§ 36-7.6-4-17 — Covenants

Indiana § 36-7.6-4-17

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7.6: REGIONAL DEVELOPMENT AUTHORITIES
• Ch. 4: Financing; Issuance of Bonds; Leases

Text

(a) If there are bonds outstanding that have
been issued under this article by a development authority and are not
secured by a lease, or if there are leases in effect under this article, the
general assembly covenants that it will not reduce the amount required
to be transferred under section 2 of this chapter from a county or
municipality that is a member of a development authority to the
development authority below an amount that would produce one and
twenty-five hundredths (1.25) multiplied by the total of the highest
annual debt service on the bonds to their final maturity plus the highest
annual lease payments on the leases to their final termination date.
(b) The general assembly also covenants that it will not:
(1) repeal or amend this article in a manner that would adversely
affect owners of outstanding bonds, or the payment of lease
rentals, secured by the amounts pledged under this chapter; or
(2) in any way impair the rights of owners of bonds of a
development authority, or the owners of bonds secured by lease
rentals, secured by a pledge of revenues under this chapter;
except as otherwise set forth in subsection (a).

Legislative History

As added by P.L.232-2007, SEC.7.