§ 36-9-4-47 — Tax anticipation warrants

Indiana § 36-9-4-47

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 9: TRANSPORTATION AND PUBLIC WORKS
• Ch. 4: Urban Mass Transportation Systems; Public

Text

(a) The board of directors of a public
transportation corporation may:
(1) borrow money in anticipation of receipt of the proceeds of
taxes that have been levied by the board and have not yet been
collected; and
(2) evidence this borrowing by issuing warrants of the
corporation.
The money that is borrowed may be used by the corporation for
payment of principal and interest on its bonds or for payment of current
operating expenses.
(b) The warrants:
(1) bear the date or dates;
(2) mature at the time or times on or before December 31
following the year in which the taxes in anticipation of which the
warrants are issued are due and payable;
(3) bear interest at the rate or rates and are payable at the time or
times;
(4) may be in the denominations;
(5) may be in the forms, either registered or payable to bearer;
(6) are payable at the place or places, either inside or outside
Indiana;
(7) are payable in the medium of payment;
(8) are subject to redemption upon the terms, including a price not
exceeding par and accrued interest; and
(9) may be executed by the officers of the corporation in the
manner;
provided by resolution of the board of directors. The resolution may
also authorize the board to pay from the proceeds of the warrants all
costs incurred in connection with the issuance of the warrants.
(c) The warrants may be authorized and issued at any time after the
board of directors levies the tax or taxes in anticipation of which the
warrants are issued.
(d) The warrants may be sold for not less than par value after notice
inviting bids has been published in accordance with IC 5-3-1. The
board of directors may also publish the notice inviting bids in other
newspapers or financial journals.
(e) After the warrants are sold, they may be delivered and paid for
at one (1) time or in installments.
(f) The aggregate principal amount of warrants issued in
anticipation of and payable from the same tax levy or levies may not
exceed eighty percent (80%) of the levy or levies, as the amount of the
levy or levies is certified by the department of local government
finance, or as is determined by multiplying the rate of tax as finally
approved by the total assessed valuation of taxable property within the
taxing district of the public transportation corporation as most recently
certified by the county auditor.
(g) For purposes of this section, taxes for any year are considered to
be levied when the board of directors adopts the ordinance prescribing
the tax levies for the year. However, warrants may not be delivered and
paid for before final approval of a tax levy or levies by the department
of local government finance unless the issuance of the warrants has
been approved by the department of local government finance.
(h) The warrants and the interest on them are not subject to sections
43 and 44 of this chapter and are payable solely from the proceeds of
the tax levy or levies in anticipation of which the warrants were issued.
The authorizing resolution must pledge a sufficient amount of the
proceeds of the tax levy or levies to the payment of the warrants and
the interest.
(i) All actions of the board of directors under this section may be
taken by resolution, which need not be published or posted. The
resolution takes effect immediately upon its adoption by a majority of
the members of the board of directors.
(j) An action to contest the validity of any tax anticipation warrants
may not be brought later than ten (10) days after the sale date.
[Pre-Local Government Recodification Citation:
19-5-2-28.1.]
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts
1981, P.L.187, SEC.2; P.L.90-2002, SEC.506; P.L.224-2007, SEC.133;
P.L.146-2008, SEC.788; P.L.257-2019, SEC.158.