§ 36-7-12-28 — Trust indentures securing bonds

Indiana § 36-7-12-28

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7: PLANNING AND DEVELOPMENT
• Ch. 12: Economic Development and Pollution Control

Text

(a) The fiscal body of a unit issuing bonds
under this chapter may secure them by a trust indenture between the
unit and a corporate trustee. The corporate trustee may be any trust
company, national bank, or state bank that is in Indiana and has trust
powers.
(b) A trust indenture under this section may:
(1) mortgage the land, any interest in land, or the facilities on
account of which the bonds are issued;
(2) pledge all or part of the payments to be received by the unit;
(3) set forth the rights and remedies of the trustee and the holders
of the bonds, including provisions restricting the individual right
of action of the holders;
(4) contain provisions considered reasonable for protecting and
enforcing the rights and remedies of the holders or lenders,
including covenants setting forth duties of the unit and the
economic development commission regarding:
(A) the construction of the facilities; and
(B) the custody, safeguarding, application, and investment of
revenues received or to be received by the unit on account of
the facilities financed by the issuance of the bonds;
(5) contain provisions regarding the investment of money, the
sale, exchange, or disposal of property, and the manner of
authorizing and making payments, notwithstanding any general
statute relating to these matters; and
(6) provide for the establishment of reserve funds from the
proceeds of the bonds or from other sources to secure the prompt
payment of the principal and interest on them.
[Pre-Local Government Recodification Citation:
18-6-4.5-22.]
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts
1982, P.L.28, SEC.8; P.L.25-1987, SEC.54.