§ 20-47-2-17 — Refunding of outstanding bonds; appeal

Indiana § 20-47-2-17

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

Text

(a) As used in this section, "bonds" includes
bonds, debentures, or other evidences of indebtedness.
(b) A lessor corporation having outstanding bonds that by their
terms are redeemable before their maturities may issue bonds in the
manner provided by section 16 of this chapter to refund the outstanding
bonds. The refunding bonds may be issued in an amount not exceeding
the sum of:
(1) the principal amount of the outstanding bonds;
(2) any premium required to be paid upon redemption of the
outstanding bonds; and
(3) the estimated expenses to be incurred in connection with the
issuance of the refunding bonds.
(c) The sum of the net interest cost to the lessor corporation of the
refunding bonds plus the premium required to be paid in connection
with the redemption of the outstanding bonds and the estimated
expenses to be incurred in connection with the issuance of the
refunding bonds may not exceed the total interest that would have been
payable by the lessor corporation on the bonds being refunded from the
date of redemption to the maturity of the bonds being refunded. Net
interest cost on the refunding bonds is the amount determined by
computing the total interest on all the refunding bonds to their
maturities and deducting from that amount the premium bid, if any.
(d) Refunding bonds issued under this section:
(1) are legal and proper investments;
(2) are exempt from taxation; and
(3) may be sold without registration with or approval of the
securities division of the office of the secretary of state or
securities commissioner;
in the same manner, under the same conditions, and subject to the same
limitations as any other bonds issued by lessor corporations under
section 16 of this chapter. However, no proceedings or actions by the
lessee nor approval by any board, commission, or agency are required
in connection with the refunding, and the refunding authorized in this
section does not affect the obligation of the lessee to pay the lease
rental under the lease of the building or buildings.
(e) An action to contest the validity of refunding bonds issued under
this section may not be brought after the fifteenth day following the
receipt of bids for the bonds.
(f) In connection with the issuance of refunding bonds, the lessee
school corporation or school corporations may enter into an
amendment to the lease with the lessor corporation providing for an
extension of the time set forth in the lease before the option of the
lessee or lessees to purchase may be exercised to a time agreed upon
between the lessee school corporation or school corporations and the
lessor corporation.
[Pre-2006 Recodification Citation: 21-5-11-10.]

Legislative History

As added by P.L.2-2006, SEC.170.