§ 8-9.5-7-16 — Bonds

Indiana § 8-9.5-7-16

• Jurisdiction: Indiana
• Art. 9.5: TRANSPORTATION AGENCIES
• Ch. 7: Automated Transit Districts

Text

(a) For the purpose of procuring funds to pay
the cost of acquisition of property or the cost of construction or
installation of an automated transit system, or both, and in anticipation
of the receipt of revenues under sections 17 and 18 of this chapter, the
commission may by resolution direct that bonds be issued in the name
of the district. The amount of such bonds shall not exceed:
(1) the total cost of property to be acquired and the total amount
of damages to be awarded on account of property injuriously
affected but not acquired;
(2) the price of the automated transit system;
(3) an amount sufficient to pay the cost of supervision and
inspection during the period of construction;
(4) all general, administrative, legal, engineering and incidental
expense not otherwise provided for and incurred on account of or
in connection with the establishment of the district, the
administration of its affairs, the acquisition of property, and the
construction of the automated transit system; and
(5) the expenses to be incurred in connection with the issuance
and sale of bonds.
Such bond issue shall also include an amount sufficient to pay any
outstanding warrants issued for the purpose of obtaining funds with
which to meet expenses prior to the issuance of bonds. Such bonds
shall not, in any respect, be a corporate obligation or indebtedness of
the city, the territory of which shall be included in whole or in part in
said district, but shall be and constitute an indebtedness of the district,
and shall be payable solely out of the funds of said district. The bonds
shall recite such terms upon their face, together with the purpose for
which they are issued.
(b) In the event the commission shall find it necessary to replace,
enlarge or extend any part of the works, or construct additional works
in conjunction with or separate and apart from the original works, in
order to protect the district properly, and that the cost thereof will be in
excess of the amount then available out of current maintenance and
repair funds, the commission may issue bonds under the provisions of
this section for that purpose.
(c) In the event the district shall be unable to pay any bonds or the
interest thereon at the times fixed therefor, by reason of insufficiency
of funds or other causes, refunding bonds may be issued and sold
pursuant to the provisions of this section to obtain money for that
purpose, and such refunding bonds shall be payable within such period,
not exceeding ten (10) years, as the commission shall determine.
(d) All bonds issued hereunder, together with the interest thereon,
shall be exempt from taxation. No suit to question the validity of any
of the bonds issued under this chapter, or to prevent their issuance,
shall be instituted after the time fixed in the bond sale notice for the
receiving of bids thereon, and all of said bonds from and after said time
shall be incontestable for any cause whatsoever.
(e) All proceeds from the sale of such bonds shall be kept by the
county treasurer as a separate and specific fund designated as the
"________ Automated Transit District Construction Fund." Out of said
fund there shall be paid the cost of the automated transit system. No
part of the same shall be used for any other purpose, and any surplus of
funds remaining out of the proceeds of said bonds after all of said
construction costs are paid shall become available for use by the board
for expenses of maintaining the automated transit system.
As added by Acts 1982, P.L.77, SEC.1.