§ 36-7-14.5-21 — Trust indenture securing bonds; fiscal body approval

Indiana § 36-7-14.5-21

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7: PLANNING AND DEVELOPMENT
• Ch. 14.5: Redevelopment Authority

Text

(a) The authority may secure bonds issued
under this chapter by a trust indenture between the authority and a
corporate trustee, which may be any trust company or national or state
bank within Indiana that has trust powers.
(b) Before a trust indenture may be entered into, the authority must
obtain the prior approval of the fiscal body of the unit under IC 36-7-14-25.2. The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income from
leased local public improvements, but may not mortgage land or
local public improvements;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority and board;
(3) set forth the rights and remedies of bondholders and trustee;
and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this
section and approved by the fiscal body of the unit is valid and binding
in accordance with IC 5-1-14-4 from the time that the pledge or
assignment is made, against all persons whether they have notice of the
lien or not. Any trust indenture by which a pledge is created or an
assignment need not be filed or recorded. The lien is perfected against
third parties in accordance with IC 5-1-14-4.

Legislative History

As added by P.L.380-1987(ss), SEC.18. Amended by P.L.149-2014, SEC.29.