§ 5-1.4-8-4 — Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank

Indiana § 5-1.4-8-4

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.4: LOCAL PUBLIC IMPROVEMENT BOND BANKS
• Ch. 8: Purchase of Securities of Qualified Entities

Text

Upon the sale and delivery by a qualified entity
of any securities to the bank, the qualified entity shall be deemed to
have agreed that upon its failure to pay interest or principal on the
securities owned or held by the bank when payable, all statutory
defenses to nonpayment are waived. Upon nonpayment and demand on
the qualified entity for payment, if the securities are payable from
property taxes and funds are not available in the treasury of the
qualified entity to make payment, an action in mandamus for the levy
of a tax to pay the interest and principal on the securities shall lie, and
the bank shall be constituted a holder or owner of the securities as
being in default. The bank may thereupon avail itself of all remedies,
rights, and provisions of law applicable in the circumstances, and the
failure to exercise or exert any rights or remedies within a time or
period provided by law may not be raised as a defense by the qualified
entity. The bank may carry out this section and exercise all the rights,
remedies, and provisions of law provided or referred to in this section.

Legislative History

As added by P.L.42-1985, SEC.1.