§ 14-33-20-26 — District borrowing money

(a) A district coming under this chapter
may borrow money for a term not to exceed two (2) years, which may
be renewed for a term of two (2) years, from a bank organized under
state or federal statutes or from a state or federal agency in anticipation
of the receipt of money from any source, including the following:
(1) Grants and loans from state or federal agencies.
(2) Money from the sale of bonds, notes, or other evidences of
indebtedness proposed to be issued under this chapter.
(b) The district may pledge the money to be received to the
repayment of the principal and interest of the borrowing.
(c) The interim financing may also be repaid from the sale of bonds,
notes, or other evidences of indebtedness without designating the
bonds, notes, or other evidences of indebtedness as refunding
obligations. The proceeds of interim financing may be used in whole
or part for the following:
(1) The acquisition of real, personal, or mixed property, or options
on real, personal, or mixed property.
(2) Services reasonably necessary to provide water supply for
domestic, industrial, and public use.
(d) Interim financing may be negotiated and consummated directly
between the district and the state or federal bank or state or federal
agency without public offering. The district may make covenants to the
lender and the lender has the rights and remedies that are authorized by
this article.
[Pre-1995 Recodification Citation: 13-3-4-9.]

Legislative History

As added by P.L.1-1995, SEC.26.