Indiana § 5-1.4-5-1 Establishment and maintenance of reserve fund; application of funds;
required debt service reserve; excess money

Indiana Statutes

§ 5-1.4-5-1 — Establishment and maintenance of reserve fund; application of funds; required debt service reserve; excess money

Indiana § 5-1.4-5-1

Title 5STATE AND LOCAL ADMINISTRATION

Art. 1.4LOCAL PUBLIC IMPROVEMENT BOND BANKS

Ch. 5Reserve Fund

This text of Indiana § 5-1.4-5-1 (Establishment and maintenance of reserve fund; application of funds; required debt service reserve; excess money) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 5-1.4-5-1 (2026).

Text

(a)The board may establish and maintain a reserve fund for each issue of bonds or notes in which there shall be deposited or transferred:

(1)all proceeds of bonds or notes required to be deposited in the fund by terms of a contract between the bank and its holders or a resolution of the bank with respect to the proceeds of bonds or notes;

(2)all other money appropriated to the reserve fund; and

(3)any other money or funds of the bank that it decides to deposit in the fund.

(b)Subject to subsection (c) and section 4(b) of this chapter, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds or notes of the bank as the interest and principal become due and payable and for the retirement of bonds or notes. The money may not be w

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(a) The board may establish and maintain a
reserve fund for each issue of bonds or notes in which there shall be
deposited or transferred:
(1) all proceeds of bonds or notes required to be deposited in the
fund by terms of a contract between the bank and its holders or a
resolution of the bank with respect to the proceeds of bonds or
notes;
(2) all other money appropriated to the reserve fund; and
(3) any other money or funds of the bank that it decides to deposit
in the fund.
(b) Subject to subsection (c) and section 4(b) of this chapter, money
in any reserve fund shall be held and applied solely to the payment of
the interest on and principal of bonds or notes of the bank as the
interest and principal become due and payable and for the retirement
of bonds or notes. The money may not be withdrawn if a withdrawal
would reduce the amount in the reserve fund to an amount less than the
required debt service reserve, except for payment of interest then due
and payable on bonds or notes and the principal of bonds or notes then
maturing and payable, whether by reason of maturity or mandatory
redemption, for which payments other money of the bank is not then
available. As used in this subsection, "required debt service reserve"
means, as of the date of computation, the amount required to be on
deposit in the reserve fund as provided by resolution or trust agreement
of the bank. As used in this subsection, "interest" includes any
payments so designated in any contract or agreement between the bank
and, or for the benefit of, any holder.
(c) Money in any reserve fund in excess of the required debt service
reserve as defined in subsection (b), whether by reason of investment
or otherwise, may be withdrawn at any time by the bank and transferred
to another fund or account of the bank, subject to the provisions of any
agreement with the holders of any bonds or notes.