§ 5-1.5-4-2 — Nature of bond or note; state pledge and agreement

Indiana § 5-1.5-4-2

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.5: INDIANA BOND BANK
• Ch. 4: Issuance of Obligations

Text

(a) A bond or note of the bank:
(1) is not a debt, liability, loan of the credit, or pledge of the faith
and credit of the state or of any qualified entity;
(2) is payable solely from the money pledged or available for its
payment under this article, unless funded or refunded by bonds or
notes of the bank; and
(3) must contain on its face a statement that the bank is obligated
to pay principal and interest, and redemption premiums if any,
and that the faith, credit, and taxing power of the state are not
pledged to the payment of the bond or note.
(b) The state pledges to and agrees with the holders of the bonds or
notes issued under this article that the state will not:
(1) limit or restrict the rights vested in the bank to fulfill the terms
of any agreement made with the holders of its bonds or notes; or
(2) in any way impair the rights or remedies of the holders of the
bonds or notes;
until the bonds or notes, together with the interest on the bonds or
notes, and interest on unpaid installments of interest, and all costs and
expenses in connection with an action or proceeding by or on behalf of
the holders, are fully met, paid, and discharged.

Legislative History

As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.13; P.L.46-1987, SEC.11.