§ 36-7-12-26 — Financing agreements; terms

(a) A financing agreement approved under
this chapter must provide for payments in an amount sufficient to pay
the principal of, premium (if any), and interest on the bonds authorized
for and allocable to the financing of the facilities. However, interest
payments for the anticipated construction period, plus a period of not
more than one (1) year, may be funded in the issue.
(b) The term of a financing agreement may not exceed forty (40)
years from the date of any bonds issued under the financing agreement.
However, a financing agreement does not terminate after forty (40)
years if a default under that agreement remains uncured, unless the
termination is authorized by the terms of the financing agreement.
(c) If the unit retains an interest in the facilities, the financing
agreement must require the user or the developer to pay all costs of
maintenance, repair, taxes, assessments, insurance premiums, trustee's
fees, and any other expenses relating to the facilities, so that the unit
will not incur any expenses on account of the facilities other than those
that are covered by the payments provided for in the financing
agreement.
[Pre-Local Government Recodification Citation:
18-6-4.5-19.]
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts
1982, P.L.28, SEC.6; P.L.25-1987, SEC.53.