IC 6-1.1-21.5
    Chapter 21.5. Loans to Qualified Taxing Units

IC 6-1.1-21.5-1
"Qualified taxing unit" defined
    Sec. 1. As used in this chapter, "qualified taxing unit" means eachof the following:
        (1) A city having a population of more than thirty-two thousand(32,000) but less than thirty-two thousand eight hundred(32,800).
        (2) The sanitary district of a city described in subdivision (1).
        (3) The library district of a city described in subdivision (1).
        (4) The school corporation located in a city described insubdivision (1).
As added by P.L.380-1987(ss), SEC.5. Amended by P.L.12-1992,SEC.23; P.L.170-2002, SEC.21.

IC 6-1.1-21.5-2
"Board" defined
    Sec. 2. As used in this chapter, "board" refers to the state board offinance.
As added by P.L.380-1987(ss), SEC.5.

IC 6-1.1-21.5-3
Loan application; prerequisites to grant of loan
    Sec. 3. Before January 1, 2002, a qualified taxing unit may applyto the board for a loan from the counter-cyclical revenue andeconomic stabilization fund. The board may make a loan from thefund to the taxing unit if:
        (1) a taxpayer with tangible property subject to taxation by thequalified taxing unit has filed a petition to reorganize under thefederal bankruptcy code;
        (2) the taxpayer has defaulted on one (1) of its property taxpayments;
        (3) the qualified taxing unit has experienced and will continueto experience a significant revenue shortfall as a result of thedefault; and
        (4) the taxpayer is a steel manufacturer that owns at leasteighteen percent (18%) of the assessed value within the taxingunit.
As added by P.L.380-1987(ss), SEC.5. Amended by P.L.291-2001,SEC.207.

IC 6-1.1-21.5-4
Maximum amount of loan
    Sec. 4. The maximum amount that the board may loan to aqualified taxing unit under this chapter is set forth in the followingtable:
        MAXIMUM
    TYPE OF TAXING UNIT    LOAN    City    $    5,500,000
    Sanitary District    $    1,900,000
    Library District    $    800,000
    School Corporation    $    8,000,000
As added by P.L.380-1987(ss), SEC.5. Amended by P.L.291-2001,SEC.208.

IC 6-1.1-21.5-5
Terms of loan; interest; repayment; depository
    Sec. 5. (a) The board shall determine the terms of a loan madeunder this chapter. However, interest may not be charged on the loan,and the loan must be repaid not later than ten (10) years after the dateon which the loan was made.
    (b) The loan shall be repaid only from property tax revenues ofthe qualified taxing unit that are subject to the levy limitationsimposed by IC 6-1.1-18.5. The payment of any installment ofprincipal constitutes a first charge against such property tax revenuesas collected by the qualified taxing unit during the calendar year theinstallment is due and payable.
    (c) The obligation to repay the loan is not a basis for the qualifiedtaxing unit to obtain an excessive tax levy under IC 6-1.1-18.5.
    (d) Whenever the board receives a payment on a loan made underthis chapter, the board shall deposit the amount paid in thecounter-cyclical revenue and economic stabilization fund.
    (e) This section may not be construed to prevent the qualifiedtaxing unit from repaying a loan made under this chapter before thedate specified in subsection (a) if a taxpayer described in section 3of this chapter resumes paying property taxes to the qualified taxingunit.
As added by P.L.380-1987(ss), SEC.5. Amended by P.L.291-2001,SEC.209; P.L.2-2006, SEC.59; P.L.146-2008, SEC.242.

IC 6-1.1-21.5-6
Loan proceeds and delinquent tax payments; levy excess
    Sec. 6. (a) The receipt by the qualified taxing unit of the loanproceeds is not considered to be part of the ad valorem property taxlevy actually collected by the qualified taxing unit for taxes first dueand payable during a particular calendar year for the purpose ofcalculating the levy excess under IC 6-1.1-18.5-17 and IC 20-44-3.The receipt by the qualified taxing unit of any payment of delinquenttax owed by a taxpayer in bankruptcy is considered to be part of thead valorem property tax levy actually collected by the qualifiedtaxing unit for taxes first due and payable during a particularcalendar year for the purpose of calculating the levy excess underIC 6-1.1-18.5-17 and IC 20-44-3.
    (b) The loan proceeds and any payment of delinquent tax may beexpended by the qualified taxing unit only to pay debts of thequalified taxing unit that have been incurred pursuant to dulyadopted appropriations approved by the department of localgovernment finance for operating expenses.    (c) In the event the sum of the receipts of the qualified taxing unitthat are attributable to:
        (1) the loan proceeds; and
        (2) the payment of property taxes owed by a taxpayer in abankruptcy proceeding initially filed in 2000 and payable in2001;
exceeds sixteen million dollars ($16,000,000), the excess as receivedduring any calendar year or years shall be set aside and treated forthe calendar year when received as a levy excess subject toIC 6-1.1-18.5-17 or IC 20-44-3. In calculating the payment ofproperty taxes as provided in subdivision (2), the amount of propertytax credit finally allowed under IC 6-1.1-21-5 (before its repeal) inrespect to such taxes is considered a payment of such property taxes.
    (d) As used in this section, "delinquent tax" means any tax owedby a taxpayer in a bankruptcy proceeding initially filed in 2000 andthat is not paid during the calendar year for which it was first due andpayable.
As added by P.L.380-1987(ss), SEC.5. Amended by P.L.291-2001,SEC.210; P.L.90-2002, SEC.202; P.L.2-2006, SEC.60;P.L.146-2008, SEC.243.