§ 5-1.4-8-5 — Bond anticipation notes of qualified entities; purchase by bank; renewal or extension; maturity; terms and conditions

Indiana § 5-1.4-8-5

• 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

(a) Notwithstanding any law applicable to a
qualified entity concerning the issuance of bonds, a qualified entity that
has complied with all statutory requirements for the issuance of its
bonds may (in lieu of issuing bonds at that time and without complying
with any other law applicable to the issuance of bonds, notes, or other
evidences of indebtedness) issue to the bank the qualified entity's notes
in anticipation of the issuance of bonds, and the bank may purchase
these bond anticipation notes. The bond anticipation notes may be
issued on terms set forth in a resolution authorizing their issuance and
in any amount equal to or less than the amount of bonds authorized to
be issued.
(b) The qualified entity may renew or extend the bond anticipation
notes from time to time on terms agreed to with the bank, and the bank
may purchase these renewals or extensions. The amount of the accrued
interest on the date of renewal or extension may be paid or added to the
principal amount of the note being renewed or extended so long as the
aggregate principal amount of bond anticipation notes outstanding at
any time does not exceed the maximum principal amount permitted by
this section.
(c) The bond anticipation notes of the qualified entity, including any
renewals or extensions, must mature in the amounts and at the times
(not exceeding five (5) years from the date of the original issuance of
the bond anticipation notes) as are agreed to by the qualified entity and
the bank. The bond anticipation notes shall be, and interest thereon
may be, finally paid with the proceeds of the bonds issued by the
qualified entity. In connection with the issuance of bonds part or all of
the proceeds of which shall be used to retire the bond anticipation
notes, the qualified entity is not required to repeat the procedures for
the issuance of bonds because the procedures followed before the
issuance of the bond anticipation notes are for all purposes sufficient
to authorize the issuance of such bonds.
(d) In connection with the purchase of bond anticipation notes, the
bank may by agreement with the qualified entity impose any terms,
conditions, and limitations as in its opinion are proper for the security
of the bank and the holders of its bonds or notes. If the qualified entity
fails to comply with the agreement or to issue its bonds to retire its
bond anticipation notes, the bank may enforce all rights and remedies
provided in the agreement or at law, including an action in mandamus
to compel the issuance of bonds by the qualified entity.

Legislative History

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.21.