§ 5-1-17.5-39 — Securing of bonds; trust indenture; validity of pledge or assignment

Indiana § 5-1-17.5-39

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 17.5: Motorsports Investment District

Text

(a) The authority may secure bonds issued
under this chapter by a trust indenture between the authority and a
corporate trustee, which may be any trust company or national or state
bank within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign money appropriated to the commission and
to be paid as rent by the commission to the authority, but may not
mortgage land or capital improvements;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority;
(3) set forth the rights and remedies of bondholders and the
trustee; and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this
section is valid and binding from the time that the pledge or assignment
is made, against all persons whether or not they have notice of the lien.
Any trust indenture by which a pledge is created or an assignment
made need not be filed or recorded. The lien is perfected against third
parties by filing the trust indenture in the records of the authority.

Legislative History

As added by P.L.233-2013, SEC.5.