Indiana § 20-23-5-12 Disposition of assets and liabilities of losing school corporation;
allocation of school tax receipts and amount to be paid by acquiring
school corporation; standards

Indiana Statutes

§ 20-23-5-12 — Disposition of assets and liabilities of losing school corporation; allocation of school tax receipts and amount to be paid by acquiring school corporation; standards

Indiana·Title 20 EDUCATION·Art. 23 ORGANIZATION OF SCHOOL CORPORATIONS·Ch. 5 Community School Corporations: Territory Annexations

(a)With respect to whether the disposition of the assets and liabilities of the losing school corporation, allocation of school tax receipts, and the amount to be paid by the acquiring school corporation is equitable, the court, subject to subsection (b), shall be satisfied that the annexing resolution conforms substantially to the following standards:

(1)The acquiring school corporation shall assume a part of all installments of principal and interest on any indebtedness of the losing school corporation (other than current obligations or temporary borrowing) that fall due after the end of the last calendar year in which the losing school corporation is entitled to receive current tax receipts from property tax levies on the property of the annexed territory. The part consists of the fol

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(a) With respect to whether the disposition
of the assets and liabilities of the losing school corporation, allocation
of school tax receipts, and the amount to be paid by the acquiring
school corporation is equitable, the court, subject to subsection (b),
shall be satisfied that the annexing resolution conforms substantially to
the following standards:
(1) The acquiring school corporation shall assume a part of all
installments of principal and interest on any indebtedness of the
losing school corporation (other than current obligations or
temporary borrowing) that fall due after the end of the last
calendar year in which the losing school corporation is entitled to
receive current tax receipts from property tax levies on the
property of the annexed territory. The part consists of the
following:
(A) All installments relating to any indebtedness incurred in
connection with the acquisition or construction of any building
located in the annexed territory.
(B) A proportion of all installments relating to any other
indebtedness that is the same proportion as the valuation of the
real property in the annexed territory bears to the valuation of
all the real property in the losing school corporation, as the
indebtedness is assessed for general taxation immediately
before annexation.
(2) The acquiring school corporation shall make the payments and
assume the obligations provided for a school corporation
acquiring territory or a building or buildings under IC 20-47-5.
(b) Standards under subsection (a) may not be applicable to the
extent the losing school corporation and acquiring school corporation
otherwise agree in a situation where all or a majority of the students in
the annexed territory have been transferred from the losing school
corporation to the acquiring school corporation for the five (5) school
years immediately preceding the transfer. The agreement between
school corporations may not prejudice the rights of bondholders or
lessors whose rights against the losing school corporation and
acquiring school corporation shall, upon enforcement, be allocated
between the losing school corporation and acquiring school corporation
in accordance with subsection (a)(1) and (a)(2).
[Pre-2005 Elementary and Secondary Education
Recodification Citation: 20-4-4-7.]

Indiana § 20-23-5-12 (Disposition of assets and liabilities of losing school corporation; allocation of school tax receipts and amount to be paid by acquiring school corporation; standards) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.