§ 20-49-9-10 — Terms; limitations

The following apply to an advance under this
chapter:
(1) Interest shall be charged at the rate of one percent (1%) per
annum.
(2) The outstanding advance amount at any one (1) time for a
particular school may not exceed five million dollars
($5,000,000).
(3) The term of the advance may not exceed ten (10) years after
the date of the advance.
(4) A school must enter into an advance agreement with the state
board before receiving an advance from the fund. The terms of the
agreement must include a provision allowing the state board to
withhold funds due to a school to which an advance is made until
the advance is paid.
(5) A school may receive multiple advances from the fund as long
as the total amount outstanding on all advances to the school from
the fund does not exceed the maximum amount set forth in
subdivision (2).
(6) If advance proceeds are to be used by a school to construct or
purchase a school facility, the school shall provide the state board
with an adequate security interest for the repayment of the
advance, in the form and amount determined by the Indiana
department of administration. If the school operator sells its
equity interest in the school facility, the state board shall
redetermine the adequacy of its security interest and may hold a
public hearing to determine whether any tax dollar equity funded
with the advance should be paid to the state.

Legislative History

As added by P.L.213-2015, SEC.232.