§ 36-5-2-12 — Loans and notes; procedures; actions to contest validity

(a) The legislative body may, by ordinance,
make loans and issue notes for the purpose of refunding those loans in
anticipation of revenues of the town 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 section shall be made in the same manner as loans made under
section 11(b) and 11(c) of this chapter, except that:
(1) the ordinance authorizing the loans must appropriate and
pledge to the payment of the loans a sufficient amount of the
revenues in anticipation of which the loans are issued and out of
which the loans are payable; and
(2) the loans must be evidenced by time warrants of the town in
terms designating the nature of the consideration, the time and
place payable, and the revenues in anticipation of which the loans
are issued and out of which the loans are payable.
(b) 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.

Legislative History

As added by P.L.35-1990, SEC.45. Amended by P.L.40-1996, SEC.11.