§ 31.22  FINANCIAL MANAGEMENT POWERS.
   (A)   The Town Council may, by ordinance, make loans of money and issue bonds 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 or for the payment of town debts.
   (B)   An ordinance adopted under this section:
      (1)   Must include the terms of the bonds to be issued in evidence of the loan;
      (2)   Must include the time and manner of giving notice of the sale of the bonds;
      (3)   Must include the manner in which the bonds will be sold; and
      (4)   May authorize a total amount for any issue of bonds.
   (C)   Bonds issued under this section may be sold in parcels of any size and at any time their proceeds are needed by the town.
   (D)   Bonds issued and sold by the town under this section:
      (1)   Are negotiable with or without registration, as may be provided by the ordinance authorizing the issue;
      (2)   May bear interest at any rate;
      (3)   May not run longer than 30 years;
      (4)   May contain an option allowing the town to redeem them in whole or in part at specified times prior to maturity; and
      (5)   May not be sold for less than par value.
   (E)   The Clerk-Treasurer shall:
      (1)   Manage and supervise the preparation, advertisement, negotiations, and sale of bonds under this section, subject to the terms of the ordinance authorizing the sale;
      (2)   Certify the amount the purchaser is to pay, together with the name and address of the purchaser;
      (3)   Receive the amount of payment certified;
      (4)   Deliver the bonds to the purchaser;
      (5)   Take a receipt for the securities delivered;
      (6)   Deposit the purchaser’s payment into the town treasury; and
      (7)   Report the proceedings of the sale to the legislative body.
   (F)   The actions of the Clerk-Treasurer under this section are ministerial.
   (G)   (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 (G) 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 (G) shall be made in the same manner as loans under the Indiana Code except that:
         (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; and
         (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. Notes issued under this division (G)(1) are not bonded indebtedness for purposes of I.C. 6-1.1-18.5.
      (2)   The Town Council may, by ordinance, make temporary loans in anticipation of current revenues of the town that have been levied and are being collected for the fiscal year in which the loans are made. Loans under division (G)(1) above shall be made in the same manner as loans made under the Indiana Code except that:
         (a)   The ordinance authorizing the loans must appropriate and pledge to their payment a sufficient amount of the revenues in anticipation of which they are issued and out of which they are payable; and
         (b)   The loans must be evidenced by time warrants of the town in terms designating the nature of the consideration, the time and place payable, and the revenues in anticipation of which they are issued and out of which they are payable.
      (3)   An action to contest the validity of a loan made under this division (G) must be brought within 15 days from the day on which the ordinance is adopted.