§ 36-9-32-4 — Loan agreements; loan of grant proceeds; pledge of revenues to secure bonds

Indiana § 36-9-32-4

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 9: TRANSPORTATION AND PUBLIC WORKS
• Ch. 32: Financing of Public Improvements in Municipalities

Text

A municipality may enter into a loan agreement
with any person and loan the proceeds of any grant received by the
municipality to that person with the repayment of the loan to be secured
by the pledge of a note or other secured or unsecured debt obligation
of that person. The municipality may pledge the revenues from the note
or other secured or unsecured debt obligation of that person or of any
entity organized for economic development purposes to the payment of
bonds issued under this chapter. In no event may a municipality pledge
revenues other than from the sources authorized in this chapter as
security for the bonds issued under this chapter. A municipality may
not issue bonds under this chapter if principal and interest payments on
those bonds would exceed revenues to be derived by the municipality
from the notes or other secured or unsecured debt obligations of any
person that has entered into a loan agreement with the municipality
under this chapter, or from other sources of principal and interest
payments under this chapter. Any municipality may issue bonds under
this chapter whether the revenues pledged to secure the bonds are to be
derived from a loan agreement entered into before or after March 1,
1984. The validity of any bonds issued under this chapter is not
dependent on or affected by the validity of the loan agreement at the
time it was executed and delivered. All loan agreements between
municipalities and persons borrowing grant proceeds entered into
before March 1, 1984, are fully legalized and declared valid.

Legislative History

As added by P.L.23-1984, SEC.18.