Fitch Rts Indianapolis Local Pub Improv Bond Bk's $38.8MM 2001A `AA'.Business Editors NEW YORK--(BUSINESS WIRE)--April 19, 2001 Fitch has assigned a `AA' to the Indianapolis Local Public Improvement Bond Bank, IN's (the Bond Bank) $38,880,000 series 2001A bonds, based on the strong debt service coverage by pledged motor vehicle and transportation revenues received by the City of Indianapolis-Marion County, IN. The bonds are scheduled to sell on or about April 25 on a negotiated basis through a syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism led by City Securities Corporation. Dated May 1, the bonds pay interest each Jan. 1 and July 1, beginning July 1, 2001, and mature Jan. 1, 2002-2010. Mandatory and optional redemption terms will be set at pricing. The bonds are limited obligations payable solely from revenues and funds pledged to the trust estate established under the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. . The Bond Bank has no taxing power, but has a security interest in the trust estate as bondholder Bondholder A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority. bondholder An individual or institution that owns bonds in a corporation or other organization. . The trust estate consists of the qualified obligations and all city payments to the Bond Bank under the city indenture. The city has pledged in its indenture to the trustee: the city's receipt of monthly distributions by the county treasurer of county motor vehicle excise A tax imposed on the performance of an act, the engaging in an occupation, or the enjoyment of a privilege. A tax on the manufacture, sale, or use of goods or on the carrying on of an occupation or activity, or a tax on the transfer of property. surtaxes and county wheel taxes; and 90% of the city's and county's monthly state transportation distributions from the state auditor State auditors are executive officers of U.S. states. The office usually is created by the state constitution.
The series 2001A bonds will purchase the transportation refunding and improvement revenue bonds, series 2001 (i.e., qualified obligations) issued by the City of Indianapolis, Indiana “Indianapolis” redirects here. For other uses, see Indianapolis (disambiguation). Indianapolis (IPA: [ˌɪndiəˈnæpəlɪs]) is the capital city of the U.S. . The city will use the proceeds to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the city's transportation revenue bonds, series 1992 (i.e., refunded qualified obligations), to transfer funds to the Bond Bank for defeasing the Bond Bank's transportation revenue bonds, series 1992, and to complete various street and highway construction and repair projects. Under the indenture, all principal and interest payments required of the qualified obligations, including the cash and investments held by funds and accounts created by the indenture, will secure the 2001A bonds. Pledged revenues in the preceding 12 months must equal or exceed 3x maximum annual debt service. In addition, the county surtax An additional charge on an item that is already taxed. A surtax is a tax on a tax. For example, if a person pays one hundred dollars of tax on one thousand dollars of income, a 5 percent surtax would amount to an additional five dollars. and wheel tax in the preceding 12 months must equal or exceed 1.25x maximum annual debt service. On the first business day in February, the city controller will certify cer·ti·fy v. cer·ti·fied, cer·ti·fy·ing, cer·ti·fies v.tr. 1. a. To confirm formally as true, accurate, or genuine. b. to the city trustee that pledged revenues in the preceding calendar year equal or exceed 3x coverage of maximum annual debt service on outstanding bonds. If revenues are insufficient, the city must deposit funds each month for the next twenty-four months to meet its debt service requirement. This requirement will equal either 10% of the qualified obligation proceeds; or maximum annual debt service on the qualified obligations; or 1.25x average annual debt service on the qualified obligations. If the debt service reserve is fully funded for two years after city controller certification, the city may withdraw all moneys from the city debt service reserve account. Under Indiana law, the Bond Bank is empowered to buy and sell securities of `qualified entities' such as the City of Indianapolis, Marion County Marion County is the name of seventeen counties in the United States of America, mostly named for General Francis Marion:
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