§ 5-1.5-8-4 — Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank

Indiana § 5-1.5-8-4

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.5: INDIANA BOND BANK
• Ch. 8: Loans to 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 or arising from an agreement with 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.25-1984, SEC.1. Amended by P.L.46-1987, SEC.15.