§ 2-313. Bonding.

(a)

Pursuant to IC 8-10-5-8.7, the board may, by resolution, recommend to the governing body that the city authorize general obligation, mortgage, or revenue bonds for any one or more of the following purposes:

(1)

To acquire or improve port sites.

(2)

To acquire, construct, extend, alter, or improve structures, ways, facilities, or equipment necessary for the proper operation of PAL.

(3)

To refund outstanding bonds and matured interest coupons and issue and sell refunding bonds for that purpose.

(b)

Before making a recommendation authorized by subsection (a), the board shall give notice of a public hearing at which time the board shall disclose the purpose for which the bond issue is proposed, the amount of the proposed issue, and all other pertinent data. At least ten days before the date set for hearing, the board shall publish in two newspapers of general circulation in the city a notice of the date, time, place, and purpose of the hearing. If there is only one newspaper, one notice is sufficient.

(c)

The governing body shall review the proposal of the board and, if it approves, shall provide for the advertisement and sale of the issue in compliance with IC 5-1-11. For purposes of this article, IC 5-1-11 applies as fully to mortgage bonds as to general obligation or revenue bonds.

(d)

Bonds issued under the authority of this article are not subject to limitations on interest rates.

(e)

The governing body shall fix the date, time, and place of payment of principal and interest, but no issue may have a maturity date later than 25 years after the date of issue.

(f)

Bonds issued under this article, together with the interest thereon, are tax exempt.

(g)

The governing body shall apply the proceeds from the sale of bonds exclusively to the purposes for which the bonds were issued and only to the extent necessary therefor. Any remaining balance shall be placed in a sinking fund for the payment of the bonds and the interest on the bonds.

(h)

Whenever PAL has been authorized by the governing body to issue and sell revenue bonds for the purpose of obtaining funds with which to construct, purchase, lease, operate, maintain, or improve facilities included in the development plan or amendment thereof, the revenue bonds shall be:

(1)

Issued in the name of the city;

(2)

Executed by the executive of the city and the chairperson of the board; and

(3)

Attested to by the fiscal officer of the city.

(i)

In authorizing revenue bonds and providing for the issuance and sale thereof, the governing body shall, by ordinance, consistent with pertinent statutes, provide all necessary details concerning the form and tenor of the revenue bonds, the amount thereof, the maturity dates, the provision for payment of principal and interest, the negotiability, and all other details, requirements, regulations, or specifications necessary to make the revenue bonds acceptable and legal instruments.

(j)

The governing body shall, in its ordinance, make provision for the expenditure of the funds derived from the sale of the revenue bonds in accordance with the purposes for which the issuance and sale was authorized. The governing body shall specifically provide for the allocation of income and revenue of PAL into the fund or funds as may be necessary to properly secure the accumulation of money in a separate account or accounts for use in the payment of principal and interest of the revenue bonds as they become due and payable.

(k)

If PAL is dissolved, as provided in section 2-304, the primary obligations on its bonds remain unaffected, and the city shall assume liability for the payment of the bonds according to their terms.

(Ord. No. 2013-01, § 13, 2-4-2013)