CHAPTER 37. BARRETT LAW FUNDING FOR MUNICIPALITIES
IC 36-9-37
Chapter 37. Barrett Law Funding for Municipalities
IC 36-9-37-1
Application of chapter
Sec. 1. This chapter applies to all municipalities.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-2
Repealed
(Repealed by P.L.97-2004, SEC.133.)
IC 36-9-37-3
Municipalities owning and operating water utilities; water main
extensions
Sec. 3. For municipalities that own and operate a water utility,
water main extensions from the water utility may be made under this
chapter only within the corporate boundaries of the municipality.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-4
Prerequisites for enforcement and collection of special assessments
Sec. 4. If a municipality levies special assessments against
specific parcels of property under the Barrett Law, the municipal
fiscal officer shall collect and enforce the special assessments and
pay the bonds issued in anticipation of the collections of the special
assessments if the following conditions are met:
(1) The municipal legislative body has by ordinance declared
that the proposed improvement will be:
(A) a general benefit to the municipality and the citizens of
the municipality; and
(B) a special benefit to the property owners in the area where
the improvement is to be located.
(2) The ordinance has established the following:
(A) The general and special benefits described in
subdivision (1).
(B) The proportions of the general and special benefits
described in subdivision (1).
(3) The provisions of the Barrett Law have been followed.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-5
Assumption by municipality of responsibility for payment of bonds
Sec. 5. (a) A municipality may assume primary responsibility for
the full payment of principal and interest of all bonds issued under
this chapter (or under IC 36-9-19 before its repeal in 1993) for the
improvement.
(b) The following apply if the municipality assumes the
responsibility under subsection (a) for the full payment of principal
and interest:
(1) All payments of principal and interest shall be made by the
municipal fiscal officer out of appropriations for the project.
(2) The municipality shall be reimbursed by the collection of
special assessments under the Barrett Law.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-6
Responsibility for payment of bonds; election to pay assessment in
installments; collection
Sec. 6. If a property owner elects to pay the property owner's
assessments in installments, the assessment shall be entered for
collection on the improvement duplicate and shall be collected in the
same manner as other taxes.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-7
Municipal fiscal officers; surety bonds; personal liability
Sec. 7. (a) A municipal fiscal officer acting under this chapter
shall, in the manner prescribed by IC 5-4-1, obtain, execute, and file
a bond conditioned upon the following:
(1) The faithful compliance of the municipal fiscal officer with
this chapter.
(2) The faithful accounting for all money coming into the
municipal fiscal officer's possession under the Barrett Law.
(b) A municipal fiscal officer who does any of the following is
personally liable to a person suffering loss due to that action and may
be removed from office by proper action filed under IC 5-8-1-35:
(1) Fails to collect the interest or penalties provided for by this
chapter on delinquent assessments and installments of
assessments.
(2) Fails to enforce the collection of the assessments by the sale
of the property. However, this subdivision does not apply to a
municipal fiscal officer of a municipality that has adopted an
ordinance under section 24(a) of this chapter.
(3) Otherwise fails to comply with this chapter.
(c) The surety on the municipal fiscal officer's bond is also liable
to the extent of the bond.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-8
Payment of expenses
Sec. 8. (a) Each year the municipal legislative body shall include
in the municipal legislative body's annual budget and tax levy the
necessary expense of any of the following that will enable the
municipal fiscal officer to perform the duties prescribed by this
chapter:
(1) Employing additional clerks.
(2) Furnishing suitable quarters.
(3) Obtaining necessary records, books, forms, and other
supplies.
(b) If money for the purposes described in subsection (a) is
needed before the collection of the tax levy, the money shall be:
(1) supplied by appropriation from the general fund of the
municipality; or
(2) obtained from temporary loans in anticipation of the taxes
levied.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-8.5
Assessments; installment payments
Sec. 8.5. (a) With respect to assessments imposed after June 30,
2001, the municipal works board shall establish a procedure to
permit owners of real property in the unit to elect whether to pay
assessments in:
(1) ten (10), twenty (20), or thirty (30) annual installments; or
(2) a number of monthly installments that corresponds to ten
(10), twenty (20), or thirty (30) annual installments.
(b) The municipal works board shall establish the timing of the
election under subsection (a) to permit the municipal works board to
structure the maturities of the principal of the bonds in a number of
annual series that is consistent with the installment periods elected
by owners of real property under subsection (a).
(c) A person who elects to pay the person's assessment in
installments under this section must, when directed by the municipal
works board, enter into a written agreement stating that in
consideration of that privilege the person:
(1) will not make an objection to an illegality or irregularity
regarding the assessment against the person's property; and
(2) will pay the assessment as required by law with specified
interest.
(d) The agreement under subsection (c) shall be filed in the office
of the disbursing officer.
(e) The interest rate specified for the installments of the
assessment may be equal to or greater than the interest rate on bonds
issued under section 28 of this chapter.
(f) An assessment of less than one hundred dollars ($100) may not
be paid in installments.
(g) If the property owner is not an individual, the election under
subsection (a) must be made in the following manner:
(1) For a partnership, at least one (1) of the partners must sign
the waiver and other instruments required for the election.
(2) For a corporation, the president or vice president must do all
of the following:
(A) Sign the waiver and other instruments required for the
election.
(B) File a certified copy of the resolution of the board of
directors or trustees authorizing the president or vice
president to execute those instruments on behalf of the
corporation.
(3) For a church, a lodge, a charitable institution, or other
organization, the person or persons acting on behalf of the
organization must sign the waiver and other instruments
required for the election, but only after being instructed to do so
by a resolution adopted at a meeting of the organization called
for that purpose.
As added by P.L.62-2001, SEC.4.
IC 36-9-37-9
Certification of assessment roll; liens
Sec. 9. (a) When the assessment roll for an improvement ordered
by the works board of a municipality is finally approved, the
assessment roll shall be certified to the municipal fiscal officer. The
fiscal officer shall then collect the special assessments listed on the
assessment roll.
(b) Each special assessment constitutes a lien against the property
on which the special assessment is levied.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-10
Liability of municipalities for assessments for public improvements
Sec. 10. (a) A political subdivision has the same powers and is
subject to the same duties and liability in respect to municipal
assessments for the cost of public improvements affecting the
political subdivision's real property as private owners of real
property.
(b) The real property of a political subdivision is subject to liens
for the assessments if the real property would have been subject if
owned by a private owner at the time the lien attached. However, a
penalty or attorney's fees arising from such an assessment may not be
collected from a political subdivision.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-11
Assessment installments; interest
Sec. 11. If a municipal works board orders any of the following
improvements and assessments are imposed after June 30, 2001, to
pay for the improvements or to repay bonds issued under this chapter
after June 30, 2001, each owner of property assessed for that
improvement may elect to pay the owner's assessment in installments
with interest as described in section 8.5(a) of this chapter:
(1) Streets.
(2) Alleys.
(3) Other paved public places.
(4) Lighting.
(5) For municipalities that own and operate a water utility,
water main extensions from the water utility.
(6) Sanitary sewers.
(7) Emergency warning systems.
As added by P.L.98-1993, SEC.8. Amended by P.L.62-2001, SEC.5;
P.L.45-2004, SEC.1; P.L.42-2006, SEC.2.
IC 36-9-37-12
Payment of assessment in deferred installments; time for making
payments
Sec. 12. (a) If a property owner has elected to pay the property
owner's assessment in installments and the assessment roll for the
cost of the improvement was finally approved before July 1 of a year,
the first installment of the principal of the assessment, together with
accrued interest, is payable on November 10 of that year.
(b) If a property owner has elected to pay the property owner's
assessment in installments and the assessment roll for the cost of the
improvement was finally approved after June 30 of a year, the first
installment of the principal of the assessment, together with accrued
interest, is payable on May 10 of the following year.
(c) Subsequent installments of principal and interest are payable
at:
(1) one (1) year intervals after the date of payment of the first
installment under subsection (a) or (b) if the property owner
elected annual payments; or
(2) one (1) month intervals after the date of payment of the first
installment under subsection (a) or (b) if the property owner
elected monthly payments.
(d) This subsection applies if the property owner elected annual
installment payments. With the first installment of principal, and
interest to the first bond maturity date, an amount sufficient to cover
six (6) months interest in advance on the assessment shall also be
collected. With each succeeding installment of principal, except the
last installment, six (6) months interest shall be collected in advance,
so that only one (1) annual payment is made by the property owner
on the assessment.
(e) This subsection applies if the property owner elected monthly
installment payments. With each of the first six (6) installments of
principal, and interest to the first bond maturity date, an amount
sufficient to cover one (1) additional month's interest in advance on
the assessment shall also be collected. With each succeeding
installment of principal, except the last six (6) installments, one (1)
month's interest shall be collected in advance.
As added by P.L.98-1993, SEC.8. Amended by P.L.62-2001, SEC.6.
IC 36-9-37-13
Payment of assessment in installments; proceeds; special fund
Sec. 13. Proceeds from assessments for the payment of a
particular improvement may not be used for the payment of other
improvements. The proceeds from assessments for the payment of a
particular improvement constitute a special fund for the following:
(1) Payment of contractors for the particular improvement if
allowance of the estimates has been made by the works board
of the municipality.
(2) Security and payment of bonds issued in anticipation of the
collection of the assessments for the improvements, including
debt service reserves to secure the payment of the bonds.
(3) Payment of expenses incurred by the municipal fiscal officer
in performing the municipality's duties under this chapter,
IC 36-9-36, IC 36-9-38, or IC 36-9-39 (or under IC 36-9-18
through IC 36-9-21, before the repeal of those provisions in
1993), including any expenses, duties, and costs associated with
the issuance, sale, or payment of the bonds.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-14
Prepayment of assessment installments
Sec. 14. (a) A property owner who has secured the right to pay the
property owner's assessments in deferred installments by the filing
of a waiver may, at any time after the expiration of the first year after
the filing, pay the entire balance of the assessment and be relieved of
the lien on the property owner's property. A property owner may not
pay the property owner's entire balance under this subsection unless
at the same time the property owner pays all interest due at the next
interest paying period.
(b) If a person who exercises the right to prepay the person's
assessment fully pays the assessment and interest, all interest and
liability as to the assessed property ceases.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-15
Prepaid assessments; proceeds; special fund; investment;
redemption of outstanding bonds
Sec. 15. (a) Prepaid assessments constitute a special fund to be
held in trust by the municipality for the owner or owners of the bonds
upon which the prepayments have been made.
(b) The municipal fiscal officer shall promptly invest and reinvest
the special fund in securities of the federal government so that the
principal will be available to pay the bonds upon which prepayments
were collected as the bonds become due. The interest collected on
these securities shall be applied to the payment of the interest lost on
account of the prepayment of the assessments. The difference
between the interest lost on account of the prepayment of
assessments and the amount of interest earned by the investment in
federal securities shall be paid by the municipal corporation that
issued the improvement bonds.
(c) If the terms of the bonds allow early redemption for and to the
extent of prepayments of the assessments in anticipation of which the
bonds were issued, the municipality may use prepaid assessments to
redeem outstanding bonds. However, if the bonds are issued on each
parcel of real property covering the assessment against the real
property, the municipality shall pay the prepayment to the holder of
the bonds and cancel the bonds.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-16
Negligent investment of special fund money; liability of
municipality
Sec. 16. If a municipality negligently fails to invest or reinvest the
special fund in the manner prescribed by section 15 of this chapter,
the municipality is liable to the special fund for interest on the fund,
calculated at the rate of interest of the bonds issued on account of the
assessments. A holder of bonds upon which prepayments have been
made may compel compliance with section 15 of this chapter by
mandamus or other appropriate remedy. However, the failure of a
bondholder to compel compliance does not relieve the municipality
or any of the municipality's officers from liability under this chapter.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-17
Special fund created under IC 36-9-37-15; warrants for
disbursements
Sec. 17. Warrants for disbursements from the special fund
established under section 15 of this chapter shall be drawn and issued
in the manner provided by statute for disbursements from municipal
funds. The officer having custody of the special fund shall honor and
pay those warrants.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-18
Notice; payments to bond owner; proceeds collectable by fiscal
officer
Sec. 18. If a bond owner receives a payment of interest or
principal, or both, that was to have been collected by the fiscal
officer of a municipality under this chapter (or under IC 36-9-19
before its repeal in 1993), the bond owner shall notify the fiscal
officer of the payment.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-19
Notice of default on installment payments
Sec. 19. (a) If a person defaults in the payment of a waivered
installment of principal or interest of an assessment, the municipal
fiscal officer shall mail notice of the default to the person. The notice
must meet the following conditions:
(1) Be mailed not more than sixty (60) days after the default.
(2) Show the amount of the default, plus interest on that amount
for the number of months the person is in default at one-half
(1/2) the rate prescribed by IC 6-1.1-37-9(b).
(3) State that the amount of the default, plus interest, is due by
the date determined as follows:
(A) If the person selected monthly installments under section
8.5(a)(2) of this chapter, within sixty (60) days after the date
the notice is mailed.
(B) If the person selected annual installments under section
8.5(a)(1) of this chapter, within six (6) months after the date
the notice is mailed.
(b) A notice that is mailed to the person in whose name the
property is assessed and addressed to the person within the
municipality is sufficient notice. However, the fiscal officer shall
also attempt to determine the name and address of the current owner
of the property and send a similar notice to the current owner.
(c) Failure to send the notice required by this section does not
preclude or otherwise affect the following:
(1) The sale of the property for delinquency as prescribed by
IC 6-1.1-24.
(2) The foreclosure of the assessment lien by the bondholder.
(3) The preservation of the assessment lien under section 22.5
of this chapter.
As added by P.L.98-1993, SEC.8. Amended by P.L.172-1994, SEC.2;
P.L.45-2004, SEC.2; P.L.67-2006, SEC.16; P.L.113-2010, SEC.156.
IC 36-9-37-20
Collection of delinquent assessments; interest penalties
Sec. 20. (a) If any principal and interest, or an installment of
principal and interest, is not paid in full when due, the municipal
fiscal officer shall enforce payment of the following:
(1) The unpaid amount of principal and interest.
(2) A penalty of interest at the rate prescribed by subsection (b).
(b) If payment is made after a default, the municipal fiscal officer
shall also collect a penalty of interest on the delinquent amount at
one-half (1/2) the rate prescribed by IC 6-1.1-37-9(b) for each six (6)
month period, or fraction of a six (6) month period, from the date
when payment should have been made.
As added by P.L.98-1993, SEC.8. Amended by P.L.67-2006, SEC.17;
P.L.113-2010, SEC.157.
IC 36-9-37-21
Interest penalty collections; surplus Barrett Law account; use of
funds
Sec. 21. (a) Interest penalties collected under section 20(b) of this
chapter shall be credited to an account to be known as the surplus
Barrett Law account. The amount credited shall be a part of the
waivered municipal improvement funds. The money in the surplus
Barrett Law account may be used as follows:
(1) To pay the interest on improvement assessments that is lost
or forgiven due to the prepayment of installments of
assessments.
(2) If the amount of money in the account exceeds five (5) times
the average annual amount of lost or forgiven interest paid
under subdivision (1) during the preceding three (3) years, that
excess may be used for any of the following:
(A) The purchase of equipment for or pay expenses incurred
by the municipal fiscal officer in performing the municipal
fiscal officer's duties under the Barrett Law.
(B) Providing debt service reserves or other security for
bonds issued by the municipality under this chapter,
IC 36-9-36, IC 36-9-38, or IC 36-9-39 (or under IC 36-9-18
through IC 36-9-21 before the repeal of those provisions in
1993).
(b) If payments of delinquent principal, delinquent interest, and
interest penalties that are collected during any six (6) month period
ending on May 10 or November 10 are sufficient to pay one percent
(1%) of the face value of the bonds, all payments during that six (6)
month period shall be applied to the payment of bonds after the next
February 1 or August 1. However, if there are no more delinquent
collections to be made, payment of the amounts collected shall be
made in full.
(c) The fact that collections during a six (6) month period are
insufficient to pay one percent (1%) of the face value of the bonds
does not require the bonds to be marked "not paid for want of funds".
As added by P.L.98-1993, SEC.8.
IC 36-9-37-22
Default on single installment
Sec. 22. Except as provided in section 22.5 of this chapter, the
following apply if at least one (1) installment of an assessment is in
default:
(1) The total amount of the assessment that remains unpaid is
considered to be in default.
(2) The assessed property is subject to sale under sections 23
through 24 of this chapter to pay that amount.
(3) The assessment is subject to the:
(A) requirements and duties imposed;
(B) rights and remedies provided; and
(C) procedures available to the county treasurer;
for the collection of delinquent property taxes.
As added by P.L.98-1993, SEC.8. Amended by P.L.45-2004, SEC.3.
IC 36-9-37-22.5
Preservation of assessment in default as a lien
Sec. 22.5. (a) The municipal fiscal officer and the municipal
works board may jointly establish procedures allowing a
municipality to avoid a sale, on property that is not delinquent for
property taxes, penalties, and other special assessments, that:
(1) is required under section 22 of this chapter; and
(2) would be conducted under IC 6-1.1-24;
by preserving an assessment that is in default as a lien against the
property on which the assessment was imposed. A lien created under
this section applies to the total assessment principal, interest, and
penalties owed by the property owner on the date on which the
municipality determines that the assessment is in default.
(b) Except as provided in subsection (c), an assessment preserved
as a lien under this section shall be paid by the person liable for the
assessment when ownership of the property is transferred.
(c) The following apply to an assessment preserved as a lien under
this section:
(1) Additional penalties do not accrue to the lien after the date
described in subsection (a).
(2) The procedures established under subsection (a) must
specify when additional interest shall accrue to the lien after the
date described in subsection (a).
(3) The lien must be recorded.
(4) The amount owed by the property owner must be paid by
the person liable for the assessment before the final bond
maturity date.
(d) When the person liable pays an assessment preserved as a lien
under this section, the proceeds of the collection are subject to the
same requirements as the proceeds of a sale conducted under section
24 of this chapter.
As added by P.L.45-2004, SEC.4.
IC 36-9-37-23
Certification of delinquent assessments
Sec. 23. (a) This section does not apply to a municipality if the
legislative body of the municipality adopts an ordinance providing
that this section does not apply to the municipality.
(b) Except as provided in subsection (d), before June 1 of each
year the municipal fiscal officer shall certify to the county auditor a
list of all delinquent waivered and nonwaivered assessments. The list
must include the following:
(1) The name or names of the owner or owners of each piece of
real property on which the assessments for principal and
interest are in default.
(2) The description of each of those pieces of property as shown
by the records of the county auditor.
(3) The total amount of principal, interest, and penalty due on
each of those pieces of property.
(c) The county auditor shall immediately enter the list in a special
duplicate and transmit the list to the county treasurer for collection.
(d) After the county treasurer receives the list, payments on the
delinquent assessments shall be made only to the county treasurer
and may not be accepted by the municipal fiscal officer. However,
this subsection does not apply to payments from the county under
section 24 of this chapter.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-24
Delinquent assessments; sale of property
Sec. 24. (a) This section does not apply to a municipality if the
legislative body of the municipality adopts an ordinance providing
that this section does not apply to the municipality.
(b) After the county auditor receives the list of delinquencies from
the municipal fiscal officer under section 23 of this chapter, the real
property on the list is subject to collection by the county treasurer in
the same way that delinquent property taxes are collected and may
be sold in the manner that property is sold for taxes. The owners and
purchasers of the property have the same rights and remedies as the
owners and purchasers would have at a tax sale.
(c) The county auditor shall issue a county warrant for the
principal, interest, and penalty to the municipal fiscal officer
originally charged with the collection of the principal, interest, and
penalty after the following:
(1) The collection of the principal, interest, and penalty.
(2) Settlement for principal, interest, and penalty by the county
treasurer.
(d) This section does not require a county or any of the county's
officers to include the amount of delinquent principal, interest, or
penalty in a certificate of sale to the county.
(e) If a county or municipal officer fails to perform the officer's
duties under this section or section 20(a) of this chapter, a person
aggrieved by the failure may bring an action against the officer to
compel performance.
As added by P.L.98-1993, SEC.8. Amended by P.L.172-1994, SEC.3.
IC 36-9-37-25
Procedures to avoid a foreclosure action
Sec. 25. (a) To avoid a foreclosure action on a special assessment,
a municipality may:
(1) defer collection of the assessment under section 22.5 of this
chapter; or
(2) accept a conveyance in satisfaction of the assessment from
the owner of the assessed property.
(b) If there are bondholders other than the municipality holding
bonds on the improvement for which the assessment was made, the
municipality may do any of the following:
(1) Join with the other bondholders in accepting a conveyance
of an undivided interest in the property.
(2) Cause a conveyance of the property to be made to a bank or
trust company in the municipality and held under a trust
agreement by the bank or trust company for the use and benefit
of the municipality and the other bondholders.
(c) A conveyance under this section may be accepted by the
municipality only if the head of the municipal legal department
makes a written recommendation to the city executive or town
legislative body that the conveyance be accepted.
As added by P.L.98-1993, SEC.8. Amended by P.L.45-2004, SEC.5.
IC 36-9-37-26
Disposition of property acquired by foreclosure or conveyance;
procedure
Sec. 26. (a) If a municipality acquires an undivided interest in real
property by foreclosure of a special assessment or by a voluntary
conveyance under section 25(a) of this chapter, the municipality may
dispose of the municipality's interest in the manner prescribed by this
section.
(b) The municipality must have the municipality's interest in the
property appraised by two (2) disinterested appraisers residing in the
municipality. After appraisal, the city executive or town legislative
body may sell the property interest for not less than the full appraised
value of the property interest. Before selling the property interest, the
city executive or the town legislative body must first provide notice
of the proposed sale by publication in accordance with IC 5-3-1.
(c) This subsection applies if the municipality sells the property
by acceptance of bids. A bid submitted by a trust (as defined in
IC 30-4-1-1(a)) must identify all of the following:
(1) Each beneficiary of the trust.
(2) Each settlor empowered to revoke or modify the trust.
(d) A conveyance under this section must be executed by the
municipal executive and attested by the municipal clerk.
(e) The municipality shall return all money received from sales
under this section to the fund for the use and benefit of which the
property interest is held. Any money in excess of the amount
necessary to provide full compensation to the fund for the obligations
of the person liable for the assessment shall be returned to that
person.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-27
Disposition of property held by bank or trust company
Sec. 27. (a) If property is held by a bank or trust company under
section 25(b)(2) of this chapter, the trust agreement between the
municipality and the bank or trust company may provide for the sale
or conveyance of the property by the bank or trust company. The sale
may not be made for less than the full appraised value of the
property.
(b) The municipality may, in case of a sale, join in the conveyance
of the property.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-28
Bonds; contents; issuance; denominations
Sec. 28. (a) When property owners have elected to pay special
assessments for a public improvement in installments, the bonds
issued in anticipation of the collection of those assessments must
bear the date of the final acceptance of the improvement by the
municipal works board. The bonds begin to bear interest on this date
at a rate determined by the works board.
(b) Except as provided in subsection (d), the bonds may be issued
in any denomination.
(c) Except as provided in subsection (d), the municipal fiscal
officer shall choose the denomination that the municipal fiscal
officer finds appropriate for the following:
(1) The circumstances of the particular improvement project.
(2) The efficient administration of the municipal fiscal officer's
office.
(d) The last bond in a series need not be issued in a denomination
of a multiple of one hundred dollars ($100) if the total cost of the
particular improvement project for which the series is issued is not
an exact multiple of one hundred dollars ($100).
As added by P.L.98-1993, SEC.8.
IC 36-9-37-29
Bonds; series; redemption; time for payment; computation of
interest; actions challenging validity
Sec. 29. (a) The municipal legislative body shall provide in the
preliminary resolution that the bonds issued in anticipation of the
collection of the assessments shall be issued so as to mature not less
than ten (10) years and not more than thirty (30) years from the date
of issuance.
(b) The terms of the bonds may allow early redemption of the
bonds for and to the extent of prepayment of the assessments in
anticipation of which the bonds were issued.
(c) If the assessment roll for the cost of an improvement was
finally approved before July 1 of a year, the first of the series of
bonds issued for the payment of the improvement is payable on
February 1 of the following year, and the interest on the bonds shall
be computed accordingly.
(d) If the assessment roll for the cost of an improvement was
finally approved after June 30 of a year, the first of the series of
bonds issued for the payment of the improvement is payable on
August 1 of the following year, and the interest on the bonds shall be
computed accordingly.
(e) Interest on the bonds is payable semiannually, beginning on
the date prescribed by subsection (c) or (d).
(f) The municipal works board may by ordinance or resolution
choose to:
(1) sell the bonds by negotiated private sale to a financial
institution; and
(2) remit the proceeds of the bonds to the contractor for the
public improvement.
(g) An action to challenge the validity of the bonds or the sale of
the bonds may not be brought after issuance of the bonds.
As added by P.L.98-1993, SEC.8. Amended by P.L.62-2001, SEC.7.
IC 36-9-37-30
Payment of bonds at maturity
Sec. 30. (a) Bonds issued in anticipation of the collection of
special assessments bear interest until the date of maturity if
sufficient money is available to pay the principal of and interest on
the bonds at that date.
(b) If sufficient money is not available to pay the principal of and
interest on the bonds, any available money that was assessed to pay
the bonds shall be paid to the holders of the bonds on a pro rata
basis. The unpaid balances of the principal of and interest on the
bonds bear interest until the delinquent assessments have been
collected. The rate of interest on the unpaid balances must be the
same as the rate paid by the bonds before their maturity.
(c) If the principal of and interest on the bonds are not paid in full
at their maturity, the bonds must be marked with the following:
(1) The date of payment.
(2) The amount of principal and interest paid.
(3) The balance unpaid.
(d) At every six (6) month period after the maturity of the bonds,
the delinquent collections for the payment of the principal of and
interest on the bonds and interest on the unpaid balances of the bonds
shall be paid on a pro rata basis. Each bond shall be marked with the
following:
(1) The amount of principal and interest paid.
(2) The balance unpaid.
(3) The amount of interest paid on unpaid balances.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-31
Bonds; presentation for payment; receipts
Sec. 31. (a) A person who holds bonds issued in anticipation of
the collection of special assessments shall present the bonds for
payment and arrange for the payment of interest with sufficient time
before the maturity date or due date of the delinquencies so that the
municipal fiscal officer has time to process the payment.
(b) The bondholder shall file with the bonds a list setting forth the
following for the bonds:
(1) The roll numbers.
(2) The series numbers.
(3) The face values or unpaid balances.
(4) The total presented for payment.
(c) The municipal fiscal officer shall give a receipt to a
bondholder presenting bonds for payment or receiving a payment of
interest. The receipt holds the municipality responsible to the
bondholders for the following:
(1) The unpaid principal of and interest on the bonds that were
presented for payment.
(2) The unpaid balances of principal of and interest on those
bonds.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-32
Schedule of amounts paid on bonds
Sec. 32. (a) If payment is made of principal or interest on bonds
issued in anticipation of the collection of special assessments, the
municipal fiscal officer shall prepare a schedule showing the
following:
(1) All bonds on which payment of principal or interest is made,
with the amount paid on each. If payment is not made in full,
the fiscal officer shall specify the balance of principal and
interest unpaid on each bond.
(2) The total of all principal of and interest on bonds on which
no payment is made.
(3) Interest paid on delinquency.
(4) The total amount of principal of and interest on bonds for
which a receipt was issued.
(5) The total amount of principal and interest paid on bonds.
(6) The total amount of interest on delinquency paid.
(7) The total balance of principal of and interest on bonds
unpaid.
(b) The fiscal officer shall give a copy of the schedule to the
bondholder on the surrender of the bondholder's receipt.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-33
Matured bonds; notice to holder of money available for payment
Sec. 33. Upon request of the holder of any bond on which
principal or interest has become due, the municipal fiscal officer
shall do the following:
(1) Make a record of the following:
(A) The maturity of the principal of the bond or interest on
the bond.
(B) The name and address of the holder.
(2) Notify the holder by mail immediately when money is
available to pay the principal or interest.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-34
Bonds; tax exemption
Sec. 34. Bonds issued in anticipation of the collection of special
assessments for public improvements are exempt from taxation for
all purposes.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-35
Bonds; insufficient funds for payment; issuance of certificates of
indebtedness
Sec. 35. (a) When the principal of or interest on bonds issued in
anticipation of the collection of special assessments is due for
payment, the municipal fiscal officer shall issue certificates of
indebtedness to the owner of the bonds if:
(1) there is not enough money in the municipal improvement
fund to pay the principal of or interest on the bonds in full; and
(2) at least one (1) of the conditions listed in subsection (b) is
met.
(b) The municipal fiscal officer shall issue certificates of
indebtedness for the amounts unpaid if the principal of or interest on
the bonds cannot be paid because of any of the following:
(1) The stoppage of interest due to the prepayment of
assessments.
(2) The failure to collect interest to the due date of the prepaid
installments.
(3) The failure to reinvest prepaid assessments in the manner
prescribed by this chapter.
(4) The diversion of money paid on one (1) assessment roll and
account to the payment of the principal of or interest on bonds
to another assessment roll and account.
(5) The loss of improvement money due to the closing and
insolvency of a bank or trust company in which the money was
on deposit.
(6) Any other diversion or misapplication of money collected
for payment of the principal of or interest on bonds for which
the municipality is liable.
(c) The amounts of certificates of indebtedness issued under this
section shall be computed in the following manner:
(1) If the certificates are issued for a deficiency resulting from
prepayment of assessments, the amount:
(A) is limited to the amount of interest that would have been
payable at the respective due dates of the installments of
assessments if the assessments had not been prepaid; and
(B) does not include interest between the time of the due
dates and the issuance of the certificates.
(2) If the certificates are issued for a deficiency resulting from
a diversion of money, the amount:
(A) is limited to the amount that would have been due if the
diversion had not occurred; and
(B) does not include any interest after the date on which
payment of the principal of or interest on the bonds is due.
(3) If the certificates are issued for a deficiency resulting from
the loss of improvement money due to the closing and
insolvency of a bank or trust company in which the money was
on deposit, the amount is limited to:
(A) the actual amount deposited, plus interest at the
depository rate up to the time of the closing of the bank or
trust company; less
(B) any amounts that are recovered from any source by
reason of the deposits and loss.
(d) No part of any delinquent assessments or installments, or of
any interest on the delinquent assessments after the due date of the
assessments, may be included in a certificate of indebtedness.
(e) The deficiency and diversion remedial provisions of this
section do not make a municipality liable in any manner for any of
the following:
(1) Assessments or installments of assessments not paid by the
owner of the property assessed.
(2) Interest on any unpaid assessment or installment.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-36
Bonds; certificates of indebtedness; payment
Sec. 36. (a) Upon the delivery of certificates of indebtedness in
payment of part of the principal of or interest on any bonds because
of a deficiency, the municipality shall, by proper endorsement of the
bonds:
(1) reduce the face value of the bonds or the interest payable on
the bonds by a corresponding amount; or
(2) cancel the bonds if the principal of and interest on the bonds
are paid in full.
(b) The certificates of indebtedness shall be authorized, issued,
and paid in the same manner as certificates of indebtedness issued
under IC 36-9-36-62 and IC 36-9-36-64. However, the certificates
draw interest only from the date of issue and the rate of interest shall
be fixed by the resolution authorizing the issuance of the certificates.
(c) A municipality is not required to provide for or pay upon the
certificates of indebtedness issued under section 35 of this chapter
(or under IC 36-9-19 before its repeal in 1993) a total amount in any
one (1) year in excess of the following:
(1) Fifty thousand dollars ($50,000) for a municipality having
a population of at least thirty-five thousand (35,000).
(2) Twenty-five thousand dollars ($25,000) for a municipality
having a population of at least ten thousand (10,000) but less
than thirty-five thousand (35,000).
(3) Ten thousand dollars ($10,000) for a municipality having a
population of less than ten thousand (10,000).
(d) A municipality shall make payments on the certificates of
indebtedness issued under section 35 of this chapter (or under
IC 36-9-19 before its repeal in 1993) in the order of the tender and
demand for payment of outstanding certificates in each year. The
municipality is not required to prorate the payments among all the
outstanding certificates. The municipal fiscal officer is the sole judge
of the order of tender and priorities of the certificates of
indebtedness.
(e) Before issuing payment on a certificate, the fiscal officer shall,
by audit and other investigation of the facts, determine the right to
payment and the proper amount of the payment. The fiscal officer's
determination is final and conclusive upon all the parties involved.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-37
Refunding bonds
Sec. 37. (a) Instead of issuing certificates of indebtedness under
section 35 of this chapter, the municipal legislative body may by
ordinance issue refunding bonds to meet a deficiency arising in the
municipal improvement fund if the following conditions are met:
(1) At least one (1) of the conditions listed in section 35(b) of
this chapter is met.
(2) The amount of the deficiency is clearly established.
(3) The liability of the municipality for the deficiency is
established. However, this subdivision does not require the
liability of the municipality to be established by a judgment
against the municipality.
(b) Refunding bonds issued under this section shall be issued in
the manner prescribed by IC 5-1-9. The proceeds of the bonds may
be used only to discharge the liability of the municipality for the
deficiency.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-38
Overpayment of special assessments; refunds
Sec. 38. (a) If excess payments have been made and collected on
special assessments for public improvements, the municipal fiscal
officer shall, not later than thirty (30) days after the discovery of the
overpayment, give notice of the amount of the overpayment by mail
to the owner of record of the property on which the payment was
made.
(b) When the municipal fiscal officer determines the amount of
the overpayment and the person or persons to whom the
reimbursement should be made, the fiscal officer shall issue a refund
of the overpayment to the proper person or persons.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-39
Overpayments; annual statement; notice; disposition
Sec. 39. (a) During January of each year, the municipal fiscal
officer shall determine all amounts of overpayments on the special
assessment rolls for public improvements that have been unclaimed
for at least five (5) years. The fiscal officer shall prepare a detailed
statement showing the following information for each overpayment:
(1) The date.
(2) The number of the receipt.
(3) The amount overpaid.
(4) The book and page where the overpayment is recorded.
(5) The owner of record of the property on which the
overpayment was made.
(b) After preparing the statement described in subsection (a), the
municipal fiscal officer shall give notice by publication in
accordance with IC 5-3-1. The notice must do all of the following:
(1) Contain the names of the owners of record of the property
affected by the assessment.
(2) State the amounts of the respective overpayments.
(3) State that the overpayments will be transferred to the
general fund of the municipality unless the owners or the
owners' legal successors or assigns appear and provide proof of
their claims to the overpayments not later than thirty (30) days
after the date of the first publication of the notice.
(c) At the expiration of the thirty (30) day redemption period
under subsection (b), the municipal fiscal officer shall transfer and
pay the unclaimed overpayments into the general fund of the
municipality. The amounts transferred shall be used and expended in
the same manner as other money in the general fund.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-40
Money collected as special assessments; disposition after five years
Sec. 40. (a) If:
(1) all or part of any money collected as nonwaivered special
assessments for public improvements has been in the possession
of the municipal fiscal officer for at least five (5) years; and
(2) a demand for the money has not been made by a party
entitled to the money within one (1) year preceding the end of
the five (5) year period;
the municipal fiscal officer shall prepare a detailed list of the
unclaimed money.
(b) The fiscal officer shall then give notice of the list by
publication in the manner prescribed by section 39 of this chapter.
(c) At the expiration of the thirty (30) day redemption period
provided by section 39 of this chapter, the municipal fiscal officer
shall transfer and pay all of the unclaimed money into the general
fund of the municipality. Money transferred under this subsection
may be used and expended in the same manner as other money in the
general fund is used and expended.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-41
Money deposited in general fund; claims
Sec. 41. (a) A person who is legally entitled to any money paid
into the municipal general fund under sections 39 and 40 of this
chapter may file a claim for the money with the municipal fiscal
officer.
(b) A claim under subsection (a) must be filed as follows:
(1) In the same manner as other claims are filed against the
municipality.
(2) Not later than five (5) years after the money is paid into the
general fund.
(c) The fiscal officer shall pay the claim out of the general fund
of the municipality if, upon investigation and proper proof of the
claim, the municipal officials charged with the duty of making
payments from Barrett Law funds do the following:
(1) Determine that the claimant is legally entitled to the money.
(2) Approve the refund of the money.
(d) The payment of the claim by the fiscal officer under
subsection (c) shall be made without an appropriation.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-42
Transfer of unclaimed money to surplus Barrett Law account
Sec. 42. Balances of money may be transferred to the surplus
Barrett Law account established under section 21 of this chapter (or
under IC 36-9-19 before its repeal in 1993) if the following
conditions are met:
(1) The balances have been on hand for at least ten (10) years.
(2) The balances were collected as waivered assessments for the
payment of bonds.
(3) At least one (1) of the following conditions is met:
(A) Bonds have not been presented for payment.
(B) Bonds have:
(i) been presented for payment;
(ii) been withdrawn; and
(iii) have not been not presented for payment again for at
least ten (10) years.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-43
Unpaid warrants or checks; cancellation
Sec. 43. (a) A warrant or check shall be canceled on December 31
of a year if the warrant or check:
(1) is for:
(A) the payment of principal or interest on bonds;
(B) the payment of nonwaivered funds to contractors for
public improvements; or
(C) damages sustained by a property owner on account of
the operation of the public improvement assessment laws;
and
(2) has been written and not cashed for a period of at least two
(2) years.
(b) The proceeds of the canceled warrants or checks shall be
credited to the funds on which the warrants or checks were originally
drawn. If the funds on which the checks or warrants were originally
drawn cannot be determined, the proceeds shall be credited to the
following:
(1) The surplus Barrett Law account if the warrants or checks
were drawn on waivered accounts.
(2) The nonwaivered account if the proceeds were drawn on the
nonwaivered account.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-44
Prepaid interest; reimbursement
Sec. 44. (a) If:
(1) a municipality purchased under threat of condemnation real
property upon which there were any unpaid Barrett Law
assessments; and
(2) because of the purchase the vendor paid, under protest, the
interest on the Barrett Law assessment for a period of ten (10)
years in advance;
the vendor is entitled to a reimbursement for the interest paid in
advance, less the interest for one (1) year.
(b) The vendor must present and prove a claim for the interest to
the municipal fiscal officer. The reimbursement under this section
shall be paid out of the surplus Barrett Law account of the
municipality.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-45
Municipalities no longer using Barrett Law; transfer of surplus
money
Sec. 45. Notwithstanding any other statute, a municipality may by
ordinance transfer the surplus Barrett Law account money to the
general fund or general improvement fund of the municipality if the
following conditions are met:
(1) The municipality:
(A) has money in the surplus Barrett Law account;
(B) has established a general improvement fund under
IC 36-9-17 or a similar statute; and
(C) no longer uses the Barrett Law for public improvements.
(2) There are no obligations or potential obligations arising out
of the operation of the Barrett Law for which the surplus Barrett
Law account money was accumulated or may be used.
(3) Notice of intention to transfer the surplus Barrett Law
account money to the general fund or general improvement fund
has been published in accordance with IC 5-3-1.
As added by P.L.98-1993, SEC.8.
IC 36-9-37-46
Barrett Law revolving improvement fund
Sec. 46. (a) A Barrett Law revolving improvement fund may be
established under the municipal fiscal officer. This fund shall be
initially funded by transferring to the fund from the surplus Barrett
Law account any amount approved by the municipal legislative body.
(b) If the legislative body decides that payment from the Barrett
Law revolving improvement fund will increase the probability that
competent contractors will bid on the project, the fiscal officer may
pay all or part of th