CHAPTER 22. COUNTY ROAD AND BRIDGE BONDING
IC 8-18-22
Chapter 22. County Road and Bridge Bonding
IC 8-18-22-1
Applicability of chapter
Sec. 1. This chapter applies to the issuance of bonds by counties
for purposes authorized by IC 8-16-3, IC 8-16-3.1, IC 8-16-5, and
IC 8-17 through IC 8-20. This chapter does not apply to bonds issued
under IC 8-18-21.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-2
"Bonds" defined
Sec. 2. As used in this chapter, "bonds" has the meaning set forth
in IC 36-1-2-2.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-3
Bond issues; purposes; notice and hearing; multiple projects
funded by single issue
Sec. 3. (a) Upon request of the county executive, the county fiscal
body may borrow money and issue bonds in the name of the county
in principal amounts and maturities as the fiscal body determines
necessary to provide sufficient funds for the purposes specified in
IC 8-16 through IC 8-20, including:
(1) the payment of costs of the project for which bonds are
authorized, costs of issuance, or related costs of financing;
(2) the payment of interest on the bonds;
(3) the establishment of reserves to secure the bonds; and
(4) all other expenditures of the county incident to, necessary,
and convenient to carry out this chapter.
(b) Before bonds may be issued under this chapter, the county
fiscal body shall give notice of a public hearing to disclose the
purpose for which the bond issue is proposed, the amount of the
proposed issue, and other pertinent data. The county fiscal body shall
publish in accordance with IC 5-3-1 a notice of the time, place, and
general purpose of the hearing.
(c) The costs of more than one (1) project may be included in one
(1) issue of bonds.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-4
Ordinance authorizing bonds; method of sale; price
Sec. 4. (a) The bonds must be authorized by ordinance of the
fiscal body. The ordinance must provide the following with respect
to the bonds:
(1) The original date of the bonds.
(2) The time or times that the bonds mature. However, a bond
may not mature more than thirty (30) years from the date it is
issued.
(3) The maximum interest rate or rates, including variations of
the rates.
(4) The denominations.
(5) The form, either coupon or registered.
(6) The registration privileges.
(7) The medium of payment and the place or places of payment.
(8) The terms of redemption, including redemption before
maturity.
(b) Bonds issued under this chapter must be sold under IC 5-1-11,
and at a price or prices determined by the county fiscal body in the
ordinance.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-5
Optional provisions of ordinance
Sec. 5. An ordinance authorizing the issuance of bonds under this
chapter or trust indenture under which the bonds are issued may
contain the following provisions:
(1) Pledging revenues of the county to secure the payment of
the bonds, subject to section 6 of this chapter and existing
agreements with bondholders.
(2) Setting aside reserves or sinking funds and the regulation
and disposition of these funds.
(3) Limitations on the purposes to which the proceeds from the
sale of bonds may be applied.
(4) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and
the refunding of outstanding or other bonds.
(5) The procedure, if any, by which the terms of a contract with
bondholders may be amended or abrogated and the manner in
which the consent to the amendment or abrogation may be
given.
(6) Vesting in a trustee property, rights, powers, and trust as the
county fiscal body determines, and limiting or abrogating the
right of the bondholders to appoint a trustee or to limit the
rights, powers, and duties of the trustee.
(7) Defining acts or omissions that will constitute a default and
the obligations or duties of the county fiscal body to the
bondholders and providing for the rights and remedies of the
bondholders in the event of default. However, the rights and
remedies must not be inconsistent with this chapter or other
laws of this state.
(8) A covenant that the fiscal body will not repeal or adversely
modify the taxes or sources of revenue that are pledged to
secure the payment of the bonds.
(9) Any other matter that affects the security or protection of
the bondholders.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-6
Pledge of revenues; covenants not to impair pledged taxes
Sec. 6. (a) Except as provided in subsection (b), the county fiscal
body may pledge revenues for the payment of principal and interest
on the bonds and for other purposes under the ordinance as provided
by IC 5-1-14-4, including revenues from the following sources:
(1) The motor vehicle highway account.
(2) The local road and street account.
(3) The county motor vehicle excise surtax.
(4) The county wheel tax.
(5) The county adjusted gross income tax.
(6) The county option income tax.
(7) The economic development income tax.
(8) Assessments.
(9) Any other unappropriated or unencumbered money.
(b) The county fiscal body may not pledge to levy ad valorem
property taxes for these purposes, except for revenues from the
following:
(1) IC 8-16-3.
(2) IC 8-16-3.1.
(c) If the county fiscal body has pledged revenues from the county
option income tax as set forth in subsection (a), the county income
tax council (as defined in IC 6-3.5-6-1) may covenant that the council
will not repeal or modify the tax in a manner that would adversely
affect owners of outstanding bonds issued under this chapter. The
county income tax council may make the covenant by adopting an
ordinance using procedures described in IC 6-3.5-6.
(d) If the county fiscal body has pledged revenues from the
economic development income tax as set forth in subsection (a), the
county income tax council (if the council is the body that imposed
the tax) may covenant that the council will not repeal or modify the
tax in a manner that would adversely affect owners of outstanding
bonds issued under this chapter. The county income tax council may
make the covenant by adopting an ordinance using procedures
described in IC 6-3.5-6.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-7
Trust indentures
Sec. 7. (a) The bonds may be secured by a trust indenture between
the county and a bank having the power of a trust company or any
trust company.
(b) The trust indenture may provide for:
(1) protecting and enforcing the rights and remedies of the
bondholders as are reasonable and proper and not in violation
of law;
(2) covenants setting forth the duties of the county fiscal body
in relation to the exercise of its powers and the custody,
safekeeping, and application of money related to the bond
financing for which the trust indenture exists;
(3) the payment of the proceeds of the bonds and the revenue of
the trustee under the trust indenture; and
(4) the method of disbursement of the proceeds of the bonds
and the revenue to the trustee, with safeguards and restrictions
as the county fiscal body may determine.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-8
Execution and attestation of bonds
Sec. 8. Bonds issued by the county under this chapter must be
executed by the manual or facsimile signatures of the executive and
attested to by the county auditor.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-9
Use of bond proceeds
Sec. 9. Money received from the bonds issued under this chapter
shall be applied solely to the purposes for which the bonds were
issued, except as provided in IC 5-1-13 and IC 5-1-14.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-10
Bonds as negotiable instruments; registration
Sec. 10. The bonds are negotiable instruments, subject only to the
provisions of the bonds relating to registration.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-11
Tax exemption
Sec. 11. Bonds issued under this chapter are exempt from taxation
in Indiana under IC 6-8-5.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-12
Exemption from securities registration laws
Sec. 12. Bonds issued by the county under this chapter are exempt
from registration and other requirements of IC 23 and any other
securities registration laws.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-13
State covenant not to impair bondholder rights and remedies
Sec. 13. The general assembly pledges to and covenants with the
owner of any bonds issued under this chapter that the general
assembly will not limit or alter the ability of the county to fulfill the
terms of the agreements or pledges made with bondholders or in any
way impair the rights or remedies of the bondholders until the bonds
and related obligations are fully met and discharged.
As added by P.L.113-1989, SEC.9.
IC 8-18-22-14
Certain statutory provisions inapplicable
Sec. 14. IC 6-1.1-20 does not apply to the issuance of bonds under
this chapter.
As added by P.L.113-1989, SEC.9.