otherwise assist qualified entities as provided in this article. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-2 Securities to be purchased and held in name of bank; required
documentation
Sec. 2. (a) All securities at any time purchased, held, or owned by
the bank shall at all times be purchased and held in the name of the
bank.
(b) All securities at any time purchased by the bank, upon delivery
to the bank, shall be accompanied by all documentation required by
the board. The documentation must include an approving opinion of
recognized bond counsel, certification and guarantee of signatures,
and certification as to no litigation pending as of the date of delivery
of the securities challenging the validity or issuance of the securities. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-3 Contracts with bank for purchase of securities; terms and
conditions; fees and charges; denomination; prices; private sale
Sec. 3. Every qualified entity is authorized and empowered to
contract with the bank with respect to the purchase of its securities,
and the contracts shall contain the terms and conditions of the
purchase and may be in any form agreed to by the bank and the
qualified entity, including a customary form of bond ordinance or
resolution. Every qualified entity is authorized and empowered to
pay fees and charges required to be paid to the bank for its services.
Notwithstanding any statute applicable to or constituting any
limitation on the sale of bonds or notes, any qualified entity may sell
its securities to the bank, without limitation as to denomination, at a
private sale at such price or prices as may be determined by the bank
and the qualified entity. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-4 Agreement with bank; waiver of statutory defenses to
nonpayment; rights and remedies of bank
Sec. 4. Upon the sale and delivery by a qualified entity of any
securities to the bank, the qualified entity shall be deemed to have
agreed that upon its failure to pay interest or principal on the
securities owned or held by the bank when payable, all statutory
defenses to nonpayment are waived. Upon nonpayment and demand
on the qualified entity for payment, if the securities are payable from
property taxes and funds are not available in the treasury of the
qualified entity to make payment, an action in mandamus for the levy
of a tax to pay the interest and principal on the securities shall lie,
and the bank shall be constituted a holder or owner of the securities
as being in default. The bank may thereupon avail itself of all
remedies, rights, and provisions of law applicable in the
circumstances, and the failure to exercise or exert any rights or
remedies within a time or period provided by law may not be raised
as a defense by the qualified entity. The bank may carry out this
section and exercise all the rights, remedies, and provisions of law
provided or referred to in this section. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-5 Bond anticipation notes of qualified entities; purchase by bank;
renewal or extension; maturity; terms and conditions
Sec. 5. (a) Notwithstanding any law applicable to a qualified
entity concerning the issuance of bonds, a qualified entity that has
complied with all statutory requirements for the issuance of its bonds
may (in lieu of issuing bonds at that time and without complying
with any other law applicable to the issuance of bonds, notes, or
other evidences of indebtedness) issue to the bank the qualified
entity's notes in anticipation of the issuance of bonds, and the bank
may purchase these bond anticipation notes. The bond anticipation
notes may be issued on terms set forth in a resolution authorizing
their issuance and in any amount equal to or less than the amount of
bonds authorized to be issued.
(b) The qualified entity may renew or extend the bond
anticipation notes from time to time on terms agreed to with the
bank, and the bank may purchase these renewals or extensions. The
amount of the accrued interest on the date of renewal or extension
may be paid or added to the principal amount of the note being
renewed or extended so long as the aggregate principal amount of
bond anticipation notes outstanding at any time does not exceed the
maximum principal amount permitted by this section.
(c) The bond anticipation notes of the qualified entity, including
any renewals or extensions, must mature in the amounts and at the
times (not exceeding five (5) years from the date of the original
issuance of the bond anticipation notes) as are agreed to by the
qualified entity and the bank. The bond anticipation notes shall be,
and interest thereon may be, finally paid with the proceeds of the
bonds issued by the qualified entity. In connection with the issuance
of bonds part or all of the proceeds of which shall be used to retire
the bond anticipation notes, the qualified entity is not required to
repeat the procedures for the issuance of bonds because the
procedures followed before the issuance of the bond anticipation
notes are for all purposes sufficient to authorize the issuance of such
bonds.
(d) In connection with the purchase of bond anticipation notes, the
bank may by agreement with the qualified entity impose any terms,
conditions, and limitations as in its opinion are proper for the
security of the bank and the holders of its bonds or notes. If the
qualified entity fails to comply with the agreement or to issue its
bonds to retire its bond anticipation notes, the bank may enforce all
rights and remedies provided in the agreement or at law, including an
action in mandamus to compel the issuance of bonds by the qualified
entity. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.21.
IC 5-1.4-8-6 Notes of qualified entities; purchase by bank; renewal or extension;
maturity; compliance with other laws; terms and conditions
Sec. 6. (a) Notwithstanding any other law applicable to a qualified
entity as to borrowing money, a qualified entity may issue and sell its
notes to the bank, and the bank may purchase these notes. The notes
must be issued pursuant to a resolution of the qualified entity, and
the proceeds must be applied to costs for which the qualified entity
may issue bonds.
(b) The qualified entity may renew or extend the notes from time
to time on terms agreed to with the bank, and the bank may purchase
these renewals or extensions. The amount of accrued interest on the
date of renewal or extension may be paid or added to the principal
amount of the note being renewed or extended.
(c) The notes of the qualified entity, including any renewals or
extensions, must mature in the amounts and at the times (not
exceeding two (2) years from the date of original issuance) as are
agreed to by the qualified entity and the bank. However, the
legislative body of the city in the case of a qualified entity defined in
IC 5-1.4-1-10(1) through (3) or the governing body of the qualified
entity in the case of a qualified entity defined in IC 5-1.4-1-10(4)
through (6), by resolution, may authorize an extension of the
maturity beyond two (2) years for an additional period of no more
than three (3) years. Any such extension may be authorized in the
resolution originally authorizing issuance of the notes. The notes of
the qualified entity and accrued interest thereon shall be paid with
proceeds from the issuance of its bonds, when and if the bonds are
issued, or other money available to the qualified entity, which money
the qualified entity may pledge to the payment of its notes.
(d) Compliance with this section constitutes full authority for a
qualified entity to issue its notes and sell them to the bank, and the
qualified entity is not required to comply with any other law
applicable to the authorization, approval, issuance, and sale of bonds,
notes, or other evidences of indebtedness. However, if the qualified
entity decides to issue bonds, neither the provisions of this section
nor the actual issuance by a qualified entity of its notes shall relieve
the qualified entity of completing the requirements for the issuance
of its bonds all or part of the proceeds of which will be used to retire
the notes.
(e) In connection with the purchase of notes, the bank may by
agreement with the qualified entity impose any terms, conditions,
and limitations as in its opinion are proper for the security of the
bank and the holders of its bonds or notes. If the qualified entity fails
to comply with the agreement or to retire its notes, the bank may
enforce all rights and remedies provided in the agreement or at law. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.22;
P.L.46-1987, SEC.2.
IC 5-1.4-8
Chapter 8. Purchase of Securities of Qualified Entities
IC 5-1.4-8-1 Purchase of securities offered by qualified entity; private sale;
issuance of bonds or notes for purpose of purchase
Sec. 1. The bank, to carry out the purposes and policies of this
article, may purchase securities offered by a qualified entity.
Notwithstanding any law to the contrary, a qualified entity may sell
its securities to the bank at a negotiated, private sale. The bank, for
this purpose, may issue its bonds and notes payable solely from the
revenues or funds available to the bank for such payment and may
otherwise assist qualified entities as provided in this article. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-2 Securities to be purchased and held in name of bank; required
documentation
Sec. 2. (a) All securities at any time purchased, held, or owned by
the bank shall at all times be purchased and held in the name of the
bank.
(b) All securities at any time purchased by the bank, upon delivery
to the bank, shall be accompanied by all documentation required by
the board. The documentation must include an approving opinion of
recognized bond counsel, certification and guarantee of signatures,
and certification as to no litigation pending as of the date of delivery
of the securities challenging the validity or issuance of the securities. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-3 Contracts with bank for purchase of securities; terms and
conditions; fees and charges; denomination; prices; private sale
Sec. 3. Every qualified entity is authorized and empowered to
contract with the bank with respect to the purchase of its securities,
and the contracts shall contain the terms and conditions of the
purchase and may be in any form agreed to by the bank and the
qualified entity, including a customary form of bond ordinance or
resolution. Every qualified entity is authorized and empowered to
pay fees and charges required to be paid to the bank for its services.
Notwithstanding any statute applicable to or constituting any
limitation on the sale of bonds or notes, any qualified entity may sell
its securities to the bank, without limitation as to denomination, at a
private sale at such price or prices as may be determined by the bank
and the qualified entity. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-4 Agreement with bank; waiver of statutory defenses to
nonpayment; rights and remedies of bank
Sec. 4. Upon the sale and delivery by a qualified entity of any
securities to the bank, the qualified entity shall be deemed to have
agreed that upon its failure to pay interest or principal on the
securities owned or held by the bank when payable, all statutory
defenses to nonpayment are waived. Upon nonpayment and demand
on the qualified entity for payment, if the securities are payable from
property taxes and funds are not available in the treasury of the
qualified entity to make payment, an action in mandamus for the levy
of a tax to pay the interest and principal on the securities shall lie,
and the bank shall be constituted a holder or owner of the securities
as being in default. The bank may thereupon avail itself of all
remedies, rights, and provisions of law applicable in the
circumstances, and the failure to exercise or exert any rights or
remedies within a time or period provided by law may not be raised
as a defense by the qualified entity. The bank may carry out this
section and exercise all the rights, remedies, and provisions of law
provided or referred to in this section. As added by P.L.42-1985, SEC.1.
IC 5-1.4-8-5 Bond anticipation notes of qualified entities; purchase by bank;
renewal or extension; maturity; terms and conditions
Sec. 5. (a) Notwithstanding any law applicable to a qualified
entity concerning the issuance of bonds, a qualified entity that has
complied with all statutory requirements for the issuance of its bonds
may (in lieu of issuing bonds at that time and without complying
with any other law applicable to the issuance of bonds, notes, or
other evidences of indebtedness) issue to the bank the qualified
entity's notes in anticipation of the issuance of bonds, and the bank
may purchase these bond anticipation notes. The bond anticipation
notes may be issued on terms set forth in a resolution authorizing
their issuance and in any amount equal to or less than the amount of
bonds authorized to be issued.
(b) The qualified entity may renew or extend the bond
anticipation notes from time to time on terms agreed to with the
bank, and the bank may purchase these renewals or extensions. The
amount of the accrued interest on the date of renewal or extension
may be paid or added to the principal amount of the note being
renewed or extended so long as the aggregate principal amount of
bond anticipation notes outstanding at any time does not exceed the
maximum principal amount permitted by this section.
(c) The bond anticipation notes of the qualified entity, including
any renewals or extensions, must mature in the amounts and at the
times (not exceeding five (5) years from the date of the original
issuance of the bond anticipation notes) as are agreed to by the
qualified entity and the bank. The bond anticipation notes shall be,
and interest thereon may be, finally paid with the proceeds of the
bonds issued by the qualified entity. In connection with the issuance
of bonds part or all of the proceeds of which shall be used to retire
the bond anticipation notes, the qualified entity is not required to
repeat the procedures for the issuance of bonds because the
procedures followed before the issuance of the bond anticipation
notes are for all purposes sufficient to authorize the issuance of such
bonds.
(d) In connection with the purchase of bond anticipation notes, the
bank may by agreement with the qualified entity impose any terms,
conditions, and limitations as in its opinion are proper for the
security of the bank and the holders of its bonds or notes. If the
qualified entity fails to comply with the agreement or to issue its
bonds to retire its bond anticipation notes, the bank may enforce all
rights and remedies provided in the agreement or at law, including an
action in mandamus to compel the issuance of bonds by the qualified
entity. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.21.
IC 5-1.4-8-6 Notes of qualified entities; purchase by bank; renewal or extension;
maturity; compliance with other laws; terms and conditions
Sec. 6. (a) Notwithstanding any other law applicable to a qualified
entity as to borrowing money, a qualified entity may issue and sell its
notes to the bank, and the bank may purchase these notes. The notes
must be issued pursuant to a resolution of the qualified entity, and
the proceeds must be applied to costs for which the qualified entity
may issue bonds.
(b) The qualified entity may renew or extend the notes from time
to time on terms agreed to with the bank, and the bank may purchase
these renewals or extensions. The amount of accrued interest on the
date of renewal or extension may be paid or added to the principal
amount of the note being renewed or extended.
(c) The notes of the qualified entity, including any renewals or
extensions, must mature in the amounts and at the times (not
exceeding two (2) years from the date of original issuance) as are
agreed to by the qualified entity and the bank. However, the
legislative body of the city in the case of a qualified entity defined in
IC 5-1.4-1-10(1) through (3) or the governing body of the qualified
entity in the case of a qualified entity defined in IC 5-1.4-1-10(4)
through (6), by resolution, may authorize an extension of the
maturity beyond two (2) years for an additional period of no more
than three (3) years. Any such extension may be authorized in the
resolution originally authorizing issuance of the notes. The notes of
the qualified entity and accrued interest thereon shall be paid with
proceeds from the issuance of its bonds, when and if the bonds are
issued, or other money available to the qualified entity, which money
the qualified entity may pledge to the payment of its notes.
(d) Compliance with this section constitutes full authority for a
qualified entity to issue its notes and sell them to the bank, and the
qualified entity is not required to comply with any other law
applicable to the authorization, approval, issuance, and sale of bonds,
notes, or other evidences of indebtedness. However, if the qualified
entity decides to issue bonds, neither the provisions of this section
nor the actual issuance by a qualified entity of its notes shall relieve
the qualified entity of completing the requirements for the issuance
of its bonds all or part of the proceeds of which will be used to retire
the notes.
(e) In connection with the purchase of notes, the bank may by
agreement with the qualified entity impose any terms, conditions,
and limitations as in its opinion are proper for the security of the
bank and the holders of its bonds or notes. If the qualified entity fails
to comply with the agreement or to retire its notes, the bank may
enforce all rights and remedies provided in the agreement or at law. As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.22;
P.L.46-1987, SEC.2.
