2014 Indiana Code TITLE 21. HIGHER EDUCATION ARTICLE 35. STATE EDUCATIONAL INSTITUTIONS: REVENUE BONDS AND OTHER FINANCING ARRANGEMENTS CHAPTER 6. REVENUE BONDS; VINCENNES UNIVERSITY
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IC 21-35-6
Chapter 6. Revenue Bonds; Vincennes University
IC 21-35-6-1
Applicability of chapter
Sec. 1. This chapter applies to Vincennes University.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-2
Applicable property
Sec. 2. This chapter applies to all property acquired or improved
for Vincennes University.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-3
Issuance and sale of bonds
Sec. 3. For the purpose of:
(1) raising funds for improving property;
(2) acquiring property;
(3) the interim financing of the cost of any such improvement
or acquisition;
(4) the reimbursing of the trustees for funds expended or
advanced for interim financing of the cost of any such
improvement or acquisition, or, subject to existing covenants
and agreements with the holders of outstanding bonds, for
funding or refunding bonds issued under this chapter; or
(5) for any one (1) or more of the activities described in
subdivisions (1) through (4);
the board of trustees may issue and sell revenue bonds.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-4
Security of bonds
Sec. 4. The revenue bonds and the interest on revenue bonds of
Vincennes University may be secured in any one (1) or more of the
following ways, as the board of trustees may determine:
(1) By pledge or mortgage of any property, real or personal,
used or acquired or to be acquired and used for the purposes of
Vincennes University and the improvements made or to be
made on the property.
(2) By pledge or mortgage of the net income from the property.
(3) By the pledge or mortgage of the unobligated net revenues
of any one (1) or more other properties of the board of trustees.
(4) In the case of revenue bonds issued under this chapter for
interim financing of any property, by pledge of the funds
derived from the sale of the bonds issued and sold under this
chapter for the permanent financing of property.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-5
Liens
Sec. 5. (a) The lien of a pledge or mortgage under section 4 of this
chapter, as determined and provided by the board of trustees and as
authorized by this chapter, shall be a first and primary lien for the
payment of the bonds and the interest on the bonds. In authorizing
the issuance of the revenue bonds for any particular property or
properties, the board of trustees may:
(1) limit the amount of bonds that may be issued as a first lien
and charge against the property or properties and the net income
from the properties; or
(2) subsequently authorize the issuance periodically of
additional obligations secured by the same lien:
(A) to provide funds for the completion of the property or
properties on account of which the original bonds were
issued;
(B) for any other purpose for which Vincennes University
has authority to issue bonds; or
(C) for purposes of both clauses (A) and (B).
(b) Additional bonds:
(1) shall be issued on the terms and conditions that the board of
trustees determines; and
(2) may be secured equally and ratably, without preference,
priority, or distinction, with the original issue of bonds or may
be made junior to the original bonds.
As added by P.L.2-2007, SEC.276. Amended by P.L.3-2008,
SEC.143.
IC 21-35-6-6
Authority to exchange funding or refund bonds
Sec. 6. If the board of trustees determines that it would be
advantageous to Vincennes University to exchange funding or
refunding bonds for bonds being refunded, the exchange may be
made, if the actual interest cost is not increased.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-7
Maximum amount of bonds
Sec. 7. Bonds authorized under this chapter may be issued in an
amount or amounts as the board of trustees determines. However, the
bonds may not exceed:
(1) the total estimated cost of any proposed building, facility,
work, act, or undertaking authorized, including interest during
construction, incidental expenses, debt service reserves, and
financing costs; or
(2) the amount required to effect any proposed funding or
refunding operation.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-8
Bonds; form; terms and conditions; rates of interest
Sec. 8. The bonds authorized under this chapter may be issued in
the form, upon the terms and conditions, at the rates of interest, and
in the denominations (which may be made convertible into different
denominations) determined by:
(1) the adoption of a resolution;
(2) approval of a form of trust indenture between Vincennes
University and a designated corporate trustee; or
(3) both subdivisions (1) and (2).
As added by P.L.2-2007, SEC.276.
IC 21-35-6-9
Resolution and indenture for bonds; contents
Sec. 9. The resolution or the indenture for bonds authorized under
this chapter may include:
(1) provisions for protecting and enforcing the rights and
remedies of the holders of the bonds being issued;
(2) covenants setting forth the duties of Vincennes University
and its officers in relation to the acquisition, construction,
operation, maintenance, use, abandonment, insurance to be
carried on its property, and the maintenance of fees and charges
to be collected on account of its property;
(3) provisions for the custody, safeguarding, application of all
money, and the rights and remedies of the trustee and the
holders of the bonds being issued;
(4) provisions for the issuance of additional bonds as provided
in the resolution or indenture; and
(5) other terms, conditions, limitations, and covenants as the
board of trustees of Vincennes University considers proper.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-10
Public sale of bonds
Sec. 10. The bonds authorized under this chapter shall be sold at
public sale or negotiated sale to the highest bidder as provided by
IC 21-32-3. All bonds and the interest coupons appertaining to the
bonds issued under this chapter are negotiable instruments within the
meaning and for all purposes under the laws of Indiana, subject only
to the provisions of the bonds for registration as to principal, or as to
principal and interest. Any bonds registered as to principal and
interest may be made convertible to bearer bonds with coupons.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-11
Actions to contest validity of bonds
Sec. 11. An action to contest the validity of any bonds issued
under this chapter may not be brought after the fifteenth day
following:
(1) the first publication of notice of the sale or intent to sell the
bonds under IC 21-32-3 if the bonds are sold at public sale; or
(2) the publication one (1) time in newspapers described in
IC 21-32-3-3 of notice of execution and delivery of the contract
of sale for the bonds if the bonds are sold at negotiated sale.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-12
Bonds; notice of sale
Sec. 12. Vincennes University shall publish notice under section
11(2) of this chapter if it sells bonds at negotiated sale not later than
thirty (30) days after the execution of the contract of sale for the
bonds.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-13
Bonds; rates of interest
Sec. 13. The rate or rates of interest of the bonds may be fixed or
variable. Variable rates are determined under the procedures set forth
in the resolution or indenture authorizing the issuance of the bonds.
Bonds bearing a variable rate of interest may be converted to bonds
bearing a fixed rate or rates of interest as set forth in the resolution
or indenture. The interest may be payable semiannually, annually, or
at other intervals provided in the resolution or indenture, or the
interest may be compounded and paid at maturity or at any other time
specified in the resolution or indenture.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-14
Bonds and coupons; seal
Sec. 14. The bonds and coupons pertaining to the bonds shall be
executed in the corporate name by the manual or facsimile signatures
of the officer or officers of Vincennes University that the board of
trustees designates. The signature of at least one (1) designated
officer on each bond must be a manual signature. The seal or a
facsimile of Vincennes University must be affixed, imprinted,
engraved, or otherwise reproduced on each bond. In case any officer
whose manual or facsimile signature appears on any bond or coupon
ceases to be a designated officer before the delivery of the bonds, the
signature is valid and sufficient for all purposes as if the officer had
remained in office until delivery. The resolution or trust agreement
under which the bonds are issued may provide for the authentication
of the bonds by the trustee designated in the resolution of trust
agreement.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-15
Bonds; eligible investments
Sec. 15. Any bonds issued under this chapter are eligible
investments for the funds of any kind or character of every financial
institution, insurance company, or private trust. The bonds are
eligible for deposit by any financial institution, insurance company,
or trustee under any law of Indiana providing for the deposit of
securities or funds.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-16
Liability of institution limited
Sec. 16. Indebtedness, a bond, or an obligation incurred or created
under the authority of this chapter may not be or become a lien,
charge, or liability against Vincennes University or against the
property or funds of Vincennes University except to the extent
authorized by this chapter.
As added by P.L.2-2007, SEC.276.
IC 21-35-6-17
Tax exemption
Sec. 17. All bonds issued under the authority of this chapter
together with the interest on the bonds are exempt from taxation as
provided by IC 6-8-5.
As added by P.L.2-2007, SEC.276.
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