Ind. Code ch. 20-25.3-7

in effect

Ind. Code § 20-25.3-7-1 "Debt service"

Sec. 1. As used in this chapter, "debt service" includes bonds and coupons, civil bond obligations, lease rental contracts, and interest cost on emergency and temporary loans. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-7-2 "Fund"

Sec. 2. As used in this chapter, "fund" refers to a debt service fund established under section 3 of this chapter. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-7-3 Debt service fund created

Sec. 3. The corporation shall establish a debt service fund for purposes of paying the obligations of the corporation. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-7-4 Deposits in fund; use of money

Sec. 4. (a) The debt service fund shall be used to deposit revenue received from the debt service levy imposed under IC 20-46-7 for the purpose of paying all obligations of the corporation. (b) Money in the debt service fund may be used for payment of the following: (1) All debt and other obligations arising out of funds borrowed or advanced for school buildings when purchased from the proceeds of a bond issue for capital construction. (2) A lease to provide capital construction. (3) Interest on emergency and temporary loans. (4) All debt and other obligations arising out of funds borrowed or advanced for the purchase or lease of school buses when purchased or leased from the proceeds of a bond issue, or from money obtained from a loan made under IC 20-27-4-5, for that purpose. (5) All debt and other obligations arising out of funds borrowed to pay judgments against the corporation. (6) All debt and other obligations arising out of funds borrowed to purchase equipment. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-7-5 Restriction on use of money

Sec. 5. Money in the fund may not be used for payment of debt service, lease payments, or similar obligations for a controlled project that is approved by the voters in a referendum under IC 6-1.1-20. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-7-6 Allow lease rental obligations to be paid from fund; annual budget requirement

Sec. 6. (a) Lease rental obligations on account of leases entered into under IC 20-47-2 or IC 20-47-3 may be paid by a corporation from the debt service fund. (b) Payments described in subsection (a) must be provided for in the annual budget for the fund from which the payment is made. As added by P.L.101-2026, SEC.12.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026