CHAPTER 7. REDEMPTION BONDS OF COUNTIES AND TOWNSHIPS
IC 5-1-7
Chapter 7. Redemption Bonds of Counties and Townships
IC 5-1-7-1
Contract with bond owner to pay matured bond by issuing
redemption bond
Sec. 1. Whenever the bond fund of any county or of any township
in this state is, for any reason, insufficient to pay the bonds of such
county or township or any of them, at the date of the maturity
thereof, together with the interest which shall have accrued thereon,
the board of commissioners of such county is hereby authorized to
represent and as representing the taxing district liable for the
payment of any such bond to enter into a contract with the owner of
any such bond to pay such matured bond by the issuance of a
redemption bond, in the same amount and at any rate of interest and
to pay such redemption bond and the accrued interest thereon, in not
more than ten (10) annual installments, in the manner and subject to
the conditions prescribed in this chapter.
As added by Acts 1980, P.L.8, SEC.12.
IC 5-1-7-2
Partial payments of principal with interest accrued; form of
contract; cancellation of matured bond
Sec. 2. The contract entered into by the board of commissioners
of any county and any such bondholder shall be signed by the parties
to such contract, shall be attested on behalf of the county by the
county auditor, and shall stipulate and agree that the board of
commissioners of the county will pay all interest on such matured
bond to the date of the maturity thereof, and that a new bond
(referred to in this chapter as a redemption bond) in the same amount
as the matured bond, will be issued to pay and retire such matured
bond, and that such redemption bond will be and continue to be a
valid and binding obligation of the county and that during the period
fixed in the contract not exceeding ten (10) years the board of
commissioners will pay annually to the owner of such redemption
bond, one-tenth (1/10) of the principal amount of such redemption
bond and, in addition thereto, will pay semiannually all interest
which shall have accrued thereon to the date when such payment is
to be made. The date on which such partial payments of the principal
of such bond will be made shall be fixed and prescribed in such
contract and may be on June 1 or December 1 of the year next
succeeding the year in which such contract is executed and signed
and June 1 or December 1 of each and every year thereafter until
paid. The interest accrued on such bond shall be paid semiannually
on June 1 and December 1, beginning on the same date as the first
partial payment on such bond. The board of commissioners shall
further agree to levy a tax on the taxable property of such county in
an amount sufficient to make the payments on such redemption
bonds as they fall due, together with all interest which shall have
accrued thereon. Any bondholder who elects to avail himself or
herself of the provisions of this chapter shall agree that in
consideration of the privilege hereby afforded the bondholder will
not maintain or attempt to maintain a suit for the collection or the
enforcement of the lien of any such bond, other than in accordance
with the remedies afforded by the provisions of this chapter. The
form of the contract herein contemplated shall be prescribed by the
state board of accounts with the approval of the attorney general. At
the time when the contract is executed and the redemption bond is
issued, the matured bond shall be surrendered to the county auditor
and shall be canceled by writing across the face of the matured bond
the words "Canceled by issuing to ______ a redemption bond in the
same principal sum as this bond, due and payable on the ______ day
of ______, 20____.".
As added by Acts 1980, P.L.8, SEC.12. Amended by P.L.2-2005,
SEC.11.
IC 5-1-7-3
Execution of contract; procedure
Sec. 3. All contracts so entered into shall be executed in duplicate
and one (1) copy thereof shall be kept by the county auditor and one
(1) copy shall be delivered to the owner of such bond. At the time of
the execution of such contract, the county auditor shall register all
such matured bonds as may be presented for redemption, and all such
redemption bonds which are issued to redeem such matured bonds
and which are merged in any contract entered into in accordance with
the provisions of this chapter, in a record kept in the county auditor's
office for that purpose, showing the name and address of the owner
of the matured and redemption bond, the amount thereof, the rate of
interest, the number of the bond or other identification mark and the
amount of the annual payment, including both the partial payment on
the principal sum of the redemption bond and the interest which will
fall due and be payable on each of the ten (10) dates, respectively,
when the county has obligated itself to make such payment, and
appropriate entries shall be made in such record as the payments on
such redemption bond, principal and interest, are made.
As added by Acts 1980, P.L.8, SEC.12.
IC 5-1-7-4
Calculation of tax levy necessary to make payments on principal
and interest on redemption bonds; submission to county council
Sec. 4. At the time when the annual estimates are made for the
county budget, the county auditor shall calculate the amount of the
tax levy which will be necessary to make the payments on the
principal and interest on such redemption bonds during the ensuing
fiscal year of the county and shall submit his calculation, together
with a detailed statement of all bonds outstanding and payable under
the provisions of this chapter, to the county council at its annual
meeting, and the county council shall levy the amount found to be
necessary to make such payments as they fall due during the ensuing
fiscal year.
As added by Acts 1980, P.L.8, SEC.12.
IC 5-1-7-5
"Bond owner" or "bondholder" defined
Sec. 5. The term "bond owner" or "bondholder" shall be construed
to mean the person who owns the bond at the time of the execution
of such contract and the provisions of such contract shall inure to and
be binding upon any subsequent grantee, executor, administrator,
heir, devisee, trustee, receiver or assign of such matured and/or
redemption bond owner or bondholder.
As added by Acts 1980, P.L.8, SEC.12.
IC 5-1-7-6
Validity or priority of lien of bond against taxable property
Sec. 6. Neither the provisions of this chapter nor any contract
executed under this chapter shall release, waive, or destroy the
validity or priority of any lien of any such bond against the taxable
property of such county or any taxing district coterminous with such
county, or any taxing district coterminous with any civil township of
such county.
As added by Acts 1980, P.L.8, SEC.12.
IC 5-1-7-7
"Bond" and "bond fund" defined
Sec. 7. The term "bond" as used in this chapter shall mean and
include any bond issued by and which is an obligation of the county
in its civil capacity; and any so-called county unit road bond which
has been issued by the board of commissioners and is an obligation
of the taxing district which is coterminous with the county; and any
so-called gravel road bond which has been issued by the board of
commissioners and is an obligation of the taxing district which is
coterminous with any civil township. The term "bond fund" means
any fund from which any of such bonds so issued or the interest
thereon is paid.
As added by Acts 1980, P.L.8, SEC.12.