Indiana Code 20-49-9-14. Authority to renegotiate the terms of an advance; application process
(b) With formal approval from the charter school’s governing body, a charter school that has received an advance under this chapter may submit an application to the treasurer of state to renegotiate the terms of an advance. The application process established by the treasurer of state shall include information that permits the treasurer of state to determine whether amending the original terms of the advance will increase the likelihood that the outstanding advance balance, including accrued interest, will be paid in full.
Terms Used In Indiana Code 20-49-9-14
- advance: refers to an advance under this chapter. See Indiana Code 20-49-9-2
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- charter school: refers to a school established under IC 20-24. See Indiana Code 20-49-9-3
- 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
- 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.
- school: refers to a charter school or an innovation network school described in section 1(a)(2) of this chapter. See Indiana Code 20-49-9-4
(1) whether the outstanding advance balance is free from obligation to or encumberment from any other lawful instrument, program, proceeding, or financial instrument;
(2) whether the annual per-student cost of the outstanding advance balance exceeds the average annual per-student cost of all outstanding advance balances;
(3) whether the annual per-student cost of the outstanding advance balance as a percentage of the basic tuition support received for the student exceeds five percent (5%);
(4) whether the annual per-student cost of the outstanding advance balance has increased over the last two (2) years; and
(5) any other factors determined relevant by the treasurer of state.
(d) If, after review of the information required under subsection (b) and consideration of the factors listed in subsection (c), the treasurer of state determines that renegotiating the original terms of the advance will increase the likelihood that the outstanding advance balance, including accrued interest, will be paid in full, the treasurer of state shall approve the school’s request.
(e) If the treasurer of state approves a charter school’s request, the charter school’s governing body shall enter into a new agreement with the treasurer of state for repayment of the outstanding advance balance. The following apply:
(1) The new agreement must:
(A) include a provision providing that the treasurer of state may withhold from funds due to the charter school to which the advance is made until the advance is paid; and
(B) include any other provisions determined necessary by the treasurer of state to facilitate repayment.
(2) The new agreement may:
(A) set a new term for the advance that does not exceed twenty-five (25) years from the date the original advance was made; and
(B) set a new interest rate for the remaining term of the advance which may be no lower than one percent (1%) and no higher than two percent (2%) per annum.
(f) An application to amend the terms of an advance or amendment of the terms of an advance do not constitute a finding regarding the school’s financial condition other than with respect to the repayment of an advance made under this chapter.
As added by P.L.165-2021, SEC.170.