Sec. 11. (a) A corporation qualifying as a lessor corporation under this chapter may, in furtherance of the corporation’s purposes, issue and sell bonds and other securities. Mortgage bonds issued by a lessor corporation that are a first lien on the leased property are legal and proper investments for state banks and trust companies, insurance companies, and fiduciaries. The bonds may be callable, with or without premiums, with accrued and unpaid interest upon notice provided in the mortgage indenture.

     (b) All bonds and other securities issued by the lessor corporation must be advertised and sold in accordance with IC 5-1-11 at any interest rate.

Terms Used In Indiana Code 36-12-10-11

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
     (c) The approval of the securities division of the secretary of state is not required in connection with the issuance and sale of bonds or other securities of a municipal corporation.

[Pre-2005 Elementary and Secondary Education Recodification Citation: 20-14-10-11.]

As added by P.L.1-2005, SEC.49. Amended by P.L.42-2018, SEC.56.

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