CHAPTER 13. DISPOSITION OF SURPLUS BOND PROCEEDS
IC 5-1-13
Chapter 13. Disposition of Surplus Bond Proceeds
IC 5-1-13-1
Definitions
Sec. 1. The definitions in this section apply throughout this
chapter:
(1) "Bonds" has the same definition that the term is given in
IC 5-1-11-1.
(2) "Local issuing body" has the meaning set forth in
IC 5-1-5-1.
(3) "Political subdivision" has the same definition that the term
is given in IC 36-1-2-13.
(4) "Special benefit taxes" has the meaning set forth in
IC 5-1-5-1.
(5) "Tax increment revenues" has the meaning set forth in
IC 5-1-5-1.
As added by Acts 1980, P.L.8, SEC.23. Amended by P.L.24-1984,
SEC.1; P.L.146-2008, SEC.26.
IC 5-1-13-2
Use of surplus proceeds
Sec. 2. (a) Notwithstanding any other law, whenever:
(1) bonds are issued by any local issuing body in the state of
Indiana for any lawful purpose or project;
(2) the purpose or project for which the bonds were issued has
been accomplished or abandoned; and
(3) a surplus remains from the proceeds of the bonds or
investment earnings derived from the proceeds of those bonds;
the local issuing body may use the surplus only in the manner
prescribed by subsection (b), (c), or (d).
(b) The legislative body or other governing body of any such local
issuing body may by an order, ordinance, or resolution entered of
record direct the disbursing officer of such local issuing body to
transfer the surplus bond proceeds or investment earnings to the fund
of the local issuing body pledged to the payment of principal and
interest on those bonds, and upon such order, ordinance, or
resolution being made, the disbursing officer shall make such
transfer. Thereafter such funds transferred shall be used for the
payment of the bonds to which the surplus bond proceeds or
investment earnings are attributable or interest due for such bonds.
(c) Surplus bond proceeds or investment earnings may be used by
a local issuing body for the following purposes:
(1) To maintain a debt service reserve fund for the bonds to
which the surplus bond proceeds or investment earnings are
attributable, at the level required under the terms of the 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 any other bonds
of the local issuing body, if the local issuing body adopts an
ordinance, a resolution, or an order authorizing the use of the
surplus proceeds to pay principal or interest on the 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.
(d) This section applies to bonds that are not payable from ad
valorem property taxes, special benefit taxes on property, or tax
increment revenues derived from property taxes. Surplus bond
proceeds or investment earnings may be used by a local issuing body
for the same purpose or type of project for which the bonds were
originally issued, if:
(1) the fiscal officer of the local issuing body certifies before or
at the time of that use that the surplus was not anticipated at the
time of issuance of the bonds; and
(2) the board or legislative body responsible for issuing the
bonds takes action approving the use of surplus bond proceeds
or investment earnings for the same purpose or type of project
for which the bonds were originally issued.
As added by Acts 1980, P.L.8, SEC.23. Amended by P.L.24-1984,
SEC.2; P.L.37-1988, SEC.1; P.L.2-1989, SEC.3; P.L.146-2008,
SEC.27.
IC 5-1-13-3
Income from investment of proceeds of sale of bonds; application
Sec. 3. Notwithstanding any other law, income from the
investment of proceeds of the sale of bonds issued by any political
subdivision that are payable from property taxes shall be applied to
the improvement or the public purpose for which the bonds were
issued or shall be used to pay interest on the bonds and in no event
may such income be used for any other purpose except as provided
in section 2 of this chapter.
As added by P.L.24-1984, SEC.3.