CHAPTER 4. PURCHASE OF SCHOOL BUSES

IC 20-27-4
    Chapter 4. Purchase of School Buses

IC 20-27-4-1
Authority to purchase school buses
    Sec. 1. A school corporation may purchase a school bus or specialpurpose bus to furnish transportation for students. The schoolcorporation may purchase:
        (1) both the body and the chassis of a school bus; or
        (2) either the body or the chassis.
A purchase may be made for cash or under the terms of a securityagreement.
As added by P.L.1-2005, SEC.11.

IC 20-27-4-2
Security agreements; generally
    Sec. 2. A security agreement under this chapter may not run formore than six (6) years. The agreement must be amortized in equalor approximately equal installments, payable on the first day ofJanuary and July each year. The first installment of principal andinterest must be due and payable on the first day of July nextfollowing the collection of a tax that was levied after execution ofthe security agreement.
As added by P.L.1-2005, SEC.11.

IC 20-27-4-3
Security agreements; appropriation
    Sec. 3. Before a security agreement is executed, an appropriationfor the amount of the purchase price must be made. Theappropriation is made in the same manner as any other appropriation,except that the amount of the appropriation is not limited by theamount of funds available at the time of the execution or the amountof funds to be raised by a tax levy effective at the time of theexecution. A petition to borrow, a notice to taxpayers, or otherformality is not necessary, except:
        (1) as specifically provided in this chapter; and
        (2) as may be required by law for the issuance of generalobligation bonds.
As added by P.L.1-2005, SEC.11.

IC 20-27-4-4
General obligation bonds
    Sec. 4. If a school corporation requires funds to purchase a schoolbus for cash, the school corporation may borrow the necessary fundsby issuing general obligation bonds. The bonds shall be issued in thesame manner as other general obligation bonds. However, the bondsmay not extend for more than six (6) years.
As added by P.L.1-2005, SEC.11.

IC 20-27-4-5 Loans
    Sec. 5. (a) If a school corporation requires funds to purchase aschool bus for cash, the school corporation may, instead of issuinggeneral obligation bonds, negotiate for and borrow funds or purchasethe school bus on an installment conditional sales contract or apromissory note secured by the school bus.
    (b) To effect a loan, the school corporation shall execute anegotiable note or notes to the lender. The notes may not extend formore than six (6) years and are payable at the same times and in thesame manner as provided for security agreements in section 2 of thischapter.
    (c) Before a note described in this section is executed, anappropriation for the amount of the purchase price of the school busand any incidental expenses connected with the purchase or the loan,must be made in the same manner as other appropriations are made,except that the amount of the appropriation is not limited by theamount of funds available at the time of the loan or purchase or bythe amount of funds to be raised by a tax levy effective at the time ofthe loan.
    (d) A petition to borrow, a notice to taxpayers, or other formalityis not necessary to borrow funds under this section except asspecifically provided in this chapter.
As added by P.L.1-2005, SEC.11.

IC 20-27-4-6
Manner of purchase
    Sec. 6. (a) The purchase of a school bus shall be made in the samemanner as provided by law for the purchase of school supplies by aschool corporation.
    (b) If a school bus is purchased under a security agreement, therequired notice to bidders or solicitation of bids must set:
        (1) the length of time the security agreement shall run; and
        (2) the terms of the security agreement, including the securityagreement price and interest rate.
    (c) The low bid for a security agreement shall be determined byadding to each bidding price the net interest cost and then comparingthe totals of the price and interest on each bid. Any differencebetween the cash and the security agreement prices may not beconsidered a charge under section 2 of this chapter. Instead, aseparate statement of each price shall be made to enable thegoverning body to determine the advisability of purchasing a schoolbus under a security agreement.
As added by P.L.1-2005, SEC.11.

IC 20-27-4-7
Indiana bond bank; loans, security agreements, or leases
    Sec. 7. Notwithstanding any other provision of this chapter, aschool corporation may negotiate and enter into loans, securityagreements, or leases with the Indiana bond bank for the acquisitionand financing of a school bus.As added by P.L.1-2005, SEC.11.

IC 20-27-4-8
Effect of chapter
    Sec. 8. This chapter does not affect the validity or legality of anegotiable instrument, conditional sales contract, purchase moneymortgage contract, or promissory note executed and delivered beforeJuly 1, 1965, by a school corporation and given for the purchase ofa school bus in accordance with Indiana law that was specificallyrepealed or repealed by implication by Acts 1965, c.259.
As added by P.L.1-2005, SEC.11.