Issuance of refunding bonds by certain eligible school corporations
Ind. Code § 5-1-5-2.6
in effectSec. 2.6. (a) This section applies as an alternative to section 2.5 of this chapter.
(b) As used in this section, "eligible school corporation" means a school corporation (as defined in IC 36-1-2-17) that satisfies all the conditions required by this section.
(c) As used in this section, "increment" means the annual difference between:
(1) the annual debt service payment for the bonds proposed to be retired or refunded; and
(2) the annual debt service payment for the proposed refunding bonds;
for each year that the bonds that are being retired or refunded would have been outstanding.
(d) In order for a school corporation to be an eligible school corporation under this section, the school corporation must determine that:
(1) the percentage computed under subsection (e) for the school corporation is at least sixty percent (60%); and
(2) application of this section will not reduce revenue to other local units in the same county;
regarding the year for which the latest certified levies have been determined.
(e) A school corporation shall compute its percentage as follows:
(1) Compute the amount of credits granted under IC 6-1.1-20.6 against the school corporation's levy for the school corporation's operations fund (IC 20-46-8).
(2) Compute the school corporation's levy for the school corporation's operations fund.
(3) Divide the amount computed under subdivision (1) by the amount computed under subdivision (2) and express it as a percentage.
(f) A school corporation that desires to be an eligible school corporation under this section must submit a written request for a certification by the department of local government finance that the computation of the school corporation's percentage computed under subsection (d)(1) and school corporation's determination under subsection (d)(2) are correct. The department of local government finance shall, not later than thirty (30) business days after the date the department receives the school corporation's request, make its determination and, if correct, certify that the percentage computed under subsection (d)(1) and the determination under subsection (d)(2) for the school corporation meets the definition of an eligible school corporation.
(g) A school corporation that desires to be an eligible school corporation under this section must, and notwithstanding any other law, adopt a resolution that sets forth the following:
(1) The determinations made under subsection (d)(1) and (d)(2), including the department of local government finance's certification of the percentage computed under subsection (e) and determination under subsection (d)(2).
(2) A determination providing for the:
(A) issuance of bonds to refund bonds or leases issued by or on behalf of the school corporation before July 1, 2025; and
(B) payment of redemption premiums and the costs of the refunding.
(3) With respect to the refunding bonds, the following:
(A) The maximum principal amount.
(B) The maximum interest rate.
(C) The annual lease or debt service payment.
(D) The final maturity date.
(E) The estimated amount of the increment that will occur for each year that the bonds that are being retired or refunded by the issuance of refunding bonds would have been outstanding.
(F) A finding that the annual debt service or lease payment on the refunding bonds will not increase the annual debt service or lease payment above the annual debt service or lease payment approved by the school corporation for the original project.
If the governing body adopts a resolution under this section, the governing body must publish notice of the adoption of the resolution as required by IC 5-3-1.
(h) An eligible school corporation may issue refunding bonds as permitted by this section. In addition, an eligible school corporation may extend the repayment period beyond the repayment period for the bonds that are being retired or refunded by the issuance of refunding bonds. However, the repayment period may be extended only once for a particular bond, and the extension may not exceed ten (10) years after the latest maturity date for any of the bonds being retired or refunded by the eligible school corporation under this section.
As added by P.L.157-2026, SEC.15.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026