IC 5-1.5-8-1 Purchase of securities offered by qualified entity; private sale;
issuance of bonds and notes for purpose of purchase
Sec. 1. The bank, to carry out the purposes and policies of this
article, may purchase securities of the 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.25-1984, SEC.1. Amended by P.L.28-1992, SEC.3.
IC 5-1.5-8-2 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) Except for agreements described in IC 5-1.5-1-10(4), all
securities at any time purchased by the bank, upon delivery to the
bank, shall, unless waived by the board, be accompanied by all
documentation required by the board that shall 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
such securities. As added by P.L.25-1984, SEC.1. Amended by P.L.44-1990, SEC.3;
P.L.28-1992, SEC.4.
IC 5-1.5-8-3 Contracts with bank; terms and conditions; fees and charges;
denomination and prices
Sec. 3. (a) Every qualified entity is authorized and empowered to
contract with the bank with respect to the loan or purchase of its
securities, and the contracts shall contain the terms and conditions of
the loan or 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.
(b) Notwithstanding any statute applicable to or constituting any
limitation on the sale of bonds or notes or on entry into an
agreement, 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.
(c) Notwithstanding any law that applies to or constitutes a
limitation on the leasing or disposition of materials or other property,
and subject to subsection (d), any qualified entity, or any purchasing
agency (as defined in IC 5-22-2-25) of a qualified entity, may:
(1) assign or sell a lease or purchase contract for property to the
bank;
(2) enter into a lease or purchase contract for property with the
bank; or
(3) buy property from or sell property to the bank;
at any price and under any other terms and conditions as may be
determined by the bank and the qualified entity.
(d) This subsection does not apply to a school corporation that
buys or leases a school bus from the bank under IC 5-1.5-4-1(a)(5).
Before taking an action described under subsection (c)(1) through
(c)(3) that would otherwise be subject to IC 5-22, a qualified entity
or its purchasing agent must obtain or cause to be obtained a
purchase price for the property to be subject to the sale, purchase
contract, or lease from the lowest responsible and responsive bidder
in accordance with the requirements for the purchase of supplies
under IC 5-22. As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.14;
P.L.48-1989, SEC.2; P.L.49-1997, SEC.25; P.L.192-2006, SEC.2.
IC 5-1.5-8-4 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 or arising from an agreement with 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.25-1984, SEC.1. Amended by P.L.46-1987, SEC.15.
IC 5-1.5-8-5 Department or agency of state as custodian of money payable to
qualified entity; duty on default on payment of principal or interest
by qualified entity
Sec. 5. Notwithstanding any other provision of law, to the extent
that any department or agency of the state, including the treasurer of
state, is the custodian of money payable to the qualified entity (other
than for goods or services provided by the qualified entity), at any
time after written notice to the department or agency head from the
bank that the qualified entity is in default on the payment of principal
or interest on the securities of the qualified entity then held or owned
by or arising from an agreement with the bank, the department or
agency shall withhold the payment of that money from that qualified
entity and pay over the money to the bank for the purpose of paying
principal of and interest on bonds of the bank. However, the
withholding of payment from the qualified entity and payment to the
bank under this section must not adversely affect the validity of the
security in default. As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.26;
P.L.46-1987, SEC.16.
IC 5-1.5-8-6
Repealed
(Repealed by P.L.43-1985, SEC.28.)
IC 5-1.5-8-6.1 Anticipation notes; issuance and purchase
Sec. 6.1. (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 the need for
complying with any other law applicable to the issuance of bonds,
notes, or other evidences of indebtedness, issue its notes in
anticipation of the issuance of bonds to the bank, and the bank may
purchase the 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. 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 the 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. 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) agreed to by the qualified entity and the
bank. The bond anticipation notes must be finally paid, and interest
on the bond anticipation notes 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 will be used to
retire the bond anticipation notes, it is not necessary for the qualified
entity to repeat the procedures for the issuance of bonds, as the
procedures followed before the issuance of the bond anticipation
notes are for all purposes sufficient to authorize the issuance of the
bonds.
(b) 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.43-1985, SEC.27.
IC 5-1.5-8-7 Investment and reinvestment; securities sold to bank
Sec. 7. Notwithstanding any statute applicable to or constituting
any limitation on the investment or reinvestment of funds by or on
behalf of political subdivisions, a qualified entity selling securities
to the bank in connection with a program established by the bank
may invest and reinvest funds that constitute, replace, or substitute
for the proceeds of securities sold to the bank under an established
bank program in any instrument or other investment authorized under
a resolution of the bank. As added by P.L.29-1992, SEC.3.
IC 5-1.5-8-1 Purchase of securities offered by qualified entity; private sale;
issuance of bonds and notes for purpose of purchase
Sec. 1. The bank, to carry out the purposes and policies of this
article, may purchase securities of the 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.25-1984, SEC.1. Amended by P.L.28-1992, SEC.3.
IC 5-1.5-8-2 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) Except for agreements described in IC 5-1.5-1-10(4), all
securities at any time purchased by the bank, upon delivery to the
bank, shall, unless waived by the board, be accompanied by all
documentation required by the board that shall 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
such securities. As added by P.L.25-1984, SEC.1. Amended by P.L.44-1990, SEC.3;
P.L.28-1992, SEC.4.
IC 5-1.5-8-3 Contracts with bank; terms and conditions; fees and charges;
denomination and prices
Sec. 3. (a) Every qualified entity is authorized and empowered to
contract with the bank with respect to the loan or purchase of its
securities, and the contracts shall contain the terms and conditions of
the loan or 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.
(b) Notwithstanding any statute applicable to or constituting any
limitation on the sale of bonds or notes or on entry into an
agreement, 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.
(c) Notwithstanding any law that applies to or constitutes a
limitation on the leasing or disposition of materials or other property,
and subject to subsection (d), any qualified entity, or any purchasing
agency (as defined in IC 5-22-2-25) of a qualified entity, may:
(1) assign or sell a lease or purchase contract for property to the
bank;
(2) enter into a lease or purchase contract for property with the
bank; or
(3) buy property from or sell property to the bank;
at any price and under any other terms and conditions as may be
determined by the bank and the qualified entity.
(d) This subsection does not apply to a school corporation that
buys or leases a school bus from the bank under IC 5-1.5-4-1(a)(5).
Before taking an action described under subsection (c)(1) through
(c)(3) that would otherwise be subject to IC 5-22, a qualified entity
or its purchasing agent must obtain or cause to be obtained a
purchase price for the property to be subject to the sale, purchase
contract, or lease from the lowest responsible and responsive bidder
in accordance with the requirements for the purchase of supplies
under IC 5-22. As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.14;
P.L.48-1989, SEC.2; P.L.49-1997, SEC.25; P.L.192-2006, SEC.2.
IC 5-1.5-8-4 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 or arising from an agreement with 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.25-1984, SEC.1. Amended by P.L.46-1987, SEC.15.
IC 5-1.5-8-5 Department or agency of state as custodian of money payable to
qualified entity; duty on default on payment of principal or interest
by qualified entity
Sec. 5. Notwithstanding any other provision of law, to the extent
that any department or agency of the state, including the treasurer of
state, is the custodian of money payable to the qualified entity (other
than for goods or services provided by the qualified entity), at any
time after written notice to the department or agency head from the
bank that the qualified entity is in default on the payment of principal
or interest on the securities of the qualified entity then held or owned
by or arising from an agreement with the bank, the department or
agency shall withhold the payment of that money from that qualified
entity and pay over the money to the bank for the purpose of paying
principal of and interest on bonds of the bank. However, the
withholding of payment from the qualified entity and payment to the
bank under this section must not adversely affect the validity of the
security in default. As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.26;
P.L.46-1987, SEC.16.
IC 5-1.5-8-6
Repealed
(Repealed by P.L.43-1985, SEC.28.)
IC 5-1.5-8-6.1 Anticipation notes; issuance and purchase
Sec. 6.1. (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 the need for
complying with any other law applicable to the issuance of bonds,
notes, or other evidences of indebtedness, issue its notes in
anticipation of the issuance of bonds to the bank, and the bank may
purchase the 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. 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 the 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. 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) agreed to by the qualified entity and the
bank. The bond anticipation notes must be finally paid, and interest
on the bond anticipation notes 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 will be used to
retire the bond anticipation notes, it is not necessary for the qualified
entity to repeat the procedures for the issuance of bonds, as the
procedures followed before the issuance of the bond anticipation
notes are for all purposes sufficient to authorize the issuance of the
bonds.
(b) 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.43-1985, SEC.27.
IC 5-1.5-8-7 Investment and reinvestment; securities sold to bank
Sec. 7. Notwithstanding any statute applicable to or constituting
any limitation on the investment or reinvestment of funds by or on
behalf of political subdivisions, a qualified entity selling securities
to the bank in connection with a program established by the bank
may invest and reinvest funds that constitute, replace, or substitute
for the proceeds of securities sold to the bank under an established
bank program in any instrument or other investment authorized under
a resolution of the bank. As added by P.L.29-1992, SEC.3.
IC 5-1.5-8-1 Purchase of securities offered by qualified entity; private sale;
issuance of bonds and notes for purpose of purchase
Sec. 1. The bank, to carry out the purposes and policies of this
article, may purchase securities of the 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.25-1984, SEC.1. Amended by P.L.28-1992, SEC.3.
IC 5-1.5-8-2 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) Except for agreements described in IC 5-1.5-1-10(4), all
securities at any time purchased by the bank, upon delivery to the
bank, shall, unless waived by the board, be accompanied by all
documentation required by the board that shall 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
such securities. As added by P.L.25-1984, SEC.1. Amended by P.L.44-1990, SEC.3;
P.L.28-1992, SEC.4.
IC 5-1.5-8-3 Contracts with bank; terms and conditions; fees and charges;
denomination and prices
Sec. 3. (a) Every qualified entity is authorized and empowered to
contract with the bank with respect to the loan or purchase of its
securities, and the contracts shall contain the terms and conditions of
the loan or 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.
(b) Notwithstanding any statute applicable to or constituting any
limitation on the sale of bonds or notes or on entry into an
agreement, 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.
(c) Notwithstanding any law that applies to or constitutes a
limitation on the leasing or disposition of materials or other property,
and subject to subsection (d), any qualified entity, or any purchasing
agency (as defined in IC 5-22-2-25) of a qualified entity, may:
(1) assign or sell a lease or purchase contract for property to the
bank;
(2) enter into a lease or purchase contract for property with the
bank; or
(3) buy property from or sell property to the bank;
at any price and under any other terms and conditions as may be
determined by the bank and the qualified entity.
(d) This subsection does not apply to a school corporation that
buys or leases a school bus from the bank under IC 5-1.5-4-1(a)(5).
Before taking an action described under subsection (c)(1) through
(c)(3) that would otherwise be subject to IC 5-22, a qualified entity
or its purchasing agent must obtain or cause to be obtained a
purchase price for the property to be subject to the sale, purchase
contract, or lease from the lowest responsible and responsive bidder
in accordance with the requirements for the purchase of supplies
under IC 5-22. As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.14;
P.L.48-1989, SEC.2; P.L.49-1997, SEC.25; P.L.192-2006, SEC.2.
IC 5-1.5-8-4 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 or arising from an agreement with 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.25-1984, SEC.1. Amended by P.L.46-1987, SEC.15.
IC 5-1.5-8-5 Department or agency of state as custodian of money payable to
qualified entity; duty on default on payment of principal or interest
by qualified entity
Sec. 5. Notwithstanding any other provision of law, to the extent
that any department or agency of the state, including the treasurer of
state, is the custodian of money payable to the qualified entity (other
than for goods or services provided by the qualified entity), at any
time after written notice to the department or agency head from the
bank that the qualified entity is in default on the payment of principal
or interest on the securities of the qualified entity then held or owned
by or arising from an agreement with the bank, the department or
agency shall withhold the payment of that money from that qualified
entity and pay over the money to the bank for the purpose of paying
principal of and interest on bonds of the bank. However, the
withholding of payment from the qualified entity and payment to the
bank under this section must not adversely affect the validity of the
security in default. As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.26;
P.L.46-1987, SEC.16.
IC 5-1.5-8-6
Repealed
(Repealed by P.L.43-1985, SEC.28.)
IC 5-1.5-8-6.1 Anticipation notes; issuance and purchase
Sec. 6.1. (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 the need for
complying with any other law applicable to the issuance of bonds,
notes, or other evidences of indebtedness, issue its notes in
anticipation of the issuance of bonds to the bank, and the bank may
purchase the 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. 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 the 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. 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) agreed to by the qualified entity and the
bank. The bond anticipation notes must be finally paid, and interest
on the bond anticipation notes 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 will be used to
retire the bond anticipation notes, it is not necessary for the qualified
entity to repeat the procedures for the issuance of bonds, as the
procedures followed before the issuance of the bond anticipation
notes are for all purposes sufficient to authorize the issuance of the
bonds.
(b) 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.43-1985, SEC.27.
IC 5-1.5-8-7 Investment and reinvestment; securities sold to bank
Sec. 7. Notwithstanding any statute applicable to or constituting
any limitation on the investment or reinvestment of funds by or on
behalf of political subdivisions, a qualified entity selling securities
to the bank in connection with a program established by the bank
may invest and reinvest funds that constitute, replace, or substitute
for the proceeds of securities sold to the bank under an established
bank program in any instrument or other investment authorized under
a resolution of the bank. As added by P.L.29-1992, SEC.3.
