§ 36-10-9-11 — Capital improvement bond fund

Indiana § 36-10-9-11

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 10: RECREATION, CULTURE, AND COMMUNITY
• Ch. 9: Marion County Capital Improvement Board

Text

(a) If there are any outstanding bonds or
notes issued under this chapter and secured in whole or in part by
money deposited in the capital improvement bond fund, the treasurer
of the board shall, except as otherwise provided in this section, deposit
the following amounts in a separate and distinct fund called the "capital
improvement bond fund":
(1) Excise tax proceeds received by the treasurer.
(2) Net income transferred to the capital improvement bond fund
under section 10 of this chapter.
(3) Any other amounts received for deposit in the capital
improvement bond fund.
(b) Principal and interest subaccounts shall be maintained in the
capital improvement bond fund. The lesser of the following amounts
shall be deposited in the principal and interest subaccounts:
(1) The total of the amounts listed in subsection (a).
(2) The total of the following amounts:
(A) In the principal and interest subaccount for the pre-1981
general obligation bonds, the amount required to provide
sufficient funds to pay the principal of and interest coming due
within the next twelve (12) months on the pre-1981 general
obligation bonds.
(B) In the principal and interest subaccounts for all outstanding
bonds and notes issued under this chapter, other than the pre-1981
general obligation bonds, the amounts required by the resolutions,
ordinances, and trust agreements under which the bonds or notes
are issued.
The deposits shall be made pro rata as between pre-1981 general
obligation bonds, if any, and all other bonds and notes issued under this
chapter. Deposits to principal and interest subaccounts for notes and for
bonds, other than pre-1981 general obligation bonds, shall be made in
the manner and in the order of priority that is provided in the
resolutions, ordinances, and trust agreements under which the bonds or
notes are issued. Amounts in a principal and interest subaccount may
be used solely to pay the principal of and interest on the issue or issues
of bonds or notes for which the principal and interest subaccount was
established.
(c) The treasurer of the board shall maintain in the capital
improvement bond fund a bond reserve subaccount for the pre-1981
general obligation bonds. The treasurer shall maintain the subaccount
in an amount equal to the maximum amount of principal and interest
coming due on the pre-1981 general obligation bonds in any
subsequent year. Reserve subaccounts shall also be maintained for
other bonds and for notes secured in whole or in part by money
deposited in the capital improvement bond fund; these subaccounts
shall be maintained to the extent and in the amount required by the
resolutions, ordinances, and trust agreements under which the bonds or
notes are issued. Amounts described in subsection (a) that are not
required to be deposited in principal and interest subaccounts under
subsection (b) shall be deposited in the reserve subaccounts to the
extent of any deficiency in those subaccounts. The deposits shall be
made pro rata as between the reserve subaccount for pre-1981 general
obligation bonds and all other reserve subaccounts. Deposits to the
reserve subaccounts for notes and for bonds, other than pre-1981
general obligation bonds, shall be made in the manner and in the order
of priority that is provided in the resolutions, ordinances, and trust
agreements under which the bonds or notes are issued. Subject to
subsection (e), amounts in a reserve subaccount may be used solely to
pay the principal of and interest on the issue or issues of bonds or notes
for which the reserve subaccount was established and only to the extent
amounts in the principal and interest subaccount for the issue or issues
of bonds or notes are not sufficient for that purpose.
(d) Amounts described in subsection (a) that are not required to be
deposited in principal and interest subaccounts or bond reserve
subaccounts under subsections (b) and (c) shall be deposited in the
capital improvement fund rather than the capital improvement bond
fund.
(e) Unless otherwise provided in any resolution, ordinance, or trust
agreement under which bonds or notes are issued, amounts in the
capital improvement bond fund in excess of the amount required by
this section to be on deposit in that fund shall be transferred to the
capital improvement fund.
(f) The principal and interest subaccount and bond reserve
subaccount for the pre-1981 general obligation bonds shall be held by
the treasurer of the board. Other principal and interest subaccounts and
bond reserve subaccounts shall be held by the treasurer or by an escrow
agent, depository, or trustee provided in the resolutions, ordinances, or
trust agreements establishing the subaccounts. One (1) principal and
interest subaccount or bond reserve subaccount may be established for
two (2) or more issues of bonds or notes.
(g) Amounts in the capital improvement bond fund on June 1, 1981,
shall be first used to establish the principal and interest subaccount for
the pre-1981 general obligation bonds in the required amount and then
to establish the bond reserve subaccount for those bonds in the required
amount. Any excess remaining shall be deposited in the capital
improvement fund.
(h) For purposes of this section and section 10 of this chapter, bonds
issued under section 15 of this chapter shall be considered to be
secured by money deposited in the capital improvement bond fund, if
provided in the resolution, ordinance, or trust agreement providing for
the issuance of the bonds.
As added by Acts 1982, P.L.77, SEC.28.