IC 6-1.1-21.9
    Chapter 21.9. Rainy Day Fund Loans for Qualified Taxing Units

IC 6-1.1-21.9-1
Definitions
    Sec. 1. (a) As used in this chapter, "board" refers to the stateboard of finance.
    (b) As used in this chapter, "qualified taxing unit" means a taxingunit:
        (1) in which a qualifying taxpayer has tangible property subjectto taxation; and
        (2) that has experienced or is expected to experience asignificant revenue shortfall as a result of a default or anexpected default described in subsection (c)(3).
    (c) As used in this chapter, "qualifying taxpayer" means ataxpayer that:
        (1) manufactures microelectronics as part of its business;
        (2) has filed a petition to reorganize under the federalbankruptcy code; and
        (3) has defaulted, or has notified the county fiscal body of thecounty in which the taxpayer is subject to property taxes thatthe taxpayer will default, on all or part of one (1) or more of itsproperty tax payments.
As added by P.L.114-2006, SEC.3.

IC 6-1.1-21.9-2
Qualified taxing unit
    Sec. 2. A qualified taxing unit may apply to the board for one (1)or more loans from the counter-cyclical revenue and economicstabilization fund.
As added by P.L.114-2006, SEC.3.

IC 6-1.1-21.9-3
Board determines terms of loan and disburses installments; loanrepayment; no excessive levy; deposit of payments received
    Sec. 3. (a) The board, not later than December 31, 2009, and afterreview by the budget committee, shall determine the terms of a loanmade under this chapter, subject to the following:
        (1) The board may not charge interest on the loan.
        (2) The loan must be repaid not later than ten (10) years afterthe date on which the loan was made.
        (3) The terms of the loan must allow for prepayment of the loanwithout penalty.
        (4) The maximum amount of the loan that a qualifying taxingunit may receive with respect to a default described in section1(c)(3) of this chapter on one (1) or more payments of propertytaxes first due and payable in a calendar year is the amount, asdetermined by the board, of revenue shortfall for the qualifyingtaxing unit that results from the default for that calendar year.
        (5) The total amount of all loans under this chapter for all

calendar years may not exceed thirteen million dollars($13,000,000).
    (b) The board may disburse in installments the proceeds of a loanmade under this chapter.
    (c) A qualified taxing unit may repay a loan made under thischapter from any of the following:
        (1) Property tax revenues of the qualified taxing unit that aresubject to the levy limitations imposed by IC 6-1.1-18.5 or(before January 1, 2009) IC 6-1.1-19.
        (2) Property tax revenues of the qualified taxing unit that arenot subject to levy limitations as provided in IC 6-1.1-18.5-21or (before January 1, 2009) IC 6-1.1-19-13.
        (3) The qualified taxing unit's debt service fund.
        (4) Any other source of revenues (other than property taxes)that is legally available to the qualified taxing unit.
The payment of any installment on a loan made under this chapterconstitutes a first charge against the property tax revenues describedin subdivision (1) or (2) that are collected by the qualified taxing unitduring the calendar year the installment is due and payable.
    (d) The obligation to repay a loan made under this chapter is nota basis for the qualified taxing unit to obtain an excessive tax levyunder IC 6-1.1-18.5 or (before January 1, 2009) IC 6-1.1-19.
    (e) 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.
As added by P.L.114-2006, SEC.3. Amended by P.L.131-2008,SEC.6; P.L.146-2008, SEC.247; P.L.1-2009, SEC.45.

IC 6-1.1-21.9-4
Effects on levy excess funds; effects of receipt of delinquent taxes
    Sec. 4. (a) As used in this section, "delinquent tax" means any taxnot paid during the calendar year in which the tax was first due andpayable.
    (b) Except as provided in subsection (c), the following are notconsidered to be part of the ad valorem property tax levy actuallycollected by the qualified taxing unit for taxes first due and payableduring a particular calendar year for the purpose of calculating thelevy excess under IC 6-1.1-18.5-17 and IC 20-44-2.
        (1) The proceeds of a loan received by the qualified taxing unitunder this chapter.
        (2) The receipt by a qualified taxing unit of any payment ofdelinquent tax owed by a qualified taxpayer.
    (c) Delinquent tax owed by a qualified taxpayer received by aqualified taxing unit:
        (1) must first be used toward the retirement of an outstandingloan made under this chapter; and
        (2) is considered, only to the extent that the amount receivedexceeds the amount of the outstanding loan, to be part of the advalorem property tax levy actually collected by the qualifiedtaxing unit for taxes first due and payable during a particular

calendar year for the purpose of calculating the levy excessunder IC 6-1.1-18.5-17 and IC 20-44-2.
    (d) If a qualified taxpayer pays delinquent tax during the term ofrepayment of an outstanding loan made under this chapter, theremaining loan balance is repayable in equal installments over theremainder of the original term of repayment.
    (e) Proceeds of a loan made under this chapter may be expendedby a qualified taxing unit only to pay obligations of the qualifiedtaxing unit that have been incurred under appropriations foroperating expenses made by the qualified taxing unit and approvedby the department of local government finance.
As added by P.L.114-2006, SEC.3. Amended by P.L.146-2008,SEC.248.

IC 6-1.1-21.9-5
Loan is not bonded indebtedness
    Sec. 5. A loan under this chapter is not bonded indebtedness forpurposes of IC 6-1.1-18.5.
As added by P.L.114-2006, SEC.3.