CHAPTER 9. DEBT SERVICE FUND

IC 20-40-9
    Chapter 9. Debt Service Fund

IC 20-40-9-1
"Debt service"
    Sec. 1. As used in this chapter, "debt service" includes bonds andcoupons, civil bond obligations, lease rental contracts, and interestcost on emergency and temporary loans.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-2
"Fund"
    Sec. 2. As used in this chapter, "fund" refers to a debt service fundestablished under section 4 of this chapter.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-3
"Levy"
    Sec. 3. As used in this chapter, "levy" refers to a debt service levyunder IC 20-46-7 for the fund.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-4
Establishment of fund
    Sec. 4. The governing body of each school corporation shallestablish a debt service fund.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-5
Uses; required use of fund
    Sec. 5. Except as otherwise provided by law, all expenditures fordebt service must be paid from the fund.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-6
Uses; payment of debt and lease expenses
    Sec. 6. Money in the fund may be used for payment of thefollowing:
        (1) All debt and other obligations arising out of funds borrowedor advanced for school buildings when purchased from theproceeds of a bond issue for capital construction.
        (2) A lease to provide capital construction.
        (3) Interest on emergency and temporary loans.
        (4) All debt and other obligations arising out of funds borrowedor advanced for the purchase or lease of school buses whenpurchased or leased from the proceeds of a bond issue, or frommoney obtained from a loan made under IC 20-27-4-5, for thatpurpose.
        (5) All debt and other obligations arising out of funds borrowedto pay judgments against the school corporation.        (6) All debt and other obligations arising out of funds borrowedto purchase equipment.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-7
Uses; post of textbooks
    Sec. 7. (a) Money in the fund may be used for payment of allunreimbursed costs of textbooks for the school corporation's studentswho were eligible for free or reduced lunches in the previous schoolyear.
    (b) The governing body may transfer the amount levied to coverunreimbursed costs of textbooks under this section to the textbookrental fund or extracurricular account.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-8
Uses; lease rentals
    Sec. 8. (a) Lease rental obligations on account of leases enteredinto under IC 21-5-11 (before its repeal), IC 20-47-2, IC 21-5-12(before its repeal), or IC 20-47-3 may be paid by a school corporationfrom the fund.
    (b) Payments described in subsection (a) must be provided for inthe annual budget for the fund from which the payment is made.
    (c) This section does not prohibit the payment of lease rentalobligations from the general fund.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-9
Uses; community school corporations
    Sec. 9. Money in the fund may be used to pay lease rentalobligations, school bonds and coupons, and civil bond obligationsassumed by school corporations reorganized under IC 20-23-4.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-10
Limitation on payment of principal; emergency and temporaryloans
    Sec. 10. (a) Except as otherwise provided by law, a schoolcorporation may not pay from the fund the principal of emergencyand temporary loans obtained for the benefit of any other fund.
    (b) Except as provided in IC 20-48-1-7 and IC 20-48-1-9, paymentof interest on emergency and temporary loans must be received inand disbursed from the fund.
As added by P.L.2-2006, SEC.163.

IC 20-40-9-11
Uses; principal and interest; state advance
    Sec. 11. An amount equal to deductions made or to be made in thecurrent year for the payment of principal and interest on anadvancement from any state fund (including the common school fund

and the veterans memorial school construction fund) may beincluded in debt service and appropriated and paid to the generalfund.
As added by P.L.2-2006, SEC.163.