§ 36-7.6-4-5 — Bonding; security; trust indenture

Indiana § 36-7.6-4-5

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

Text

(a) A development authority may secure bonds
issued under this chapter by a trust indenture between the development
authority and a corporate trustee, which may be any trust company or
national or state bank in Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign revenue received by the development
authority, amounts deposited in the development authority fund,
and lease rentals, receipts, and income from leased projects, but
may not mortgage land or projects;
(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 development authority
and development board;
(3) set forth the rights and remedies of bondholders and trustees;
and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the development authority
under this section 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 made 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.232-2007, SEC.7.