§ 36-10-9-13 — Revenue bonds; trust agreement; resolution; operating expenses

(a) Revenue bonds issued under this chapter
may be secured by a trust agreement by and between the board and a
corporate trustee, which may be any trust company or bank having the
powers of a trust company in Indiana. Any resolution adopted by the
board providing for the issuance of revenue bonds and any trust
agreement under which the revenue bonds are issued may pledge or
assign, subject only to valid prior pledges, all or a part of the amounts
authorized by this chapter, but the board may not convey or mortgage
any capital improvement or any part of a capital improvement.
(b) In authorizing the issuance of revenue bonds, the board may:
(1) limit the amount of revenue bonds that may be issued as a first
lien against the amounts pledged to the payment of those revenue
bonds; or
(2) authorize the issuance from time to time of additional revenue
bonds secured by the same lien.
Additional revenue bonds shall be issued on the terms and conditions
provided in the bond resolution or resolutions adopted by the board and
in the trust agreement or any agreement supplemental to the trust
agreement. Additional revenue bonds may be secured equally and
ratably without preference, priority, or distinction with the original
issue of revenue bonds or may be made junior to the original issue of
revenue bonds.
(c) Any pledge or assignment made by the board under this section
is valid and binding from the time that the pledge or assignment is
made, and the amounts pledged and received by the board are
immediately subject to the lien of the pledge or assignment without
physical delivery of those amounts or further act. The lien of the pledge
or assignment is valid and binding against all parties having claims of
any kind in tort, contract, or otherwise against the board irrespective of
whether these parties have notice of the lien. Neither the resolution nor
any trust agreement by which a pledge is created or an assignment need
be filed or recorded in order to perfect the resulting lien against third
parties. However, a copy of the pledge or assignment shall be filed in
the records of the board.
(d) Any trust agreement or resolution providing for the issuance of
revenue bonds may contain provisions for protecting and enforcing the
rights and remedies of the bondholders that are reasonable and proper
and not in violation of law. The provisions may include convenants
stating the duties of the board in relation to:
(1) the acquisition of property;
(2) the construction, improvement, maintenance, repair,
operation, and insurance of the capital improvement or capital
improvements in connection with which the bonds have been
authorized;
(3) the rates of fees, rentals, or other charges to be collected for
the use of the capital improvement or capital improvements;
(4) the custody, safeguarding, investment, and application of all
money received or to be received by the board or trustee;
(5) the establishment of funds, reserves, and accounts; and
(6) the employment of consulting engineers in connection with
the construction or operation of the capital improvement or
capital improvements.
(e) It is lawful for any bank or trust company incorporated under
statute, and any national banking association that may act as depository
of the proceeds of bonds or other funds of the board, to furnish
indemnifying bonds or to pledge securities that are required by the
board.
(f) Any trust agreement entered into under this section may state the
rights and remedies of the bondholders and of the trustee, and may
restrict the individual right of action by bondholders as is customary in
trust agreements or trust indentures securing bonds or debentures of
private corporations. In addition, the trust agreement may contain other
provisions that the board considers reasonable and proper for the
security of the bondholders.
(g) All expenses incurred in carrying out a trust agreement entered
into under this section may be treated as a part of the necessary
operating expenses of the board.
As added by Acts 1982, P.L.77, SEC.28.