Sec. 31. (a) The governing board may secure the bonds by a trust indenture between the authority and a corporate trustee, which may be any trust company or national or state bank in Indiana having trust powers.

     (b) The trust indenture may do the following:

(1) Mortgage the land or building, or both, for which the bonds are issued.

(2) Contain reasonable provisions for the following:

(A) Protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the authority and board in relation to the following:

(i) The construction or renovation of the building and the building’s insurance.

(ii) The custody, safeguarding, and application of all money.

(B) Setting forth the rights and remedies of the bondholders and trustee.

(C) Restricting the individual right of action of bondholders.

     (c) Except as otherwise provided in this chapter, the board of directors may determine by resolution or in the trust indenture the following:

(1) The officer, board, or depositary that shall have custody of the proceeds of the sale of the bonds.

(2) The method of disbursement of the proceeds, including safeguards and restrictions.

[Pre-1993 Recodification Citation: 16-12-20-19.]

As added by P.L.2-1993, SEC.5.