Ind. Code ch. 6-1.1-21.4

in effect

Ind. Code § 6-1.1-21.4-0.5 "ADM"

Sec. 0.5. As used in this chapter, "ADM" refers to a school corporation's average daily membership as determined under IC 20-43-4-2. As added by P.L.145-2012, SEC.15.

Ind. Code § 6-1.1-21.4-1 "Board"

Sec. 1. As used in this chapter, "board" refers to the state board of finance. As added by P.L.131-2008, SEC.5.

Ind. Code § 6-1.1-21.4-2 "Eligible school corporation"

Sec. 2. As used in this chapter, "eligible school corporation" refers to any of the following: (1) A school corporation located in a county in which distributions of property tax revenue for 2007 or 2008 to the taxing units (as defined in IC 6-1.1-1-21) of the county: (A) have not been made; or (B) were delayed by more than sixty (60) days after either due date specified in IC 6-1.1-22-9. (2) A school corporation that is: (A) designated by the distressed unit appeal board as a distressed political subdivision under IC 6-1.1-20.3; or (B) approved for a loan by the distressed unit appeal board under IC 6-1.1-20.3-8.3. (3) A school corporation that had a loan from the counter-cyclical revenue and economic stabilization fund denied in October 2013. However, the school corporation is not an eligible school corporation if in 2014 the voters approve a referendum tax levy for the school corporation under IC 20-46-1. As added by P.L.131-2008, SEC.5. Amended by P.L.145-2012, SEC.16; P.L.166-2014, SEC.5.

Ind. Code § 6-1.1-21.4-3 Eligible school corporation; maximum loan; loan terms

Sec. 3. (a) An eligible school corporation may apply to the board for a loan from the counter-cyclical revenue and economic stabilization fund. (b) Subject to subsections (c) and (d) and section 3.5 of this chapter, an eligible school corporation described in section 2(2) of this chapter may apply to the board for a loan. The maximum amount of a loan that the board may approve for the eligible school corporation is the lesser of the following: (1) Five million dollars ($5,000,000). (2) The product of: (A) one thousand dollars ($1,000); multiplied by (B) the school corporation's 2012 ADM. (c) At the time the distressed unit appeal board designates a school corporation as a distressed political subdivision under IC 6-1.1-20.3 or recommends under IC 6-1.1-20.3-8.3 that a loan from the fund be approved for a school corporation, the distressed unit appeal board may also recommend to the state board of finance that a loan from the fund to the school corporation be contingent upon any of the following: (1) The sale of specified unused property by the school board. (2) The school corporation modifying one (1) or more specified contracts entered into by the school corporation. (d) In making a loan from the fund to a school corporation, the state board of finance may make the loan contingent upon any condition recommended by the distressed unit appeal board under subsection (c). (e) This subsection applies only to an eligible school corporation described in section 2(3) of this chapter. The board shall make the loan to the eligible school corporation. The following apply to a loan made under this subsection: (1) The maximum amount of a loan set forth in subsection (b). (2) Sections 3.5 through 7 of this chapter. In addition, an eligible school corporation receiving a loan under this subsection shall sell any unimproved land owned by the eligible school corporation that on April 1, 2014, is not contiguous to the grounds of any school. As added by P.L.131-2008, SEC.5. Amended by P.L.145-2012, SEC.17; P.L.166-2014, SEC.6.

Ind. Code § 6-1.1-21.4-3.5 Termination of authority to make loans

Sec. 3.5. The board may not approve a loan under this chapter after December 31, 2017. As added by P.L.145-2012, SEC.18.

Ind. Code § 6-1.1-21.4-4 Board determination of loan amount; disbursement of funds; loan repayment; no excessive levy; deposit of payments received

Sec. 4. (a) The board, after review by the budget committee, shall determine the terms of any loan made under this chapter. The interest rate on the loan is the interest rate established by the commissioner of the department of state revenue under IC 6-8.1-10-1 minus two percent (2%), but in no case shall the interest rate be less than one percent (1%). (b) The total amount of loans under this chapter may not exceed the following: (1) Six million dollars ($6,000,000) for all calendar years ending before January 1, 2012. (2) The sum of the amounts approved under section 3(b) of this chapter for all calendar years beginning after December 31, 2011, plus the outstanding balance of all loans that were made under this chapter before 2012. (c) An eligible school corporation receiving a loan under this chapter must repay the loan within seventy-two (72) months after the date on which the loan is made. (d) The board may disburse in installments the proceeds of a loan made under this chapter. (e) An eligible school corporation may repay a loan made under this chapter from any sources of revenue. (f) The obligation to repay a loan made under this chapter is not a basis for an eligible school corporation to obtain an excessive tax levy under IC 6-1.1-19. (g) Whenever the board receives a payment on a loan made under this chapter, the board shall deposit the amount paid in the counter-cyclical revenue and economic stabilization fund. As added by P.L.131-2008, SEC.5. Amended by P.L.145-2012, SEC.19.

Ind. Code § 6-1.1-21.4-5 Effects on levy excess funds

Sec. 5. The proceeds of a loan received by an eligible school corporation under this chapter are not considered to be part of the ad valorem property tax levy actually collected by the eligible school corporation for taxes first due and payable during a particular calendar year for the purpose of calculating levy excess. As added by P.L.131-2008, SEC.5.

Ind. Code § 6-1.1-21.4-6 Loan is not bonded indebtedness

Sec. 6. A loan under this chapter is not bonded indebtedness for purposes of IC 6-1.1-18.5 or IC 6-1.1-20. As added by P.L.131-2008, SEC.5. Amended by P.L.145-2012, SEC.20.

Ind. Code § 6-1.1-21.4-7 Failure to repay loan

Sec. 7. Upon the failure of a school corporation to repay any of the school corporation's obligations under this chapter during a calendar year when due, the treasurer of state, upon being notified of the failure by the board, shall pay the unpaid obligations that are due from money in the possession of the state that would otherwise be available for distribution to the school corporation under any other law, deducting the payment from the amount distributed. However, the treasurer of state may not impair the rights of the school corporation's bondholders. As added by P.L.145-2012, SEC.21.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026