§ 36-9-27-94 — Bonds; authorization; procedure; terms

(a) Whenever the board determines by
resolution spread upon its minutes that the cost of constructing or
reconstructing a particular drain is in excess of that amount that the
owners of land to be assessed may conveniently pay in installments
over a five (5) year period, it shall authorize the sale of bonds to
finance the construction or reconstruction.
(b) Whenever the board resolves to sell bonds, it shall determine:
(1) the amount of money that must be raised;
(2) the period over which the money shall be repaid; and
(3) the date the first series of bonds will mature as to principal
and the date the first payment of interest will be made, which
shall be fixed so that money will be available to meet the interest
payments and to retire the first series of bonds as they become
due.
(c) The bonds may be issued in denominations of not less than one
hundred dollars ($100) nor more than one thousand dollars ($1,000)
and shall be numbered in consecutive order beginning with those first
maturing. Interest on the bonds is payable semiannually.
(d) The bonds shall be sold at public offering in the manner
provided by statute. However, if the total issue of bonds does not
exceed ten thousand dollars ($10,000) the board may sell the bonds at
private sale to any individual, corporation, financial institution, or bank
in Indiana at the best rate of interest for which the board may bargain.
If the bonds are sold to one (1) purchaser, the form of the bonds may
be in a single installment note. Acceleration of the balance of such a
note in the event of partial default is not permitted, but all remedies of
a bond creditor remain as to the partial default.
(e) All bonds or installment notes must provide that they may be
called by the board for refunding or for prepayment without penalty. If
the bonds are called for prepayment, interest ceases to run on them
upon the date stated for presentment in the call as to those persons
actually receiving notice of the call by registered mail as shown by the
return receipt, whether their bonds are presented for payment or not. If
the bonds are called for refunding, interest continues to run from the
date stated for presentment in the call whether actually presented or
not, at the rate provided for with respect to the refunding issue.
[Pre-Local Government Recodification Citations: 19-4-7-15;
19-4-7-17 part; 19-4-7-18.]
As added by Acts 1981, P.L.309, SEC.101.