Indiana Code 20-25-5-15. Equitable disposition of assets and liabilities, allocation of taxes, and payment by acquiring school corporation
(1) Except for current obligations or temporary borrowing, the acquiring school corporation shall assume a part of all installments of principal and interest on the indebtedness of the losing school corporation that is due after the end of the last calendar year in which the losing school corporation is entitled to receive current tax receipts from property tax levies on the property in the annexed territory. The part assumed by the acquiring school corporation consists of the following:
Terms Used In Indiana Code 20-25-5-15
- acquiring school corporation: means the school corporation that acquires territory as a result of annexation. See Indiana Code 20-25-5-1
- annexed territory: means the territory acquired by an acquiring school corporation as a result of annexation from a losing school corporation. See Indiana Code 20-25-5-3
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- losing school corporation: means a school corporation that loses territory to an acquiring school corporation by annexation. See Indiana Code 20-25-5-6
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- real property: include lands, tenements, and hereditaments. See Indiana Code 1-1-4-5
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- school corporation: means a public school corporation of the state located in whole or in part in a county containing a consolidated city. See Indiana Code 20-25-5-9
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(B) A proportion of all installments relating to any other indebtedness that is in the same proportion as the valuation of the real property in the annexed territory bears to the valuation of all the real property in the losing school corporation. Valuation under this clause is based upon the assessment for general taxation immediately before annexation.
(2) The acquiring school corporation shall make the payments and assume the obligations provided for a school corporation acquiring:
(A) territory;
(B) a building or buildings; or
(C) both territory and a building or buildings;
under IC 20-47-5.
(3) If the annexed territory includes an entire losing school corporation, the acquiring school corporation shall:
(A) acquire all the property and assets of the losing school corporation without making any payments for the losing school corporation; and
(B) assume all of the liabilities and obligations of the losing school corporation.
[Pre-2005 Elementary and Secondary Education Recodification Citation: 20-3-14-7.]
As added by P.L.1-2005, SEC.9. Amended by P.L.231-2005, SEC.27; P.L.2-2006, SEC.115.