CHAPTER 9. BENEVOLENT HOSPITALS IN CERTAIN TOWNSHIPS
IC 16-23-9
Chapter 9. Benevolent Hospitals in Certain Townships
IC 16-23-9-1
Application of chapter
Sec. 1. This chapter applies to a nonprofit hospital corporation
that:
(1) is located in a township having a population of more than
eight thousand (8,000) but less than ten thousand (10,000)
located in a county having a population of more than forty-five
thousand (45,000) but less than forty-five thousand nine
hundred (45,900);
(2) has a majority of members who are residents of the
township;
(3) is managed by directors, a majority of whom are residents
of the township and who serve without compensation;
(4) is free from political or sectarian influence and is required
by the hospital's articles of incorporation to be so managed and
maintained perpetually; and
(5) is unable to be maintained and supported and to perform the
hospital service reasonably needed and required for the people
of the township without assistance, as determined by the
township trustee and township board.
As added by P.L.2-1993, SEC.6. Amended by P.L.170-2002,
SEC.107.
IC 16-23-9-2
Tax levies
Sec. 2. The township board may, at the request of the township
trustee, levy annually and cause to be collected as other taxes are
collected a tax upon all of the taxable property within the township.
The tax may not exceed six and sixty-seven hundredths cents
($0.0667) on each one hundred dollars ($100) of assessed valuation.
The tax is for the use of the hospital in defraying the expenses of the
hospital's maintenance and support, for providing necessary
additions, and for the payment of mortgage indebtedness.
As added by P.L.2-1993, SEC.6. Amended by P.L.6-1997, SEC.176.
IC 16-23-9-3
Tax collection
Sec. 3. The taxes levied under section 2 of this chapter shall be
collected as provided by statute for the collection of other taxes upon
property in the township. When the taxes are collected, the taxes
shall be paid into the treasury of the nonprofit hospital corporation
and used for the purposes set out in section 2 of this chapter.
As added by P.L.2-1993, SEC.6.
IC 16-23-9-4
Authority to borrow funds; bonds; tax levies; bond proceeds
Sec. 4. (a) This section applies if the township trustee and the
township board of the township determine the following:
(1) That the hospital is indebted in an amount not exceeding
five thousand dollars ($5,000), the payment of which is secured
by a mortgage encumbering the buildings and grounds of the
hospital.
(2) That an addition to the hospital structure or additional
building or buildings, or equipment is required to enable the
hospital to efficiently carry on the hospital's activities under the
hospital's articles of incorporation.
(b) The township board may authorize the trustee, by special order
entered and signed upon the township board's records, to borrow an
amount on behalf of the township sufficient to pay the mortgage
indebtedness, or to construct and equip an addition to a building or
for an additional building. The township board may authorize the
trustee of the township to issue bonds of the township to pay the debt
created. The bonds:
(1) may run for a period not exceeding ten (10) years;
(2) may bear interest at any rate; and
(3) shall be sold by one (1) of the trustees, with the consent of
the township board, for not less than par value.
(c) The township board shall annually levy sufficient taxes to pay
at least one-tenth (1/10) of the township bonds, including interest,
and the township trustee shall apply the tax levy collected each year
to the retirement of the bonds and the payment of the interest on the
bonds. The bonds issued under this section may not exceed an
amount equal to one percent (1%) of the adjusted value of all the
taxable property in the township, including that in a town, as
determined under IC 36-1-15.
(d) This debt may not be created except by the township board in
the manner specified in this section. A payment of an unauthorized
debt by a trustee from public funds is recoverable upon the bond of
the trustee.
(e) The township trustee shall pay the proceeds from the
borrowing and the sale of bonds into the treasury of the hospital. The
hospital may use the money only to pay the mortgage indebtedness
for which bonds had been sold or for construction and equipment of
buildings or additions to buildings.
As added by P.L.2-1993, SEC.6. Amended by P.L.6-1997, SEC.177.
IC 16-23-9-5
Ex officio board membership by township trustees
Sec. 5. A township may not exercise the powers under this
chapter, raise money by taxation, or incur debt of the township on
behalf of a hospital unless the trustee of the township is an ex officio
member of the board of directors or other governing board of the
hospital throughout the term of the expenditure of all public money.
As added by P.L.2-1993, SEC.6.