§ 16-22-6-31 — Security for bonds; trust indenture

(a) The governing board may secure the
bonds by a trust indenture between the authority and a corporate
trustee, which may be any trust company or national or state bank in
Indiana having trust powers.
(b) The trust indenture may do the following:
(1) Mortgage the land or building, or both, for which the bonds
are issued.
(2) Contain reasonable provisions for the following:
(A) Protecting and enforcing the rights and remedies of the
bondholders, including covenants setting forth the duties of the
authority and board in relation to the following:
(i) The construction or renovation of the building and the
building's insurance.
(ii) The custody, safeguarding, and application of all money.
(B) Setting forth the rights and remedies of the bondholders and
trustee.
(C) Restricting the individual right of action of bondholders.
(c) Except as otherwise provided in this chapter, the board of
directors may determine by resolution or in the trust indenture the
following:
(1) The officer, board, or depositary that shall have custody of the
proceeds of the sale of the bonds.
(2) The method of disbursement of the proceeds, including
safeguards and restrictions.
[Pre-1993 Recodification Citation: 16-12-20-19.]

Legislative History

As added by P.L.2-1993, SEC.5.