Sec. 36. (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 all or part of the land or buildings, or both, for which the bonds are issued.

(2) Contain reasonable provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants concerning the following:

(A) Construction of the buildings.

(B) Insurance for the buildings.

(C) Custody, safeguarding, and application of all money.

(3) Set forth the rights and remedies of the bondholders and trustee.

(4) Restrict the individual right of action of bondholders.

     (c) Except as restricted by this chapter, the governing board may determine by resolution or in the trust indenture the officer, board, or depositary who shall have custody of the proceeds of the sale of bonds and the method of disbursement of the proceeds, including safeguards and restrictions.

[Pre-1993 Recodification Citation: 16-12-20.5-21.]

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