(a)If a municipality wants to obtain all or
part of the money necessary to pay the cost of parking facilities by the
issuance of revenue bonds, the bonds must be authorized by ordinance
of the municipal legislative body.
(b)The ordinance authorizing the revenue bonds:
(1)must set out the amount, date, denominations, terms,
conditions, and form of the bonds and their interest coupons;
(2)must set out any covenants relative to safeguarding the interest
of the bondholders;
(3)must specify in detail the revenues pledged to the payment of
the interest on and the principal of the bonds; and
(4)may contain provisions for the issuance of additional bonds of
equal priority, or of junior and subordinate priority, from time to
time after issuance of the original bonds, under the restrictions se
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(a) If a municipality wants to obtain all or
part of the money necessary to pay the cost of parking facilities by the
issuance of revenue bonds, the bonds must be authorized by ordinance
of the municipal legislative body.
(b) The ordinance authorizing the revenue bonds:
(1) must set out the amount, date, denominations, terms,
conditions, and form of the bonds and their interest coupons;
(2) must set out any covenants relative to safeguarding the interest
of the bondholders;
(3) must specify in detail the revenues pledged to the payment of
the interest on and the principal of the bonds; and
(4) may contain provisions for the issuance of additional bonds of
equal priority, or of junior and subordinate priority, from time to
time after issuance of the original bonds, under the restrictions set
forth in the ordinance.
(c) The revenue bonds may:
(1) bear interest, payable semiannually, at any rate;
(2) be payable in the amounts, at times not exceeding fifty (50)
years from the date of issuance, and at the place or places, either
within or outside of Indiana; and
(3) be redeemable before maturity on the terms and conditions;
specified by the municipal legislative body in the authorizing
ordinance.
(d) The bonds shall be executed in the name of the municipality as
other bonds of the municipality are executed. If any of the officers
whose signatures or countersignatures appear on the bonds or the
coupons cease to be officers before the delivery of the bonds to the
purchaser, the officer's signature or countersignature remains valid and
sufficient for all purposes as if the officer had remained in office until
the delivery of the bonds.
(e) Upon the sale and delivery of the bonds authorized, the
ordinance constitutes a contract between the municipality and the
bondholders, and may not subsequently be amended or modified so as
to adversely affect the rights of the bondholders.
(f) The bonds of a city and the interest on them are payable only out
of the special fund or account created by the ordinance authorizing the
issuance of the bonds and the revenues pledged to the fund or account.
The bonds of a town and the interest on them are payable only out of
the parking sinking fund established by section 19 of this chapter and
the revenues pledged to that fund.
(g) The bonds are not an indebtedness of the municipality for
purposes of any constitutional provision or limitation. A statement to
that effect must appear on the face of each bond.
(h) The bonds are payable to bearer, and the interest on them shall
be evidenced by coupons attached to them.
(i) The bonds may be registrable as to the principal only in the
holder's name on the books of the municipality, with the registration to
be noted on the bond by the municipal clerk or other designated officer.
After registration, the transfer of a bond is valid only if made on the
books of the municipality by the registered holder and similarly noted
on the bond. Registered bonds may be discharged from registration by
being transferred to bearer, after which they are transferable by
delivery but may again be registered as to principal. The registration of
the bonds as to principal does not affect the negotiability of the interest
coupons by delivery only.
(j) Bonds issued under this section are negotiable instruments. The
bonds and the interest on them are exempt from taxation for all
purposes.
(k) The proceeds of each issue of bonds shall be used solely for the
payment of the cost of the parking facilities for which the bonds were
issued, and shall be disbursed in the manner and under the restrictions,
if any, that the legislative body specifies in the ordinance authorizing
the issuance of the bonds.
(l) If the proceeds of any issue of bonds are less than the cost of the
parking facilities, additional bonds may be issued in a similar manner
to provide the amount of the deficit. Unless otherwise provided in the
ordinance authorizing their issuance, the additional bonds are
considered to be of the same issue and are entitled to payment from the
same fund without preference or priority of the bonds first issued.
(m) If the proceeds of any issue of bonds exceed the cost of the
parking facilities for which the bonds were issued, the surplus shall be
deposited in the fund or account from which the bonds are payable.
[Pre-Local Government Recodification Citations: 19-5-11-8;
19-5-13-10.]
As added by Acts 1981, P.L.309, SEC.84. Amended by
P.L.127-2017, SEC.295.