CHAPTER 2. ESTABLISHMENT AND ORGANIZATION
IC 5-1.5-2
Chapter 2. Establishment and Organization
IC 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.
IC 5-1.5-2-2
Board of directors; establishment; powers; membership;
appointment; vacancy
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;
(2) the public finance director appointed under IC 4-4-11-9,
who shall be the director ex officio; 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 his 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.
IC 5-1.5-2-2.5
Board meetings where four members or more are physically
present; physically absent member participating through accepted
means of communication
Sec. 2.5. (a) This section applies to a meeting of the board at
which at least four (4) members of the board are physically present
at the place where the meeting is conducted.
(b) A member of the board may participate in a meeting of the
board by using a means of communication that permits:
(1) all other members participating in the meeting; and
(2) all members of the public physically present at the place
where the meeting is conducted;
to simultaneously communicate with each other during the meeting.
(c) A member who participates in a meeting under subsection (b)
is considered to be present at the meeting.
(d) The memoranda of the meeting prepared under IC 5-14-1.5-4
must also state the name of each member who:
(1) was physically present at the place where the meeting was
conducted;
(2) participated in the meeting by using a means of
communication described in subsection (b); and
(3) was absent.
As added by P.L.38-1988, SEC.2.
IC 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.
IC 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.
IC 5-1.5-2-5
Action by affirmative vote of three 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.
IC 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.
IC 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.
IC 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.
IC 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.
IC 5-1.5-2-10
Code of ethics
Sec. 10. (a) The bank shall:
(1) adopt:
(A) rules under IC 4-22-2; or
(B) a policy;
establishing a code of ethics for its employees; or
(2) decide it wishes to be under the jurisdiction and rules
adopted by the state ethics commission.
(b) A code of ethics adopted by rule or policy under this section
must be consistent with state law and approved by the governor.
As added by P.L.5-1996, SEC.5.