Indiana § 36-4-6-19 - Loans and issuance of bonds; requirements

§ 36-4-6-19. Loans and issuance of bonds; requirements

Sec. 19. (a) The legislative body may, by ordinance, make loans of money and, subject to IC 5-1-11.5 and IC 5-11-1-4(c), issue bonds for the purpose of refunding those loans. The loans may be made only for the purpose of procuring money to be used in the exercise of the powers of the city or for the payment of city debts.

(b) An ordinance adopted under this section:

(1) must include the terms of the bonds to be issued in evidence of the loan;

(2) must include the time and manner of giving notice of the sale of the bonds;

(3) must include the manner in which the bonds will be sold; and

(4) may authorize a total amount for any issue of bonds.

(c) Bonds issued under this section may be sold in parcels of any size and at any time their proceeds are needed by the city.

(d) Bonds issued and sold by a city under this section:

(1) are negotiable with or without registration, as may be provided by the ordinance authorizing the issue;

(2) may bear interest at any rate;

(3) may run not longer than thirty (30) years;

(4) may contain an option allowing the city to redeem them in whole or in part at specified times prior to maturity; and

(5) may be sold for not less than par value.

(e) The city fiscal officer shall:

(1) manage and supervise the preparation, advertisement, negotiations, and sale of bonds under this section, subject to the terms of the ordinance authorizing the sale;

(2) certify the amount the purchaser is to pay, together with the name and address of the purchaser;

(3) receive the amount of payment certified;

(4) deliver the bonds to the purchaser;

(5) take a receipt for the securities delivered;

(6) pay the purchaser's payment into the city treasury; and

(7) report the proceedings in the sale to the legislative body.

The actions of the fiscal officer under this subsection are ministerial.

[Pre-Local Government Recodification Citation: 18-1-4-3 part.]

As added by Acts 1980, P.L.212, SEC.3. Amended by P.L.173-2003, SEC.26; P.L.184-2015, SEC.16; P.L.244-2017, SEC.127.