Sec. 17. (a) An advance is not an obligation of the school corporation within the meaning of the limitation on or prohibition against indebtedness under the Constitution of the State of Indiana. Nothing in this chapter relieves the governing body of a school corporation or charter school receiving an advance of any obligation under Indiana law to qualify the school corporation or charter school for state tuition support. The school corporation or charter school shall continue to perform all acts necessary to obtain these funds.

     (b) Notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to a charter school, an advance to a charter school under this chapter is a preferred claim and has priority over all other claims.

[Pre-2006 Recodification Citation: 21-1-5-7(a) part.]

As added by P.L.2-2006, SEC.172. Amended by P.L.189-2023, SEC.52.

Terms Used In Indiana Code 20-49-4-17

  • advance: means an advance under this chapter from the fund. See Indiana Code 20-49-4-3
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • 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.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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