(A) In the event the Board acquires a stormwater system and assumes the liability incurred by the seller to construct the stormwater system, the principal and interest on the liability so assumed shall be paid from the bond and interest redemption account in the same manner as bonds of the district would be paid, and the Board shall set aside sufficient revenues to comply with the requirements of the instrument creating the liability.
(B) The town, in acquiring a stormwater system, may not assume any liability for the payment of a secured debt or charge other than the obligation to apply the revenues in the manner prescribed in this subchapter. The Board may issue bonds in exchange for, or satisfaction of, the liability assumed in the acquisition of a stormwater system. The bonds so issued may not be issued thereof in exchange for, or
satisfaction of, the liability. Notwithstanding other provisions and terms of this subchapter, bonds issued in exchange for, or in satisfaction of, the liability need not be sold in accordance with IC 5-1-11, as amended from time to time. However, the interest rate on such bonds may not exceed the average yield on municipal revenue bonds of comparable credit rating and maturity as of the end of the week immediately preceding the issuance of the bonds.
(C) In the event the Board acquires a stormwater system and pays for it and for extensions and betterments authorized at the time of acquisition, it may provide for the combined costs in one issue of bonds. The Board shall issue and secure the bonds in the manner provided in this subchapter to provide funds for the original construction of a stormwater system.
(Ord. 560, passed 9-1-92)