Indiana § 5-1.5-4-1 Purposes; bonds to be general obligations of bank payable out of
revenues or funds of bank; limitation on amount outstanding; exception
to limitation

Indiana Statutes

§ 5-1.5-4-1 — Purposes; bonds to be general obligations of bank payable out of revenues or funds of bank; limitation on amount outstanding; exception to limitation

Indiana § 5-1.5-4-1

Title 5STATE AND LOCAL ADMINISTRATION

Art. 1.5INDIANA BOND BANK

Ch. 4Issuance of Obligations

This text of Indiana § 5-1.5-4-1 (Purposes; bonds to be general obligations of bank payable out of revenues or funds of bank; limitation on amount outstanding; exception to limitation) 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 § 5-1.5-4-1 (2026).

Text

(a)The bank may issue its bonds or notes in principal amounts that it considers necessary to provide funds for any purposes under this article, including:

(1)the purchase or acquisition of securities;

(2)the making of loans to or agreements with qualified entities through the purchase of securities;

(3)the payment, funding, or refunding of the principal of, or interest or redemption premiums on, bonds or notes issued by it whether the bonds or notes or interest to be paid, funded, or refunded have or have not become due;

(4)the establishment or increase of reserves to secure or to pay bonds or notes or interest on bonds or notes and all other costs or expenses of the bank incident to and necessary or convenient to carry out its corporate purposes and powers; and

(5)the acquisition of

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(a) The bank may issue its bonds or notes in
principal amounts that it considers necessary to provide funds for any
purposes under this article, including:
(1) the purchase or acquisition of securities;
(2) the making of loans to or agreements with qualified entities
through the purchase of securities;
(3) the payment, funding, or refunding of the principal of, or
interest or redemption premiums on, bonds or notes issued by it
whether the bonds or notes or interest to be paid, funded, or
refunded have or have not become due;
(4) the establishment or increase of reserves to secure or to pay
bonds or notes or interest on bonds or notes and all other costs or
expenses of the bank incident to and necessary or convenient to
carry out its corporate purposes and powers; and
(5) the acquisition of school buses to be leased or sold to school
corporations (as defined in IC 36-1-2-17).
(b) Except as otherwise provided in this article or by the board,
every issue of bonds or notes shall be general obligations of the bank
payable out of the revenues or funds of the bank, subject only to
agreements with the holders of a particular series of bonds or notes
pledging a particular revenue or fund. Bonds or notes may be
additionally secured by a pledge of a grant or contributions from the
United States, a qualified entity, or a person or a pledge of income or
revenues, funds, or money of the bank from any source.
(c) Notwithstanding subsections (a) and (b), the total amount of
bank bonds and notes outstanding at any one (1) time, except:
(1) bonds or notes issued to fund or refund bonds or notes; and
(2) bonds or notes issued for the purpose of purchasing an
agreement executed by a qualified entity under IC 20-49-4;
may not exceed one billion dollars ($1,000,000,000) for qualified
entities described in IC 5-1.5-1-8(1) through IC 5-1.5-1-8(4), IC 5-1.5-1-8(8) through IC 5-1.5-1-8(11), and IC 5-1.5-1-8(14).
(d) Notwithstanding subsections (a) and (b), the total amount of
bank bonds and notes outstanding at any one (1) time, except bonds or
notes issued to fund or refund bonds or notes, may not exceed two
hundred million dollars ($200,000,000) for qualified entities described
in IC 5-1.5-1-8(5) through IC 5-1.5-1-8(6).
(e) Notwithstanding subsections (a) and (b), the total amount of
bank bonds and notes outstanding at any one (1) time, except bonds or
notes issued to fund or refund bonds or notes, may not exceed thirty
million dollars ($30,000,000) for qualified entities described in IC 5-1.5-1-8(7).
(f) The limitations contained in subsections (c), (d), and (e) do not
apply to bonds, notes, or other obligations of the bank if:
(1) the bonds, notes, or other obligations are not secured by a
reserve fund under IC 5-1.5-5; or
(2) funds and investments, and the anticipated earned interest on
those funds and investments, are irrevocably set aside in amounts
sufficient to pay the principal, interest, and premium on the
bonds, notes, or obligations at their respective maturities or on the
date or dates fixed for redemption.

Legislative History

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.12; P.L.30-1986, SEC.2; P.L.46-1987, SEC.10; P.L.37-1991, SEC.2; P.L.29-1992, SEC.2; P.L.28-1992, SEC.2; P.L.1-1993, SEC.22; P.L.132-1999, SEC.2; P.L.192-2006, SEC.1; P.L.2-2006, SEC.10; P.L.1-2007, SEC.21; P.L.232-2007, SEC.2.