Indiana § 36-4-6-20 Temporary or short term loans in anticipation of current revenues

Indiana Statutes

§ 36-4-6-20 — Temporary or short term loans in anticipation of current revenues

Indiana·Title 36 LOCAL GOVERNMENT·Art. 4 GOVERNMENT OF CITIES AND TOWNS·Ch. 6 City Legislative Body

(a)The legislative body may, by ordinance, make loans of money for not more than five (5) years and issue notes for the purpose of refunding those loans. The loans may be made only for the purpose of procuring money to be used in the exercise of the powers of the city, and the total amount of outstanding loans under this subsection may not exceed five percent (5%) of the city's total tax levy in the current year (excluding amounts levied to pay debt service and lease rentals). Loans under this subsection shall be made in the same manner as loans made under section 19 of this chapter, except that:

(1)the ordinance authorizing the loans must pledge to their payment a sufficient amount of tax revenues over the ensuing five

(5)years to provide for refunding the loans; and

(2)the loans must

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(a) The legislative body may, by ordinance,
make loans of money for not more than five (5) years and issue notes
for the purpose of refunding those loans. The loans may be made only
for the purpose of procuring money to be used in the exercise of the
powers of the city, and the total amount of outstanding loans under this
subsection may not exceed five percent (5%) of the city's total tax levy
in the current year (excluding amounts levied to pay debt service and
lease rentals). Loans under this subsection shall be made in the same
manner as loans made under section 19 of this chapter, except that:
(1) the ordinance authorizing the loans must pledge to their
payment a sufficient amount of tax revenues over the ensuing five
(5) years to provide for refunding the loans; and
(2) the loans must be evidenced by notes of the city in terms
designating the nature of the consideration, the time and place
payable, and the revenues out of which they will be payable.
Notes issued under this subsection are not bonded indebtedness for
purposes of IC 6-1.1-18.5.
(b) The legislative body may, by ordinance, make loans and issue
notes for the purpose of refunding those loans in anticipation of
revenues of the city that are anticipated to be levied and collected
during the term of the loans. The term of a loan made under this
subsection may not be more than five (5) years. Loans under this
subsection shall be made in the same manner as loans made under
section 19 of this chapter, except that:
(1) the ordinance authorizing the loans must appropriate and
pledge to their payment a sufficient amount of the revenues in
anticipation of which they are issued and out of which they are
payable; and
(2) the loans must be evidenced by time warrants of the city in
terms designating the nature of the consideration, the time and
place payable, and the revenues in anticipation of which they are
issued and out of which they are payable.
(c) An action to contest the validity of a loan made under this
section must be brought within fifteen (15) days from the day on which
the ordinance is adopted.
[Pre-Local Government Recodification Citation: 18-1-4-3
part.]
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts
1982, P.L.209, SEC.1; P.L.37-1988, SEC.23; P.L.35-1990, SEC.44;
P.L.40-1996, SEC.9.

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