§ 36-10-11-24 — Bonds or loans; trust indenture

Indiana § 36-10-11-24

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 10: RECREATION, CULTURE, AND COMMUNITY
• Ch. 11: Gary Building Authority

Text

(a) In the discretion of the board of
directors, the bonds or loan may be secured by a trust indenture
between the authority and a corporate trustee, which may be any trust
company or national or state bank within Indiana having trust powers.
The trust indenture may mortgage all or part of the land, buildings, or
both for which the bonds are issued or the loan negotiated. The trust
indenture may contain the provisions for protecting and enforcing the
rights and remedies of the bondholders or lenders that are reasonable
and proper, including covenants setting forth the duties of the authority
and board of directors in relation to the construction of the buildings
and improvement, operation, repair, maintenance, and insurance of
them, and the custody, safeguarding, and application of all money
received or to be received by the authority due to the building financed
by the issuance of the bonds or the negotiation of the loan. The
indenture may set forth the rights and remedies of the bondholders or
lenders and trustee and provisions restricting the individual right of
action of bondholders or lenders.
(b) Within the limits of this chapter, the board of directors may
provide by resolution or in the trust indenture for the payment of the
proceeds of the sale of the bonds or the negotiation of the loan to an
officer, board, or depository that it determines for the custody of them
and for the method of disbursement, with safeguards and restrictions
that it determines.
As added by Acts 1982, P.L.218, SEC.5.