4.
(a)Subject to section 5.3 of this chapter, the
board may provide by resolution, at one (1) time or from time to time,
for the issuance of revenue bonds of the district for the purpose of
paying all or any part of the cost of a railroad project. The principal of
and the interest on the bonds are payable solely from the revenues
specifically pledged to the payment thereof. The bonds of each issue
shall be dated, bear interest at any rate, and mature at a time or times
not exceeding forty (40) years from the date thereof, as may be
determined by the board, and may be made redeemable before
maturity, at the option of the board, at such price or prices and under
such terms and conditions as may be fixed by the board in the
authorizing resolution.
(b)The board shall determine the form of th
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4. (a) Subject to section 5.3 of this chapter, the
board may provide by resolution, at one (1) time or from time to time,
for the issuance of revenue bonds of the district for the purpose of
paying all or any part of the cost of a railroad project. The principal of
and the interest on the bonds are payable solely from the revenues
specifically pledged to the payment thereof. The bonds of each issue
shall be dated, bear interest at any rate, and mature at a time or times
not exceeding forty (40) years from the date thereof, as may be
determined by the board, and may be made redeemable before
maturity, at the option of the board, at such price or prices and under
such terms and conditions as may be fixed by the board in the
authorizing resolution.
(b) The board shall determine the form of the bonds, including any
interest coupons to be attached to the bonds, and shall fix the
denomination or denominations of the bonds and the place or places of
payment of principal and interest.
(c) The bonds shall be issued in the name of the district and
executed by the manual or facsimile signature of the president of the
board. The manual or facsimile seal of the district shall be affixed or
imprinted on the bonds and attested by the manual or facsimile
signature of the secretary of the district. However, one (1) of the
signatures must be manual, unless the bonds are authenticated by the
manual signature of an authorized representative of a trustee for the
bondholders. Any coupons attached to the bonds must bear the
facsimile signature of the treasurer of the board. In case any officer
whose signature or a facsimile of whose signature appears on any
bonds or coupons ceases to be an officer before the delivery of the
bonds, the signature or facsimile shall nevertheless be considered valid
and sufficient for all purposes the same as if he had remained in office
until the delivery. The bonds must contain on their face a statement to
the effect that the bonds, as to both principal and interest, are payable
solely from the revenues pledged for their payment.
(d) All bonds issued under this chapter have all the qualities and
incidents of negotiable instruments under the negotiable instruments
law of Indiana.
(e) The bonds may be issued in coupon, registered, or book entry
form, or any combination of these, as the board may determine, and
provision may be made for the registration of any coupon bonds as to
principal alone and also as to both principal and interest, and for the
reconversion into coupon bonds of any bonds registered as to both
principal and interest.
(f) The board may sell the bonds in such manner and for such price
as it may determine to be in the best interest of the district, either at
public sale under IC 5-1-11 or at private sale.
(g) The board may issue bonds under this chapter only after
obtaining approval of the issuance by the Indiana department of
transportation. Before giving approval, the Indiana department of
transportation shall give due consideration to any contract terms and
conditions that impinge on the continuation of revenues for the term of
any bond.
(h) This chapter constitutes full and complete authority for the
issuance of bonds. No law, procedure or proceedings, publications,
notices, consents, approvals, orders, acts, or things by the board or any
other officer, department, agency or instrumentality of the state, county,
or any municipality shall be required to issue such bonds except as may
be prescribed in this chapter.
(i) Bonds issued under the provisions of this section shall constitute
legal investments for any private trust funds, and the funds of any
banks, trust companies, insurance companies, building and loan
associations, credit unions, banks of discount and deposit, savings
banks, loans and trust and safe deposit companies, rural loan and
savings associations, guaranty loan and savings associations, mortgage
guaranty companies, small loan companies, industrial loan and
investment companies, and any other financial institutions organized
under the laws of the state of Indiana.
(j) Bonds may not be sold to purchase or lease assets or purchase
capital stock of a railroad unless the board has a written undertaking
from the seller or lessor that the seller or lessor will take no direct
action calculated to cause the reduction of levels of freight service
being rendered or revenues being generated on any such railroad for a
period of time not less than the term of the bonds.
As added by Acts 1981, P.L.67, SEC.7. Amended by
P.L.64-1984, SEC.4; P.L.18-1990, SEC.64; P.L.42-1993, SEC.6;
P.L.68-2025, SEC.193.