2016 Indiana Code
TITLE 21. HIGHER EDUCATION
ARTICLE 32. STATE EDUCATIONAL INSTITUTIONS: BONDS AND BORROWING
CHAPTER 3.5. RETIREMENT LIABILITY BONDS
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IC 21-32-3.5
Chapter 3.5. Retirement Liability Bonds
IC 21-32-3.5-1
"Retirement liabilities"
Sec. 1. As used in this chapter, "retirement liabilities" means the
payments to be made to a fund or funds administered by the board of
trustees of the Indiana public retirement system for liabilities of a
state educational institution resulting from a withdrawal from such
a fund or a freezing of participation under such fund under
IC 5-10.2-2-20 and IC 5-10.2-2-21.
As added by P.L.213-2015, SEC.241.
IC 21-32-3.5-2
Authority to issue bonds; debt service; sources of revenue
Sec. 2. (a) The board of trustees of a state educational institution
may issue bonds for payment of retirement liabilities and pay the
proceeds of the bonds to the Indiana public retirement system.
(b) The board of trustees of a state educational institution may
establish debt service reserves or sinking funds with proceeds of
bonds issued to fund retirement liabilities.
(c) Bonds issued under this chapter may be payable from student
fees, legally available funds, sinking funds, debt service reserve
funds, general operating revenues, or any combination of these
sources. Bonds may be issued under this chapter by a board of
trustees only after the approvals required under IC 21-35-3-22.
As added by P.L.213-2015, SEC.241.
IC 21-32-3.5-3
Sinking funds not property of state; investment
Sec. 3. (a) Sinking funds that are created with respect to bonds
issued under this chapter to fund retirement liabilities shall be held
as private funds held in trust by the board of trustees, and shall not
be deemed to be property of the state.
(b) Sinking funds and debt service reserves may be invested in
accordance with the provisions of IC 21-29. The principal of,
accretions to, or earnings derived from sinking funds and debt
service reserve funds may be used:
(1) to pay principal of and interest on bonds issued under this
chapter to fund retirement liabilities; and
(2) to pay costs of administration of such sinking funds and debt
service reserve funds.
As added by P.L.213-2015, SEC.241.
IC 21-32-3.5-4
Bonds not debt, pledge of credit, or moral obligation of state
Sec. 4. Bonds issued under this chapter do not constitute a debt,
liability, or obligation of the state of Indiana or a pledge of the credit
Indiana Code 2016
of the state of Indiana, but shall be payable solely from the sources
specified in this chapter. No moral obligation of the state of Indiana
shall exist to appropriate funds to pay principal of or interest on any
bond issued under this chapter.
As added by P.L.213-2015, SEC.241.
Indiana Code 2016
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