§ 8-10-5-8.7 — Bonding

Indiana § 8-10-5-8.7

• Jurisdiction: Indiana
• Art. 10: PORTS
• Ch. 5: Creation of Port Authorities by Local Governments

Text

7. (a) The board of directors may, by
resolution, recommend to the governing body of the municipality or
municipalities creating the port authority that they authorize general
obligations, mortgage, or revenue bonds for any one (1) or more of the
following purposes:
(1) To acquire or improve port or harbor sites.
(2) To acquire, construct, extend, alter, or improve structures,
ways, facilities, or equipment necessary for the proper operation
of the port authority or the port or harbor within its jurisdiction.
(3) To refund outstanding bonds and matured interest coupons
and issue and sell refunding bonds for that purpose.
(b) Before making a recommendation authorized by subsection (a),
the board shall give notice of a public hearing at which time the board
shall disclose the purpose for which the bond issue is proposed, the
amount of the proposed issue, and all other pertinent data. At least ten
(10) days before the date set for hearing, the board shall publish in two
(2) newspapers of general circulation in the city, county, counties, or
other municipalities involved, a notice of the date, time, place, and
purpose of the hearing. If there is only one (1) newspaper, one (1)
notice is sufficient.
(c) The governing body shall review the proposal of the board of
directors of the port authority and if it approves shall provide for the
advertisement and sale of the issue in compliance with IC 5-1-11. For
purposes of this chapter, IC 5-1-11 applies as fully to mortgage bonds
as to general obligation or revenue bonds.
(d) Bonds issued under the authority of this chapter are not subject
to limitations on interest rates.
(e) The governing body shall fix the date, time, and place of
payment of principal and interest, but no issue may have a maturity
date later than:
(1) forty (40) years after date of issue, in the case of bonds issued
before July 1, 2011; or
(2) twenty-five (25) years after date of issue, in the case of bonds
issued after June 30, 2011.
(f) Bonds issued under this chapter, together with the interest
thereon, are tax exempt.
(g) The governing body shall apply the proceeds from the sale of
bonds exclusively to the purposes for which the bonds were issued and
only to the extent necessary therefor. Any remaining balance shall be
placed in a sinking fund for the payment of the bonds and the interest
on the bonds.
(h) This chapter does not affect obligations existing before July 1,
2010, on outstanding bonds. If a board of directors or a port authority
is discontinued, as provided in section 4 of this chapter, the primary
obligations on its bonds remain unaffected. In addition, the city or
county or municipalities involved in the issuance of bonds shall assume
liability for the payment of the bonds according to their terms and in
relation to their interest or proportion in the bonds.

Legislative History

As added by P.L.49-2010, SEC.4. Amended by P.L.229-2011, SEC.101.