Sec. 4. (a) The board, after review by the budget committee, shall determine the terms of any loan made under this chapter. The interest rate on the loan is the interest rate established by the commissioner of the department of state revenue under IC 6-8.1-10-1 minus two percent (2%), but in no case shall the interest rate be less than one percent (1%).
(b) The total amount of loans under this chapter may not exceed the following:
(1) Six million dollars ($6,000,000) for all calendar years ending before January 1, 2012.
(2) The sum of the amounts approved under section 3(b) of this chapter for all calendar years beginning after December 31, 2011, plus the outstanding balance of all loans that were made under this chapter before 2012.
(c) An eligible school corporation receiving a loan under this chapter must repay the loan within seventy-two (72) months after the date on which the loan is made.
(d) The board may disburse in installments the proceeds of a loan made under this chapter.
(e) An eligible school corporation may repay a loan made under this chapter from any sources of revenue.
(f) The obligation to repay a loan made under this chapter is not a basis for an eligible school corporation to obtain an excessive tax levy under IC 6-1.1-19.
(g) Whenever the board receives a payment on a loan made under this chapter, the board shall deposit the amount paid in the counter-cyclical revenue and economic stabilization fund.
As added by P.L.131-2008, SEC.5. Amended by P.L.145-2012, SEC.19.
Structure Indiana Code
Chapter 21.4. Rainy Day Fund Loans for Eligible School Corporations
6-1.1-21.4-2. "Eligible School Corporation"
6-1.1-21.4-3. Eligible School Corporation; Maximum Loan; Loan Terms
6-1.1-21.4-3.5. Termination of Authority to Make Loans
6-1.1-21.4-5. Effects on Levy Excess Funds