CHAPTER 11. BONDS
IC 14-33-11
Chapter 11. Bonds
IC 14-33-11-1
Purpose of bonds
Sec. 1. The board may issue bonds to pay the following:
(1) The cost of the works that are provided in the district plan.
(2) Necessary engineering, legal, and administrative fees.
(3) The repayment or refinancing of a loan.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-2
Total amount of bonds
Sec. 2. The total amount of bonds issued may not exceed the cost
less the following:
(1) Money on hand from the collection of assessments.
(2) Money on hand or obligated to the district by the state or
federal government.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-3
Method of issuance
Sec. 3. Bonds may be issued by either of the following methods:
(1) Solely against the revenues expected to be produced by the
operation of the district. The board may make proper
contractual arrangements to pay the bonds from the net
revenues produced.
(2) Against the real property of the district in anticipation of the
collection of special benefits taxes. Bonds issued against the
real property of the district may be paid in part:
(A) by revenues derived from reasonable charges for
services or property produced incident to the operation of the
district; or
(B) from the collection of assessments for exceptional
benefits.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-4
Payment of bonds
Sec. 4. (a) Revenue bonds issued for the payment of works of
improvement for the collection, treatment, and disposal of sewage
and other liquid wastes may provide that the principal and interest
shall be paid:
(1) solely from the net revenue of the sewage works, which is
gross revenues after deduction only for the reasonable expenses
of operation and maintenance; or
(2) from a combination of net revenue and other money
available to a district by:
(A) levy;
(B) special benefits taxes; or
(C) assessment of exceptional benefits.
(b) The board may covenant with the holders of the bonds to pay:
(1) a certain percentage of principal and interest from the
revenue;
(2) a certain percentage from the other money to maintain a
reasonable reserve from the other money that may be used for
payment of principal and interest if the revenue is not sufficient;
or
(3) both.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-5
Restrictions in issuance
Sec. 5. (a) Bonds:
(1) may be issued in any denomination;
(2) may bear interest at any rate, with interest payable on
January 1 and July 1;
(3) shall be issued in not less than ten (10) series and not more
than fifty (50) series; and
(4) are payable, one (1) series each year, beginning on January
1 of the second year following the date of issue and subject to
the following:
(A) If the bond issue is authorized in a year after the regular
levymaking period, the first series matures on January 1 of
the third succeeding year.
(B) The balance of the issue is payable at annual intervals.
(C) The annual maturities do not have to be in an equal
amount.
(b) The bonds issued are exempt from taxation by the state.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-6
Negotiability, registration, advertisement, and sale
Sec. 6. Bonds issued:
(1) must be negotiable;
(2) may be registered; and
(3) shall be advertised and sold in the manner provided by
general statutes concerning the sale of bonds.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-7
Interest of directors; disclosure
Sec. 7. (a) This section applies to a district:
(1) that has been established with a few freeholders or even
only one (1) freeholder; and
(2) for which the accomplishment of the district's purposes is
necessary and desirable primarily for persons purchasing and
using the land after subdivision and development.
(b) Notwithstanding other statutes, the board may enter into a
contract agreement, before the award of bonds, with a person directly
or indirectly interested in bidding on or purchasing the bonds if
approval is received from the Indiana utility regulatory commission
after a petition is filed by the board containing disclosure of the
interest that any of the directors have in the land involved and in the
person who is interested in bidding on or purchasing the bonds.
(c) The Indiana utility regulatory commission shall give approval
if the Indiana utility regulatory commission finds that:
(1) full disclosure has been made; and
(2) persons who are using or will be using the land will
probably receive the benefits from the proposed works of
improvement at a fair and reasonable cost comparable to the
cost for benefits from the improvements in similar locations and
situations.
Profits or loss to the person bidding on the bonds may not be the
determining factor in approval.
As added by P.L.1-1995, SEC.26.
IC 14-33-11-8
Notice of sale; right to remonstrate against or vote against bonds
Sec. 8. (a) Before offering bonds for sale, the board shall give
notice in the same manner as is required by IC 6-1.1-20 for the sale
of bonds by municipal corporations.
(b) Persons affected are entitled to:
(1) remonstrate against issuance of the bonds (in the case of a
preliminary determination made before July 1, 2008, to issue
bonds); or
(2) vote on the proposed issuance of bonds in an election on a
local public question (in the case of a preliminary determination
made after June 30, 2008, to issue bonds).
(c) An action to question the validity of the bonds may not be
instituted after the date fixed for sale, and the bonds are incontestable
after that time.
As added by P.L.1-1995, SEC.26. Amended by P.L.146-2008,
SEC.429.
IC 14-33-11-9
Denial of right to issue bonds
Sec. 9. If the board is denied the right to issue bonds as a result of
remonstrance proceedings or an election on a local public question
held under IC 6-1.1-20-3.6:
(1) all contracts let by the board for work to be paid from the
sale of bonds are void; and
(2) no liability accrues to the district or to the board.
As added by P.L.1-1995, SEC.26. Amended by P.L.146-2008,
SEC.430.