§ 5-20-2-9 — Covenants in bonds

Indiana § 5-20-2-9

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 20: HOUSING
• Ch. 2: Financing of Housing

Text

Covenants in Bonds. (a) Any ordinance
authorizing the issuance of bonds or related trust indenture may contain
covenants as to:
(1) the use and disposition of the revenues and receipts from any
home mortgages for which the bonds are to be issued, including
the creation and maintenance of reserves;
(2) the insurance to be carried on any home, home mortgage, or
bonds and the use and disposition of insurance moneys;
(3) the appointment of one (1) or more banks or trust companies
within or outside the state of Indiana, having the necessary trust
powers, as trustee or custodian for the benefit of the bondholders,
paying agent or bond registrar;
(4) the investment of any funds held by this trustee or custodian;
(5) the maximum interest rate payable on any home mortgage;
and
(6) the terms and conditions upon which the holders of the bonds
or any portion thereof, or any trustees therefor, are entitled to the
appointment of a receiver by a court of competent jurisdiction,
and these terms and conditions may provide that the receiver may
enter and take possession of the home mortgages, or any part
thereof, and maintain, sell or otherwise dispose of such
mortgages, prescribe other payments and collect, receive and
apply all income and revenues thereafter arising therefrom.
(b) Any ordinance authorizing the issuance of bonds or related trust
indenture may provide that the principal of, premium, if any, and
interest on any such bonds shall be secured by a mortgage, pledge,
security interest, insurance agreement or indenture of trust covering
such home mortgages for which the bonds are issued. Such mortgage,
pledge, security interest, insurance agreement or indenture of trust may
contain such covenants and agreements to safeguard the bonds as is
provided for in the ordinance authorizing the bonds and shall be
executed in the manner as may be provided for in the ordinance.
(c) The provisions of this chapter and any ordinance and any
mortgage, pledge, security interest or indenture of trust shall constitute
a contract with the holder of the bonds and continues in effect until the
principal of, the interest on, and the redemption premiums, if any, on
the bonds so issued have been fully paid or provision made therefor.
The duties of this county or municipality and its governing body and
officers under this chapter, any ordinance, and any mortgage, pledge,
security interest or indenture of trust shall be enforceable as provided
in it by any bondholder by mandamus, foreclosure, or other appropriate
suit, action or proceeding in any court of competent jurisdiction.
However, the ordinance or any mortgage, pledge, security interest or
indenture of trust under which the bonds are issued may provide that
all remedies and rights to enforcement may be vested in a trustee (with
full power of appointment) for the benefit of all the bondholders which
trustee shall be subject to the control of a specified number of holders
or owners of any outstanding bonds.
As added by Acts 1979, P.L.47, SEC.1. Amended by Acts 1981,
P.L.62, SEC.8.