§ 16-22-7-36 — 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 all or part of the land or buildings, or both, for
which the bonds are issued.
(2) Contain reasonable provisions for protecting and enforcing the
rights and remedies of the bondholders, including covenants
concerning the following:
(A) Construction of the buildings.
(B) Insurance for the buildings.
(C) Custody, safeguarding, and application of all money.
(3) Set forth the rights and remedies of the bondholders and
trustee.
(4) Restrict the individual right of action of bondholders.
(c) Except as restricted by this chapter, the governing board may
determine by resolution or in the trust indenture the officer, board, or
depositary who shall have custody of the proceeds of the sale of bonds
and the method of disbursement of the proceeds, including safeguards
and restrictions.
[Pre-1993 Recodification Citation: 16-12-20.5-21.]

Legislative History

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