§ 36-10-11-25 — Refunding revenue bonds; issuance

(a) To procure money to refund bonds
issued under section 20 of this chapter, the board of directors may issue
refunding revenue bonds. The refunding bonds may not be issued
unless:
(1) the issuance will result in a savings of interest cost to the
authority; or
(2) the issuance will permit a reduction in the lease rental payable
by the lessee of the building financed from the bond proceeds
being refunded.
(b) The refunding bonds are subject to the following:
(1) The issuance may not exceed the sum of:
(A) the principal of the bonds being refunded;
(B) any premium required to be paid upon their redemption;
(C) any interest accrued or to accrue to the date of their
redemption; and
(D) any expenses that the board estimates will be incurred in the
issuance of the refunding bonds.
(2) The bonds may be issued at any time not more than six (6)
years prior to the redemption date of the bonds being refunded.
(3) Principal is not payable on the refunding bonds until after the
redemption date.
(4) Until the redemption of the bonds being refunded, the interest
on the refunding bonds is payable solely from the money placed
in escrow in accordance with section 26 of this chapter. Interest
or other income earned on the investment of the funds and the
principal and interest on the refunding bonds constitute a lien
only against the escrowed money.
(5) Upon redemption of all the bonds being refunded, the
principal and interest on the refunding bonds is payable solely
from and constitute a lien only against the income and revenues
of the buildings financed from the proceeds of the bonds being
refunded and any other money deposited in the sinking fund for
the payment of the refunding bonds.
(c) The refunding bonds shall be issued in the same manner as
bonds are issued under section 20 of this chapter and may be secured
by a trust indenture as provided in section 24 of this chapter.
(d) An action to contest the validity of the refunding bonds may not
be brought after the fifth day following the receipt of bids for the
bonds.
(e) The trust indenture securing the refunding bonds may provide
for the transfer by the authority to the sinking fund established by the
trust indenture of all or any part of the balance in the sinking fund
established in the trust indenture securing, or resolution providing for
the issuance of, the bonds being refunded, the transfer to be made
concurrently with the redemption of all the bonds being refunded.
As added by Acts 1982, P.L.218, SEC.5.