§ 20-49-9-14 — Authority to renegotiate the terms of an advance; application process

Indiana § 20-49-9-14

• Jurisdiction: Indiana
• Title 20: EDUCATION
• Art. 49: STATE MANAGEMENT OF COMMON SCHOOL
• Ch. 9: Charter and Innovation School Advance Program

Text

(a) The organizer of a charter school is the
fiscal agent for the charter school and has exclusive control of the
funds received by the charter school and all financial matters pertaining
to the charter school. For purposes of this chapter, all references to a
school or a charter school, including, but not limited to, the obligation
to repay an advance, incorporate the organizer of the charter school.
(b) With formal approval from the charter school's governing body,
a charter school that has received an advance under this chapter may
submit an application to the treasurer of state to renegotiate the terms
of an advance. The application process established by the treasurer of
state shall include information that permits the treasurer of state to
determine whether amending the original terms of the advance will
increase the likelihood that the outstanding advance balance, including
accrued interest, will be paid in full.
(c) In making its determination, the treasurer of state may consider
the following factors:
(1) whether the outstanding advance balance is free from
obligation to or encumberment from any other lawful instrument,
program, proceeding, or financial instrument;
(2) whether the annual per-student cost of the outstanding
advance balance exceeds the average annual per-student cost of
all outstanding advance balances;
(3) whether the annual per-student cost of the outstanding
advance balance as a percentage of the basic tuition support
received for the student exceeds five percent (5%);
(4) whether the annual per-student cost of the outstanding
advance balance has increased over the last two (2) years; and
(5) any other factors determined relevant by the treasurer of state.
(d) If, after review of the information required under subsection (b)
and consideration of the factors listed in subsection (c), the treasurer of
state determines that renegotiating the original terms of the advance
will increase the likelihood that the outstanding advance balance,
including accrued interest, will be paid in full, the treasurer of state
shall approve the school's request.
(e) If the treasurer of state approves a charter school's request, the
charter school's governing body shall enter into a new agreement with
the treasurer of state for repayment of the outstanding advance balance.
The following apply:
(1) The new agreement must:
(A) include a provision providing that the treasurer of state may
withhold from funds due to the charter school to which the
advance is made until the advance is paid; and
(B) include any other provisions determined necessary by the
treasurer of state to facilitate repayment.
(2) The new agreement may:
(A) set a new term for the advance that does not exceed
twenty-five (25) years from the date the original advance was
made; and
(B) set a new interest rate for the remaining term of the advance
which may be no lower than one percent (1%) and no higher
than two percent (2%) per annum.
(f) An application to amend the terms of an advance or amendment
of the terms of an advance do not constitute a finding regarding the
school's financial condition other than with respect to the repayment of
an advance made under this chapter.

Legislative History

As added by P.L.165-2021, SEC.170.