§ 36-9-37-15 — Prepaid assessments; proceeds; special fund; investment; redemption of outstanding bonds

Indiana § 36-9-37-15

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 9: TRANSPORTATION AND PUBLIC WORKS
• Ch. 37: Barrett Law Funding for Municipalities

Text

(a) Prepaid assessments constitute a special
fund to be held in trust by the municipality for the owner or owners of
the bonds upon which the prepayments have been made.
(b) The municipal fiscal officer shall promptly invest and reinvest
the special fund in securities of the federal government so that the
principal will be available to pay the bonds upon which prepayments
were collected as the bonds become due. The interest collected on
these securities shall be applied to the payment of the interest lost on
account of the prepayment of the assessments. The difference between
the interest lost on account of the prepayment of assessments and the
amount of interest earned by the investment in federal securities shall
be paid by the municipal corporation that issued the improvement
bonds.
(c) If the terms of the bonds allow early redemption for and to the
extent of prepayments of the assessments in anticipation of which the
bonds were issued, the municipality may use prepaid assessments to
redeem outstanding bonds. However, if the bonds are issued on each
parcel of real property covering the assessment against the real
property, the municipality shall pay the prepayment to the holder of the
bonds and cancel the bonds.

Legislative History

As added by P.L.98-1993, SEC.8.