Sec. 22. (a) The municipal legislative body may secure revenue bonds issued under this chapter by a trust indenture between the municipality and a corporate trustee, which may be any trust company or bank having the powers of a trust company in Indiana, or another state. However, such a trust indenture may not convey or mortgage any part of the sewage works.

(b) The ordinance authorizing the revenue bonds may provide that:

(1) the trust indenture may contain reasonable provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the municipality and the board in relation to:

(A) the construction, acquisition, improvement, operation, repair, maintenance, and insurance of the sewage works; and

(B) the custody, safeguarding, and application of all money; and

(2) the works shall be contracted for, constructed, and paid for under the supervision and approval of consulting engineers employed or designated by the board and satisfactory to the original bond purchasers or their successors, assigns, or nominees, who may be given the right to specify the security to be given by contractors and by any depository of the proceeds of bonds, revenues of the works, or other money pertaining to the works.

(b) The trust indenture may set forth the rights and remedies of the bondholders and trustee, restricting the individual right of action of bondholders as is customary in a trust indenture securing bonds and debentures of corporations. Except as otherwise provided in this chapter, the municipal legislative body may, by ordinance or in the trust indenture, specify:

(1) the officer, board, or depository that shall collect the proceeds of the sale of the bonds and the revenues of the sewage works; and

(2) the method of disbursing the proceeds and revenues.

[Pre-Local Government Recodification Citation: 19-2-5-15.]

As added by Acts 1981, P.L.309, SEC.96.