CHAPTER 14. BONDS
IC 8-24-14
Chapter 14. Bonds
IC 8-24-14-1
Service board bonding; requirements; repayment; terms
Sec. 1. (a) A service board may contract with the Indiana finance
authority (IC 4-4-11) to borrow money, make guaranties, issue
bonds, and otherwise incur indebtedness for any of the service
division's purposes, and issue debentures, notes, or other evidences
of indebtedness, whether secured or unsecured, to any person.
(b) The indebtedness is payable solely from:
(1) the lease rentals from the lease of the projects for which the
bonds were issued, insurance proceeds, and any other funds
pledged or available; and
(2) to the extent designated in the agreements for the bonds,
revenue received by the service board and amounts deposited in
a service division's fund.
(c) The indebtedness must be authorized by a resolution of the
service board.
(d) The terms and form of the indebtedness must either be set out
in the resolution or in a form of trust indenture approved by the
resolution.
(e) The indebtedness must be paid within twenty-five (25) years.
(f) All money received from any indebtedness under this article
shall be applied solely to the payment of the cost of acquiring,
constructing, improving, reconstructing, or renovating one (1) or
more projects, or the cost of refunding or refinancing outstanding
bonds, for which the indebtedness was incurred. The cost may
include:
(1) planning and development of equipment or a facility and all
buildings, facilities, structures, equipment, and improvements
related to the facility;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the project suitable for use and
operations;
(4) architectural, engineering, consultant, and attorney's fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) bond insurance, debt service reserve insurance, letters of
credit, or other credit enhancement; and
(11) funding or refunding bonds or other evidences of
indebtedness issued under this article, IC 8-5-15, IC 8-9.5-7,
IC 8-22-3, IC 36-7.5, IC 36-7.6, IC 36-9-3, IC 36-9-4, or prior
law to finance a public transportation system, including
payment of the principal of, redemption premiums (if any) for,
and interest on the bonds being refunded or refinanced.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-2
Applicable bonding authority
Sec. 2. This article contains full and complete authority for the
issuance of bonds. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by a service division
board or any other officer, department, agency, or instrumentality of
the state or of any political subdivision is required to issue any
bonds, except as prescribed in this article.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-3
Trust indenture between Indiana finance authority and service
division; terms
Sec. 3. (a) The Indiana finance authority may secure bonds issued
under this article by a trust indenture between the service division
and a corporate trustee, which may be any trust company or national
or state bank in Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign revenue received by the service division,
amounts deposited in a service division fund, and lease rentals,
receipts, and income from leased projects, but may not
mortgage land or projects;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the service division and the
service board;
(3) set forth the rights and remedies of bondholders and
trustees; and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the service division under
this section is valid and binding in accordance with IC 5-1-14-4 from
the time that the pledge or assignment is made, against all persons
whether they have notice of the lien. Any trust indenture by which a
pledge is created or an assignment made need not be filed or
recorded. The lien is perfected against third parties in accordance
with IC 5-1-14-4.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-4
Investment in bonds
Sec. 4. Bonds issued under this article are legal investments for
private trust funds and the funds of banks, trust companies, insurance
companies, building and loan associations, credit unions, savings
banks, private banks, loan and trust and safe deposit companies, rural
loan and savings associations, guaranty loan and savings
associations, mortgage guaranty companies, small loan companies,
industrial loan and investment companies, and other financial
institutions organized under Indiana law.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-5
Actions to contest validity of bonds
Sec. 5. An action to contest the validity of bonds to be issued
under this article may not be brought after the time limitations set
forth in IC 5-1-14-13.
As added by P.L.182-2009(ss), SEC.282.
IC 8-24-14-6
Covenants
Sec. 6. The general assembly covenants that it will not:
(1) repeal or amend this article in a manner that would
adversely affect owners of outstanding bonds, or the payment
of lease rentals, secured by the amounts pledged under this
article; or
(2) in any way impair the rights of owners of bonds of a district,
or the owners of bonds secured by lease rentals or by a pledge
of revenues under this article.
As added by P.L.182-2009(ss), SEC.282.