(a)The board may issue general obligation
bonds of the authority for the purpose of procuring funds to pay the
cost of acquiring real property, or constructing, enlarging, improving,
remodeling, repairing, or equipping buildings, structures, runways, or
other facilities, for use as or in connection with or for administrative
purposes of the airport. The issuance of the bonds must be authorized
by ordinance of the board providing for the amount, terms, and tenor
of the bonds and for the time and character of notice and the mode of
making sale. If one (1) airport is owned by the authority, an ordinance
authorizing the issuance of bonds for a separate second airport is
subject to approval as provided in this section. The bonds bear interest
and are payable at the times and places that the bo
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(a) The board may issue general obligation
bonds of the authority for the purpose of procuring funds to pay the
cost of acquiring real property, or constructing, enlarging, improving,
remodeling, repairing, or equipping buildings, structures, runways, or
other facilities, for use as or in connection with or for administrative
purposes of the airport. The issuance of the bonds must be authorized
by ordinance of the board providing for the amount, terms, and tenor
of the bonds and for the time and character of notice and the mode of
making sale. If one (1) airport is owned by the authority, an ordinance
authorizing the issuance of bonds for a separate second airport is
subject to approval as provided in this section. The bonds bear interest
and are payable at the times and places that the board determines but
running not more than twenty-five (25) years after the date of their
issuance, and they must be executed in the name of the authority by the
president of the board and attested by the secretary who shall affix to
each of the bonds the official seal of the authority. The interest coupons
attached to the bonds may be executed by placing on them the
facsimile signature of the president of the board.
(b) The issuance of general obligation bonds must be approved by
resolution of the following body:
(1) When the authority is established by an eligible entity, by its
fiscal body.
(2) When the authority is established by two (2) or more eligible
entities acting jointly, by the fiscal body of each of those entities.
(3) When the authority was established under IC 19-6-2 (before
its repeal), by the mayor of the consolidated city, and if a second
airport is to be funded, also by the city-county council.
(4) When the authority was established under IC 19-6-3 (before
its repeal), by the county council.
(c) The airport director shall manage and supervise the preparation,
advertisement, and sale of the bonds, subject to the authorizing
ordinance. Before the sale of the bonds, the airport director shall cause
notice of the sale to be published once each week for two (2)
consecutive weeks in two (2) newspapers of general circulation
published in the district, setting out the time and place where bids will
be received, the amount and maturity dates of the issue, the maximum
interest rate, and the terms and conditions of sale and delivery of the
bonds. The bonds shall be sold to the highest bidder, in accordance
with the procedures for selling public bonds. After the bonds have been
properly sold and executed, the airport director shall deliver them to the
treasurer of the authority and take a receipt for them, and shall certify
to the treasurer the amount which the purchaser is to pay for them,
together with the name and address of the purchaser. On payment of
the purchase price, the treasurer shall deliver the bonds to the
purchaser, and the treasurer and airport director or superintendent shall
report their actions to the board.
(d) The provisions of IC 6-1.1-20 and IC 5-1 relating to:
(1) the filing of a petition requesting the issuance of bonds and
giving notice of them;
(2) the giving of notice of determination to issue bonds;
(3) the giving of notice of hearing on the appropriation of the
proceeds of bonds and the right of taxpayers to appeal and be
heard on the proposed appropriation;
(4) the approval of the appropriation by the department of local
government finance;
(5) the right of:
(A) taxpayers and voters to remonstrate against the issuance of
bonds, in the case of a proposed bond issue described by IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds, in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a); and
(6) the sale of bonds at public sale for not less than par value;
are applicable to proceedings under this chapter for the issuance of
general obligation bonds.
(e) Bonds issued under this chapter are not a corporate obligation or
indebtedness of any eligible entity but are an indebtedness of the
authority as a municipal corporation. An action to question the validity
of the bonds issued or to prevent their issue must be instituted not later
than the date set for sale of the bonds, and all of the bonds after that
date are incontestable.
[Pre-Local Government Recodification Citations: 19-6-2-20;
19-6-3-21 part; 19-6-3.5-20.]
As added by Acts 1980, P.L.8, SEC.73. Amended by
P.L.90-2002, SEC.328; P.L.219-2007, SEC.94; P.L.146-2008,
SEC.364.