Indiana § 20-25-5-15 Equitable disposition of assets and liabilities, allocation of taxes, and
payment by acquiring school corporation

Indiana Statutes

§ 20-25-5-15 — Equitable disposition of assets and liabilities, allocation of taxes, and payment by acquiring school corporation

Indiana·Title 20 EDUCATION·Art. 25 INDIANAPOLIS PUBLIC SCHOOLS·Ch. 5 Real Property Annexations and Transfers;

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

(1)Except for current obligations or temporary borrowing, the acquiring school corporation shall assume a part of all installments of principal and interest on the indebtedness of the losing school corporation that is 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 in the annexed territory. The part assumed by the acquiring sc

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With respect to whether the disposition of
the assets and liabilities of the losing school corporation is equitable,
the allocation of school tax receipts is equitable, and the amount to be
paid by the acquiring school corporation is equitable, a court must be
satisfied that the annexing resolution conforms substantially to the
following standards:
(1) Except for current obligations or temporary borrowing, the
acquiring school corporation shall assume a part of all
installments of principal and interest on the indebtedness of the
losing school corporation that is 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 in the annexed territory. The part assumed by the
acquiring school corporation consists of the following:
(A) All installments relating to any indebtedness incurred in
connection with the acquisition or construction of a building
located in the annexed territory.
(B) A proportion of all installments relating to any other
indebtedness that is in 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.
Valuation under this clause is based upon the assessment 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:
(A) territory;
(B) a building or buildings; or
(C) both territory and a building or buildings;
under IC 20-47-5.
(3) If the annexed territory includes an entire losing school
corporation, the acquiring school corporation shall:
(A) acquire all the property and assets of the losing school
corporation without making any payments for the losing school
corporation; and
(B) assume all of the liabilities and obligations of the losing
school corporation.
[Pre-2005 Elementary and Secondary Education
Recodification Citation: 20-3-14-7.]

Indiana § 20-25-5-15 (Equitable disposition of assets and liabilities, allocation of taxes, and payment by acquiring school corporation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.