§ 16-22-8-59 — Duties of the controller and county treasurer if the corporation is designated as a distressed political subdivision; bond bank

(a) If the corporation is designated as a
"distressed political subdivision" by the distressed unit appeal board
pursuant to IC 6-1.1-20.3-6.5, upon receipt of the notice of the
designation from the distressed unit appeal board, the controller and
the county treasurer of the county in which the corporation is
established shall take any and all actions necessary to immediately and
automatically distribute to the bond bank, after any reductions required
by section 58 of this chapter, any revenues, other money, or property
that are pledged to pay the principal of or interest on the obligations of
the corporation held or owned by or arising from an agreement with the
bond bank, which are held, possessed, maintained, controlled, or
otherwise in the custody of the county in which the corporation is
established, or any department, agency, or instrumentality of the
county, which would otherwise be available for distribution to the
corporation under any other law.
(b) Upon receipt of the revenues, other money, or property, the bond
bank shall retain the amount necessary to pay the debt service on all of
its bonds for the one (1) year period following the date of the receipt of
the revenues, other money, or property, for which bonds the
corporation is directly or indirectly obligated to pay, pursuant to the
corporation's bonds or leases entered into with the building authority.
The bond bank shall deposit the amount retained with the trustee or
trustees for the bonds and then distribute the remainder to the
corporation. The amounts required to be deposited with the trustee or
trustees shall be reduced by any other money held by the trustee or
trustees and available for the debt service, except any reserves required
to be held by the trustee or trustees, but shall be increased by any
amount necessary to restore any reserves to their required levels. The
revenues, other money, or property of the corporation that are required
to be deposited with the trustee or trustees pursuant to this subsection
shall continue in full force and effect until the time the distressed unit
appeal board terminates the corporation's status as a distressed political
subdivision pursuant to IC 6-1.1-20.3-13.
(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 or interest on the obligations of the
corporation held or owned by or arising from an agreement with the
bond bank, which are held, possessed, maintained, controlled or
otherwise in the custody of:
(1) any other political subdivision of the state; or
(2) any department, agency, or instrumentality of a political
subdivision of the state;
that would otherwise be available for distribution to the corporation,
unless and until the revenues, other money, or property have been or
are required to be distributed to and received by the corporation.

Legislative History

As added by P.L.189-2018, SEC.149. Amended by P.L.10-2019, SEC.70.