Indiana Code
Chapter 23. Municipal Sewage Works
36-9-23-18. Bonds; Liability of Municipality; Interest; Redemption; Form; Registration; Sale; Temporary Bonds; Additional Bonds; Exemption From Taxation

Sec. 18. (a) Revenue bonds issued under this chapter are payable solely from the revenues of the sewage works for which they are issued, and are not a corporate indebtedness of the municipality.
(b) The revenue bonds bear interest at a rate not to exceed the maximum rate per annum specified by the municipal legislative body, payable annually or at shorter intervals, and mature at the time or times determined by ordinance.
(c) The revenue bonds may be made redeemable before maturity at the option of the municipality, to be exercised by the board, at not more than their par value plus a premium of five percent (5%), under the terms and conditions fixed by the ordinance authorizing the issuance of the bonds.
(d) The principal and interest of the revenue bonds may be made payable in any lawful medium.
(e) The ordinance authorizing the issuance of the revenue bonds must determine the form of the bonds, including any interest coupons to be attached to them, and must fix the denomination or denominations of the bonds and the place or places of payment of their principal and interest, which may be at any bank or trust company in Indiana or another state.
(f) The revenue bonds must contain a statement on their face that the municipality is not obligated to pay the principal or interest on them, except from the special fund provided from the net revenues of the sewage works.
(g) The revenue bonds are negotiable instruments.
(h) Provision may be made for the registration of any of the revenue bonds in the name of the owner as to principal alone, or as to both principal and interest, but fully registered bonds shall be made convertible to coupon bonds at the option of the registered owner.
(i) The revenue bonds shall be executed in the same manner as other revenue bonds issued by municipalities are executed.
(j) The revenue bonds shall be sold by the municipal fiscal officer in the manner that is determined to be in the best interests of the municipality, but at not less than par value and only at public sale in accordance with the statutes concerning the sale of municipal bonds.
(k) Before the preparation of the definite revenue bonds, temporary revenue bonds may be issued with or without coupons. The temporary revenue bonds, which shall be issued in the manner prescribed by this section, may be exchanged for the definite revenue bonds when they are issued.
(l) If the proceeds of the revenue bonds are less than the cost of the sewage works, additional revenue bonds may be issued under this section to provide the amount of the deficit. Unless otherwise provided in the ordinance authorizing the first issue, or in the trust indenture authorized by section 22 of this chapter, the additional revenue bonds are considered part of the first issue and are entitled to payment from the same fund, without priority for the first issue.
(m) Subject to the provisions and limitations of any ordinance or trust indenture pertaining to any outstanding revenue bonds, additional bonds payable from the revenues of the sewage works may be authorized and issued in the manner prescribed by this section, for the purpose of improving any works acquired or constructed under this chapter.
(n) Revenue bonds issued under this section are exempt from taxation for all purposes.
[Pre-Local Government Recodification Citations: 19-2-5-11 part; 19-2-5-12 part; 19-2-5-13.]
As added by Acts 1981, P.L.309, SEC.96.