This text of Indiana § 15-13-10-5 (Security for bonds; pledge and assignment; trust agreements) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)Bonds issued under this chapter may be
secured by a trust agreement between the commission and a corporate
trustee, which may be any trust company or bank having the powers of
a trust company in Indiana.
(b)A resolution adopted by the commission providing for the
issuance of bonds, and any trust agreement under which the bonds are
issued, may pledge or assign all or any part of the revenues received by
the commission except that part necessary:
(1)to pay the cost of the commission's administrative operation,
maintenance, and repair expenses, and to provide reserves for
those expenses; and
(2)for depreciation reserves required by a bond resolution or trust
agreement of the commission.
(c)The commission may not mortgage any property.
(d)When authorizing the issuance of bonds for a p
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(a) Bonds issued under this chapter may be
secured by a trust agreement between the commission and a corporate
trustee, which may be any trust company or bank having the powers of
a trust company in Indiana.
(b) A resolution adopted by the commission providing for the
issuance of bonds, and any trust agreement under which the bonds are
issued, may pledge or assign all or any part of the revenues received by
the commission except that part necessary:
(1) to pay the cost of the commission's administrative operation,
maintenance, and repair expenses, and to provide reserves for
those expenses; and
(2) for depreciation reserves required by a bond resolution or trust
agreement of the commission.
(c) The commission may not mortgage any property.
(d) When authorizing the issuance of bonds for a project, the
commission may:
(1) limit the amount of bonds that may be issued as a first lien and
charge against the revenues pledged to the payment of the bonds;
or
(2) authorize the later periodic issuance of additional bonds
secured by the same lien to provide funds:
(A) for the completion of the project on account of which the
original bonds were issued; or
(B) to pay the cost of additional projects.
The commission may issue additional bonds only on terms and
conditions provided in the bond resolution adopted by the commission,
in a trust agreement, or in a supplemental agreement. The additional
bonds may be secured equally and ratably without preference, priority,
or distinction with the original issue of bonds or may be made junior to
the original issue.
(e) A pledge or an assignment made by the commission is valid and
binding from the time the pledge or assignment is made. Revenues
pledged and received by the commission are immediately subject to the
lien of the pledge or assignment without physical delivery or further
act. The lien of the pledge or assignment is valid and binding against
all parties having claims of any kind against the commission, whether
or not the parties have notice. Neither the resolution nor a trust
agreement by which a pledge is created or assignment made need be
filed or recorded except in the records of the commission.
(f) A trust agreement or a resolution providing for the issuance of
bonds may contain reasonable provisions for protecting and enforcing
the rights and remedies of the bondholders.
(g) A bank or trust company incorporated under the laws of the state
and acting as the depository of the proceeds of bonds or other funds of
the commission may furnish indemnifying bonds or pledge securities
as required by the commission.
(h) A trust agreement may do the following:
(1) Set forth the rights and remedies of the bondholders and the
trustee.
(2) Restrict the individual right of action by bondholders as is
customary in trust agreements or trust indentures securing bonds
or debentures of private corporations.
(3) Contain other provisions the commission considers reasonable
and proper for the security of the bondholders.
(i) All expenses incurred in carrying out the provisions of a trust
agreement may be treated as a part of the cost of the operation of the
project.
[Pre-2008 Recodification Citation: 15-1.5-9-4.]