Indiana § 20-47-2-16 Lessor corporation; sale of bonds and securities; mortgage bonds

Indiana Statutes

§ 20-47-2-16 — Lessor corporation; sale of bonds and securities; mortgage bonds

Indiana·Title 20 EDUCATION·Art. 47 RELATED ENTITIES; HOLDING COMPANIES;·Ch. 2 Public Holding Companies

(a)A corporation qualifying as a lessor corporation under this chapter may, in furtherance of its corporate purposes, issue and sell stock, bonds, and other securities. Mortgage bonds issued by a lessor corporation that are a first lien on the leased property are legal and proper investments for state banks and trust companies, insurance companies, and fiduciaries. Bonds issued under this section may be callable upon notice in the manner provided in the mortgage indenture, at premiums up to five percent (5%) with accrued and unpaid interest.

(b)Stocks, bonds, and other securities issued by a lessor corporation shall be sold in the manner provided in IC 5-1-11. However, the notice of sale shall be published in the manner required for bonds of the county in which the school building is loc

Free access — add to your briefcase to read the full text and ask questions with AI

(a) A corporation qualifying as a lessor
corporation under this chapter may, in furtherance of its corporate
purposes, issue and sell stock, bonds, and other securities. Mortgage
bonds issued by a lessor corporation that are a first lien on the leased
property are legal and proper investments for state banks and trust
companies, insurance companies, and fiduciaries. Bonds issued under
this section may be callable upon notice in the manner provided in the
mortgage indenture, at premiums up to five percent (5%) with accrued
and unpaid interest.
(b) Stocks, bonds, and other securities issued by a lessor corporation
shall be sold in the manner provided in IC 5-1-11. However, the notice
of sale shall be published in the manner required for bonds of the
county in which the school building is located.
(c) Shares of common stock issued by a lessor corporation are not
required to be sold at a public sale. The price of the shares shall be
determined by the lessor corporation, but the price of the shares may
not exceed the lesser of:
(1) the necessary expense of incorporation, preparation of
preliminary plans and specifications, and other preliminary
expense necessary to the preparation of the proposed lease and
publication of notice of the lease; or
(2) a sum equal to five percent (5%) of the proposed cost of the
building or buildings.
(d) None of the costs of construction of the building, the purchase
of the equipment for the building, or the incidental expenses in
connection with the construction or purchase may be paid from stocks,
bonds, or securities of the lessor corporation unless those stocks,
bonds, or securities are sold at public sale as provided in this section.
(e) The approval of the securities commissioner is not required in
connection with the issuance and sale of any stocks, bonds, or other
securities of the lessor corporation.
(f) A part of the proceeds from stocks, bonds, or other securities
sold at public sale may be used to reimburse the incorporators or any
other person or persons who may have advanced funds for essential
preliminary expenses as provided for in this section, with interest on
the amount reimbursed not to exceed five percent (5%).
[Pre-2006 Recodification Citation: 21-5-11-9.]

Indiana § 20-47-2-16 (Lessor corporation; sale of bonds and securities; mortgage bonds) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.