(a) Instead of issuing certificates of indebtedness under section 35 of this chapter, the municipal legislative body may by ordinance issue refunding bonds to meet a deficiency arising in the municipal improvement fund if the following conditions are met:(1) At least one (1) of the conditions listed in section 35(b) of this chapter is met.(2) The amount of the deficiency is clearly established.(3) The liability of the municipality for the deficiency is established. However, this subdivision does not require the liability of the municipality to be established by a judgment against the municipality.(b) Refunding bonds issued under this section shall be issued in the manner prescribed by IC 5-1-9. The proceeds of the bonds may be used only to discharge the liability of the municipality for the deficiency.As added by P.L.98-1993, SEC.8.
Indiana Legal Code