CHAPTER 5. LEVEE ASSOCIATIONS; FEDERAL LOANS
IC 14-27-5
Chapter 5. Levee Associations; Federal Loans
IC 14-27-5-1
Applicability of chapter
Sec. 1. This chapter applies to the following:
(1) A levee association incorporated before March 10, 1967,
under Acts 1913, c.165, or a successor of the association.
(2) An association existing before March 10, 1967, under
IC 23-7-1 (repealed September 2, 1971) for the purpose of using
a statute:
(A) concerning levees, ditches, and improvements relating
to levees or ditches; and
(B) repealed by IC 19-3-2-106 (repealed April 1, 1980).
(3) A levee association complying with IC 14-27-4.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-2
Application for loan
Sec. 2. The board of directors of an association described in
section 1 of this chapter may apply to the federal Farmers Home
Administration, the United States Department of Housing and Urban
Development, or any other agency of the federal government
authorized by federal law to make loans for works of improvement
for a long term or short term loan to cover the association's expenses
in connection with the construction of a levee or ditch and any other
required or related improvements, including the following expenses:
(1) General, legal, and administrative expenses.
(2) The acquisition of land rights.
(3) Costs of engineering.
(4) Other costs of necessary construction and maintaining and
operating the works of improvement authorized by applicable
governmental authority.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-3
Evidence and security of loan
Sec. 3. A loan may be:
(1) evidenced by one (1) installment note or by a series of
notes; and
(2) secured by the collection of a special assessment levied as
provided in section 11 of this chapter.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-4
Terms of loan subject to agreement and federal law
Sec. 4. The following are subject to the agreement of the board of
directors and the federal agency and applicable federal law:
(1) The time repayment of a loan must begin.
(2) The term within which the loan is repaid.
(3) The amount of interest.
(4) The time of making payments of interest.
(5) The interval at which interest shall be paid.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-5
Petition for approval of loan
Sec. 5. Before making financial commitments described in this
chapter with a federal agency, the board of directors must file a
petition for approval of the proposed action in the circuit court of the
county in which the most land affected by the construction or
improvements lies. The petition must state the following for the
proposed loan:
(1) The purpose.
(2) The amount.
(3) The terms.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-6
Hearing on petition for approval of loan
Sec. 6. The court shall do the following:
(1) Set a date for a hearing.
(2) Allow at least twenty-one (21) days for an interested person
to file objections.
(3) Order notice for the hearing that the court considers
necessary. However, publication must at least be made in each
of the counties containing land within the affected area in
accordance with IC 5-3-1. The notice must set forth in summary
form the contents of the petition.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-7
Court approval of loan
Sec. 7. If at the hearing the court finds that:
(1) the loan as proposed in the petition is necessary for the
accomplishment of the purposes set forth in this chapter; and
(2) the terms and conditions are reasonable and probably are as
beneficial to accomplish the purposes as would be obtainable in
private competitive financial markets;
the court shall approve the petition and authorize the board of
directors to enter into the loan agreement.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-8
Levy of special assessment upon court approval
Sec. 8. Upon approval by the court, the board of directors may
levy the special assessments necessary for the repayment of the loan.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-9
Purposes of loan
Sec. 9. The board of directors may secure part or all of the money
necessary for the project under this chapter. The board of directors
may make the loan for any of the board's needs to cover the expenses
for which the loan is sought and maintaining and operating the works
of improvement that have been authorized by applicable
governmental authority. The loan may also be used to refinance a
prior loan whose proceeds have been used for any of the purposes
described in section 2 of this chapter.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-10
Offer of bond issue for sale to federal agency
Sec. 10. If the board of directors:
(1) decides not to enter into a loan agreement with a federal
agency by installment note or series of notes; and
(2) instead prepares a bond issue, in whole or in part;
the board of directors may offer the bond issue for sale to a federal
agency without a public offering or the securing of competitive bids
on the bond offering.
As added by P.L.1-1995, SEC.20.
IC 14-27-5-11
Repayment of loan by levy of special assessment
Sec. 11. A loan made under this chapter or under IC 13-2-29-1
(before its repeal) shall be repaid by levy of the special assessment
authorized on the real property within the proposed project. The
assessment against the landowners must be in the proportion that the
benefits assessed against each tract of real property bear to the total
benefits assessed as shown by the report of the appraisers appointed
by the board of commissioners of the county under Acts 1913, c.
165, s. 16. Statutes regulating:
(1) the payment and collection of state and county taxes;
(2) the placing of assessments on the tax rolls and the recording
of the assessments;
(3) the validity of the assessments;
(4) the assessment of penalties and interest; and
(5) the sale of property for delinquent taxes;
apply to the assessments.
As added by P.L.1-1995, SEC.20.