§ 36-9-25-27 — Construction of sewage works; bond issues

(a) To raise money to pay for the property
and the construction, and in anticipation of the special tax to be levied
as provided in sections 19 and 29 of this chapter, the board may have
issued, in the name of the municipality, the bonds of the district. The
bonds may not exceed in amount the estimated cost of all land,
rights-of-way, and other property to be acquired and the estimated cost
of all construction as provided in the resolution, including all expenses
necessarily incurred in connection with the proceedings, together with
a sum sufficient to pay the cost of supervision and inspection during
the period of construction. The expenses to be covered by the bond
issue include all expenses of every kind actually incurred preliminary
to acquisition of the property and the construction of the work, such as
the cost of necessary records, engineering expenses, publication of
notices, salaries, and other expenses.
(b) If different parcels of land are to be acquired, or if more than one
(1) contract for work is let by the board at approximately the same
time, whether under one (1) or more resolutions of the board, the
estimated cost may be combined in one (1) bond issue. The bonds shall
be issued in denominations of at least one thousand dollars ($1,000)
each and shall have a final maturity of not later than fifty (50) years
from the date of issue. The bonds are negotiable unless registered, but
may be made registrable for principal only or principal and interest.
The bonds may be made redeemable before the stated maturities on
terms and conditions and at the premiums that the board determines in
the resolution authorizing the issuance of the bonds.
(c) Upon adoption of a resolution ordering bonds, the board shall
certify a copy of the resolution to the municipal fiscal officer, who shall
then prepare the bonds. The municipal executive shall execute the
bonds and the fiscal officer shall attest them. The bonds and interest are
exempt from taxation for all purposes, except the financial institutions
tax imposed under IC 6-5.5. All bonds issued by the board shall be sold
by the fiscal officer to the highest bidder, but not for less than par, after
giving notice of the sale by publication in accordance with IC 5-3-1.
(d) The bonds are not a corporate obligation or indebtedness of the
municipality, but constitute an indebtedness of the district as a special
taxing district. Except as provided in section 29(c) of this chapter, the
bonds and interest are payable only out of a special tax levied upon all
the property of the district as provided in this chapter. The bonds must
recite these terms upon their face, together with the purpose for which
they are issued.
(e) The board may sell bonds of the district to run for a period of
five (5) years from the date of sale. The five (5) year bonds are exempt
from taxation for all purposes except for the financial institutions tax
imposed under IC 6-5.5. The board may sell bonds of the district in
series for the purpose of refunding at any time the five (5) year bonds.
Actions questioning the validity of the bonds issued or to prevent their
issue may not be brought after the date set for the sale of the bonds, and
all bonds are incontestable for any cause after that date.
(f) The total amount of the bond issue, including bonds already
issued and to be issued, may not exceed twelve percent (12%) of the
total adjusted value of taxable property in the district as determined
under IC 36-1-15. All bonds issued in violation of this subsection are
void.
[Pre-Local Government Recodification Citations:
subsections (a), (b), (c), (d), (e) formerly 19-2-14-19; subsection (f)
formerly 19-2-12-1; 19-2-27-1 part.]
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts
1981, P.L.45, SEC.71; P.L.27-1986, SEC.5; P.L.21-1990, SEC.57;
P.L.80-1997, SEC.20; P.L.254-1997(ss), SEC.34; P.L.6-1997,
SEC.223; P.L.2-1998, SEC.86; P.L.2-1998, SEC.87; P.L.79-2017,
SEC.86.