Indiana § 8-1.5-3-12 Loan from utility to municipality; loan requirements; limitation on
amount

Indiana Statutes

§ 8-1.5-3-12 — Loan from utility to municipality; loan requirements; limitation on amount

Indiana § 8-1.5-3-12

Art. 1.5MUNICIPAL UTILITIES

Ch. 3Operation of Municipally Owned Utilities Generally

This text of Indiana § 8-1.5-3-12 (Loan from utility to municipality; loan requirements; limitation on amount) 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 § 8-1.5-3-12 (2026).

Text

(a)A municipality may, by ordinance of its legislative body, borrow money from a utility owned by the municipality for any of the following purposes:

(1)Current purposes in anticipation of taxes levied and to be collected during the current or following year.

(2)Carrying out an eligible efficiency project (as defined in IC 36-9-41-1.5) within the municipality.

(b)The board may by resolution lend money to the municipality if the utility has on hand:

(1)a surplus of cash exceeding by at least the amount loaned the sum of all amounts required to pay the indebtedness of the utility falling due during the current calendar year and the following year;

(2)the amount necessary to meet current expenses during the year; and

(3)the amount necessary to pay for improvements contemplated to be ma

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(a) A municipality may, by ordinance of its
legislative body, borrow money from a utility owned by the
municipality for any of the following purposes:
(1) Current purposes in anticipation of taxes levied and to be
collected during the current or following year.
(2) Carrying out an eligible efficiency project (as defined in IC 36-9-41-1.5) within the municipality.
(b) The board may by resolution lend money to the municipality if
the utility has on hand:
(1) a surplus of cash exceeding by at least the amount loaned the
sum of all amounts required to pay the indebtedness of the utility
falling due during the current calendar year and the following
year;
(2) the amount necessary to meet current expenses during the
year; and
(3) the amount necessary to pay for improvements contemplated
to be made during the current calendar year minus the estimated
receipts during the calendar year.
(c) A loan made under subsection (a)(1) may not be made for a sum
in excess of fifty percent (50%) of the amount estimated to be collected
from anticipated taxes.
(d) A loan under this section:
(1) must be evidenced by an obligation of the municipality;
(2) must be signed by the executive;
(3) is due:
(A) on or before thirty (30) days after the last day for the
payment of anticipated taxes, in the case of a loan made under
subsection (a)(1); and
(B) on a date determined by the board (but not more than six (6)
years after the date of the loan), in the case of a loan made
under subsection (a)(2); and
(4) may bear interest at any rate as determined by the board,
payable at maturity.
As added by Acts 1982, P.L.74, SEC.1. Amended by
P.L.88-2009, SEC.2.