1. (a) The commission may secure bonds issued under this chapter or under IC 14-3-12 (before its repeal) by a trust agreement between the commission and a corporate trustee, which may be a trust company or bank having the powers of a trust company within Indiana. A resolution adopted by the commission providing for the issuance of bonds and a trust agreement under which the bonds are issued may pledge or assign all or any part of the revenues received or to be received by the commission except the part necessary to:

   1. (1) pay the cost of the commission's administrative expenses and the obligations, if any, of the commission for operation, maintenance, and repair of a park project; and

   2. (2) provide reserves and depreciation reserves;

      as required by a bond resolution adopted or trust agreement executed by the commission.

2. (b) In authorizing the issuance of bonds for a park project, the commission may:

   1. (1) limit the amount of the bonds that may be issued as a first lien and charge against the revenues pledged to the payment of the bonds; or

   2. (2) authorize the issuance periodically of additional bonds secured by the same lien to provide money:

      1. (A) for the completion of the park project for which the original bonds were issued;
      2. (B) to pay the cost of additional park projects undertaken in connection with the development of the park; or
      3. (C) for both purposes.
3. (c) Additional bonds shall be issued on terms and conditions provided in the bond resolution adopted by the commission and in the trust agreement or a supplemental agreement and 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 issue.
4. (d) A pledge or an assignment made by the commission under this section or under IC 14-3-12-15 (before its repeal) is valid and binding from the time that the pledge or assignment is made. Revenue so pledged and received by the commission is immediately subject to the lien of the pledge or assignment without physical delivery or further act. The lien of the pledge or assignment is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the commission irrespective of whether the parties have notice.
5. (e) The resolution and a trust agreement by which a pledge is created or an assignment is made do not need to be filed or recorded except in the records of the commission.

6. (f) A trust agreement or resolution providing for the issuance of bonds may contain provisions for protecting and enforcing the rights and remedies of the bondholders that are reasonable and proper and not in violation of law, including the following:

   1. (1) Covenants setting forth the duties of the commission relating to the following:

      1. (A) The acquisition of interests in property.
      2. (B) The construction, improvement, maintenance, repair, operation, and insurance of the park project for which the bonds have been authorized.
   2. (2) The rates of fees, tolls, rentals, entrance fees, or other charges to be collected for use of any park project.
   3. (3) The custody, safeguarding, and application of all money.
   4. (4) Provisions for the employment of consulting engineers in connection with the construction or operation of the project.

7. (g) A bank or trust company incorporated under Indiana law that acts as depository of the proceeds of bonds or other money of the commission may:

   1. (1) furnish indemnifying bonds; or

   2. (2) pledge securities;

      as required by the commission.

8. (h) A trust agreement may:

   1. (1) set forth the rights and remedies of the bondholders and of the trustee;
   2. (2) restrict the individual right of action by bondholders as is customary in trust agreements or trust indentures securing bonds or debentures of private corporations; and

   3. (3) contain other provisions that the commission considers reasonable and proper for the security of the bondholders.

      All expenses incurred in carrying out a trust agreement may be treated as a part of the cost of the operation of the park project.

      [Pre-1995 Recodification Citation: 14-3-12-15.]

As added by P.L.1-1995, SEC.7.