§ 5-1-5-18 — Use of savings from refunding of bonds

Indiana § 5-1-5-18

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 5: Refunding Bonds Generally

Text

(a) This section applies to bonds that are:
(1) issued after June 30, 2008, by a local issuing body; and
(2) payable from ad valorem property taxes, special benefit taxes
on property, or tax increment revenues derived from property
taxes;
including bonds that are issued under a statute that permits the bonds
to be issued without complying with any other law or otherwise
expressly exempts the bonds from the requirements of this section.
(b) Savings (as computed under section 2 of this chapter) that
accrue from the issuance of bonds to retire or otherwise refund other
bonds may be used only for the following purposes:
(1) To maintain a debt service reserve fund for the refunding
bonds at the level required under the terms of the refunding
bonds, if the local issuing body adopts an ordinance, resolution,
or order authorizing that use of the proceeds or earnings.
(2) To pay the principal or interest, or both, on:
(A) the refunding bonds; or
(B) other bonds, if the issuing body approves an ordinance
authorizing the use of the savings to pay principal or interest on
other bonds.
(3) To reduce the rate or amount of ad valorem property taxes,
special benefit taxes on property, or tax increment revenues
imposed by or allocated to the local issuing body.
(c) An increment as computed under section 2.5 of this chapter that
occurs from the issuance of bonds by an eligible school corporation to
retire or otherwise refund other bonds as provided in section 2.5 of this
chapter may be used only to make transfers permitted by IC 20-46-7-15
for the eligible school corporation.

Legislative History

As added by P.L.146-2008, SEC.25. Amended by P.L.229-2011, SEC.65.