§ 5-1-7-2 — Partial payments of principal with interest accrued; form of contract; cancellation of matured bond

The contract entered into by the board of
commissioners of any county and any such bondholder shall be signed
by the parties to such contract, shall be attested on behalf of the county
by the county auditor, and shall stipulate and agree that the board of
commissioners of the county will pay all interest on such matured bond
to the date of the maturity thereof, and that a new bond (referred to in
this chapter as a redemption bond) in the same amount as the matured
bond, will be issued to pay and retire such matured bond, and that such
redemption bond will be and continue to be a valid and binding
obligation of the county and that during the period fixed in the contract
not exceeding ten (10) years the board of commissioners will pay
annually to the owner of such redemption bond, one-tenth (1/10) of the
principal amount of such redemption bond and, in addition thereto, will
pay semiannually all interest which shall have accrued thereon to the
date when such payment is to be made. The date on which such partial
payments of the principal of such bond will be made shall be fixed and
prescribed in such contract and may be on June 1 or December 1 of the
year next succeeding the year in which such contract is executed and
signed and June 1 or December 1 of each and every year thereafter
until paid. The interest accrued on such bond shall be paid
semiannually on June 1 and December 1, beginning on the same date
as the first partial payment on such bond. The board of commissioners
shall further agree to levy a tax on the taxable property of such county
in an amount sufficient to make the payments on such redemption
bonds as they fall due, together with all interest which shall have
accrued thereon. Any bondholder who elects to avail himself or herself
of the provisions of this chapter shall agree that in consideration of the
privilege hereby afforded the bondholder will not maintain or attempt
to maintain a suit for the collection or the enforcement of the lien of
any such bond, other than in accordance with the remedies afforded by
the provisions of this chapter. The form of the contract herein
contemplated shall be prescribed by the state board of accounts with
the approval of the attorney general. At the time when the contract is
executed and the redemption bond is issued, the matured bond shall be
surrendered to the county auditor and shall be canceled by writing
across the face of the matured bond the words "Canceled by issuing to
______ a redemption bond in the same principal sum as this bond, due
and payable on the ______ day of ______, 20____.".
[Pre-Local Government Recodification Citation:
17-3-82-2.]
As added by Acts 1980, P.L.8, SEC.12. Amended by
P.L.2-2005, SEC.11.