Sec. 15. (a) Money advanced to a school corporation or charter school for a school building construction program may be advanced for a period not exceeding twenty-five (25) years. The school corporation or charter school to which money is advanced must pay interest on the advance. For advances made before July 1, 1993, the state board may provide, either before an advance is made or before an advance is fully paid, that the payment of the advance may not be prepaid by more than six (6) months. For advances made after June 30, 1993, for school building construction programs, the state board may provide that the advances are prepayable at any time.

     (b) The state board of finance shall periodically establish the rate or rates of interest payable on advances for school building construction programs as long as:

Terms Used In Indiana Code 20-49-4-15

  • advance: means an advance under this chapter from the fund. See Indiana Code 20-49-4-3
  • charter school: refers to a school established under IC 20-24. See Indiana Code 20-49-4-3.5
  • 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.
  • 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
  • school building construction program: means the following:

    Indiana Code 20-49-4-7

(1) the established interest rate or rates do not exceed seven and one-half percent (7.5%); and

(2) the interest rate or rates on advances made to school corporations with advances outstanding on July 1, 1993, bearing interest at seven and one-half percent (7.5%) or more shall not exceed four percent (4%).

[Pre-2006 Recodification Citation: 21-1-5-5(a).]

As added by P.L.2-2006, SEC.172. Amended by P.L.189-2023, SEC.50.

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