(a)This section applies to each consolidated
city.
(b)To raise money to pay the costs of acquiring, constructing, and
improving sewage works and property necessary for sewage works, the
board may have issued, in the name of the municipality, revenue bonds
payable solely from the revenues of the sewage works for which they
are issued. Revenue bonds issued under this section are not a corporate
indebtedness of the district or the municipality.
(c)The revenue bonds bear interest at a rate not to exceed the
maximum rate per annum specified by the board and will be payable
and mature at the time or times determined by the board in the
resolution.
(d)The revenue bonds may be made redeemable before maturity at
the option of the board, to be exercised by the board, at not more than
their par v
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(a) This section applies to each consolidated
city.
(b) To raise money to pay the costs of acquiring, constructing, and
improving sewage works and property necessary for sewage works, the
board may have issued, in the name of the municipality, revenue bonds
payable solely from the revenues of the sewage works for which they
are issued. Revenue bonds issued under this section are not a corporate
indebtedness of the district or the municipality.
(c) The revenue bonds bear interest at a rate not to exceed the
maximum rate per annum specified by the board and will be payable
and mature at the time or times determined by the board in the
resolution.
(d) The revenue bonds may be made redeemable before maturity at
the option of the board, 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 resolution authorizing the issuance of the
bonds.
(e) The principal and interest of the revenue bonds may be made
payable in any lawful medium.
(f) The resolution authorizing the issuance of the revenue bonds
must determine the form of the bonds 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.
(g) The revenue bonds must contain a statement on their face that
neither the district nor the municipality is obligated to pay the principal
or interest on them, except from the net revenue of the sewage works
that are deposited in the sinking fund established by subsection (t).
(h) The revenue bonds are negotiable instruments.
(i) 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.
(j) The revenue bonds shall be executed in the same manner as other
bonds issued under section 27 of this chapter.
(k) The revenue bonds shall be sold by the district and the municipal
fiscal officer in the manner that is determined to be in the best interests
of the district, but only at public sale in accordance with the statutes
concerning the sale of municipal bonds.
(l) 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.
(m) 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 resolution authorizing the first issue, 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.
(n) Subject to the provisions and limitations of any resolution 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 without priority of one (1) issue over another.
(o) Revenue bonds issued under this section are exempt from
taxation for all purposes.
(p) Any action to contest the validity of revenue bonds issued under
this section must be brought at least five (5) days before the advertised
date for the sale of the bonds.
(q) The first proceeds of any revenue bonds issued under this
section shall be used to repay all amounts advanced for preliminary
expenses. The remaining proceeds of the bond issue shall be applied to
the cost of acquiring, constructing, or improving the sewage works.
(r) After the payments required by subsection (q) have been made,
any proceeds of the bond issue that have not been spent shall be
deposited in the sinking fund established by subsection (t).
(s) The holders of the revenue bonds have a lien on the bond
proceeds until they are applied under this section.
(t) At or before the time of issuance of revenue bonds under this
section, the board, by resolution, shall:
(1) establish a sinking fund for the payment of:
(A) the principal of and interest on the revenue bonds; and
(B) the charges of banks or trust companies for making
payment of the principal or interest on the revenue bonds; and
(2) pledge the net revenues of the sewage works, after the
payment of the reasonable expense of operation, repair, and
maintenance of the works, to the payment of the expenses
described in subdivision (1).
The resolution may also provide for the accumulation of reasonable
reserves in the sinking fund as a protection against default, and for the
payment of premiums on bonds retired by call or purchase under this
section.
(u) The rights granted by this section are subject to any restrictions
contained in the resolution authorizing the issuance of revenue bonds
or in any trust indenture securing the bonds. The holder of any revenue
bonds or any coupons attached to them, and the trustee, if any, may,
either at law or in equity, protect and enforce all rights granted by this
section or under the resolution or trust indenture, including the making
and collecting of reasonable and sufficient fees for services rendered
by the sewage works. If the principal or interest of any of the revenue
bonds is not paid on the date named in the bonds for payment, any
court having jurisdiction of the action may appoint a receiver to
administer the sewage works on behalf of the district, municipality, the
bondholders, and the trustee, if any. The receiver may:
(1) charge and collect fees sufficient to provide for the payment
of the expenses of operation, repair, and maintenance of the
works;
(2) pay any revenue bonds and interest outstanding; and
(3) apply the revenues in conformity with this chapter, the
resolution authorizing the bond issue, and the trust indenture, if
any.
(v) Bonds issued under this section are subject to the requirements
of IC 36-3-5-8.