Indiana Code 5-1-5-2. Issuance of bonds to refund outstanding bonds
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Sec. 2. (a) The governing body of any issuing body may by ordinance provide for the issuance of bonds to refund outstanding bonds issued at any time by such issuing body or its predecessor, and to pay redemption premiums and costs of refunding to effect a saving to the issuing body. Issuance of bonds to refund outstanding bonds may also be made in order to pay or discharge all or any part of such outstanding series or issue of bond, including any interest thereon, in arrears or about to become due and for which sufficient funds are not available or to modify restrictive covenants in outstanding bonds impeding additional financing. To determine whether or not a savings will be effected, consideration shall be given to the estimated or known interest payable to the fixed maturities of the refunding bonds, the interest payable on the bonds to be refunded, the costs of issuance of the refunding bonds, including any sale discount, the redemption premiums, if any, to be paid, and the probable earned income from the investment of the refunding bond proceeds pending redemption of the bonds to be refunded.
(1) the issuance of bonds to refund previously issued refunding bonds, if the statute under which the refunding bonds are issued expressly exempts such an issue from this savings requirement; or
(b) The provisions of subsection (a) requiring a savings to be effected do not apply to:
Terms Used In Indiana Code 5-1-5-2
- Bond: means any revenue bond, general obligation bond, or advance refunding bond. See Indiana Code 5-1-5-1
- 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.
- Governing body: means the council, commission, board of commissioners, board of directors, board of trustees, or other legislative body in which the legislative powers of the issuing body are vested. See Indiana Code 5-1-5-1
- 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
- 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
- Statute: A law passed by a legislature.
(2) the issuance of refunding bonds by a school corporation that is an eligible school corporation under section 2.5 of this chapter.
Formerly: Acts 1973, P.L.28, SEC.1. As amended by Acts 1982, P.L.28, SEC.2; P.L.23-1984, SEC.1; P.L.229-2011, SEC.62.