Indiana § 13-21-12-2 - Securement of bond by trust indenture; provisions allowable in trust indenture or resolution

§ 13-21-12-2. Securement of bond by trust indenture; provisions allowable in trust indenture or resolution

Sec. 2. The bonds issued under this article or IC 13-9.5-9 (before its repeal) may be secured by a trust indenture between the district and a corporate trustee, which may be any national or state bank having its principal office in Indiana and having trust powers. The trust indenture or resolution under which the bonds are issued may do the following:

(1) Mortgage the land, interest in land, or the facilities for which the bonds are issued.

(2) Pledge the revenues or any other money, or any part of the revenues or money, to be received by the district.

(3) Contain the provisions for protecting and enforcing the rights and remedies of the bondholders or lenders that may be considered reasonable, including covenants setting forth the duties of the district or board in relation to the construction of the facilities and the custody, safeguarding, application, and investment of all money received or to be received by the district for the facilities financed by the issuance of the bonds.

(4) Provide for the establishment of reserve funds from the bond proceeds or from other sources to the extent authorized.

(5) Set forth the:

(A) rights and remedies of the bondholders and trust; and

(B) provisions restricting the individual rights or actions of bondholders.

(6) Contain provisions regarding the following:

(A) The investment of money.

(B) Sales, exchange, or disposal of property.

(C) The manner of authorizing and making of payments without regard to any general statute relating to these matters.

(7) Provide for the following:

(A) The payment of the proceeds of the sale of bonds to the trustee, officer, bank, or depository that may be determined under the trust indenture or resolution for the custody of the proceeds.

(B) The method of disbursement of the proceeds, with the safeguards and restrictions that are determined.

(8) Provide for the appointment of a receiver by the circuit or superior court of the county under terms and conditions that are considered reasonable.

(9) Contain other provisions that the district considers reasonable and proper for the security of the bondholders.

[Pre-1996 Recodification Citation: 13-9.5-9-9.]

As added by P.L.1-1996, SEC.11.