§ 16-22-8-58 — Duties of the controller upon receiving notice from the bond bank of the corporation's failure to pay certain obligations

Indiana § 16-22-8-58

• Jurisdiction: Indiana
• Title 16: HEALTH
• Art. 22: COUNTY HOSPITALS
• Ch. 8: Health and Hospital Corporation of Marion County

Text

(a) Upon receiving notice from the bond
bank that the corporation has failed to pay when due the principal of or
interest on the obligations of the corporation then held, owned by, or
arising from an agreement with the bond bank, the controller of the
county in which the corporation is established shall do the following:
(1) Reduce the amount of any revenues, other money, or property
that are pledged to pay the obligations, that:
(A) are held, possessed, maintained, controlled, or otherwise in
the custody of the county in which the corporation is
established or a department, an agency, or an instrumentality of
the county in which the corporation is established; and
(B) would otherwise be available for distribution to the
corporation under any other law;
by an amount equal to the amount of the unpaid obligations.
(2) Pay the amount by which the revenues, other money, or
property that are pledged to pay the obligations is reduced under
subdivision (1) to the bond bank to pay the principal of and
interest on the bonds or other obligations of the bond bank
directly related to the applicable defaulted obligations of the
corporation.
(3) Notify the corporation that the revenues, other money, or
property, which would otherwise be available for distribution to
the corporation, has been reduced by an amount necessary to
satisfy all or part of the unpaid obligations to the bond bank.
(b) Any reductions under subsection (a) must be used only for the
purpose of paying the principal of and interest on the bonds or other
obligations of the bond bank that are directly related to the applicable
defaulted obligations of the corporation and that the bond bank has
failed to pay and for no other purpose.
(c) Notwithstanding any other law, the corporation has no legal or
equitable right to any revenues, other money, or property that are
pledged to pay the principal of and interest on the bonds or other
obligations of the bond bank, which are held, possessed, maintained,
controlled or otherwise in the custody of any other political subdivision
of the state, or any department, agency, or instrumentality of a political
subdivision of the state, that would otherwise be available for
distribution to the political subdivision, until:
(1) any reduction permitted under this section has been applied;
and
(2) the revenues, other money, or property have been or are
required to be distributed to and received by the corporation.
(d) This section shall be interpreted liberally so that the county, in
which the corporation is established, shall, to the extent permitted
under Indiana law, ensure that the obligations of the corporation held
or owned by or arising from an agreement with the bond bank, are paid
when due. However, this section does not create a debt of the state or
any other political subdivision.
(e) The withholding of a payment from or the reduction of a
payment to the corporation and the payment to the bond bank under
this section must not adversely affect the validity of the obligation of
the corporation in default.

Legislative History

As added by P.L.189-2018, SEC.148.