Indiana § 36-9-27-97.5 Construction loans; terms; deposit of proceeds; interest on loan

Indiana Statutes

§ 36-9-27-97.5 — Construction loans; terms; deposit of proceeds; interest on loan

Indiana § 36-9-27-97.5

Title 36LOCAL GOVERNMENT

Art. 9TRANSPORTATION AND PUBLIC WORKS

Ch. 27Drainage Law

This text of Indiana § 36-9-27-97.5 (Construction loans; terms; deposit of proceeds; interest on loan) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 36-9-27-97.5 (2026).

Text

5.

(a)Whenever the board determines by resolution spread upon its minutes that the cost of constructing or reconstructing a particular drain is an amount that the owners of land to be assessed may conveniently pay in installments over a five (5) year period, it may ask the county fiscal body to:

(1)obtain a loan from a bank, trust company, savings association, or savings bank authorized to engage in business in the county; or

(2)obtain funds in the manner prescribed by IC 36-2-6-18, IC 36-2-6-19, and IC 36-2-6-20; to finance that construction or reconstruction.

(b)A loan obtained under this section:

(1)must have a fixed or variable interest rate;

(2)must mature within six (6) years after the day it is obtained;

(3)shall be repaid from installments collected from assessments of lando

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5. (a) Whenever the board determines by
resolution spread upon its minutes that the cost of constructing or
reconstructing a particular drain is an amount that the owners of land
to be assessed may conveniently pay in installments over a five (5) year
period, it may ask the county fiscal body to:
(1) obtain a loan from a bank, trust company, savings association,
or savings bank authorized to engage in business in the county; or
(2) obtain funds in the manner prescribed by IC 36-2-6-18, IC 36-2-6-19, and IC 36-2-6-20;
to finance that construction or reconstruction.
(b) A loan obtained under this section:
(1) must have a fixed or variable interest rate;
(2) must mature within six (6) years after the day it is obtained;
(3) shall be repaid from installments collected from assessments
of landowners over a five (5) year period;
(4) is not subject to the provisions of section 94 of this chapter
that concern interest; and
(5) is not subject to the penalty provisions under IC 6-1.1-37-10
if the installments are timely paid.
(c) A construction loan fund is established for each construction or
reconstruction project loan that the board and the county fiscal body
authorize under this section. A construction loan fund consists of all
payments received from the owners assessed for the construction or
reconstruction project and may be used only to repay the associated
loan. If money remains in a construction loan fund after the associated
loan is paid in full, the remaining money in the fund may be transferred
to the general drain improvement fund.
(d) A county auditor shall maintain a separate ledger sheet for each
construction loan fund established under subsection (c) and record on
the separate ledger sheet all payments of principal and interest received
from the owners assessed for the associated construction or
reconstruction project.
(e) A county auditor shall deposit all payments of principal and
interest received from the owners assessed for a construction or
reconstruction project in the associated construction loan fund.
(f) The board shall determine whether interest on the loan is to be
a part of the final assessment under section 84(a) of this chapter.
(g) Notwithstanding section 85(c) of this chapter, interest on the
loan may be charged back to the benefited landowner at a rate that is
set in accordance with subsection (b).