Indiana Code 20-49-10-7. Terms and conditions of an advance
(1) A school corporation or charter school (or coalition of public schools filing jointly) must pay interest on the advance. The state board of finance shall periodically establish the rate or rates of interest payable on advances made under this chapter as long as the established interest rate or rates are not less than one percent (1%) and do not exceed four percent (4%).
Terms Used In Indiana Code 20-49-10-7
- advance: refers to an advance from the fund under this chapter. See Indiana Code 20-49-10-1
- charter school: refers to a school established under IC 20-24. See Indiana Code 20-49-10-2
- 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.
- fund: refers to the common school fund in the custody of the treasurer of state. See Indiana Code 20-49-10-3
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(3) The term of the advance may not exceed ten (10) years after the date of the advance.
(4) A school corporation or charter school (or a coalition of public schools applying jointly) must enter into an advance agreement with the state board before receiving an advance from the fund. The terms of the agreement must include a provision allowing the state board to withhold funds due to a school corporation or charter school to which an advance is made until the advance is paid.
As added by P.L.211-2018(ss), SEC.13.