§ 5-1.4-8-6 — Notes of qualified entities; purchase by bank; renewal or extension; maturity; compliance with other laws; terms and conditions

Indiana § 5-1.4-8-6

• 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 other law applicable
to a qualified entity as to borrowing money, a qualified entity may issue
and sell its notes to the bank, and the bank may purchase these notes.
The notes must be issued pursuant to a resolution of the qualified
entity, and the proceeds must be applied to costs for which the
qualified entity may issue bonds.
(b) The qualified entity may renew or extend the notes from time to
time on terms agreed to with the bank, and the bank may purchase
these renewals or extensions. The amount of 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.
(c) The notes of the qualified entity, including any renewals or
extensions, must mature in the amounts and at the times (not exceeding
two (2) years from the date of original issuance) as are agreed to by the
qualified entity and the bank. However, the legislative body of the city
in the case of a qualified entity defined in IC 5-1.4-1-10(1) through (3)
or the governing body of the qualified entity in the case of a qualified
entity defined in IC 5-1.4-1-10(4) through (6), by resolution, may
authorize an extension of the maturity beyond two (2) years for an
additional period of no more than three (3) years. Any such extension
may be authorized in the resolution originally authorizing issuance of
the notes. The notes of the qualified entity and accrued interest thereon
shall be paid with proceeds from the issuance of its bonds, when and
if the bonds are issued, or other money available to the qualified entity,
which money the qualified entity may pledge to the payment of its
notes.
(d) Compliance with this section constitutes full authority for a
qualified entity to issue its notes and sell them to the bank, and the
qualified entity is not required to comply with any other law applicable
to the authorization, approval, issuance, and sale of bonds, notes, or
other evidences of indebtedness. However, if the qualified entity
decides to issue bonds, neither the provisions of this section nor the
actual issuance by a qualified entity of its notes shall relieve the
qualified entity of completing the requirements for the issuance of its
bonds all or part of the proceeds of which will be used to retire the
notes.
(e) In connection with the purchase of 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 retire its notes, the bank may enforce all rights
and remedies provided in the agreement or at law.

Legislative History

As added by P.L.42-1985, SEC.1. Amended by P.L.29-1986, SEC.22; P.L.46-1987, SEC.2.