The Indianapolis Local Public Improvement Bond Bank was created in 1985 under applicable State of Indiana Statutes. The Indianapolis Bond Bank is an instrumentality of the City of Indianapolis but is not a City agency and has no taxing power. The Bond Bank is a body corporate and politic separate from the city and is governed by a five-member Board of Directors appointed by the Mayor for three year terms. The directors appoint an Executive Director who serves as Secretary-Treasurer of the Board. Meetings are held periodically throughout the year and are open to the public. The Bond Bank was created for the purpose of buying and selling securities of certain qualified entities, including the City, County, all special taxing districts of the City, all entities whose tax levies are subject to review and modification by the City-County Council, and certain authorities or entities that lease land or facilities to other qualified entities.Several other entities included are:
The Indianapolis Bond Bank helps the qualified entities lower their respective borrowing costs by purchasing their debt securities at interest rates which are favorable to them. To accomplish this purpose, the Indianapolis Bond Bank may issue bonds or notes, and it also has general powers which include the power to enter into, make, and perform contracts of every lawful kind. A bond of the Bond Bank is not a liability of a qualified entity, but is a limited obligation of the Bond Bank payable solely out of the revenues and funds of the Bond Bank. These revenues and funds are received in the form of debt payment from qualified entities. The source of funds for the debt payments may be from taxes, revenues, assessments or other funds available to the qualified entity. The accounts of the Bond Bank are audited annually and are available for public inspection.