Ind. Code ch. 5-1.5-2

Ind. Code ch. 5-1.5-2
in effect

Ind. Code § 5-1.5-2-1 Indiana bond bank; establishment; nature; purpose

Sec. 1. There is established the Indiana bond bank, a separate body corporate and politic, constituting an instrumentality of the state for the public purposes set out in this article, but not a state agency. The bank is separate from the state in its corporate and sovereign capacity. The purpose of the bank as described in IC 5-1.5-4 is to buy and sell securities and to make loans to qualified entities. As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.4.

Ind. Code § 5-1.5-2-2 Board of directors; establishment; powers; membership; appointment; vacancy

Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027. Sec. 2. (a) There is established a board of directors to govern the bank. The powers of the bank are vested in this board. (b) The board is composed of: (1) the treasurer of state, who shall be the chairman ex officio, or the treasurer of state's designee; (2) the public finance director appointed under IC 5-1.2-3-6, who shall be the director ex officio, or the public finance director's designee; and (3) five (5) directors appointed by the governor. (c) Each of the five (5) directors appointed by the governor: (1) must be a resident of Indiana; (2) must have substantial expertise in the buying, selling, and trading of municipal securities, in municipal administration or in public facilities management; (3) serves for a term of three (3) years and until the director's successor is appointed and qualified; (4) is eligible for reappointment; (5) is entitled to receive the same minimum salary per diem as is provided in IC 4-10-11-2.1(b) while performing the director's duties. Such a director is also entitled to the same reimbursement for traveling expenses and other expenses, actually incurred in connection with the director's duties as is provided in the state travel policies and procedures, established by the department of administration and approved by the budget agency; and (6) may be removed by the governor for cause. (d) Any vacancy on the board, other than by expiration of term, shall be filled by appointment of the governor for the unexpired term only. As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.5; P.L.235-2005, SEC.75; P.L.189-2018, SEC.28; P.L.259-2019, SEC.4.

Ind. Code § 5-1.5-2-2 Board of directors; establishment; powers; membership; appointment; vacancy

Note: This version of section effective 7-1-2027. See also preceding version of this section, effective until 7-1-2027. Sec. 2. (a) There is established a board of directors to govern the bank. The powers of the bank are vested in this board. (b) The board is composed of: (1) the treasurer of state, who shall be the chairman ex officio, or the treasurer of state's designee; (2) the public finance director appointed under IC 5-1.2-3-6, who shall be the director ex officio, or the public finance director's designee; (3) one (1) director appointed by the governor; (4) two (2) directors appointed by the president pro tempore of the senate; and (5) two (2) directors appointed by the speaker of the house of representatives. (c) Each of the five (5) directors appointed under subsection (b)(3) through (b)(5): (1) must be a resident of Indiana; (2) must have substantial expertise in the buying, selling, and trading of municipal securities, in municipal administration or in public facilities management; (3) serves for a term of three (3) years and until the director's successor is appointed and qualified; (4) is eligible for reappointment; (5) is entitled to receive the same minimum salary per diem as is provided in IC 4-10-11-2.1(b) while performing the director's duties. Such a director is also entitled to the same reimbursement for traveling expenses and other expenses, actually incurred in connection with the director's duties as is provided in the state travel policies and procedures, established by the department of administration and approved by the budget agency; and (6) may be removed for cause by the appropriate appointing authority. (d) Any vacancy on the board, other than by expiration of term, shall be filled by the appropriate appointing authority for the unexpired term only. As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.5; P.L.235-2005, SEC.75; P.L.189-2018, SEC.28; P.L.259-2019, SEC.4; P.L.152-2026, SEC.38.

Ind. Code § 5-1.5-2-3 Duties of board

Sec. 3. The board shall: (1) elect one (1) of its members vice chairman; (2) appoint and fix the duties and compensation of an executive director, who shall serve as both secretary and treasurer; and (3) establish and maintain the office of the bank in Indianapolis. As added by P.L.25-1984, SEC.1.

Ind. Code § 5-1.5-2-4 Quorum

Sec. 4. Four (4) directors constitute a quorum at any meeting of the board. As added by P.L.25-1984, SEC.1. Amended by P.L.38-1988, SEC.3.

Ind. Code § 5-1.5-2-5 Action by affirmative vote of four directors; effect of vacancy

Sec. 5. Action may be taken by the board at a meeting by the affirmative vote of at least four (4) directors. A vacancy on the board does not impair the right of a quorum of directors to exercise the powers and perform the duties of the board. As added by P.L.25-1984, SEC.1. Amended by P.L.38-1988, SEC.4.

Ind. Code § 5-1.5-2-6 Surety bonds; issuer; cost

Sec. 6. (a) Each director and the executive director must execute a surety bond in an amount specified by the treasurer of state. Each surety bond shall be conditioned upon the faithful performance of the duties of the office of director and executive director, respectively. In lieu of these surety bonds, the bank may execute a blanket surety bond covering each director, the executive director, and any officers or employees of the bank. (b) The surety bonds required by this section must be issued by a surety company authorized to transact business in Indiana. (c) The cost of the surety bonds required by this section shall be paid by the bank. As added by P.L.25-1984, SEC.1. Amended by P.L.43-1985, SEC.5.

Ind. Code § 5-1.5-2-7 Disclosure of interest in contracts; abstention with respect to contract; validity of contract

Sec. 7. (a) Notwithstanding any other law to the contrary, a director does not violate any law, civil or criminal, if he: (1) has, or to his knowledge, may have or may later acquire a direct or indirect pecuniary interest in a contract with the bank; or (2) is an officer, member, manager, director, or employee of or has an ownership interest in any firm, limited liability company, or corporation that is or may be a party to the contract; if he discloses in writing to the bank the nature and extent of his interest as soon as he has knowledge of the interest and abstains from discussion, deliberation, action, and voting with respect to the contract. (b) Notwithstanding any provision of this article or any other law, a contract or transaction shall not be void or voidable because of the existence of an interest described in subsection (a), if the provisions of subsection (a) have been satisfied. As added by P.L.25-1984, SEC.1. Amended by P.L.8-1993, SEC.51.

Ind. Code § 5-1.5-2-8 Liability on bonds or notes

Sec. 8. Neither a director nor a person executing bonds or notes issued under this article is liable personally on the bonds or notes. As added by P.L.25-1984, SEC.1.

Ind. Code § 5-1.5-2-9 Executive director; duties

Sec. 9. The executive director appointed under section 3 of this chapter shall, in addition to other duties fixed by the directors, administer, manage, and direct the employees of the bank. The executive director shall approve all amounts for salaries, allowable expenses of the bank or of any employee or consultant of the bank, and expenses incidental to the operation of the bank. The executive director shall attend the meetings of the board, keep a record of the proceedings of the board, and maintain all books, documents, and papers filed with the bank, the minutes of the board, and the bank's official seal. The executive director may cause copies to be made of all minutes and other records and documents of the bank and may give certificates under seal of the bank to the effect that those copies are true copies, and all persons dealing with the bank may rely upon those certificates. As added by P.L.25-1984, SEC.1. Amended by P.L.1-2010, SEC.10.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026

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