Sec. 16. (a) If a municipality wants to obtain all or part of the money necessary to pay the cost of parking facilities by the issuance of revenue bonds, the bonds must be authorized by ordinance of the municipal legislative body.

     (b) The ordinance authorizing the revenue bonds:

(1) must set out the amount, date, denominations, terms, conditions, and form of the bonds and their interest coupons;

(2) must set out any covenants relative to safeguarding the interest of the bondholders;

(3) must specify in detail the revenues pledged to the payment of the interest on and the principal of the bonds; and

(4) may contain provisions for the issuance of additional bonds of equal priority, or of junior and subordinate priority, from time to time after issuance of the original bonds, under the restrictions set forth in the ordinance.

     (c) The revenue bonds may:

(1) bear interest, payable semiannually, at any rate;

(2) be payable in the amounts, at times not exceeding fifty (50) years from the date of issuance, and at the place or places, either within or outside of Indiana; and

(3) be redeemable before maturity on the terms and conditions;

specified by the municipal legislative body in the authorizing ordinance.

     (d) The bonds shall be executed in the name of the municipality as other bonds of the municipality are executed. If any of the officers whose signatures or countersignatures appear on the bonds or the coupons cease to be officers before the delivery of the bonds to the purchaser, the officer’s signature or countersignature remains valid and sufficient for all purposes as if the officer had remained in office until the delivery of the bonds.

     (e) Upon the sale and delivery of the bonds authorized, the ordinance constitutes a contract between the municipality and the bondholders, and may not subsequently be amended or modified so as to adversely affect the rights of the bondholders.

     (f) The bonds of a city and the interest on them are payable only out of the special fund or account created by the ordinance authorizing the issuance of the bonds and the revenues pledged to the fund or account. The bonds of a town and the interest on them are payable only out of the parking sinking fund established by section 19 of this chapter and the revenues pledged to that fund.

     (g) The bonds are not an indebtedness of the municipality for purposes of any constitutional provision or limitation. A statement to that effect must appear on the face of each bond.

     (h) The bonds are payable to bearer, and the interest on them shall be evidenced by coupons attached to them.

     (i) The bonds may be registrable as to the principal only in the holder’s name on the books of the municipality, with the registration to be noted on the bond by the municipal clerk or other designated officer. After registration, the transfer of a bond is valid only if made on the books of the municipality by the registered holder and similarly noted on the bond. Registered bonds may be discharged from registration by being transferred to bearer, after which they are transferable by delivery but may again be registered as to principal. The registration of the bonds as to principal does not affect the negotiability of the interest coupons by delivery only.

     (j) Bonds issued under this section are negotiable instruments. The bonds and the interest on them are exempt from taxation for all purposes.

     (k) The proceeds of each issue of bonds shall be used solely for the payment of the cost of the parking facilities for which the bonds were issued, and shall be disbursed in the manner and under the restrictions, if any, that the legislative body specifies in the ordinance authorizing the issuance of the bonds.

     (l) If the proceeds of any issue of bonds are less than the cost of the parking facilities, additional bonds may be issued in a similar manner to provide the amount of the deficit. Unless otherwise provided in the ordinance authorizing their issuance, the additional bonds are considered to be of the same issue and are entitled to payment from the same fund without preference or priority of the bonds first issued.

     (m) If the proceeds of any issue of bonds exceed the cost of the parking facilities for which the bonds were issued, the surplus shall be deposited in the fund or account from which the bonds are payable.

[Pre-Local Government Recodification Citations: 19-5-11-8; 19-5-13-10.]

As added by Acts 1981, P.L.309, SEC.84. Amended by P.L.127-2017, SEC.295.