§ 5-1-11-3 — Maximum interest rate to be fixed; notice of intent to sell; bidding awards; continuation of sale; price of bonds; action to contest validity

(a) In authorizing and advertising such bonds for
sale only a maximum interest rate shall be fixed, not exceeding the
maximum rate provided for in the governing statute or bond ordinance
or resolution of the issuing political subdivision or body. Bidders for
such bonds shall be required to bid on the interest rate or rates which
the bonds shall bear.
(b) The notice of intent to sell the bonds required under section 2 of
this chapter must:
(1) specify the principal amount of bonds maturing on each
maturity date or mandatory sinking fund redemption date; or
(2) state that the principal maturity schedule or mandatory sinking
fund redemption schedule will be provided at least twenty-four
(24) hours before the scheduled time of sale upon request by
bidders.
(c) The bonds shall be awarded to the bidder offering the lowest
interest cost to be determined by computing the total interest on all
bonds from the date thereof to the date of maturity and deducting
therefrom the premium bid, if any, or adding thereto the amount of any
discount, if any. If no acceptable bid is received at the time fixed for
sale of the bonds, then the sale may be continued from day to day for
a period not to exceed thirty (30) days without readvertising. During
the continuation of the sale, no bid shall be accepted which offers an
interest cost which is equal to or higher than the best bid received at the
time fixed for the sale in the bond sale notice. The acceptability of a bid
is within the sole discretion of the political subdivision or body referred
to in section 1(a) that is issuing the bonds.
(d) Any bonds sold at public sale under this chapter may be sold,
notwithstanding the provisions of any other law, at a price or prices
determined by the officer or body authorized by law to issue or sell
bonds, but not for less than ninety-seven percent (97%) of their par
value.
(e) An action to contest the validity of any bonds sold under this
chapter may not be brought after the fifteenth day following the first
publication of notice of the sale of the bonds. An action to contest the
validity of any bond sale under this chapter may not be brought after
the fifth day following the bond sale.
[Pre-Local Government Recodification Citation: 19-8-5-3
part.]
As added by Acts 1980, P.L.8, SEC.19. Amended by
P.L.44-1983, SEC.5; P.L.23-1984, SEC.5; P.L.35-1990,
SEC.1.