1. (a) A library board may, by resolution, issue bonds for one (1) or more of the following purposes:

   1. (1) The acquisition or improvement of library sites.
   2. (2) The acquisition, construction, extension, alteration, or improvement of structures and equipment necessary for the proper operation of a library.
   3. (3) To refund outstanding bonds and matured interest coupons and to issue and sell refunding bonds for that purpose.
2. (b) The library board shall advertise and sell bonds in compliance with IC 5-1-11 at any interest rate. The bonds are payable at the time the board fixes in the authorizing resolution, but all bonds must be payable within a period of not more than twenty (20) years from the date the bonds are issued.

3. (c) Bonds issued under this section do not constitute a corporate obligation or indebtedness of any other political subdivision. Bonds issued under this section constitute an indebtedness of the library district only. Bonds issued under this chapter, and the interest, are tax exempt. The board shall apply the proceeds from the sale of bonds only:

   1. (1) for the purpose for which the bonds were issued; and

   2. (2) to the extent necessary.

      Any remaining balance shall be placed in a sinking fund for the payment of the bonds and the interest on the bonds.

      [Pre-2005 Elementary and Secondary Education Recodification Citation: 20-14-3-7.]

As added by P.L.1-2005, SEC.49.