IC 5-1-5-1 Definitions
Sec. 1. The following terms as used in this chapter have the
following meanings:
(a) "Governing body" means the council, commission, board of
commissioners, board of directors, board of trustees, or other
legislative body in which the legislative powers of the issuing body
are vested.
(b) "Issuing body" means the state of Indiana, its agencies,
commissions, universities, colleges, institutions, political
subdivisions, counties, school corporations, hospital associations,
municipal and quasi-municipal corporations, special taxing districts,
and any corporation which has issued bonds payable directly or
indirectly from lease rentals payable by any of the foregoing issuing
bodies, now or hereafter existing under the laws of the state.
(c) "Bond" means any revenue bond, general obligation bond, or
advance refunding bond.
(d) "Revenue bond" means any bond note, warrant, certificate of
indebtedness, or other obligation, including a certificate or other
evidence of participation in the lessor's interest in and rights under
a lease, for the payment of money issued by an issuing body or any
predecessor of any issuing body which is payable from designated
revenues, rental payments, special benefits, taxes, or a special fund
but excluding any obligation constituting an indebtedness within the
meaning of the constitutional debt limitation and any obligation
payable solely from special assessments or special assessments and
a guaranty fund.
(e) "General obligation bond" means any bond, note, warrant,
certificate of indebtedness, or other obligation of an issuing body
which constitutes an indebtedness within the meaning of the
constitutional debt limitation.
(f) "Advance refunding bonds" means bonds issued for the
purpose of refunding bonds first subject to redemption or maturing
after the date of the advance refunding bonds.
(g) "Ordinance" means an ordinance of a city or town or
resolution or other instrument by which the governing body of the
issuing body exercising any power hereunder takes formal action and
adopts legislative provisions and matters of some permanency.
(h) "Corporation which has issued bonds" means a corporation
organized under IC 20-47-2 or IC 20-47-3, the laws of any state of
the United States of America or of the United States of America,
including any bank, trust company, or national association serving as
a trustee under an indenture providing for issuance of bonds.
(i) "Local issuing body" means an issuing body that is:
(1) a political subdivision (as defined in IC 36-1-2-13);
(2) a district (as defined in IC 6-1.1-21.2-5); or
(3) a corporation or other entity that:
(A) is not a body corporate and politic established as an
instrumentality of the state; and
(B) has issued bonds that are payable directly or indirectly
from lease rentals payable by a political subdivision or
district described in subdivision (1) or (2).
(j) "Special benefit taxes" means a special tax levied and collected
on an ad valorem basis on property for the purpose of financing local
public improvements that:
(1) are not political or governmental in nature; and
(2) are of special benefit to the residents and property of the
area.
(k) "Tax increment revenues" means an allocation of:
(1) ad valorem property taxes;
(2) state or local adjusted gross income taxes; or
(3) state or local gross retail and use taxes;
to a redevelopment district that is based on an increase in the
assessed value, wages, sales, or other economic activity occurring in
a designated area. The term includes allocations described in
IC 5-28-26-9, IC 6-1.1-21.2-10, IC 36-7-26-10, IC 36-7-27-8,
IC 36-7-31-6, and IC 36-7-31.3-4.
(l) "Redevelopment district" refers to the following:
(1) An airport development zone under IC 8-22-3.5.
(2) A redevelopment district established under:
(A) IC 36-7-14; or
(B) IC 36-7-15.1.
(3) A special taxing district described in:
(A) IC 36-7-14.5-12.5(d); or
(B) IC 36-7-30-3(b).
(4) Another public entity to which tax increment revenues are
allocated.
(m) Words used in this chapter importing singular or plural
number may be construed so that one (1) number includes both. (Formerly: Acts 1973, P.L.28, SEC.1; Acts 1975, P.L.36, SEC.1.) As
amended by P.L.2-2006, SEC.8; P.L.146-2008, SEC.23.
IC 5-1-5-2 Issuance of bonds to refund outstanding bonds
Sec. 2. (a) The governing body of any issuing body may by
ordinance provide for the issuance of bonds to refund outstanding
bonds issued at any time by such issuing body or its predecessor, and
to pay redemption premiums and costs of refunding to effect a saving
to the issuing body. Issuance of bonds to refund outstanding bonds
may also be made in order to pay or discharge all or any part of such
outstanding series or issue of bond, including any interest thereon, in
arrears or about to become due and for which sufficient funds are not
available or to modify restrictive covenants in outstanding bonds
impeding additional financing. To determine whether or not a
savings will be effected, consideration shall be given to the estimated
or known interest payable to the fixed maturities of the refunding
bonds, the interest payable on the bonds to be refunded, the costs of
issuance of the refunding bonds, including any sale discount, the
redemption premiums, if any, to be paid, and the probable earned
income from the investment of the refunding bond proceeds pending
redemption of the bonds to be refunded.
(b) The provisions of subsection (a) requiring a savings to be
effected do not apply to the issuance of bonds to refund previously
issued refunding bonds, if the statute under which the refunding
bonds are issued expressly exempts such an issue from this savings
requirement. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.2; P.L.23-1984, SEC.1.
IC 5-1-5-3 Exchange for outstanding bonds
Sec. 3. Any bonds issued for refunding purposes may be delivered
in exchange for the outstanding bonds being refunded or may be sold
in the manner hereinafter provided. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-4 Refunding procedure
Sec. 4. (a) Bonds may be refunded under this chapter when the
holders thereof voluntarily surrender them for exchange or payment,
or, if they mature, or are subject to redemption prior to maturity
within twenty (20) years from the date of the refunding bonds. In any
advance refunding plan under this chapter the governing body shall
provide in the ordinance authorizing the issuance of the advance
refunding bonds for the redemption of the bonds to be refunded on
any redemption date prior to maturity or at maturity.
(b) The ordinance authorizing the issuance of advance refunding
bonds pursuant to this chapter may provide for a maximum interest
rate, payable annually or at shorter intervals, and shall provide for
the maturities at such time or times as may be determined by the
ordinance. The bonds may be made redeemable before maturity at
the option of the issuing body at such times and with such premiums,
and under such terms and conditions as may be fixed in the
ordinance.
(c) The principal and interest of the bonds may be made payable
in any lawful medium. The ordinance shall determine the form of the
bonds, including the interest coupons if any to be attached thereto,
and shall fix the denomination or denominations of the bonds and the
place or places of payment of the principal and interest thereof,
which may be at any bank or trust company within or without the
state.
(d) Subject to registration provisions, all such bonds shall have all
the qualities and the incidents of negotiable instruments under the
negotiable instruments law of the state. The bonds shall be exempt
from all taxation, state, county, and municipal, as provided in
IC 6-8-5. Provision may be made for the registration of any of the
bonds in the name of the owner as to principal alone, or as to both
principal and interest, but fully registered bonds shall be made
convertible to coupon bonds at the option of the registered owner.
The bonds shall be executed in the same manner as other bonds
issued by the issuing body are executed. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by P.L.23-1984,
SEC.2.
IC 5-1-5-5 Principal amount; reserves to secure bonds
Sec. 5. Refunding bonds may be issued in a principal amount in
excess of the principal amount of the bonds to be refunded. The
principal amount of the refunding bonds may be less than or the same
as the principal amount of the bonds being refunded so long as
provision is duly and sufficiently made for the retirement or
redemption of such bonds to be refunded. Any reserves held to
secure the bonds to be refunded may be applied at the time the bonds
to be refunded are paid to the redemption or retirement of such
bonds, or if other available funds are sufficient and are used to retire
and redeem such bonds, such reserves may be pledged as security for
the refunding bonds. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-6 Proceeds of refunding bonds; disposition
Sec. 6. The proceeds of the refunding bonds issued pursuant to
this chapter shall be placed in escrow and applied, with any other
available funds, to the payment on the date selected for redemption
of the principal, accrued interest and any redemption premiums of
the bonds being refunded, and, if so provided or permitted in the
ordinance authorizing the issuance of such refunding bonds or in the
trust indenture securing the same, may also be applied to the payment
of any interest on such refunding bonds, and any costs of refunding.
Pending such application, such escrowed proceeds may be invested
in direct obligations of, or obligations the principal of and the
interest on which are unconditionally guaranteed by the United
States of America, which shall mature, or which shall be subject to
redemption by the holder thereof at the option of such holder, not
later than the respective dates when the proceeds, together with the
interest accruing thereon, will be required for the purposes intended.
In lieu of such investments, all or part of such proceeds may be
placed in interest bearing time certificates of deposits with such
eligible financial institutions in the state of Indiana as the governing
body shall determine or other similar arrangements may be made
with such eligible financial institutions with regard thereto which
will assure that such proceeds, together with the interest accruing
thereon, will be available when required for the purposes intended,
provided that prior written approval of the Director of the
Department of Financial Institutions shall be required whenever such
time certificates of deposits or other similar arrangements shall be
secured to the full amount thereof by direct obligations of, or
obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States of America of the
type permitted for direct investment of the escrow fund. All interest
or other income earned on such investments shall first be used to pay
the interest on the refunding bonds as it becomes due. Any excess
shall become a part of and held in the escrow fund. Any balance
remaining in the escrow fund after redemption of all the bonds being
refunded shall be deposited in the sinking fund after redemption of
all the bonds being refunded shall be deposited in the sinking fund
established for the payment of the principal and interest on the
refunding bonds. (Formerly: Acts 1973, P.L.28, SEC.1; Acts 1974, P.L.12, SEC.1.)
IC 5-1-5-7 Safekeeping and application of bond proceeds
Sec. 7. The governing body may contract with respect to the
safekeeping and application of the advance refunding bond proceeds
and other funds included therewith and the income therefrom. The
governing body may provide in the refunding plan that until such
moneys are required to redeem or retire revenue bonds to be
refunded, the refunding bond proceeds and other available funds, and
the income therefrom shall be used to pay and secure the payment of
the principal of and interest on the advance refunding bonds. The
governing body may additionally pledge for the payment of such
refunding bonds any revenues which might legally be pledged for the
payment of revenue bonds of the issuer of the type being refunded.
Provisions must be made by the governing body for moneys
sufficient in amount to accomplish the refunding as scheduled. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-8 Trust indenture to secure bonds
Sec. 8. (a) The governing body may secure the bonds by a trust
indenture by and between the issuing body and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or outside of the state of Indiana, and may convey
or mortgage property to the same extent as is authorized by statutes
applicable to:
(1) the bonds being refunded; or
(2) the bonds that the bonds being refunded had previously
refunded.
(b) The ordinance authorizing the bonds and fixing the details
thereof may provide that the trust indenture may contain such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper, not in violation of
law, including covenants setting forth the duties of the issuing body.
(c) The trust indenture may set forth the rights and remedies of the
bondholders or trustee, restricting the individual right of action of
bondholders as is customary in trust indenture securing bonds and
debentures of corporations. Except as is in this chapter otherwise
provided, the governing body may provide by ordinance or in the
trust indenture for any other terms or conditions pertaining to the
refunding bonds as is authorized by statutes applicable to:
(1) the bonds being refunded; or
(2) the bonds that the bonds being refunded had previously
refunded. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.3.
IC 5-1-5-9 Payment of bonds; sources of revenue
Sec. 9. When an issuing body has irrevocably set aside for and
pledged to the payment of revenue bonds to be refunded, advance
refunding bond proceeds and other moneys in amounts which
together with known earned income from the investment thereof are
sufficient in amount to pay the principal of and interest and any
redemption premiums on such revenue bonds as the same become
due and to accomplish the refunding as scheduled, the governing
body may provide that the advance refunding revenue bonds shall be
payable from any source which, either at the time of the issuance of
the advance refunding bonds or the revenue bonds to be refunded,
might legally be or have been pledged for the payment of the revenue
bonds refunded to the extent it may legally do so, notwithstanding
the pledge of such revenues for the payment of the outstanding
revenue bonds being refunded. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-10 Irrevocable pledge to general obligation bond; effect
Sec. 10. When funds and investments and the known earned
income therefrom in amounts sufficient to pay the principal of and
interest and any premium on bonds to be refunded as they become
due at their respective maturities or at the date fixed for redemption
have been irrevocably pledged to the bonds to be refunded, such
bonds shall not constitute an indebtedness of the issuing body within
the meaning of any constitutional or statutory debt limitation. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by P.L.44-1987,
SEC.1.
IC 5-1-5-11 Issuance; separate or in combination
Sec. 11. Bonds for refunding and bonds for any other purpose or
purposes authorized may be issued separately or issued in
combination in one (1) or more series or issues by the same issuer. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-12 Law governing issuance
Sec. 12. Except as specifically provided in this chapter, refunding
bonds issued under this chapter shall be issued in accordance with
the provisions of law applicable, either at the time of the issuance of
the refunding bonds or at the time of issuance of the bonds to be
refunded, to:
(1) the type of bonds being refunded; or
(2) the type of bonds that the bonds being refunded had
previously refunded. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.4.
IC 5-1-5-13 Sale of bonds
Sec. 13. Refunding bonds issued under the provisions of this
chapter may be sold in such manner and upon such terms and
conditions as the issuer of such refunding bonds shall deem to be in
the best interests of the issuing body, notwithstanding the provisions
of IC 21-32-3, nor the provisions of IC 5-1-11, nor the provisions of
any other law to the contrary. However, if such refunding bonds are
sold to any person, limited liability company, firm, or corporation
that has been rendering financial advisory services to the issuing
body in connection with the proceedings and necessary fiscal
arrangements related to such refunding bonds, then and in that event
the issuing body shall not pay to such purchaser of the refunding
bonds any fee or compensation for services rendered or as
reimbursement for expenses incurred in connection therewith. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1981,
P.L.11, SEC.15; P.L.8-1993, SEC.45; P.L.2-2007, SEC.67.
IC 5-1-5-14 Cumulative effect of chapter
Sec. 14. The authority of an issuing body to issue refunding bonds
pursuant to this chapter is additional to any existing authority to issue
such bonds and nothing in this chapter shall prevent the issuance of
such bonds pursuant to any other law, and this chapter shall not be
construed to amend any existing law authorizing the issuance of
refunding bonds by an issuing body. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-15 Lease modifications
Sec. 15. In connection with the issuance of refunding bonds, an
issuing body and the lessee, or lessees, of any building, or buildings,
financed from the proceeds of the bonds being refunded may enter
into an amendment to the lease modifying or amending the
provisions of such lease in any one (1) or more of the following
respects:
(a) to provide for a reduction in the amount of lease rental payable
by the lessee, or lessees, to be effective upon the redemption of the
bonds being refunded; or the happening of the events set forth in
section 9 of this chapter if permitted by law and the covenants on the
bonds to be refunded;
(b) to provide for extensions or reductions of the times set forth
in the lease before the options of the lessee or lessees to purchase
may be exercised to such times as may be agreed upon between the
issuing body and the lessee or lessees;
(c) to provide that the lease rental payable by the lessee or lessees,
after the redemption of all the bonds being refunded may be payable
to the trustee under a trust indenture securing such refunding bonds.
The refunding herein authorized shall in no way affect the
obligation of the lessee or lessees to pay the lease rental under the
lease of the building or buildings, except to the extent such lease
rental may be reduced by any amendment as hereinbefore authorized. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-16 Advance refunding bonds; issuance
Sec. 16. Notwithstanding any other law, advance refunding bonds
may be issued by an issuing body without obtaining the approval of
the utility regulatory commission whether such advance refunding
bonds are issued under this chapter or any other law. As added by P.L.44-1987, SEC.2. Amended by P.L.23-1988, SEC.3.
IC 5-1-5-17 Last date for payment of certain refunding bonds
Sec. 17. (a) This section applies to bonds that are:
(1) issued after June 30, 2008, by a local issuing body; and
(2) payable from ad valorem property taxes, special benefit
taxes on property, or tax increment revenues derived from
property taxes;
including bonds that are issued under a statute that permits the bonds
to be issued without complying with any other law or otherwise
expressly exempts the bonds from the requirements of this section.
(b) The last date permitted under an agreement for the payment of
principal and interest on bonds that are issued to retire or otherwise
refund other revenue bonds or general obligation bonds may not
extend beyond the maximum term of the bonds being refunded. As added by P.L.146-2008, SEC.24.
IC 5-1-5-18 Use of savings from refunding of bonds
Sec. 18. (a) This section applies to bonds that are:
(1) issued after June 30, 2008, by a local issuing body; and
(2) payable from ad valorem property taxes, special benefit
taxes on property, or tax increment revenues derived from
property taxes;
including bonds that are issued under a statute that permits the bonds
to be issued without complying with any other law or otherwise
expressly exempts the bonds from the requirements of this section.
(b) Savings (as computed under section 2 of this chapter) that
accrue from the issuance of bonds to retire or otherwise refund other
bonds may be used only for the following purposes:
(1) To maintain a debt service reserve fund for the refunding
bonds at the level required under the terms of the refunding
bonds, if the local issuing body adopts an ordinance, resolution,
or order authorizing that use of the proceeds or earnings.
(2) To pay the principal or interest, or both, on:
(A) the refunding bonds; or
(B) other bonds, if the issuing body approves an ordinance
authorizing the use of the savings to pay principal or interest
on other bonds.
(3) To reduce the rate or amount of ad valorem property taxes,
special benefit taxes on property, or tax increment revenues
imposed by or allocated to the local issuing body. As added by P.L.146-2008, SEC.25.
IC 5-1-5-1 Definitions
Sec. 1. The following terms as used in this chapter have the
following meanings:
(a) "Governing body" means the council, commission, board of
commissioners, board of directors, board of trustees, or other
legislative body in which the legislative powers of the issuing body
are vested.
(b) "Issuing body" means the state of Indiana, its agencies,
commissions, universities, colleges, institutions, political
subdivisions, counties, school corporations, hospital associations,
municipal and quasi-municipal corporations, special taxing districts,
and any corporation which has issued bonds payable directly or
indirectly from lease rentals payable by any of the foregoing issuing
bodies, now or hereafter existing under the laws of the state.
(c) "Bond" means any revenue bond, general obligation bond, or
advance refunding bond.
(d) "Revenue bond" means any bond note, warrant, certificate of
indebtedness, or other obligation, including a certificate or other
evidence of participation in the lessor's interest in and rights under
a lease, for the payment of money issued by an issuing body or any
predecessor of any issuing body which is payable from designated
revenues, rental payments, special benefits, taxes, or a special fund
but excluding any obligation constituting an indebtedness within the
meaning of the constitutional debt limitation and any obligation
payable solely from special assessments or special assessments and
a guaranty fund.
(e) "General obligation bond" means any bond, note, warrant,
certificate of indebtedness, or other obligation of an issuing body
which constitutes an indebtedness within the meaning of the
constitutional debt limitation.
(f) "Advance refunding bonds" means bonds issued for the
purpose of refunding bonds first subject to redemption or maturing
after the date of the advance refunding bonds.
(g) "Ordinance" means an ordinance of a city or town or
resolution or other instrument by which the governing body of the
issuing body exercising any power hereunder takes formal action and
adopts legislative provisions and matters of some permanency.
(h) "Corporation which has issued bonds" means a corporation
organized under IC 20-47-2 or IC 20-47-3, the laws of any state of
the United States of America or of the United States of America,
including any bank, trust company, or national association serving as
a trustee under an indenture providing for issuance of bonds.
(i) "Local issuing body" means an issuing body that is:
(1) a political subdivision (as defined in IC 36-1-2-13);
(2) a district (as defined in IC 6-1.1-21.2-5); or
(3) a corporation or other entity that:
(A) is not a body corporate and politic established as an
instrumentality of the state; and
(B) has issued bonds that are payable directly or indirectly
from lease rentals payable by a political subdivision or
district described in subdivision (1) or (2).
(j) "Special benefit taxes" means a special tax levied and collected
on an ad valorem basis on property for the purpose of financing local
public improvements that:
(1) are not political or governmental in nature; and
(2) are of special benefit to the residents and property of the
area.
(k) "Tax increment revenues" means an allocation of:
(1) ad valorem property taxes;
(2) state or local adjusted gross income taxes; or
(3) state or local gross retail and use taxes;
to a redevelopment district that is based on an increase in the
assessed value, wages, sales, or other economic activity occurring in
a designated area. The term includes allocations described in
IC 5-28-26-9, IC 6-1.1-21.2-10, IC 36-7-26-10, IC 36-7-27-8,
IC 36-7-31-6, and IC 36-7-31.3-4.
(l) "Redevelopment district" refers to the following:
(1) An airport development zone under IC 8-22-3.5.
(2) A redevelopment district established under:
(A) IC 36-7-14; or
(B) IC 36-7-15.1.
(3) A special taxing district described in:
(A) IC 36-7-14.5-12.5(d); or
(B) IC 36-7-30-3(b).
(4) Another public entity to which tax increment revenues are
allocated.
(m) Words used in this chapter importing singular or plural
number may be construed so that one (1) number includes both. (Formerly: Acts 1973, P.L.28, SEC.1; Acts 1975, P.L.36, SEC.1.) As
amended by P.L.2-2006, SEC.8; P.L.146-2008, SEC.23.
IC 5-1-5-2 Issuance of bonds to refund outstanding bonds
Sec. 2. (a) The governing body of any issuing body may by
ordinance provide for the issuance of bonds to refund outstanding
bonds issued at any time by such issuing body or its predecessor, and
to pay redemption premiums and costs of refunding to effect a saving
to the issuing body. Issuance of bonds to refund outstanding bonds
may also be made in order to pay or discharge all or any part of such
outstanding series or issue of bond, including any interest thereon, in
arrears or about to become due and for which sufficient funds are not
available or to modify restrictive covenants in outstanding bonds
impeding additional financing. To determine whether or not a
savings will be effected, consideration shall be given to the estimated
or known interest payable to the fixed maturities of the refunding
bonds, the interest payable on the bonds to be refunded, the costs of
issuance of the refunding bonds, including any sale discount, the
redemption premiums, if any, to be paid, and the probable earned
income from the investment of the refunding bond proceeds pending
redemption of the bonds to be refunded.
(b) The provisions of subsection (a) requiring a savings to be
effected do not apply to the issuance of bonds to refund previously
issued refunding bonds, if the statute under which the refunding
bonds are issued expressly exempts such an issue from this savings
requirement. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.2; P.L.23-1984, SEC.1.
IC 5-1-5-3 Exchange for outstanding bonds
Sec. 3. Any bonds issued for refunding purposes may be delivered
in exchange for the outstanding bonds being refunded or may be sold
in the manner hereinafter provided. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-4 Refunding procedure
Sec. 4. (a) Bonds may be refunded under this chapter when the
holders thereof voluntarily surrender them for exchange or payment,
or, if they mature, or are subject to redemption prior to maturity
within twenty (20) years from the date of the refunding bonds. In any
advance refunding plan under this chapter the governing body shall
provide in the ordinance authorizing the issuance of the advance
refunding bonds for the redemption of the bonds to be refunded on
any redemption date prior to maturity or at maturity.
(b) The ordinance authorizing the issuance of advance refunding
bonds pursuant to this chapter may provide for a maximum interest
rate, payable annually or at shorter intervals, and shall provide for
the maturities at such time or times as may be determined by the
ordinance. The bonds may be made redeemable before maturity at
the option of the issuing body at such times and with such premiums,
and under such terms and conditions as may be fixed in the
ordinance.
(c) The principal and interest of the bonds may be made payable
in any lawful medium. The ordinance shall determine the form of the
bonds, including the interest coupons if any to be attached thereto,
and shall fix the denomination or denominations of the bonds and the
place or places of payment of the principal and interest thereof,
which may be at any bank or trust company within or without the
state.
(d) Subject to registration provisions, all such bonds shall have all
the qualities and the incidents of negotiable instruments under the
negotiable instruments law of the state. The bonds shall be exempt
from all taxation, state, county, and municipal, as provided in
IC 6-8-5. Provision may be made for the registration of any of the
bonds in the name of the owner as to principal alone, or as to both
principal and interest, but fully registered bonds shall be made
convertible to coupon bonds at the option of the registered owner.
The bonds shall be executed in the same manner as other bonds
issued by the issuing body are executed. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by P.L.23-1984,
SEC.2.
IC 5-1-5-5 Principal amount; reserves to secure bonds
Sec. 5. Refunding bonds may be issued in a principal amount in
excess of the principal amount of the bonds to be refunded. The
principal amount of the refunding bonds may be less than or the same
as the principal amount of the bonds being refunded so long as
provision is duly and sufficiently made for the retirement or
redemption of such bonds to be refunded. Any reserves held to
secure the bonds to be refunded may be applied at the time the bonds
to be refunded are paid to the redemption or retirement of such
bonds, or if other available funds are sufficient and are used to retire
and redeem such bonds, such reserves may be pledged as security for
the refunding bonds. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-6 Proceeds of refunding bonds; disposition
Sec. 6. The proceeds of the refunding bonds issued pursuant to
this chapter shall be placed in escrow and applied, with any other
available funds, to the payment on the date selected for redemption
of the principal, accrued interest and any redemption premiums of
the bonds being refunded, and, if so provided or permitted in the
ordinance authorizing the issuance of such refunding bonds or in the
trust indenture securing the same, may also be applied to the payment
of any interest on such refunding bonds, and any costs of refunding.
Pending such application, such escrowed proceeds may be invested
in direct obligations of, or obligations the principal of and the
interest on which are unconditionally guaranteed by the United
States of America, which shall mature, or which shall be subject to
redemption by the holder thereof at the option of such holder, not
later than the respective dates when the proceeds, together with the
interest accruing thereon, will be required for the purposes intended.
In lieu of such investments, all or part of such proceeds may be
placed in interest bearing time certificates of deposits with such
eligible financial institutions in the state of Indiana as the governing
body shall determine or other similar arrangements may be made
with such eligible financial institutions with regard thereto which
will assure that such proceeds, together with the interest accruing
thereon, will be available when required for the purposes intended,
provided that prior written approval of the Director of the
Department of Financial Institutions shall be required whenever such
time certificates of deposits or other similar arrangements shall be
secured to the full amount thereof by direct obligations of, or
obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States of America of the
type permitted for direct investment of the escrow fund. All interest
or other income earned on such investments shall first be used to pay
the interest on the refunding bonds as it becomes due. Any excess
shall become a part of and held in the escrow fund. Any balance
remaining in the escrow fund after redemption of all the bonds being
refunded shall be deposited in the sinking fund after redemption of
all the bonds being refunded shall be deposited in the sinking fund
established for the payment of the principal and interest on the
refunding bonds. (Formerly: Acts 1973, P.L.28, SEC.1; Acts 1974, P.L.12, SEC.1.)
IC 5-1-5-7 Safekeeping and application of bond proceeds
Sec. 7. The governing body may contract with respect to the
safekeeping and application of the advance refunding bond proceeds
and other funds included therewith and the income therefrom. The
governing body may provide in the refunding plan that until such
moneys are required to redeem or retire revenue bonds to be
refunded, the refunding bond proceeds and other available funds, and
the income therefrom shall be used to pay and secure the payment of
the principal of and interest on the advance refunding bonds. The
governing body may additionally pledge for the payment of such
refunding bonds any revenues which might legally be pledged for the
payment of revenue bonds of the issuer of the type being refunded.
Provisions must be made by the governing body for moneys
sufficient in amount to accomplish the refunding as scheduled. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-8 Trust indenture to secure bonds
Sec. 8. (a) The governing body may secure the bonds by a trust
indenture by and between the issuing body and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or outside of the state of Indiana, and may convey
or mortgage property to the same extent as is authorized by statutes
applicable to:
(1) the bonds being refunded; or
(2) the bonds that the bonds being refunded had previously
refunded.
(b) The ordinance authorizing the bonds and fixing the details
thereof may provide that the trust indenture may contain such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper, not in violation of
law, including covenants setting forth the duties of the issuing body.
(c) The trust indenture may set forth the rights and remedies of the
bondholders or trustee, restricting the individual right of action of
bondholders as is customary in trust indenture securing bonds and
debentures of corporations. Except as is in this chapter otherwise
provided, the governing body may provide by ordinance or in the
trust indenture for any other terms or conditions pertaining to the
refunding bonds as is authorized by statutes applicable to:
(1) the bonds being refunded; or
(2) the bonds that the bonds being refunded had previously
refunded. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.3.
IC 5-1-5-9 Payment of bonds; sources of revenue
Sec. 9. When an issuing body has irrevocably set aside for and
pledged to the payment of revenue bonds to be refunded, advance
refunding bond proceeds and other moneys in amounts which
together with known earned income from the investment thereof are
sufficient in amount to pay the principal of and interest and any
redemption premiums on such revenue bonds as the same become
due and to accomplish the refunding as scheduled, the governing
body may provide that the advance refunding revenue bonds shall be
payable from any source which, either at the time of the issuance of
the advance refunding bonds or the revenue bonds to be refunded,
might legally be or have been pledged for the payment of the revenue
bonds refunded to the extent it may legally do so, notwithstanding
the pledge of such revenues for the payment of the outstanding
revenue bonds being refunded. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-10 Irrevocable pledge to general obligation bond; effect
Sec. 10. When funds and investments and the known earned
income therefrom in amounts sufficient to pay the principal of and
interest and any premium on bonds to be refunded as they become
due at their respective maturities or at the date fixed for redemption
have been irrevocably pledged to the bonds to be refunded, such
bonds shall not constitute an indebtedness of the issuing body within
the meaning of any constitutional or statutory debt limitation. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by P.L.44-1987,
SEC.1.
IC 5-1-5-11 Issuance; separate or in combination
Sec. 11. Bonds for refunding and bonds for any other purpose or
purposes authorized may be issued separately or issued in
combination in one (1) or more series or issues by the same issuer. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-12 Law governing issuance
Sec. 12. Except as specifically provided in this chapter, refunding
bonds issued under this chapter shall be issued in accordance with
the provisions of law applicable, either at the time of the issuance of
the refunding bonds or at the time of issuance of the bonds to be
refunded, to:
(1) the type of bonds being refunded; or
(2) the type of bonds that the bonds being refunded had
previously refunded. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.4.
IC 5-1-5-13 Sale of bonds
Sec. 13. Refunding bonds issued under the provisions of this
chapter may be sold in such manner and upon such terms and
conditions as the issuer of such refunding bonds shall deem to be in
the best interests of the issuing body, notwithstanding the provisions
of IC 21-32-3, nor the provisions of IC 5-1-11, nor the provisions of
any other law to the contrary. However, if such refunding bonds are
sold to any person, limited liability company, firm, or corporation
that has been rendering financial advisory services to the issuing
body in connection with the proceedings and necessary fiscal
arrangements related to such refunding bonds, then and in that event
the issuing body shall not pay to such purchaser of the refunding
bonds any fee or compensation for services rendered or as
reimbursement for expenses incurred in connection therewith. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1981,
P.L.11, SEC.15; P.L.8-1993, SEC.45; P.L.2-2007, SEC.67.
IC 5-1-5-14 Cumulative effect of chapter
Sec. 14. The authority of an issuing body to issue refunding bonds
pursuant to this chapter is additional to any existing authority to issue
such bonds and nothing in this chapter shall prevent the issuance of
such bonds pursuant to any other law, and this chapter shall not be
construed to amend any existing law authorizing the issuance of
refunding bonds by an issuing body. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-15 Lease modifications
Sec. 15. In connection with the issuance of refunding bonds, an
issuing body and the lessee, or lessees, of any building, or buildings,
financed from the proceeds of the bonds being refunded may enter
into an amendment to the lease modifying or amending the
provisions of such lease in any one (1) or more of the following
respects:
(a) to provide for a reduction in the amount of lease rental payable
by the lessee, or lessees, to be effective upon the redemption of the
bonds being refunded; or the happening of the events set forth in
section 9 of this chapter if permitted by law and the covenants on the
bonds to be refunded;
(b) to provide for extensions or reductions of the times set forth
in the lease before the options of the lessee or lessees to purchase
may be exercised to such times as may be agreed upon between the
issuing body and the lessee or lessees;
(c) to provide that the lease rental payable by the lessee or lessees,
after the redemption of all the bonds being refunded may be payable
to the trustee under a trust indenture securing such refunding bonds.
The refunding herein authorized shall in no way affect the
obligation of the lessee or lessees to pay the lease rental under the
lease of the building or buildings, except to the extent such lease
rental may be reduced by any amendment as hereinbefore authorized. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-16 Advance refunding bonds; issuance
Sec. 16. Notwithstanding any other law, advance refunding bonds
may be issued by an issuing body without obtaining the approval of
the utility regulatory commission whether such advance refunding
bonds are issued under this chapter or any other law. As added by P.L.44-1987, SEC.2. Amended by P.L.23-1988, SEC.3.
IC 5-1-5-17 Last date for payment of certain refunding bonds
Sec. 17. (a) This section applies to bonds that are:
(1) issued after June 30, 2008, by a local issuing body; and
(2) payable from ad valorem property taxes, special benefit
taxes on property, or tax increment revenues derived from
property taxes;
including bonds that are issued under a statute that permits the bonds
to be issued without complying with any other law or otherwise
expressly exempts the bonds from the requirements of this section.
(b) The last date permitted under an agreement for the payment of
principal and interest on bonds that are issued to retire or otherwise
refund other revenue bonds or general obligation bonds may not
extend beyond the maximum term of the bonds being refunded. As added by P.L.146-2008, SEC.24.
IC 5-1-5-18 Use of savings from refunding of bonds
Sec. 18. (a) This section applies to bonds that are:
(1) issued after June 30, 2008, by a local issuing body; and
(2) payable from ad valorem property taxes, special benefit
taxes on property, or tax increment revenues derived from
property taxes;
including bonds that are issued under a statute that permits the bonds
to be issued without complying with any other law or otherwise
expressly exempts the bonds from the requirements of this section.
(b) Savings (as computed under section 2 of this chapter) that
accrue from the issuance of bonds to retire or otherwise refund other
bonds may be used only for the following purposes:
(1) To maintain a debt service reserve fund for the refunding
bonds at the level required under the terms of the refunding
bonds, if the local issuing body adopts an ordinance, resolution,
or order authorizing that use of the proceeds or earnings.
(2) To pay the principal or interest, or both, on:
(A) the refunding bonds; or
(B) other bonds, if the issuing body approves an ordinance
authorizing the use of the savings to pay principal or interest
on other bonds.
(3) To reduce the rate or amount of ad valorem property taxes,
special benefit taxes on property, or tax increment revenues
imposed by or allocated to the local issuing body. As added by P.L.146-2008, SEC.25.
IC 5-1-5-1 Definitions
Sec. 1. The following terms as used in this chapter have the
following meanings:
(a) "Governing body" means the council, commission, board of
commissioners, board of directors, board of trustees, or other
legislative body in which the legislative powers of the issuing body
are vested.
(b) "Issuing body" means the state of Indiana, its agencies,
commissions, universities, colleges, institutions, political
subdivisions, counties, school corporations, hospital associations,
municipal and quasi-municipal corporations, special taxing districts,
and any corporation which has issued bonds payable directly or
indirectly from lease rentals payable by any of the foregoing issuing
bodies, now or hereafter existing under the laws of the state.
(c) "Bond" means any revenue bond, general obligation bond, or
advance refunding bond.
(d) "Revenue bond" means any bond note, warrant, certificate of
indebtedness, or other obligation, including a certificate or other
evidence of participation in the lessor's interest in and rights under
a lease, for the payment of money issued by an issuing body or any
predecessor of any issuing body which is payable from designated
revenues, rental payments, special benefits, taxes, or a special fund
but excluding any obligation constituting an indebtedness within the
meaning of the constitutional debt limitation and any obligation
payable solely from special assessments or special assessments and
a guaranty fund.
(e) "General obligation bond" means any bond, note, warrant,
certificate of indebtedness, or other obligation of an issuing body
which constitutes an indebtedness within the meaning of the
constitutional debt limitation.
(f) "Advance refunding bonds" means bonds issued for the
purpose of refunding bonds first subject to redemption or maturing
after the date of the advance refunding bonds.
(g) "Ordinance" means an ordinance of a city or town or
resolution or other instrument by which the governing body of the
issuing body exercising any power hereunder takes formal action and
adopts legislative provisions and matters of some permanency.
(h) "Corporation which has issued bonds" means a corporation
organized under IC 20-47-2 or IC 20-47-3, the laws of any state of
the United States of America or of the United States of America,
including any bank, trust company, or national association serving as
a trustee under an indenture providing for issuance of bonds.
(i) "Local issuing body" means an issuing body that is:
(1) a political subdivision (as defined in IC 36-1-2-13);
(2) a district (as defined in IC 6-1.1-21.2-5); or
(3) a corporation or other entity that:
(A) is not a body corporate and politic established as an
instrumentality of the state; and
(B) has issued bonds that are payable directly or indirectly
from lease rentals payable by a political subdivision or
district described in subdivision (1) or (2).
(j) "Special benefit taxes" means a special tax levied and collected
on an ad valorem basis on property for the purpose of financing local
public improvements that:
(1) are not political or governmental in nature; and
(2) are of special benefit to the residents and property of the
area.
(k) "Tax increment revenues" means an allocation of:
(1) ad valorem property taxes;
(2) state or local adjusted gross income taxes; or
(3) state or local gross retail and use taxes;
to a redevelopment district that is based on an increase in the
assessed value, wages, sales, or other economic activity occurring in
a designated area. The term includes allocations described in
IC 5-28-26-9, IC 6-1.1-21.2-10, IC 36-7-26-10, IC 36-7-27-8,
IC 36-7-31-6, and IC 36-7-31.3-4.
(l) "Redevelopment district" refers to the following:
(1) An airport development zone under IC 8-22-3.5.
(2) A redevelopment district established under:
(A) IC 36-7-14; or
(B) IC 36-7-15.1.
(3) A special taxing district described in:
(A) IC 36-7-14.5-12.5(d); or
(B) IC 36-7-30-3(b).
(4) Another public entity to which tax increment revenues are
allocated.
(m) Words used in this chapter importing singular or plural
number may be construed so that one (1) number includes both. (Formerly: Acts 1973, P.L.28, SEC.1; Acts 1975, P.L.36, SEC.1.) As
amended by P.L.2-2006, SEC.8; P.L.146-2008, SEC.23.
IC 5-1-5-2 Issuance of bonds to refund outstanding bonds
Sec. 2. (a) The governing body of any issuing body may by
ordinance provide for the issuance of bonds to refund outstanding
bonds issued at any time by such issuing body or its predecessor, and
to pay redemption premiums and costs of refunding to effect a saving
to the issuing body. Issuance of bonds to refund outstanding bonds
may also be made in order to pay or discharge all or any part of such
outstanding series or issue of bond, including any interest thereon, in
arrears or about to become due and for which sufficient funds are not
available or to modify restrictive covenants in outstanding bonds
impeding additional financing. To determine whether or not a
savings will be effected, consideration shall be given to the estimated
or known interest payable to the fixed maturities of the refunding
bonds, the interest payable on the bonds to be refunded, the costs of
issuance of the refunding bonds, including any sale discount, the
redemption premiums, if any, to be paid, and the probable earned
income from the investment of the refunding bond proceeds pending
redemption of the bonds to be refunded.
(b) The provisions of subsection (a) requiring a savings to be
effected do not apply to the issuance of bonds to refund previously
issued refunding bonds, if the statute under which the refunding
bonds are issued expressly exempts such an issue from this savings
requirement. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.2; P.L.23-1984, SEC.1.
IC 5-1-5-3 Exchange for outstanding bonds
Sec. 3. Any bonds issued for refunding purposes may be delivered
in exchange for the outstanding bonds being refunded or may be sold
in the manner hereinafter provided. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-4 Refunding procedure
Sec. 4. (a) Bonds may be refunded under this chapter when the
holders thereof voluntarily surrender them for exchange or payment,
or, if they mature, or are subject to redemption prior to maturity
within twenty (20) years from the date of the refunding bonds. In any
advance refunding plan under this chapter the governing body shall
provide in the ordinance authorizing the issuance of the advance
refunding bonds for the redemption of the bonds to be refunded on
any redemption date prior to maturity or at maturity.
(b) The ordinance authorizing the issuance of advance refunding
bonds pursuant to this chapter may provide for a maximum interest
rate, payable annually or at shorter intervals, and shall provide for
the maturities at such time or times as may be determined by the
ordinance. The bonds may be made redeemable before maturity at
the option of the issuing body at such times and with such premiums,
and under such terms and conditions as may be fixed in the
ordinance.
(c) The principal and interest of the bonds may be made payable
in any lawful medium. The ordinance shall determine the form of the
bonds, including the interest coupons if any to be attached thereto,
and shall fix the denomination or denominations of the bonds and the
place or places of payment of the principal and interest thereof,
which may be at any bank or trust company within or without the
state.
(d) Subject to registration provisions, all such bonds shall have all
the qualities and the incidents of negotiable instruments under the
negotiable instruments law of the state. The bonds shall be exempt
from all taxation, state, county, and municipal, as provided in
IC 6-8-5. Provision may be made for the registration of any of the
bonds in the name of the owner as to principal alone, or as to both
principal and interest, but fully registered bonds shall be made
convertible to coupon bonds at the option of the registered owner.
The bonds shall be executed in the same manner as other bonds
issued by the issuing body are executed. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by P.L.23-1984,
SEC.2.
IC 5-1-5-5 Principal amount; reserves to secure bonds
Sec. 5. Refunding bonds may be issued in a principal amount in
excess of the principal amount of the bonds to be refunded. The
principal amount of the refunding bonds may be less than or the same
as the principal amount of the bonds being refunded so long as
provision is duly and sufficiently made for the retirement or
redemption of such bonds to be refunded. Any reserves held to
secure the bonds to be refunded may be applied at the time the bonds
to be refunded are paid to the redemption or retirement of such
bonds, or if other available funds are sufficient and are used to retire
and redeem such bonds, such reserves may be pledged as security for
the refunding bonds. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-6 Proceeds of refunding bonds; disposition
Sec. 6. The proceeds of the refunding bonds issued pursuant to
this chapter shall be placed in escrow and applied, with any other
available funds, to the payment on the date selected for redemption
of the principal, accrued interest and any redemption premiums of
the bonds being refunded, and, if so provided or permitted in the
ordinance authorizing the issuance of such refunding bonds or in the
trust indenture securing the same, may also be applied to the payment
of any interest on such refunding bonds, and any costs of refunding.
Pending such application, such escrowed proceeds may be invested
in direct obligations of, or obligations the principal of and the
interest on which are unconditionally guaranteed by the United
States of America, which shall mature, or which shall be subject to
redemption by the holder thereof at the option of such holder, not
later than the respective dates when the proceeds, together with the
interest accruing thereon, will be required for the purposes intended.
In lieu of such investments, all or part of such proceeds may be
placed in interest bearing time certificates of deposits with such
eligible financial institutions in the state of Indiana as the governing
body shall determine or other similar arrangements may be made
with such eligible financial institutions with regard thereto which
will assure that such proceeds, together with the interest accruing
thereon, will be available when required for the purposes intended,
provided that prior written approval of the Director of the
Department of Financial Institutions shall be required whenever such
time certificates of deposits or other similar arrangements shall be
secured to the full amount thereof by direct obligations of, or
obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States of America of the
type permitted for direct investment of the escrow fund. All interest
or other income earned on such investments shall first be used to pay
the interest on the refunding bonds as it becomes due. Any excess
shall become a part of and held in the escrow fund. Any balance
remaining in the escrow fund after redemption of all the bonds being
refunded shall be deposited in the sinking fund after redemption of
all the bonds being refunded shall be deposited in the sinking fund
established for the payment of the principal and interest on the
refunding bonds. (Formerly: Acts 1973, P.L.28, SEC.1; Acts 1974, P.L.12, SEC.1.)
IC 5-1-5-7 Safekeeping and application of bond proceeds
Sec. 7. The governing body may contract with respect to the
safekeeping and application of the advance refunding bond proceeds
and other funds included therewith and the income therefrom. The
governing body may provide in the refunding plan that until such
moneys are required to redeem or retire revenue bonds to be
refunded, the refunding bond proceeds and other available funds, and
the income therefrom shall be used to pay and secure the payment of
the principal of and interest on the advance refunding bonds. The
governing body may additionally pledge for the payment of such
refunding bonds any revenues which might legally be pledged for the
payment of revenue bonds of the issuer of the type being refunded.
Provisions must be made by the governing body for moneys
sufficient in amount to accomplish the refunding as scheduled. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-8 Trust indenture to secure bonds
Sec. 8. (a) The governing body may secure the bonds by a trust
indenture by and between the issuing body and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or outside of the state of Indiana, and may convey
or mortgage property to the same extent as is authorized by statutes
applicable to:
(1) the bonds being refunded; or
(2) the bonds that the bonds being refunded had previously
refunded.
(b) The ordinance authorizing the bonds and fixing the details
thereof may provide that the trust indenture may contain such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper, not in violation of
law, including covenants setting forth the duties of the issuing body.
(c) The trust indenture may set forth the rights and remedies of the
bondholders or trustee, restricting the individual right of action of
bondholders as is customary in trust indenture securing bonds and
debentures of corporations. Except as is in this chapter otherwise
provided, the governing body may provide by ordinance or in the
trust indenture for any other terms or conditions pertaining to the
refunding bonds as is authorized by statutes applicable to:
(1) the bonds being refunded; or
(2) the bonds that the bonds being refunded had previously
refunded. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.3.
IC 5-1-5-9 Payment of bonds; sources of revenue
Sec. 9. When an issuing body has irrevocably set aside for and
pledged to the payment of revenue bonds to be refunded, advance
refunding bond proceeds and other moneys in amounts which
together with known earned income from the investment thereof are
sufficient in amount to pay the principal of and interest and any
redemption premiums on such revenue bonds as the same become
due and to accomplish the refunding as scheduled, the governing
body may provide that the advance refunding revenue bonds shall be
payable from any source which, either at the time of the issuance of
the advance refunding bonds or the revenue bonds to be refunded,
might legally be or have been pledged for the payment of the revenue
bonds refunded to the extent it may legally do so, notwithstanding
the pledge of such revenues for the payment of the outstanding
revenue bonds being refunded. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-10 Irrevocable pledge to general obligation bond; effect
Sec. 10. When funds and investments and the known earned
income therefrom in amounts sufficient to pay the principal of and
interest and any premium on bonds to be refunded as they become
due at their respective maturities or at the date fixed for redemption
have been irrevocably pledged to the bonds to be refunded, such
bonds shall not constitute an indebtedness of the issuing body within
the meaning of any constitutional or statutory debt limitation. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by P.L.44-1987,
SEC.1.
IC 5-1-5-11 Issuance; separate or in combination
Sec. 11. Bonds for refunding and bonds for any other purpose or
purposes authorized may be issued separately or issued in
combination in one (1) or more series or issues by the same issuer. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-12 Law governing issuance
Sec. 12. Except as specifically provided in this chapter, refunding
bonds issued under this chapter shall be issued in accordance with
the provisions of law applicable, either at the time of the issuance of
the refunding bonds or at the time of issuance of the bonds to be
refunded, to:
(1) the type of bonds being refunded; or
(2) the type of bonds that the bonds being refunded had
previously refunded. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1982,
P.L.28, SEC.4.
IC 5-1-5-13 Sale of bonds
Sec. 13. Refunding bonds issued under the provisions of this
chapter may be sold in such manner and upon such terms and
conditions as the issuer of such refunding bonds shall deem to be in
the best interests of the issuing body, notwithstanding the provisions
of IC 21-32-3, nor the provisions of IC 5-1-11, nor the provisions of
any other law to the contrary. However, if such refunding bonds are
sold to any person, limited liability company, firm, or corporation
that has been rendering financial advisory services to the issuing
body in connection with the proceedings and necessary fiscal
arrangements related to such refunding bonds, then and in that event
the issuing body shall not pay to such purchaser of the refunding
bonds any fee or compensation for services rendered or as
reimbursement for expenses incurred in connection therewith. (Formerly: Acts 1973, P.L.28, SEC.1.) As amended by Acts 1981,
P.L.11, SEC.15; P.L.8-1993, SEC.45; P.L.2-2007, SEC.67.
IC 5-1-5-14 Cumulative effect of chapter
Sec. 14. The authority of an issuing body to issue refunding bonds
pursuant to this chapter is additional to any existing authority to issue
such bonds and nothing in this chapter shall prevent the issuance of
such bonds pursuant to any other law, and this chapter shall not be
construed to amend any existing law authorizing the issuance of
refunding bonds by an issuing body. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-15 Lease modifications
Sec. 15. In connection with the issuance of refunding bonds, an
issuing body and the lessee, or lessees, of any building, or buildings,
financed from the proceeds of the bonds being refunded may enter
into an amendment to the lease modifying or amending the
provisions of such lease in any one (1) or more of the following
respects:
(a) to provide for a reduction in the amount of lease rental payable
by the lessee, or lessees, to be effective upon the redemption of the
bonds being refunded; or the happening of the events set forth in
section 9 of this chapter if permitted by law and the covenants on the
bonds to be refunded;
(b) to provide for extensions or reductions of the times set forth
in the lease before the options of the lessee or lessees to purchase
may be exercised to such times as may be agreed upon between the
issuing body and the lessee or lessees;
(c) to provide that the lease rental payable by the lessee or lessees,
after the redemption of all the bonds being refunded may be payable
to the trustee under a trust indenture securing such refunding bonds.
The refunding herein authorized shall in no way affect the
obligation of the lessee or lessees to pay the lease rental under the
lease of the building or buildings, except to the extent such lease
rental may be reduced by any amendment as hereinbefore authorized. (Formerly: Acts 1973, P.L.28, SEC.1.)
IC 5-1-5-16 Advance refunding bonds; issuance
Sec. 16. Notwithstanding any other law, advance refunding bonds
may be issued by an issuing body without obtaining the approval of
the utility regulatory commission whether such advance refunding
bonds are issued under this chapter or any other law. As added by P.L.44-1987, SEC.2. Amended by P.L.23-1988, SEC.3.
IC 5-1-5-17 Last date for payment of certain refunding bonds
Sec. 17. (a) This section applies to bonds that are:
(1) issued after June 30, 2008, by a local issuing body; and
(2) payable from ad valorem property taxes, special benefit
taxes on property, or tax increment revenues derived from
property taxes;
including bonds that are issued under a statute that permits the bonds
to be issued without complying with any other law or otherwise
expressly exempts the bonds from the requirements of this section.
(b) The last date permitted under an agreement for the payment of
principal and interest on bonds that are issued to retire or otherwise
refund other revenue bonds or general obligation bonds may not
extend beyond the maximum term of the bonds being refunded. As added by P.L.146-2008, SEC.24.
IC 5-1-5-18 Use of savings from refunding of bonds
Sec. 18. (a) This section applies to bonds that are:
(1) issued after June 30, 2008, by a local issuing body; and
(2) payable from ad valorem property taxes, special benefit
taxes on property, or tax increment revenues derived from
property taxes;
including bonds that are issued under a statute that permits the bonds
to be issued without complying with any other law or otherwise
expressly exempts the bonds from the requirements of this section.
(b) Savings (as computed under section 2 of this chapter) that
accrue from the issuance of bonds to retire or otherwise refund other
bonds may be used only for the following purposes:
(1) To maintain a debt service reserve fund for the refunding
bonds at the level required under the terms of the refunding
bonds, if the local issuing body adopts an ordinance, resolution,
or order authorizing that use of the proceeds or earnings.
(2) To pay the principal or interest, or both, on:
(A) the refunding bonds; or
(B) other bonds, if the issuing body approves an ordinance
authorizing the use of the savings to pay principal or interest
on other bonds.
(3) To reduce the rate or amount of ad valorem property taxes,
special benefit taxes on property, or tax increment revenues
imposed by or allocated to the local issuing body. As added by P.L.146-2008, SEC.25.
