2013 Indiana Code TITLE 5. STATE AND LOCAL ADMINISTRATION ARTICLE 1. BONDS AND OTHER OBLIGATIONS CHAPTER 11. PROCEDURES FOR SELLING BONDS
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IC 5-1-11
Chapter 11. Procedures for Selling Bonds
IC 5-1-11-1
Public sale; "bonds" defined; sale to federal government
Sec. 1. (a) Except as otherwise provided in this chapter or in the
statute authorizing their issuance, all bonds issued by or in the name
of counties, townships, cities, towns, school corporations, and special
taxing districts, agencies or instrumentalities thereof, or by entities
required to sell bonds pursuant to IC 5-1-11, whether the same be
general obligations or issued in anticipation of the collection of
special taxes or be payable out of revenues, shall be sold at public
sale.
(b) The word "bonds" as used in this chapter means any
obligations issued by or in the name of any of the political
subdivisions or bodies referred to in subsection (a), except
obligations payable in the year in which they are issued, obligations
issued in anticipation of the collection of delinquent taxes, and
obligations issued in anticipation of the collection of frozen bank
deposits.
(c) Notwithstanding any of the provisions of subsection (a) or any
of the provisions of section 2 of this chapter, any bonds may be sold
to the federal government or any agency thereof, at private sale and
without a public offering.
As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.44-1983,
SEC.3; P.L.23-1984, SEC.3.
IC 5-1-11-2
Publication of notice of sale; publication of notice of intent to sell
Sec. 2. (a) Notice of sale of bonds required to be sold at public
sale under section 1 of this chapter shall be published in accordance
with the provisions of this chapter and either IC 5-3-1 or subsection
(b).
(b) If a political subdivision or body referred to in section 1 of this
chapter determines to sell bonds under this subsection, notice of
intent to sell such bonds shall be published once each week for two
(2) weeks in accordance with IC 5-3-1-4 and in a newspaper of
general circulation published in the state capital. The notice must
state that any person interested in submitting a bid for the bonds may
furnish in writing to the official of the political subdivision or body
responsible for their sale, at the address set forth in the notice, the
person's name, address, and telephone number. The person may also
furnish a telex number. The notice of intent to sell bonds must state:
(1) the amount of the bonds to be offered;
(2) the denominations;
(3) the dates of maturity;
(4) the maximum rate or rates of interest;
(5) the place of sale; and
(6) the time within which the name, address, and telephone
number must be furnished, which must not be less than seven
(7) days after the last publication of the notice of intent to sell.
The official of the political subdivision or body responsible for the
bond sale shall notify each person so registered of the date and time
bids will be received not less than twenty-four (24) hours before the
date and time of sale. The notification shall be made by telephone at
the number furnished by the person, and also by telex if the person
furnishes a telex number. Bids may not be received more than ninety
(90) days after the first publication of the notice of intent to sell.
(c) This chapter does not prevent the sale of bonds under the
provisions of any statute inconsistent with this chapter so long as the
procedures required for the sale in that statute are complied with, but
if notice of that sale must be published, the notice shall be published
in accordance with IC 5-3-1.
As added by Acts 1980, P.L.8, SEC.19. Amended by Acts 1981,
P.L.45, SEC.4; P.L.44-1983, SEC.4; P.L.23-1984, SEC.4.
IC 5-1-11-3
Maximum interest rate to be fixed; notice of intent to sell; bidding
awards; continuation of sale; price of bonds; action to contest
validity
Sec. 3. (a) In authorizing and advertising such bonds for sale only
a maximum interest rate shall be fixed, not exceeding the maximum
rate provided for in the governing statute or bond ordinance or
resolution of the issuing political subdivision or body. Bidders for
such bonds shall be required to bid on the interest rate or rates which
the bonds shall bear.
(b) The notice of intent to sell the bonds required under section 2
of this chapter must:
(1) specify the principal amount of bonds maturing on each
maturity date or mandatory sinking fund redemption date; or
(2) state that the principal maturity schedule or mandatory
sinking fund redemption schedule will be provided at least
twenty-four (24) hours before the scheduled time of sale upon
request by bidders.
(c) The bonds shall be awarded to the bidder offering the lowest
interest cost to be determined by computing the total interest on all
bonds from the date thereof to the date of maturity and deducting
therefrom the premium bid, if any, or adding thereto the amount of
any discount, if any. If no acceptable bid is received at the time fixed
for sale of the bonds, then the sale may be continued from day to day
for a period not to exceed thirty (30) days without readvertising.
During the continuation of the sale, no bid shall be accepted which
offers an interest cost which is equal to or higher than the best bid
received at the time fixed for the sale in the bond sale notice. The
acceptability of a bid is within the sole discretion of the political
subdivision or body referred to in section 1(a) that is issuing the
bonds.
(d) Any bonds sold at public sale under this chapter may be sold,
notwithstanding the provisions of any other law, at a price or prices
determined by the officer or body authorized by law to issue or sell
bonds, but not for less than ninety-seven percent (97%) of their par
value.
(e) An action to contest the validity of any bonds sold under this
chapter may not be brought after the fifteenth day following the first
publication of notice of the sale of the bonds. An action to contest
the validity of any bond sale under this chapter may not be brought
after the fifth day following the bond sale.
As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.44-1983,
SEC.5; P.L.23-1984, SEC.5; P.L.35-1990, SEC.1.
IC 5-1-11-4
Prohibitions; advantage in bidding; payment before delivery;
technical services
Sec. 4. (a) It shall be unlawful for any officer or body authorized
by law to issue or sell bonds to enter into a contract or agreement
prior to the award of such bonds with any person, limited liability
company, firm, or corporation, directly or indirectly interested in
bidding on or purchasing such bonds, for the furnishing of legal,
engineering, or other technical services, or for the furnishing of
printed bond forms or any other contract or agreement which will
give to any person, firm, limited liability company, or corporation an
advantage in bidding on or purchasing such bonds or controlling the
sale thereof. Any funds expended on account of any such contract or
agreement shall be chargeable to the officer or officers authorizing
or making such expenditure.
(b) It shall be unlawful for any officer or body authorized to issue
or sell bonds to require the successful bidder therefor to pay for such
bonds prior to the time that such bonds are delivered, or prior to the
time that the successful bidder shall have had reasonable opportunity
to examine such bonds and the proceedings had relative to the
authorization, issuance and sale of the same. Nothing in this chapter,
however, shall prevent any county, township, city, town, school
corporation or special taxing district from employing or contracting
for legal, engineering or other technical services, prior to the sale of
any such bonds, provided that such services are not to be supplied by
or through a person, firm, limited liability company, or corporation
directly or indirectly interested in bidding on or purchasing such
bonds.
As added by Acts 1980, P.L.8, SEC.19. Amended by P.L.8-1993,
SEC.47.
IC 5-1-11-5
Transcript of proceedings relative to issuance of bonds to be
furnished to purchaser
Sec. 5. Whenever any bonds are sold, there shall be furnished to
the purchaser thereof a transcript of the proceedings had and actions
taken relative to the authorization, issuance, and sale of such bonds,
certified by the person or persons charged with recording the minutes
or keeping the records of the body or bodies having to do with the
authorization and issuance of such bonds. In cases where such
transcripts relate to the issuance of general obligation bonds, or
bonds payable in anticipation of the collection of special taxes, such
transcripts shall also have attached thereto the certificate of the
proper officers showing the assessed valuation of taxable property in
and outstanding indebtedness of the issuing unit and other pertinent
details bearing on the validity of said bonds. Such transcripts and the
certificates attached thereto shall import verity and shall be accepted
in evidence in any legal proceedings relating to or affecting said
bonds.
As added by Acts 1980, P.L.8, SEC.19.
IC 5-1-11-6
Other statutory authorization to issue and exchange bonds for
refunding or redeeming outstanding bonds
Sec. 6. (a) In cases where other statutes authorize the issuance and
exchange of new bonds for the purpose of refunding or redeeming
outstanding bonds for the payment of which no funds are available,
it shall be the duty of the officers charged with issuance and
exchange of such new bonds to cause the same to be offered at public
sale as provided in this chapter.
(b) In cases where it is necessary to provide for the refunding of
bonds or interest coupons maturing at various times over a period not
exceeding six (6) months, the bodies and officials charged with the
duty of issuing and selling such refunding bonds may, for the
purpose of reducing the cost of issuance thereof, issue and sell one
(1) issue of bonds in an amount sufficient to provide for the
refunding of all of the bonds and interest coupons required to be
refunded during said six (6) months period.
As added by Acts 1980, P.L.8, SEC.19.
IC 5-1-11-7
Restrictions on powers
Sec. 7. Nothing in this chapter contained shall be so construed as
to enlarge the powers of counties, townships, cities, towns, school
corporations, and special taxing districts, or agencies or
instrumentalities thereof to issue bonds.
As added by Acts 1980, P.L.8, SEC.19.
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