§ 5-1-5-8 — Trust indenture to secure bonds

Indiana § 5-1-5-8

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

Text

(a) The governing body may secure the bonds by
a trust indenture by and between the issuing body and a corporate
trustee, which may be any trust company or bank having the powers of
a trust company within or outside of the state of Indiana, and may
convey or mortgage property to the same extent as is authorized by
statutes applicable to:
(1) the bonds being refunded; or
(2) the bonds that the bonds being refunded had previously
refunded.
(b) The ordinance authorizing the bonds and fixing the details
thereof may provide that the trust indenture may contain such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper, not in violation of law,
including covenants setting forth the duties of the issuing body.
(c) The trust indenture may set forth the rights and remedies of the
bondholders or trustee, restricting the individual right of action of
bondholders as is customary in trust indenture securing bonds and
debentures of corporations. Except as is in this chapter otherwise
provided, the governing body may provide by ordinance or in the trust
indenture for any other terms or conditions pertaining to the refunding
bonds as is authorized by statutes applicable to:
(1) the bonds being refunded; or
(2) the bonds that the bonds being refunded had previously
refunded.
Formerly: Acts 1973, P.L.28, SEC.1. As amended by Acts 1982,
P.L.28, SEC.3.