(A) The Town Council may issue bonds for the purpose of procuring money to be used in the exercise of the powers of the town and for the payment of town debts. However, a town may not issue bonds to procure money to pay current expenses.
(B) Bonds issued under this section are payable in the amounts and at the times determined by the Town Council.
(C)
Bonds issued under this section are subject to the provisions of I.C. 5-1 and 6-1.1-20 relating to the filing of a petition requesting the issuance of bonds and giving notice of the petition, the giving of notice of a hearing on the appropriation of the proceeds of bonds, the right of taxpayers to appear and be heard on the proposed appropriation, the approval of the appropriation by the State Board of Tax Commissioners, the right of taxpayers and voters to remonstrate against the issuance of bonds in the case of proposed bond issue described by I.C. 6-1.1-20-3.1(a), or voters to vote on the issuance of bonds in the case of a proposed bond issue described in I.C. 6-1.1-20-3.5(a). The sale of bonds at public sale for not less than their par value.
(D) (1) The Town Council may, by ordinance, make loans of money for not more than five years and issue notes for the purpose of refunding those loans. The loans may be made only for the purpose of procuring money to be used in the exercise of the powers of the town, and the total amount of outstanding loans under this division may not exceed 5% of the town's total tax levy in the current year (excluding amounts levied to pay debt service and lease rentals). Loans under this division shall be made as follows:
(a) The ordinance authorizing the loans must pledge to their payment a sufficient amount of tax revenues over the ensuing five years to provide for refunding the loans.
(b) The loans must be evidenced by notes of the town in terms designating the nature of the consideration, the time and place payable, and the revenues out of which they will be payable.
(c) The interest accruing on the notes to the date of maturity may be added to and included in their face value or be made payable periodically, as provided in the ordinance.
(2) Notes issued under this division are not bonded indebtedness for purposes of I.C. 6- 1.1-18.5.
(IC 36-5-2-11) ('84 Code § 32.20)