6145 - SHORT-TERM INDEBTEDNESS

When the School Board determines that an emergency condition exists within a particular fund(s) and that the revenue being generated will not meet the current projected needs, the Superintendent may initiate procedures to acquire the necessary revenue from emergency loans, advance draws, or tax anticipation warrants.

The appropriate bid procedure is to be followed for all short-term loans authorized by the Board. Funds are to be borrowed from the institutions or organizations offering the terms most favorable to the School Corporation following approval by the Board.

The Corporation may borrow the money necessary to finance a "public work" project that will cost not more than two million dollars ($2,000,000.00) or an "eligible efficiency project" that will cost not more than $3,000,000. A "public work" means a project for the construction of a public building, highway, street, bridge, sewer, drain, or any other public facility that is paid for out of public funds. An "eligible efficiency project" means a project necessary or useful to carry out an interlocal cooperation agreement entered into by two or more political subdivisions or governmental entities under I.C. 36-1-7 or a project necessary or useful to the consideration of local government services.

The Corporation may borrow the money for this purpose from a financial institution in Indiana by executing and delivering to the financial institution a negotiable note of the School Corporation for the sum borrowed. The note must bear interest, with both principal and interest payable in equal installments on January 1st and July 1st each year over a period not exceeding ten (10) years.

Any emergency loans, advance draws, or tax anticipation warrants authorized by the Board must be issued in compliance with I.C. 20-48-1 and Federal law.

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