§ 5-1-4-15.5 — Loans to participating hospitals

Indiana § 5-1-4-15.5

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 4: Hospital Bonding Authorities

Text

5. Loans to Participating Hospitals.
Notwithstanding any other provision of this chapter to the contrary, the
authority may finance the cost of a project or refund outstanding
indebtedness of a participating hospital as authorized by section 10(m)
of this chapter by issuing its bonds for the purpose of purchasing the
securities of a participating hospital. Any such securities shall have the
same principal amounts, maturities and interest rates as the bonds so
being issued, may be secured by a first mortgage lien, subject to such
exceptions as the authority may approve and created by a mortgage
instrument satisfactory to the authority, and may be insured or
guaranteed by others. Any such bonds shall be secured by a pledge of
such securities under the trust agreement or indenture creating such
bonds, shall be payable solely out of the payments to be made on such
securities and shall not exceed in principal amount the cost of such
project or the refunding of such indebtedness as determined by the
participating hospital and approved by the authority. In other respects
any such bonds shall be subject to the provisions of this chapter
including sections 13 and 14 and the trust agreement or indenture
creating such bonds may contain such of the provisions set forth in
section 15 hereof as the authority may consider appropriate.
In the event that a project is financed pursuant to this section, the
title to such project shall remain in the participating hospital owning
the same, subject to the lien of the mortgage securing the securities
then being purchased, and there shall be no lease of such facility
between the authority and such participating hospital.
Formerly: Acts 1975, P.L.35, SEC.6.