§ 5-1-14-5 — Bond anticipation notes; issuance

Indiana § 5-1-14-5

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

Text

Notwithstanding any other law, any city, town,
county, school corporation, or regional district organized under IC 13-26 or IC 13-3-2 (before its repeal) that has complied with all
statutory requirements for the issuance of its bonds, other than IC 5-1-11 or any public sale statute, may, in lieu of issuing bonds at that
time and without the need for complying with any other law applicable
to the issuance of bonds, notes, or other evidences of indebtedness,
issue its notes in anticipation of the issuance of bonds to a financial
institution. However, if the amount of the notes is at least one million
dollars ($1,000,000), the notes may be issued to any purchaser. The
bond anticipation notes may be issued on terms set forth in a resolution
or ordinance authorizing their issuance and in any amount equal to or
less than the amount of bonds authorized to be issued. The city, town,
county, school corporation, or district may renew or extend the bond
anticipation notes from time to time on terms agreed to with the
financial institution or other purchaser. The amount of the accrued
interest on the date of renewal or extension of the bond anticipation
notes may be paid or added to the principal amount of the bond
anticipation notes being renewed or extended as long as the aggregate
principal amount of bond anticipation notes outstanding at any time
does not exceed the maximum principal amount permitted by this
section. The bond anticipation notes, including any renewals or
extensions, must mature in the amounts and at the times (not exceeding
five (5) years from the date of the original issuance of the bond
anticipation notes) agreed to by the city, town, county, school
corporation, or district and the financial institution or other purchaser.
The bond anticipation notes must be finally paid, and interest on the
bond anticipation notes may be finally paid, with the proceeds of the
bonds issued by the city, town, county, school corporation, or district.
In connection with the issuance of bonds, part or all of the proceeds of
which will be used to retire the bond anticipation notes, it is not
necessary for the city, town, county, school corporation, or district to
repeat the procedures for the issuance of bonds, as the procedures
followed before the issuance of the bond anticipation notes are for all
purposes sufficient to authorize the issuance of the bonds.

Legislative History

As added by P.L.44-1987, SEC.4. Amended by P.L.2-1989, SEC.5; P.L.35-1990, SEC.2; P.L.1-1996, SEC.34.