IC 20-42-2
Chapter 2. County Administration of Congressional Township
School Fund
IC 20-42-2-1 Application
Sec. 1. This chapter applies to a county that has money in a fund
and has not surrendered custody of the fund to the treasurer of state
under section 4.5 of this chapter, or a predecessor law. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.1.
IC 20-42-2-2 "Fund"
Sec. 2. As used in this chapter, "fund" refers to a congressional
township school fund administered by a county. As added by P.L.2-2006, SEC.165.
IC 20-42-2-3 Sources of fund
Sec. 3. The fund derived from the sale of congressional township
school lands constitutes the congressional township school fund. As added by P.L.2-2006, SEC.165.
IC 20-42-2-4 Prohibition on reducing principal of fund
Sec. 4. The fund shall never be diminished in amount. As added by P.L.2-2006, SEC.165.
IC 20-42-2-4.5 Transfer of custody of fund balance to state
Sec. 4.5. (a) A county council may adopt a resolution to:
(1) elect to surrender the custody of the fund or any part of the
fund; and
(2) order the board of county commissioners, the county
auditor, and the county treasurer to take all steps necessary to
surrender the custody of the fund or part of the fund that is to be
surrendered.
If the county council adopts a resolution under this section, the
amount of money designated by the resolution distributed to and held
in trust by the county is to be transferred to the treasurer of state over
a period not to exceed twenty (20) years. A county council may elect
whether the county shall surrender all or any part of the fund. If the
county retains custody of any money in the fund, the county shall
loan the money as otherwise provided by law.
(b) Within ten (10) days after the passage of the resolution by a
county council of a county electing to surrender the custody of the
fund or part of the fund, the county auditor shall prepare and file
with the board of commissioners of the county a report showing the
following:
(1) The total amount of the fund that has been entrusted to and
is held in trust by the county.
(2) The total amount of the fund that is loaned as provided by
law.
(3) The total amount of the fund, if any, loaned to the county
and which loans are unpaid.
(4) The total amount of the fund held in cash in the possession
and custody of the county and that is not loaned.
(5) A separate schedule of past due loans. The schedule must
show the unpaid balance of principal and the amount of
delinquent interest due and unpaid on each delinquent loan.
(c) The board of county commissioners shall examine the reports,
and, if found correct, the board of county commissioners shall order:
(1) that the report be entered on its records; and
(2) the county auditor to draw the county auditor's warrant,
payable to the treasurer of state, for the amount of the fund that
is not loaned and is held in cash in the custody and possession
of the county as shown by the report.
The county auditor shall forward the warrants to the auditor of state
together with a certified copy of the report. The county auditor shall
also forward with the payment a certified copy of the resolution of
the county council electing to surrender the custody of the fund or
any part of the fund.
(d) After passage by the county council of a resolution electing to
surrender the custody of the fund or any part of the fund, no part of
the fund up to the amount designated in the resolution that is not
surrendered to the treasurer of state and is in the custody of the
county may be loaned by the county or by any official of the county.
Except as provided in this subsection, all outstanding loans of the
fund not part of the amount retained by the county at the time of the
passage of the resolution shall be collected when due. Any loan that
comes due and payable after the passage of the resolution may be
renewed for one (1) additional five (5) year period, on the application
of the person owing the loan as provided by law. However, a loan
that is more than one (1) year delinquent in payment of principal or
interest at the time of the passage of the resolution of the county
council may not be renewed.
(e) The maximum time to surrender money that the county
designates in the resolution is for a period not to exceed twenty (20)
years. On:
(1) May 1 or November 1 immediately after the passage of the
resolution electing to surrender the fund or any part of the fund;
and
(2) each May 1 and November 1 thereafter;
all the money collected and on hand up to the amount designated in
the resolution that belongs to the fund that is to be surrendered shall
be paid to the treasurer of state. If at the time for a semiannual
payment the amount collected and paid to the treasurer of state when
added to the amounts previously paid to the treasurer of state is less
than the result determined by multiplying two and one-half percent
(2.5%) of the amount in the resolution by the number of semiannual
payments that have occurred after the passage of the resolution, the
county auditor shall draw the county auditor's warrant on the general
fund of the county for an amount sufficient to pay to the treasurer of
state the difference between the amount paid and the amount equal
to the result of multiplying two and one-half percent (2.5%) of the
amount designated in the resolution by the number of semiannual
payments that have occurred after the passage of the resolution.
(f) The board of county commissioners shall, in its annual budget
estimate, include an estimate of the amount necessary to make the
payments from the county general fund as required by this section,
and the county council shall appropriate the amount of the estimate.
(g) A county is subrogated to all the rights and remedies of the
state with respect to loans made from a fund held in trust by the
county to the extent of any and all payments made from the county
general fund under this chapter.
(h) If a county elects to transfer custody of the fund or any part of
the fund to the treasurer of state, the treasurer of state shall ensure
that the principal of the fund belonging to any congressional
township or a part of a congressional township shall never be
diminished in amount.
(i) If a county elects to transfer custody of the fund or any part of
the fund to the treasurer of state, the treasurer of state shall take steps
to ensure that the income of the fund belonging to any congressional
township or a part of a congressional township may not be:
(1) diminished by an apportionment; or
(2) diverted or distributed to another township. As added by P.L.39-2008, SEC.2.
IC 20-42-2-5 County liability for fund
Sec. 5. A county shall be held liable for the:
(1) preservation of the part of the fund as is entrusted or has
been entrusted to the county; and
(2) payment of the annual interest on the fund, at the rate
established by law. As added by P.L.2-2006, SEC.165.
IC 20-42-2-6 Deposit of interest in fund
Sec. 6. The payment of annual interest must be full and complete
every year. The payment must appear in the county auditor's or
treasurer of state's report to the state superintendent. The state
superintendent shall, at any time when the state superintendent
discovers that there is a deficit in the amount collected, direct the
attention of the board of county commissioners and the county
auditor to the fact. The board of commissioners shall provide for the
deficit in the commissioners' respective counties. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.3.
IC 20-42-2-7 Annual distribution of balance to school corporations
Sec. 7. The county auditor of each county or the treasurer of state
shall, semiannually, on the second Monday of July and on the last
Monday in January make apportionment of the amount of the
congressional township school revenue belonging to each school
corporation. The apportionment shall be paid to each school
corporation's treasurer. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.4.
IC 20-42-2-8 Report to state superintendent
Sec. 8. The county auditor or treasurer of state shall report the
amount apportioned to the state superintendent, verified by affidavit. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.5.
IC 20-42-2-9 Distributions proportional to balance deposited in fund from
township
Sec. 9. The income of the fund belonging to any congressional
township or part of a congressional township may not be:
(1) diminished by an apportionment; or
(2) diverted or distributed to another township. As added by P.L.2-2006, SEC.165.
IC 20-42-2-10 Loans; required interest rate
Sec. 10. The:
(1) principal belonging to the fund; and
(2) accumulations to the principal of a fund held by a county;
must be loaned at four percent (4%) per annum. Loans made before
June 1, 1943, with a rate of interest higher than four percent (4%) per
annum must have an interest rate of four percent (4%) per annum. As added by P.L.2-2006, SEC.165.
IC 20-42-2-11 Minimum balance; loans; maximum term
Sec. 11. In a county where the total amount in the:
(1) common school fund; or
(2) fund;
accumulates to the amount of at least one thousand dollars ($1,000),
a county may borrow and use the funds, or any part of the funds, for
any lawful purpose for a period not exceeding five (5) years. As added by P.L.2-2006, SEC.165. Amended by P.L.162-2006,
SEC.41.
IC 20-42-2-12 Form of loan agreement
Sec. 12. (a) If a county council borrows funds under this chapter,
the county council shall adopt an ordinance specifying the amount of
the funds to be borrowed and specify the time when the loan will be
made. The board of county commissioners shall execute to the state
of Indiana for the use of the funds a written obligation, executed by
the board of county commissioners and attested by the county
auditor, that specifies the following:
(1) The facts under which the written obligation is executed.
(2) The sum of money borrowed.
(3) The time when the money will be repaid to the fund by the
county.
(b) The obligation must be deposited with the county auditor. The
county auditor shall retain the obligation and record entries
concerning the loans. The provisions of IC 6-1.1-20 concerning the
loan to the county from the school funds apply to this section. As added by P.L.2-2006, SEC.165.
IC 20-42-2-13 Distribution of loaned amount from fund
Sec. 13. After the obligation is deposited with the county auditor
under section 12 of this chapter, the county auditor shall issue a
warrant to the county treasurer to be paid to the county for the
amount of money specified in the ordinance and obligation. When
the warrant is presented to the county treasurer, the treasurer shall
transfer from the fund the amount contained in the warrant from the
principal sum of the fund to the credit of the county revenue of the
county. Funds transferred under this section become a part of the
general revenue funds of the county. As added by P.L.2-2006, SEC.165.
IC 20-42-2-14 Investments
Sec. 14. (a) If the funds remain in the county treasury of the
county for four (4) months without having been loaned under this
chapter, upon the request of the county auditor, the board of county
commissioners may, by an order entered of record, direct the county
treasurer to invest the funds in:
(1) bonds, notes, certificates, and other valid obligations of the
United States; and
(2) bonds, notes, debentures, and other securities issued by any
federal instrumentality that are fully guaranteed by the United
States.
(b) If it becomes necessary to obtain the funds invested in the
government bonds under subsection (a) to be able to make a loan to
any borrower, whose application has been approved and granted, the
treasurer shall sell, at the earliest opportunity, a sufficient amount of
the government bonds to make the loan. As added by P.L.2-2006, SEC.165.
IC 20-42-2-15 Receipts for payment of principal or interest on loan
Sec. 15. All payments of principal or interest must be paid to the
county treasurer. The:
(1) treasurer shall file a receipt with the county auditor; and
(2) auditor shall give the payor a receipt and record the
payment.
The county auditor may accept payment of principal or interest if the
county auditor can immediately transmit and pay the payment to the
county treasurer. As added by P.L.2-2006, SEC.165.
IC 20-42-2
Chapter 2. County Administration of Congressional Township
School Fund
IC 20-42-2-1 Application
Sec. 1. This chapter applies to a county that has money in a fund
and has not surrendered custody of the fund to the treasurer of state
under section 4.5 of this chapter, or a predecessor law. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.1.
IC 20-42-2-2 "Fund"
Sec. 2. As used in this chapter, "fund" refers to a congressional
township school fund administered by a county. As added by P.L.2-2006, SEC.165.
IC 20-42-2-3 Sources of fund
Sec. 3. The fund derived from the sale of congressional township
school lands constitutes the congressional township school fund. As added by P.L.2-2006, SEC.165.
IC 20-42-2-4 Prohibition on reducing principal of fund
Sec. 4. The fund shall never be diminished in amount. As added by P.L.2-2006, SEC.165.
IC 20-42-2-4.5 Transfer of custody of fund balance to state
Sec. 4.5. (a) A county council may adopt a resolution to:
(1) elect to surrender the custody of the fund or any part of the
fund; and
(2) order the board of county commissioners, the county
auditor, and the county treasurer to take all steps necessary to
surrender the custody of the fund or part of the fund that is to be
surrendered.
If the county council adopts a resolution under this section, the
amount of money designated by the resolution distributed to and held
in trust by the county is to be transferred to the treasurer of state over
a period not to exceed twenty (20) years. A county council may elect
whether the county shall surrender all or any part of the fund. If the
county retains custody of any money in the fund, the county shall
loan the money as otherwise provided by law.
(b) Within ten (10) days after the passage of the resolution by a
county council of a county electing to surrender the custody of the
fund or part of the fund, the county auditor shall prepare and file
with the board of commissioners of the county a report showing the
following:
(1) The total amount of the fund that has been entrusted to and
is held in trust by the county.
(2) The total amount of the fund that is loaned as provided by
law.
(3) The total amount of the fund, if any, loaned to the county
and which loans are unpaid.
(4) The total amount of the fund held in cash in the possession
and custody of the county and that is not loaned.
(5) A separate schedule of past due loans. The schedule must
show the unpaid balance of principal and the amount of
delinquent interest due and unpaid on each delinquent loan.
(c) The board of county commissioners shall examine the reports,
and, if found correct, the board of county commissioners shall order:
(1) that the report be entered on its records; and
(2) the county auditor to draw the county auditor's warrant,
payable to the treasurer of state, for the amount of the fund that
is not loaned and is held in cash in the custody and possession
of the county as shown by the report.
The county auditor shall forward the warrants to the auditor of state
together with a certified copy of the report. The county auditor shall
also forward with the payment a certified copy of the resolution of
the county council electing to surrender the custody of the fund or
any part of the fund.
(d) After passage by the county council of a resolution electing to
surrender the custody of the fund or any part of the fund, no part of
the fund up to the amount designated in the resolution that is not
surrendered to the treasurer of state and is in the custody of the
county may be loaned by the county or by any official of the county.
Except as provided in this subsection, all outstanding loans of the
fund not part of the amount retained by the county at the time of the
passage of the resolution shall be collected when due. Any loan that
comes due and payable after the passage of the resolution may be
renewed for one (1) additional five (5) year period, on the application
of the person owing the loan as provided by law. However, a loan
that is more than one (1) year delinquent in payment of principal or
interest at the time of the passage of the resolution of the county
council may not be renewed.
(e) The maximum time to surrender money that the county
designates in the resolution is for a period not to exceed twenty (20)
years. On:
(1) May 1 or November 1 immediately after the passage of the
resolution electing to surrender the fund or any part of the fund;
and
(2) each May 1 and November 1 thereafter;
all the money collected and on hand up to the amount designated in
the resolution that belongs to the fund that is to be surrendered shall
be paid to the treasurer of state. If at the time for a semiannual
payment the amount collected and paid to the treasurer of state when
added to the amounts previously paid to the treasurer of state is less
than the result determined by multiplying two and one-half percent
(2.5%) of the amount in the resolution by the number of semiannual
payments that have occurred after the passage of the resolution, the
county auditor shall draw the county auditor's warrant on the general
fund of the county for an amount sufficient to pay to the treasurer of
state the difference between the amount paid and the amount equal
to the result of multiplying two and one-half percent (2.5%) of the
amount designated in the resolution by the number of semiannual
payments that have occurred after the passage of the resolution.
(f) The board of county commissioners shall, in its annual budget
estimate, include an estimate of the amount necessary to make the
payments from the county general fund as required by this section,
and the county council shall appropriate the amount of the estimate.
(g) A county is subrogated to all the rights and remedies of the
state with respect to loans made from a fund held in trust by the
county to the extent of any and all payments made from the county
general fund under this chapter.
(h) If a county elects to transfer custody of the fund or any part of
the fund to the treasurer of state, the treasurer of state shall ensure
that the principal of the fund belonging to any congressional
township or a part of a congressional township shall never be
diminished in amount.
(i) If a county elects to transfer custody of the fund or any part of
the fund to the treasurer of state, the treasurer of state shall take steps
to ensure that the income of the fund belonging to any congressional
township or a part of a congressional township may not be:
(1) diminished by an apportionment; or
(2) diverted or distributed to another township. As added by P.L.39-2008, SEC.2.
IC 20-42-2-5 County liability for fund
Sec. 5. A county shall be held liable for the:
(1) preservation of the part of the fund as is entrusted or has
been entrusted to the county; and
(2) payment of the annual interest on the fund, at the rate
established by law. As added by P.L.2-2006, SEC.165.
IC 20-42-2-6 Deposit of interest in fund
Sec. 6. The payment of annual interest must be full and complete
every year. The payment must appear in the county auditor's or
treasurer of state's report to the state superintendent. The state
superintendent shall, at any time when the state superintendent
discovers that there is a deficit in the amount collected, direct the
attention of the board of county commissioners and the county
auditor to the fact. The board of commissioners shall provide for the
deficit in the commissioners' respective counties. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.3.
IC 20-42-2-7 Annual distribution of balance to school corporations
Sec. 7. The county auditor of each county or the treasurer of state
shall, semiannually, on the second Monday of July and on the last
Monday in January make apportionment of the amount of the
congressional township school revenue belonging to each school
corporation. The apportionment shall be paid to each school
corporation's treasurer. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.4.
IC 20-42-2-8 Report to state superintendent
Sec. 8. The county auditor or treasurer of state shall report the
amount apportioned to the state superintendent, verified by affidavit. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.5.
IC 20-42-2-9 Distributions proportional to balance deposited in fund from
township
Sec. 9. The income of the fund belonging to any congressional
township or part of a congressional township may not be:
(1) diminished by an apportionment; or
(2) diverted or distributed to another township. As added by P.L.2-2006, SEC.165.
IC 20-42-2-10 Loans; required interest rate
Sec. 10. The:
(1) principal belonging to the fund; and
(2) accumulations to the principal of a fund held by a county;
must be loaned at four percent (4%) per annum. Loans made before
June 1, 1943, with a rate of interest higher than four percent (4%) per
annum must have an interest rate of four percent (4%) per annum. As added by P.L.2-2006, SEC.165.
IC 20-42-2-11 Minimum balance; loans; maximum term
Sec. 11. In a county where the total amount in the:
(1) common school fund; or
(2) fund;
accumulates to the amount of at least one thousand dollars ($1,000),
a county may borrow and use the funds, or any part of the funds, for
any lawful purpose for a period not exceeding five (5) years. As added by P.L.2-2006, SEC.165. Amended by P.L.162-2006,
SEC.41.
IC 20-42-2-12 Form of loan agreement
Sec. 12. (a) If a county council borrows funds under this chapter,
the county council shall adopt an ordinance specifying the amount of
the funds to be borrowed and specify the time when the loan will be
made. The board of county commissioners shall execute to the state
of Indiana for the use of the funds a written obligation, executed by
the board of county commissioners and attested by the county
auditor, that specifies the following:
(1) The facts under which the written obligation is executed.
(2) The sum of money borrowed.
(3) The time when the money will be repaid to the fund by the
county.
(b) The obligation must be deposited with the county auditor. The
county auditor shall retain the obligation and record entries
concerning the loans. The provisions of IC 6-1.1-20 concerning the
loan to the county from the school funds apply to this section. As added by P.L.2-2006, SEC.165.
IC 20-42-2-13 Distribution of loaned amount from fund
Sec. 13. After the obligation is deposited with the county auditor
under section 12 of this chapter, the county auditor shall issue a
warrant to the county treasurer to be paid to the county for the
amount of money specified in the ordinance and obligation. When
the warrant is presented to the county treasurer, the treasurer shall
transfer from the fund the amount contained in the warrant from the
principal sum of the fund to the credit of the county revenue of the
county. Funds transferred under this section become a part of the
general revenue funds of the county. As added by P.L.2-2006, SEC.165.
IC 20-42-2-14 Investments
Sec. 14. (a) If the funds remain in the county treasury of the
county for four (4) months without having been loaned under this
chapter, upon the request of the county auditor, the board of county
commissioners may, by an order entered of record, direct the county
treasurer to invest the funds in:
(1) bonds, notes, certificates, and other valid obligations of the
United States; and
(2) bonds, notes, debentures, and other securities issued by any
federal instrumentality that are fully guaranteed by the United
States.
(b) If it becomes necessary to obtain the funds invested in the
government bonds under subsection (a) to be able to make a loan to
any borrower, whose application has been approved and granted, the
treasurer shall sell, at the earliest opportunity, a sufficient amount of
the government bonds to make the loan. As added by P.L.2-2006, SEC.165.
IC 20-42-2-15 Receipts for payment of principal or interest on loan
Sec. 15. All payments of principal or interest must be paid to the
county treasurer. The:
(1) treasurer shall file a receipt with the county auditor; and
(2) auditor shall give the payor a receipt and record the
payment.
The county auditor may accept payment of principal or interest if the
county auditor can immediately transmit and pay the payment to the
county treasurer. As added by P.L.2-2006, SEC.165.
IC 20-42-2
Chapter 2. County Administration of Congressional Township
School Fund
IC 20-42-2-1 Application
Sec. 1. This chapter applies to a county that has money in a fund
and has not surrendered custody of the fund to the treasurer of state
under section 4.5 of this chapter, or a predecessor law. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.1.
IC 20-42-2-2 "Fund"
Sec. 2. As used in this chapter, "fund" refers to a congressional
township school fund administered by a county. As added by P.L.2-2006, SEC.165.
IC 20-42-2-3 Sources of fund
Sec. 3. The fund derived from the sale of congressional township
school lands constitutes the congressional township school fund. As added by P.L.2-2006, SEC.165.
IC 20-42-2-4 Prohibition on reducing principal of fund
Sec. 4. The fund shall never be diminished in amount. As added by P.L.2-2006, SEC.165.
IC 20-42-2-4.5 Transfer of custody of fund balance to state
Sec. 4.5. (a) A county council may adopt a resolution to:
(1) elect to surrender the custody of the fund or any part of the
fund; and
(2) order the board of county commissioners, the county
auditor, and the county treasurer to take all steps necessary to
surrender the custody of the fund or part of the fund that is to be
surrendered.
If the county council adopts a resolution under this section, the
amount of money designated by the resolution distributed to and held
in trust by the county is to be transferred to the treasurer of state over
a period not to exceed twenty (20) years. A county council may elect
whether the county shall surrender all or any part of the fund. If the
county retains custody of any money in the fund, the county shall
loan the money as otherwise provided by law.
(b) Within ten (10) days after the passage of the resolution by a
county council of a county electing to surrender the custody of the
fund or part of the fund, the county auditor shall prepare and file
with the board of commissioners of the county a report showing the
following:
(1) The total amount of the fund that has been entrusted to and
is held in trust by the county.
(2) The total amount of the fund that is loaned as provided by
law.
(3) The total amount of the fund, if any, loaned to the county
and which loans are unpaid.
(4) The total amount of the fund held in cash in the possession
and custody of the county and that is not loaned.
(5) A separate schedule of past due loans. The schedule must
show the unpaid balance of principal and the amount of
delinquent interest due and unpaid on each delinquent loan.
(c) The board of county commissioners shall examine the reports,
and, if found correct, the board of county commissioners shall order:
(1) that the report be entered on its records; and
(2) the county auditor to draw the county auditor's warrant,
payable to the treasurer of state, for the amount of the fund that
is not loaned and is held in cash in the custody and possession
of the county as shown by the report.
The county auditor shall forward the warrants to the auditor of state
together with a certified copy of the report. The county auditor shall
also forward with the payment a certified copy of the resolution of
the county council electing to surrender the custody of the fund or
any part of the fund.
(d) After passage by the county council of a resolution electing to
surrender the custody of the fund or any part of the fund, no part of
the fund up to the amount designated in the resolution that is not
surrendered to the treasurer of state and is in the custody of the
county may be loaned by the county or by any official of the county.
Except as provided in this subsection, all outstanding loans of the
fund not part of the amount retained by the county at the time of the
passage of the resolution shall be collected when due. Any loan that
comes due and payable after the passage of the resolution may be
renewed for one (1) additional five (5) year period, on the application
of the person owing the loan as provided by law. However, a loan
that is more than one (1) year delinquent in payment of principal or
interest at the time of the passage of the resolution of the county
council may not be renewed.
(e) The maximum time to surrender money that the county
designates in the resolution is for a period not to exceed twenty (20)
years. On:
(1) May 1 or November 1 immediately after the passage of the
resolution electing to surrender the fund or any part of the fund;
and
(2) each May 1 and November 1 thereafter;
all the money collected and on hand up to the amount designated in
the resolution that belongs to the fund that is to be surrendered shall
be paid to the treasurer of state. If at the time for a semiannual
payment the amount collected and paid to the treasurer of state when
added to the amounts previously paid to the treasurer of state is less
than the result determined by multiplying two and one-half percent
(2.5%) of the amount in the resolution by the number of semiannual
payments that have occurred after the passage of the resolution, the
county auditor shall draw the county auditor's warrant on the general
fund of the county for an amount sufficient to pay to the treasurer of
state the difference between the amount paid and the amount equal
to the result of multiplying two and one-half percent (2.5%) of the
amount designated in the resolution by the number of semiannual
payments that have occurred after the passage of the resolution.
(f) The board of county commissioners shall, in its annual budget
estimate, include an estimate of the amount necessary to make the
payments from the county general fund as required by this section,
and the county council shall appropriate the amount of the estimate.
(g) A county is subrogated to all the rights and remedies of the
state with respect to loans made from a fund held in trust by the
county to the extent of any and all payments made from the county
general fund under this chapter.
(h) If a county elects to transfer custody of the fund or any part of
the fund to the treasurer of state, the treasurer of state shall ensure
that the principal of the fund belonging to any congressional
township or a part of a congressional township shall never be
diminished in amount.
(i) If a county elects to transfer custody of the fund or any part of
the fund to the treasurer of state, the treasurer of state shall take steps
to ensure that the income of the fund belonging to any congressional
township or a part of a congressional township may not be:
(1) diminished by an apportionment; or
(2) diverted or distributed to another township. As added by P.L.39-2008, SEC.2.
IC 20-42-2-5 County liability for fund
Sec. 5. A county shall be held liable for the:
(1) preservation of the part of the fund as is entrusted or has
been entrusted to the county; and
(2) payment of the annual interest on the fund, at the rate
established by law. As added by P.L.2-2006, SEC.165.
IC 20-42-2-6 Deposit of interest in fund
Sec. 6. The payment of annual interest must be full and complete
every year. The payment must appear in the county auditor's or
treasurer of state's report to the state superintendent. The state
superintendent shall, at any time when the state superintendent
discovers that there is a deficit in the amount collected, direct the
attention of the board of county commissioners and the county
auditor to the fact. The board of commissioners shall provide for the
deficit in the commissioners' respective counties. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.3.
IC 20-42-2-7 Annual distribution of balance to school corporations
Sec. 7. The county auditor of each county or the treasurer of state
shall, semiannually, on the second Monday of July and on the last
Monday in January make apportionment of the amount of the
congressional township school revenue belonging to each school
corporation. The apportionment shall be paid to each school
corporation's treasurer. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.4.
IC 20-42-2-8 Report to state superintendent
Sec. 8. The county auditor or treasurer of state shall report the
amount apportioned to the state superintendent, verified by affidavit. As added by P.L.2-2006, SEC.165. Amended by P.L.39-2008, SEC.5.
IC 20-42-2-9 Distributions proportional to balance deposited in fund from
township
Sec. 9. The income of the fund belonging to any congressional
township or part of a congressional township may not be:
(1) diminished by an apportionment; or
(2) diverted or distributed to another township. As added by P.L.2-2006, SEC.165.
IC 20-42-2-10 Loans; required interest rate
Sec. 10. The:
(1) principal belonging to the fund; and
(2) accumulations to the principal of a fund held by a county;
must be loaned at four percent (4%) per annum. Loans made before
June 1, 1943, with a rate of interest higher than four percent (4%) per
annum must have an interest rate of four percent (4%) per annum. As added by P.L.2-2006, SEC.165.
IC 20-42-2-11 Minimum balance; loans; maximum term
Sec. 11. In a county where the total amount in the:
(1) common school fund; or
(2) fund;
accumulates to the amount of at least one thousand dollars ($1,000),
a county may borrow and use the funds, or any part of the funds, for
any lawful purpose for a period not exceeding five (5) years. As added by P.L.2-2006, SEC.165. Amended by P.L.162-2006,
SEC.41.
IC 20-42-2-12 Form of loan agreement
Sec. 12. (a) If a county council borrows funds under this chapter,
the county council shall adopt an ordinance specifying the amount of
the funds to be borrowed and specify the time when the loan will be
made. The board of county commissioners shall execute to the state
of Indiana for the use of the funds a written obligation, executed by
the board of county commissioners and attested by the county
auditor, that specifies the following:
(1) The facts under which the written obligation is executed.
(2) The sum of money borrowed.
(3) The time when the money will be repaid to the fund by the
county.
(b) The obligation must be deposited with the county auditor. The
county auditor shall retain the obligation and record entries
concerning the loans. The provisions of IC 6-1.1-20 concerning the
loan to the county from the school funds apply to this section. As added by P.L.2-2006, SEC.165.
IC 20-42-2-13 Distribution of loaned amount from fund
Sec. 13. After the obligation is deposited with the county auditor
under section 12 of this chapter, the county auditor shall issue a
warrant to the county treasurer to be paid to the county for the
amount of money specified in the ordinance and obligation. When
the warrant is presented to the county treasurer, the treasurer shall
transfer from the fund the amount contained in the warrant from the
principal sum of the fund to the credit of the county revenue of the
county. Funds transferred under this section become a part of the
general revenue funds of the county. As added by P.L.2-2006, SEC.165.
IC 20-42-2-14 Investments
Sec. 14. (a) If the funds remain in the county treasury of the
county for four (4) months without having been loaned under this
chapter, upon the request of the county auditor, the board of county
commissioners may, by an order entered of record, direct the county
treasurer to invest the funds in:
(1) bonds, notes, certificates, and other valid obligations of the
United States; and
(2) bonds, notes, debentures, and other securities issued by any
federal instrumentality that are fully guaranteed by the United
States.
(b) If it becomes necessary to obtain the funds invested in the
government bonds under subsection (a) to be able to make a loan to
any borrower, whose application has been approved and granted, the
treasurer shall sell, at the earliest opportunity, a sufficient amount of
the government bonds to make the loan. As added by P.L.2-2006, SEC.165.
IC 20-42-2-15 Receipts for payment of principal or interest on loan
Sec. 15. All payments of principal or interest must be paid to the
county treasurer. The:
(1) treasurer shall file a receipt with the county auditor; and
(2) auditor shall give the payor a receipt and record the
payment.
The county auditor may accept payment of principal or interest if the
county auditor can immediately transmit and pay the payment to the
county treasurer. As added by P.L.2-2006, SEC.165.
