CHAPTER 2. BORROWING; SCHOOL TOWNS AND SCHOOL CITIES

IC 20-48-2
    Chapter 2. Borrowing; School Towns and School Cities

IC 20-48-2-1
Application
    Sec. 1. This chapter applies to any school city or school town.
As added by P.L.2-2006, SEC.171.

IC 20-48-2-2
Temporary loans
    Sec. 2. (a) Subject to subsection (c), if the board of school trusteesor other proper authority of a school town or school city finds that anemergency exists for borrowing money with which to meet currentexpenses of the schools of the school town or school city, the boardof school trustees or other proper authority of the school town orschool city may make temporary loans in anticipation of currentrevenues of the school town or school city to an amount not toexceed fifty percent (50%) of the amount of taxes actually levied andin the course of collection for the fiscal year in which the loans aremade.
    (b) For purposes of subsection (a), revenues are considered to becurrent and taxes are considered to have been actually levied and inthe course of collection when the budget levy and rate have beenfinally approved by the department of local government finance.
    (c) In second and third class school cities, a loan may not be madeunder this section for more than twenty thousand dollars ($20,000)unless:
        (1) the letting of the loans has been advertised once each weekfor two (2) successive weeks in two (2) newspapers of generalcirculation published in the school city; and
        (2) sealed bids have been submitted:
            (A) at a regular meeting of the school board of the schoolcity; and
            (B) under the notices specified in subdivision (1);
        stipulating the rate of interest to be charged by the bidder.
    (d) School loans made under this section must be made with thebidder that submits:
        (1) the lowest rate of interest; and
        (2) with the bid an affidavit showing that collusion does notexist between the bidder and any other bidder for the loan.
As added by P.L.2-2006, SEC.171.

IC 20-48-2-3
Requirements; resolution
    Sec. 3. (a) A temporary loan made under section 2 of this chaptermust be authorized by a resolution of the board of school trustees orother proper authority:
        (1) designating the:
            (A) nature of the consideration;
            (B) date, time, and place payable;            (C) rate of interest, not to exceed six percent (6%) perannum; and
            (D) revenues in anticipation of which the temporary loan ismade and out of which the temporary loan is payable; and
        (2) appropriating and pledging a sufficient amount of currentrevenues of the school town or school city:
            (A) in anticipation of which the temporary loan is made; and
            (B) out of which the temporary loan is payable;
        to the payment of the temporary loan.
A temporary loan must be evidenced by the time warrants of theschool town or school city in terms designating the nature of theconsideration, the date, time, and place payable, and the revenues inanticipation of which the temporary loan is issued and out of whichthe temporary loan is payable. Interest accruing on the warrants todate of maturity must be added to and included in the face value ofthe warrants.
    (b) A school town or school city may issue the time warrants ofthe school corporation, in anticipation of current revenues of theschool town or school city, directly to persons, firms, limited liabilitycompanies, and corporations in payment of approved services,materials, and supplies contracted for, purchased, performed, anddelivered.
As added by P.L.2-2006, SEC.171.