# Ind. Code § 5-1.5-8-4: Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank

> Indiana · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-4

## Section

- **Citation:** Ind. Code § 5-1.5-8-4
- **Heading:** Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank
- **Jurisdiction:** Indiana
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Indiana Code / Title 5 / Article 1.5 / Chapter 8 / Section 5-1.5-8-4

## Text

Sec. 4. Upon the sale and delivery by a qualified entity of any securities to the bank, the qualified entity shall be deemed to have agreed that upon its failure to pay interest or principal on the securities owned or held by or arising from an agreement with the bank when payable, all statutory defenses to nonpayment are waived. Upon nonpayment and demand on the qualified entity for payment, if the securities are payable from property taxes and funds are not available in the treasury of the qualified entity to make payment, an action in mandamus for the levy of a tax to pay the interest and principal on the securities shall lie, and the bank shall be constituted a holder or owner of the securities as being in default. The bank may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the qualified entity. The bank may carry out this section and exercise all the rights, remedies, and provisions of law provided or referred to in this section.

As added by P.L.25-1984, SEC.1. Amended by P.L.46-1987, SEC.15.

## Nearby sections

- [Ind. Code § 5-1.5-8-1 Purchase of securities offered by qualified entity; private sale; issuance of bonds and notes for purpose of purchase](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-1.md)
- [Ind. Code § 5-1.5-8-2 Securities to be purchased and held in name of bank; required documentation](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-2.md)
- [Ind. Code § 5-1.5-8-3 Contracts with bank; terms and conditions; fees and charges; denomination and prices](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-3.md)
- [Ind. Code § 5-1.5-8-4 Agreement with bank; waiver of statutory defenses to nonpayment; rights and remedies of bank](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-4.md)
- [Ind. Code § 5-1.5-8-5 Department or agency of state as custodian of money payable to qualified entity; duty on default on payment of principal or interest by qualified entity](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-5.md)
- [Ind. Code § 5-1.5-8-5.1 Authorization to convey revenue or taxes to issuing entity](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-5.1.md)
- [Ind. Code § 5-1.5-8-6 Repealed](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-6.md)
- [Ind. Code § 5-1.5-8-6.1 Anticipation notes; issuance and purchase](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-6.1.md)
- [Ind. Code § 5-1.5-8-7 Investment and reinvestment; securities sold to bank](https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-7.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IN_T5_A1.5_C8_S5-1.5-8-4. Check the current official text before relying on it. Not legal advice.