§ 36-9-32-7 — Bonds; issuance and sale; payment; ordinances; amount; validity; taxation; refunding bonds; security registration

Indiana § 36-9-32-7

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

Text

(a) The municipality may issue and sell bonds
to provide money for any public improvement under this chapter.
(b) The bonds and interest on them are payable only out of a special
fund, to be established as provided in this chapter. The bonds do not
constitute an indebtedness of the municipality within the meaning of
any constitutional limitation. Each bond must state plainly on its face
that it is payable only from a special fund and that it does not constitute
an indebtedness of the municipality within the meaning of any
constitutional debt limitation. Neither the faith and credit nor the taxing
power of the municipality is or may be pledged for the payment of the
principal of, premium (if any) on, or interest on bonds issued under this
chapter. An owner of bonds issued under this chapter is not entitled to
compel the exercise of the taxing power by the municipality or the
forfeiture of any of its property in connection with any default on bonds
issued under this chapter.
(c) Bonds issued under this chapter may be sold at public or private
sale for the price, in the manner, and at the time determined by the
legislative body.
(d) The ordinance of the legislative body authorizing the bonds must
provide, either in the body of the ordinance or by incorporating another
document by reference:
(1) the manner of their execution;
(2) their term or terms, which may not exceed forty (40) years;
(3) their interest rate;
(4) their denominations;
(5) their form;
(6) the medium of their payments;
(7) the place and manner of their payment;
(8) the terms of their redemption, if any; and
(9) any other provisions not inconsistent with this chapter.
(e) The bonds may be issued in an amount sufficient to pay all or
any part of the cost of any public improvement authorized by this
chapter including the funding of interest in an amount to be determined
by the legislative body, the establishment of reserves to secure payment
of such bonds, and the payment of all other costs or expenses incident
to and necessary or convenient to carry out the purposes and powers
authorized by this chapter.
(f) The bonds and their authorization, issuance, sale, and delivery
are not subject to any general statute concerning bonds.
(g) An action to contest the validity of bonds issued under this
chapter may not be commenced more than fifteen (15) days after
publication of notice of the adoption of the ordinance approving them.
The bonds are conclusively presumed to be valid after that period has
passed.
(h) Any bonds issued under this chapter are exempt from taxation
as provided in IC 6-8-5.
(i) If the legislative body finds that a refunding of outstanding bonds
issued under this chapter would be of benefit to the municipality, it
may authorize the issuance of refunding bonds payable solely from
revenues derived from notes or other secured or unsecured obligations
of any person that has entered into a loan agreement with a
municipality under this chapter, or from escrowed bond proceeds or
other sources of principal and interest payments under this chapter.
Refunding bonds shall be issued in the same manner as bonds issued
under this chapter and are payable only from sources set forth in this
chapter.
(j) Any bond issued under this chapter is exempt from any security
registration requirements provided for in Indiana statutes.

Legislative History

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