Sec. 36. (a) Upon the delivery of certificates of indebtedness in payment of part of the principal of or interest on any bonds because of a deficiency, the municipality shall, by proper endorsement of the bonds:

(1) reduce the face value of the bonds or the interest payable on the bonds by a corresponding amount; or

(2) cancel the bonds if the principal of and interest on the bonds are paid in full.

     (b) The certificates of indebtedness shall be authorized, issued, and paid in the same manner as certificates of indebtedness issued under IC 36-9-36-62 and IC 36-9-36-64. However, the certificates draw interest only from the date of issue and the rate of interest shall be fixed by the resolution authorizing the issuance of the certificates.

     (c) A municipality is not required to provide for or pay upon the certificates of indebtedness issued under section 35 of this chapter (or under IC 36-9-19 before its repeal in 1993) a total amount in any one (1) year in excess of the following:

(1) Fifty thousand dollars ($50,000) for a municipality having a population of at least thirty-five thousand (35,000).

(2) Twenty-five thousand dollars ($25,000) for a municipality having a population of at least ten thousand (10,000) and less than thirty-five thousand (35,000).

(3) Ten thousand dollars ($10,000) for a municipality having a population of less than ten thousand (10,000).

     (d) A municipality shall make payments on the certificates of indebtedness issued under section 35 of this chapter (or under IC 36-9-19 before its repeal in 1993) in the order of the tender and demand for payment of outstanding certificates in each year. The municipality is not required to prorate the payments among all the outstanding certificates. The municipal fiscal officer is the sole judge of the order of tender and priorities of the certificates of indebtedness.

     (e) Before issuing payment on a certificate, the fiscal officer shall, by audit and other investigation of the facts, determine the right to payment and the proper amount of the payment. The fiscal officer’s determination is final and conclusive upon all the parties involved.

As added by P.L.98-1993, SEC.8. Amended by P.L.11-2023, SEC.132.