§ 20-49-4-15 — Maximum term of advance; school building construction program; prepayment; interest rate

Indiana § 20-49-4-15

• Jurisdiction: Indiana
• Title 20: EDUCATION
• Art. 49: STATE MANAGEMENT OF COMMON SCHOOL
• Ch. 4: Advancement From Common School Fund; Buildings

Text

(a) Money advanced to a school corporation
or charter school for a school building construction program may be
advanced for a period not exceeding twenty-five (25) years. The school
corporation or charter school to which money is advanced must pay
interest on the advance. For advances made before July 1, 1993, the
state board may provide, either before an advance is made or before an
advance is fully paid, that the payment of the advance may not be
prepaid by more than six (6) months. For advances made after June 30,
1993, for school building construction programs, the state board may
provide that the advances are prepayable at any time.
(b) The state board of finance shall periodically establish the rate or
rates of interest payable on advances for school building construction
programs as long as:
(1) the established interest rate or rates do not exceed seven and
one-half percent (7.5%); and
(2) the interest rate or rates on advances made to school
corporations with advances outstanding on July 1, 1993, bearing
interest at seven and one-half percent (7.5%) or more shall not
exceed four percent (4%).
[Pre-2006 Recodification Citation: 21-1-5-5(a).]

Legislative History

As added by P.L.2-2006, SEC.172. Amended by P.L.189-2023, SEC.50.