§ 36-9-23-22 — Bonds; security by trust indenture permitted; terms of indenture

(a) The municipal legislative body may
secure revenue bonds issued under this chapter by a trust indenture
between the municipality and a corporate trustee, which may be any
trust company or bank having the powers of a trust company in Indiana,
or another state. However, such a trust indenture may not convey or
mortgage any part of the sewage works.
(b) The ordinance authorizing the revenue bonds may provide that:
(1) the trust indenture may contain reasonable provisions for
protecting and enforcing the rights and remedies of the
bondholders, including covenants setting forth the duties of the
municipality and the board in relation to:
(A) the construction, acquisition, improvement, operation, repair,
maintenance, and insurance of the sewage works; and
(B) the custody, safeguarding, and application of all money; and
(2) the works shall be contracted for, constructed, and paid for
under the supervision and approval of consulting engineers
employed or designated by the board and satisfactory to the
original bond purchasers or their successors, assigns, or
nominees, who may be given the right to specify the security to be
given by contractors and by any depository of the proceeds of
bonds, revenues of the works, or other money pertaining to the
works.
(b) The trust indenture may set forth the rights and remedies of the
bondholders and trustee, restricting the individual right of action of
bondholders as is customary in a trust indenture securing bonds and
debentures of corporations. Except as otherwise provided in this
chapter, the municipal legislative body may, by ordinance or in the
trust indenture, specify:
(1) the officer, board, or depository that shall collect the proceeds
of the sale of the bonds and the revenues of the sewage works;
and
(2) the method of disbursing the proceeds and revenues.
[Pre-Local Government Recodification Citation:
19-2-5-15.]
As added by Acts 1981, P.L.309, SEC.96.