Sec. 4. (a) The proceeds of the bonds of each issue must be:
(1) used solely for the payment of the cost of the project for which the bonds were issued; and
(2) disbursed in the manner and under those restrictions that the commission provides in the resolution authorizing the issuance of the bonds or in a trust agreement securing the bonds.
(b) If the proceeds of an issue of bonds are less than the cost of the project, additional bonds may be issued to provide the amount of the deficit. Unless specifically provided in the resolution authorizing the issuance of the bonds or in a trust agreement securing the bonds, the additional bonds:
(1) are considered to be bonds of the same issue as the initially issued bonds; and
(2) are entitled to payment from the fund from which the initially issued bonds are paid without preference or priority of the initially issued bonds.
(c) If the proceeds of the bonds of an issue exceed the cost of the project for which the bonds were issued, the surplus must be deposited to the credit of the sinking fund for the bonds. However, if there is not a sinking fund, the surplus must be held for the payment of the principal of and the interest on the bonds.
(d) The commission may provide for the replacement of bonds that become mutilated, destroyed, or lost.
(e) Bonds may not be issued under this chapter without the consent of the governor.
[Pre-2008 Recodification Citation: 15-1.5-9-3.]
As added by P.L.2-2008, SEC.4.