2023 Indiana Code › Title 8. Utilities and Transportation › Article 16. Bridges and Tunnels › Chapter 1. Operation and Financing of State Bridges to Adjoining States › 8-16-1-14. Revenue Bonds

Sec. 14. (a) Subject to IC 8-9.5-8-10, the authority is authorized to provide funds for each and every purpose of this chapter by the issuance of bridge revenue bonds of the state, the principal and interest of which bonds shall be payable solely from the revenues of the bridge to be constructed or acquired by purchase from the proceeds of such bonds. Such revenue bonds:
(1) shall bear interest at a rate or rates approved by the authority payable on such day as specified in the resolution or any trust agreement;
(2) shall mature in not more than thirty (30) years from their date or dates; and
(3) may be made redeemable at the option of the authority, at not more than the par value thereof and a premium of five percent (5%) under such terms and conditions as the authority may fix prior to the issuance of such bonds.
(b) The authority shall:
(1) provide the form of such bonds;
(2) fix the denomination or denominations of such bonds; and
(3) fix the place or places of payment of the principal and interest thereof.
(c) The bonds shall be executed by the manual or facsimile signature of the chairman of the authority and sealed and attested by the manual or facsimile signature of the public finance director. The coupons shall bear the facsimile signature of the chairman. The authority may also provide for authentication of the bonds by a trustee or fiscal agent.
(d) The said bonds shall be exempt from taxation by the state of Indiana and by the municipalities and political subdivisions thereof.
(e) The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest.
(f) Such bonds shall be sold in such manner, either at public or private sale, as the authority may determine to be for the best interests, taking into consideration the financial responsibility of the purchaser and the terms and conditions of the purchase and especially the availability of the proceeds of the bonds when required for payment of the cost of the bridge, by the authority. Such sale shall be at not less than ninety cents ($.90) on the dollar and accrued interest, and the proceeds of such bonds shall be used solely for the payment of the bridge costs, and expenses incident thereto as authorized by this chapter, and shall be disbursed by said authority as provided in this chapter. If the proceeds of the sale of such bonds shall exceed such costs, any surplus remaining therefrom shall be paid into the fund provided in section 16 of this chapter for payment of the principal and interest of said bonds.
(g) The authority shall have the right to purchase any bonds so issued by it that may be outstanding at the market price, but not exceeding one hundred five dollars ($105) for each one hundred dollars ($100) of par value and accrued interest nor exceeding the price at which the same shall in the same year be redeemable, with the consent of the holders of such bonds, and all bonds redeemed or purchased shall forthwith be cancelled and shall not again be issued.
(h) Prior to the preparation of definitive bonds the authority may under like restrictions issue temporary bonds, with or without coupons, exchangeable for definitive bonds upon the issuance of the latter.
(i) The authority may enter into an agreement with any trust company as trustees for the holders of such bonds, setting forth the duties of the authority in respect to:
(1) the construction, maintenance, operation, and insurance of any such bridge;
(2) the conservation and application of all funds;
(3) the insurance of moneys on hand or on deposit; and
(4) the rights and remedies of said trustee and the holders of such bonds, restricting the individual right of action of bondholders as is customary in trust agreements respecting bonds of a corporation.
(j) Said trust agreement may:
(1) contain such provisions for protecting and enforcing the rights and remedies of the trustee and the bondholders as may be reasonable and proper in the judgment of the authority, and also a provision for approval by the original bond purchasers of the appointment of consulting engineers and of the security given by the bridge contractors and by any bank or trust company in which the proceeds of bonds or bridge tolls or other moneys of the authority shall be deposited; and
(2) provide that no contract for construction shall be made without the approval of the consulting engineers.
(k) Such trust agreement may contain such further provisions as in the judgment of the authority will best accomplish the purposes of this chapter, with respect to:
(1) the fixing, maintaining, and collecting of tolls;
(2) the deposit, safeguarding, and disposition of the revenues derived from such bridge;
(3) the application of revenues;
(4) the determination and establishment of priorities in the disbursement of such revenues;
(5) the establishment of reserve funds to secure the prompt payment of the principal of and the interest on said bonds;
(6) the limitation of the amount of expenses of the authority chargeable to said revenues; and
(7) such other matters as in the judgment of the authority are proper and suitable.
(l) The bonds issued under this section shall be a first lien on all revenues of the bridge on account of which they are issued, subject only to such prior charges as may be provided in such trust agreement or in the resolution authorizing their issuance. The bonds may be issued without any other proceedings or happening or any other conditions or things than those proceedings, conditions, and things which are specified and required by this chapter or by the Constitution of the State of Indiana.
Formerly: Acts 1939, c.79, s.10; Acts 1951, c.296, s.2; Acts 1955, c.323, s.1; Acts 1971, P.L.100, SEC.2. As amended by Acts 1980, P.L.74, SEC.270; P.L.109-1983, SEC.41; P.L.162-2007, SEC.33.