§ 36-9-23-18 — Bonds; liability of municipality; interest; redemption; form; registration; sale; temporary bonds; additional bonds; exemption from taxation

Indiana § 36-9-23-18

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 9: TRANSPORTATION AND PUBLIC WORKS
• Ch. 23: Municipal Sewage Works

Text

(a) Revenue bonds issued under this chapter
are payable solely from the revenues of the sewage works for which
they are issued, and are not a corporate indebtedness of the
municipality.
(b) The revenue bonds bear interest at a rate not to exceed the
maximum rate per annum specified by the municipal legislative body,
payable annually or at shorter intervals, and mature at the time or times
determined by ordinance.
(c) The revenue bonds may be made redeemable before maturity at
the option of the municipality, to be exercised by the board, at not more
than their par value plus a premium of five percent (5%), under the
terms and conditions fixed by the ordinance authorizing the issuance
of the bonds.
(d) The principal and interest of the revenue bonds may be made
payable in any lawful medium.
(e) The ordinance authorizing the issuance of the revenue bonds
must determine the form of the bonds, including any interest coupons
to be attached to them, and must fix the denomination or
denominations of the bonds and the place or places of payment of their
principal and interest, which may be at any bank or trust company in
Indiana or another state.
(f) The revenue bonds must contain a statement on their face that
the municipality is not obligated to pay the principal or interest on
them, except from the special fund provided from the net revenues of
the sewage works.
(g) The revenue bonds are negotiable instruments.
(h) Provision may be made for the registration of any of the revenue
bonds in the name of the owner as to principal alone, or as to both
principal and interest, but fully registered bonds shall be made
convertible to coupon bonds at the option of the registered owner.
(i) The revenue bonds shall be executed in the same manner as other
revenue bonds issued by municipalities are executed.
(j) The revenue bonds shall be sold by the municipal fiscal officer
in the manner that is determined to be in the best interests of the
municipality, but at not less than par value and only at public sale in
accordance with the statutes concerning the sale of municipal bonds.
(k) Before the preparation of the definite revenue bonds, temporary
revenue bonds may be issued with or without coupons. The temporary
revenue bonds, which shall be issued in the manner prescribed by this
section, may be exchanged for the definite revenue bonds when they
are issued.
(l) If the proceeds of the revenue bonds are less than the cost of the
sewage works, additional revenue bonds may be issued under this
section to provide the amount of the deficit. Unless otherwise provided
in the ordinance authorizing the first issue, or in the trust indenture
authorized by section 22 of this chapter, the additional revenue bonds
are considered part of the first issue and are entitled to payment from
the same fund, without priority for the first issue.
(m) Subject to the provisions and limitations of any ordinance or
trust indenture pertaining to any outstanding revenue bonds, additional
bonds payable from the revenues of the sewage works may be
authorized and issued in the manner prescribed by this section, for the
purpose of improving any works acquired or constructed under this
chapter.
(n) Revenue bonds issued under this section are exempt from
taxation for all purposes.
[Pre-Local Government Recodification Citations: 19-2-5-11
part; 19-2-5-12 part; 19-2-5-13.]
As added by Acts 1981, P.L.309, SEC.96.