Sec. 17. (a) A district:

(1) pending receipt of any grant; or

Terms Used In Indiana Code 36-7-29-17

(2) in anticipation of the issuance of district bonds under this chapter;

may borrow money from any person and evidence the debt by a note or notes executed by the chairperson of the board and the treasurer of the district. The note or notes must contain the terms and provisions prescribed by the board.

     (b) An issuance of a note or notes or evidence of indebtedness under this section may be sold at a public or private negotiated sale.

     (c) A note or notes issued or renewed under this section must mature not more than five (5) years from the date of issuance of the original note and must pledge for the payment of the principal and interest the proceeds of the grant or district bonds.

     (d) The board shall apply the proceeds of any note or notes issued under this section to the cost of the substance removal or remedial action for which the grant is to be made or bonds issued, but no purchaser of any obligations is liable for the proper application of the proceeds.

     (e) Notes issued under this section must be approved by a resolution of the board.

As added by P.L.44-1994, SEC.11.