§ 5-1-14-4 — Pledge made by issuer binding; lien

Indiana § 5-1-14-4

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 14: Miscellaneous Provisions

Text

(a) Notwithstanding any other law, a pledge of
revenues or other money, or property made by any issuer is binding
from the time the pledge is made. Revenues or other money, or
property pledged and thereafter received by the issuer are immediately
subject to the lien of the pledge without any further act, and the lien of
a pledge is binding against all parties having claims of any kind in tort,
contract, or otherwise against the issuer, regardless of whether the
parties have notice of any lien. No resolution, ordinance, indenture, or
any other instrument by which a pledge is created needs to be filed or
recorded except in the records of the issuer.
(b) Notwithstanding any other law, an issuer may pledge any
revenues or other money or pledge or mortgage property to pay debt
service on or secure any obligations or any lease rental or contractual
payments, if:
(1) the issuer has the necessary statutory authority to issue
obligations, pay lease rentals, or make contractual payments for
any project or purpose for which the pledge or mortgage is made;
(2) the revenues, money, or property is legally available, under
federal, state, and local laws, to pay or secure debt service, lease
rentals, or contractual payments; and
(3) the pledge or mortgage does not purport to create an
obligation in violation of any statutory or constitutional limitation
to which the issuer is subject.

Legislative History

As added by P.L.27-1986, SEC.2. Amended by P.L.37-1988, SEC.5.