Sec. 7. (a) The municipality may issue and sell bonds to provide money for any public improvement under this chapter.

     (b) The bonds and interest on them are payable only out of a special fund, to be established as provided in this chapter. The bonds do not constitute an indebtedness of the municipality within the meaning of any constitutional limitation. Each bond must state plainly on its face that it is payable only from a special fund and that it does not constitute an indebtedness of the municipality within the meaning of any constitutional debt limitation. Neither the faith and credit nor the taxing power of the municipality is or may be pledged for the payment of the principal of, premium (if any) on, or interest on bonds issued under this chapter. An owner of bonds issued under this chapter is not entitled to compel the exercise of the taxing power by the municipality or the forfeiture of any of its property in connection with any default on bonds issued under this chapter.

     (c) Bonds issued under this chapter may be sold at public or private sale for the price, in the manner, and at the time determined by the legislative body.

     (d) The ordinance of the legislative body authorizing the bonds must provide, either in the body of the ordinance or by incorporating another document by reference:

(1) the manner of their execution;

(2) their term or terms, which may not exceed forty (40) years;

(3) their interest rate;

(4) their denominations;

(5) their form;

(6) the medium of their payments;

(7) the place and manner of their payment;

(8) the terms of their redemption, if any; and

(9) any other provisions not inconsistent with this chapter.

     (e) The bonds may be issued in an amount sufficient to pay all or any part of the cost of any public improvement authorized by this chapter including the funding of interest in an amount to be determined by the legislative body, the establishment of reserves to secure payment of such bonds, and the payment of all other costs or expenses incident to and necessary or convenient to carry out the purposes and powers authorized by this chapter.

     (f) The bonds and their authorization, issuance, sale, and delivery are not subject to any general statute concerning bonds.

     (g) An action to contest the validity of bonds issued under this chapter may not be commenced more than fifteen (15) days after publication of notice of the adoption of the ordinance approving them. The bonds are conclusively presumed to be valid after that period has passed.

     (h) Any bonds issued under this chapter are exempt from taxation as provided in IC 6-8-5.

     (i) If the legislative body finds that a refunding of outstanding bonds issued under this chapter would be of benefit to the municipality, it may authorize the issuance of refunding bonds payable solely from revenues derived from notes or other secured or unsecured obligations of any person that has entered into a loan agreement with a municipality under this chapter, or from escrowed bond proceeds or other sources of principal and interest payments under this chapter. Refunding bonds shall be issued in the same manner as bonds issued under this chapter and are payable only from sources set forth in this chapter.

     (j) Any bond issued under this chapter is exempt from any security registration requirements provided for in Indiana statutes.

As added by P.L.23-1984, SEC.18.