§ 36-7-29-17 — Notes of indebtedness

(a) A district:
(1) pending receipt of any grant; or
(2) in anticipation of the issuance of district bonds under this
chapter;
may borrow money from any person and evidence the debt by a note or
notes executed by the chairperson of the board and the treasurer of the
district. The note or notes must contain the terms and provisions
prescribed by the board.
(b) An issuance of a note or notes or evidence of indebtedness under
this section may be sold at a public or private negotiated sale.
(c) A note or notes issued or renewed under this section must
mature not more than five (5) years from the date of issuance of the
original note and must pledge for the payment of the principal and
interest the proceeds of the grant or district bonds.
(d) The board shall apply the proceeds of any note or notes issued
under this section to the cost of the substance removal or remedial
action for which the grant is to be made or bonds issued, but no
purchaser of any obligations is liable for the proper application of the
proceeds.
(e) Notes issued under this section must be approved by a resolution
of the board.

Legislative History

As added by P.L.44-1994, SEC.11.