§ 20-48-1-7 — Emergency loans

(a) This section applies if a governing body
finds by written resolution that an emergency exists that requires the
expenditure of money for a lawful corporate purpose that was not
included in the school corporation's existing budget and tax levy.
(b) If a governing body makes a finding specified in subsection (a),
the governing body may authorize making an emergency loan that may
be evidenced by the issuance of the school corporation's note in the
same manner and subject to the same procedure and restrictions as
provided for the issuance of the school corporation's bonds, except as
to purpose.
(c) If a governing body authorizes an emergency loan as specified
in subsection (b), the governing body shall, at the time for making the
next annual budget and tax levy for the school corporation, make a levy
to the credit of the fund for which the expenditure is made sufficient to
pay the loan and the interest on the loan. However, the interest on the
loan may be paid from the debt service fund. A governing body may
not increase the debt service fund levy to pay for the interest on the
loan unless:
(1) the loan has been issued; and
(2) the school corporation has received the loan proceeds.
(d) A governing body may not authorize an emergency loan for the
purpose of increasing the school corporation's property tax rate for the
ensuing budget year.
[Pre-2006 Recodification Citation: 21-2-21-6.]

Legislative History

As added by P.L.2-2006, SEC.171. Amended by P.L.38-2021, SEC.70.