§ 36-7-14-27.5 — Tax anticipation warrants; authorization; procedure; legislative body approval

Indiana § 36-7-14-27.5

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7: PLANNING AND DEVELOPMENT
• Ch. 14: Redevelopment of Areas Needing Redevelopment

Text

5. (a) Subject to the prior approval by the
legislative body of the unit, the redevelopment commission may borrow
money in anticipation of receipt of the proceeds of taxes levied for the
redevelopment district bond fund and not yet collected, and may
evidence this borrowing by issuing warrants of the redevelopment
district. However, the aggregate principal amount of warrants issued in
anticipation of and payable from the same tax levy or levies may not
exceed an amount equal to eighty percent (80%) of that tax levy or
levies, as certified by the department of local government finance, or
as determined by multiplying the rate of tax as finally approved by the
total assessed valuation (after deducting all mortgage deductions)
within the redevelopment district, as most recently certified by the
county auditor.
(b) The warrants may be authorized and issued at any time after the
tax or taxes in anticipation of which they are issued have been levied
by the redevelopment commission. For purposes of this section, taxes
for any year are considered to be levied upon adoption by the
commission of a resolution prescribing the tax levies for the year.
However, the warrants may not be delivered and paid for before final
approval of the tax levy or levies by the department of local
government finance, unless the issuance of the warrants has been
approved by the department.
(c) All action that this section requires or authorizes the
redevelopment commission to take may be taken by resolution, which
need not be published or posted. The resolution takes effect
immediately upon its adoption by the redevelopment commission. An
action to contest the validity of tax anticipation warrants may not be
brought later than ten (10) days after the sale date.
(d) In their resolution authorizing the warrants, the redevelopment
commission must provide that the warrants mature at a time or times
not later than December 31 after the year in which the taxes in
anticipation of which the warrants are issued are due and payable.
(e) In their resolution authorizing the warrants, the redevelopment
commission may provide:
(1) the date of the warrants;
(2) the interest rate of the warrants;
(3) the time of interest payments on the warrants;
(4) the denomination of the warrants;
(5) the form either registered or payable to bearer, of the warrants;
(6) the place or places of payment of the warrants, either inside or
outside the state;
(7) the medium of payment of the warrants;
(8) the terms of redemption, if any, of the warrants, at a price not
exceeding par value and accrued interest;
(9) the manner of execution of the warrants; and
(10) that all costs incurred in connection with the issuance of the
warrants may be paid from the proceeds of the warrants.
(f) The warrants shall be sold for not less than par value, after notice
inviting bids has been published under IC 5-3-1. The redevelopment
commission may also publish the notice in other newspapers or
financial journals.
(g) Warrants and the interest on them are not subject to any
limitation contained in section 25.1 of this chapter, and are payable
solely from the proceeds of the tax levy or levies in anticipation of
which the warrants were issued. The authorizing resolution must
pledge a sufficient amount of the proceeds of the tax levy or levies to
the payment of the warrants and the interest.
As added by Acts 1981, P.L.310, SEC.90. Amended by
P.L.1-1994, SEC.176; P.L.90-2002, SEC.475; P.L.224-2007, SEC.121;
P.L.146-2008, SEC.735; P.L.149-2014, SEC.16; P.L.257-2019,
SEC.119.