Indiana Code 5-1-5-18. Use of savings from refunding of bonds
(1) issued after June 30, 2008, by a local issuing body; and
Terms Used In Indiana Code 5-1-5-18
- 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.
- Issuing body: means the state of Indiana, its agencies, commissions, universities, colleges, institutions, political subdivisions, counties, school corporations, hospital associations, municipal and quasi-municipal corporations, special taxing districts, and any corporation which has issued bonds payable directly or indirectly from lease rentals payable by any of the foregoing issuing bodies now or hereafter existing under the laws of the state. See Indiana Code 5-1-5-1
- Local issuing body: means an issuing body that is:
Indiana Code 5-1-5-1
- Ordinance: means an ordinance of a city or town or resolution or other instrument by which the governing body of the issuing body exercising any power under this chapter takes formal action and adopts legislative provisions and matters of some permanency. See Indiana Code 5-1-5-1
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- Special benefit taxes: means a special tax levied and collected on an ad valorem basis on property for the purpose of financing local public improvements that:
Indiana Code 5-1-5-1
- Statute: A law passed by a legislature.
- Tax increment revenues: means an allocation of:
Indiana Code 5-1-5-1
including bonds that are issued under a statute that permits the bonds to be issued without complying with any other law or otherwise expressly exempts the bonds from the requirements of this section.
(b) Savings (as computed under section 2 of this chapter) that accrue from the issuance of bonds to retire or otherwise refund other bonds may be used only for the following purposes:
(1) To maintain a debt service reserve fund for the refunding bonds at the level required under the terms of the refunding bonds, if the local issuing body adopts an ordinance, resolution, or order authorizing that use of the proceeds or earnings.
(2) To pay the principal or interest, or both, on:
(A) the refunding bonds; or
(B) other bonds, if the issuing body approves an ordinance authorizing the use of the savings to pay principal or interest on other bonds.
(3) To reduce the rate or amount of ad valorem property taxes, special benefit taxes on property, or tax increment revenues imposed by or allocated to the local issuing body.
(c) An increment as computed under section 2.5 of this chapter that occurs from the issuance of bonds by an eligible school corporation to retire or otherwise refund other bonds as provided in section 2.5 of this chapter may be used only to make transfers permitted by IC 20-46-7-15 for the eligible school corporation.
As added by P.L.146-2008, SEC.25. Amended by P.L.229-2011, SEC.65.