Indiana § 16-23-9-4 - Authority to borrow funds; bonds; tax levies; bond proceeds

§ 16-23-9-4. Authority to borrow funds; bonds; tax levies; bond proceeds

Sec. 4. (a) This section applies if the township trustee and the township board of the township determine the following:

(1) That the hospital is indebted in an amount not exceeding five thousand dollars ($5,000), the payment of which is secured by a mortgage encumbering the buildings and grounds of the hospital.

(2) That an addition to the hospital structure or additional building or buildings, or equipment is required to enable the hospital to efficiently carry on the hospital's activities under the hospital's articles of incorporation.

(b) The township board may authorize the trustee, by special order entered and signed upon the township board's records, to borrow an amount on behalf of the township sufficient to pay the mortgage indebtedness, or to construct and equip an addition to a building or for an additional building. The township board may authorize the trustee of the township to issue bonds of the township to pay the debt created. The bonds:

(1) may run for a period not exceeding ten (10) years;

(2) may bear interest at any rate; and

(3) shall be sold by one (1) of the trustees, with the consent of the township board, for not less than par value.

(c) The township board shall annually levy sufficient taxes to pay at least one-tenth (1/10) of the township bonds, including interest, and the township trustee shall apply the tax levy collected each year to the retirement of the bonds and the payment of the interest on the bonds. The bonds issued under this section may not exceed an amount equal to one percent (1%) of the adjusted value of all the taxable property in the township, including that in a town, as determined under IC 36-1-15.

(d) This debt may not be created except by the township board in the manner specified in this section. A payment of an unauthorized debt by a trustee from public funds is recoverable upon the bond of the trustee.

(e) The township trustee shall pay the proceeds from the borrowing and the sale of bonds into the treasury of the hospital. The hospital may use the money only to pay the mortgage indebtedness for which bonds had been sold or for construction and equipment of buildings or additions to buildings.

[Pre-1993 Recodification Citations: 16-12.2-11-4; 16-12.2-11-5.]

As added by P.L.2-1993, SEC.6. Amended by P.L.6-1997, SEC.177.