IC 20-20-37.4
    Chapter 37.4. Geothermal Conversion Revolving Fund

IC 20-20-37.4-1
"Fund"
    Sec. 1. As used in this chapter, "fund" refers to the geothermalconversion revolving fund established by section 3 of this chapter.
As added by P.L.99-2009, SEC.2.

IC 20-20-37.4-2
"Geothermal heating and cooling system"
    Sec. 2. As used in this chapter, "geothermal heating and coolingsystem" means a heating and cooling system that uses the naturaltemperature of the earth to generate heating and cooling.
As added by P.L.99-2009, SEC.2.

IC 20-20-37.4-3
Establishment and purpose of the fund
    Sec. 3. The geothermal conversion revolving fund is establishedfor the purpose of making loans to school corporations that:
        (1) install a geothermal heating and cooling system in a newfacility; or
        (2) install a geothermal heating and cooling system that replacesa conventional heating and cooling system.
As added by P.L.99-2009, SEC.2.

IC 20-20-37.4-4
Administration of the fund
    Sec. 4. (a) The fund shall be administered by the Indiana bondbank. The expenses of administering the fund shall be paid frommoney in the fund.
    (b) The fund consists of the following:
        (1) Money appropriated by the general assembly.
        (2) The repayment proceeds of loans made to schoolcorporations from the fund.
        (3) Any gifts and grants made to the fund or other moneyrequired by law to be deposited in the fund.
        (4) Any federal grants that are received to capitalize orsupplement the fund.
        (5) Any earnings on money in the fund.
    (c) The Indiana bond bank shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public funds may be invested.
    (d) The fund shall be used by the Indiana bond bank as arevolving fund. Money in the fund at the end of a state fiscal yeardoes not revert to the state general fund.
As added by P.L.99-2009, SEC.2.

IC 20-20-37.4-5
Authority to make geothermal conversion loans    Sec. 5. Subject to the requirements of this chapter, the Indianabond bank may loan money from the fund to a school corporation toassist the school corporation in paying for:
        (1) the installation of a geothermal heating and cooling systemin a new facility; or
        (2) the installation of a geothermal heating and cooling systemthat replaces a conventional heating and cooling system.
As added by P.L.99-2009, SEC.2.

IC 20-20-37.4-6
Requirement for a written procedure
    Sec. 6. (a) The Indiana bond bank shall establish a writtenprocedure for providing loans from the fund to school corporations.The written procedure must include at least the following:
        (1) An application procedure.
        (2) A procedure to identify projects that may qualify for a loan.
        (3) Criteria for establishing the priority of projects for whichloans will be made.
        (4) Procedures for selecting projects for which loans will bemade.
    (b) To apply for a loan from the fund, a school corporation mustsubmit an application that contains at least the followinginformation:
        (1) A description of the geothermal heating and cooling systemthat the school corporation proposes to install.
        (2) An estimate of the cost of the geothermal heating andcooling system.
        (3) An estimate of the amount by which the cost of installingthe geothermal heating and cooling system exceeds the cost ofinstalling a conventional heating and cooling system.
        (4) Any other information required by the Indiana bond bank inaccordance with the written procedures established under thissection.
As added by P.L.99-2009, SEC.2.

IC 20-20-37.4-7
Loan constraints and conditions
    Sec. 7. The following apply to a loan from the fund to a schoolcorporation under this chapter:
        (1) The loan may not exceed the difference between:
            (A) the cost of installing a geothermal heating and coolingsystem; minus
            (B) the cost of installing a conventional heating and coolingsystem.
        (2) The Indiana bond bank shall determine the interest rate andother terms for the loan.
        (3) A school corporation must enter into a loan agreement withthe Indiana bond bank before receiving a loan from the fund.The loan agreement is a valid, binding, and enforceableagreement between the school corporation and the Indiana bond

bank. The loan agreement must contain the following terms:
            (A) A requirement that the loan proceeds be used to pay for:
                (i) the installation of a geothermal heating and coolingsystem in a new facility; or
                (ii) the installation of a geothermal heating and coolingsystem that replaces a conventional heating and coolingsystem.
            (B) The term of the loan, which may not be longer thanfifteen (15) years after the date of the loan.
            (C) The repayment schedule.
            (D) The interest rate of the loan.
            (E) Any other terms and provisions that the Indiana bondbank requires.
As added by P.L.99-2009, SEC.2.

IC 20-20-37.4-8
Loan repayment
    Sec. 8. A school corporation receiving a loan under this chaptershall repay the loan from:
        (1) the school corporation's general fund; or
        (2) the school corporation's capital projects fund.
As added by P.L.99-2009, SEC.2.

IC 20-20-37.4-9
Annual report
    Sec. 9. The Indiana bond bank shall annually present a report tothe budget committee that describes the projects funded with loansunder this chapter.
As added by P.L.99-2009, SEC.2.