Terms of loan; interest; repayment; depository
Sec. 5. (a) The board shall determine the terms of a loan made
under this chapter. However, interest may not be charged on the loan,
and the loan must be repaid not later than ten (10) years after the date
on which the loan was made.
(b) The loan shall be repaid only from property tax revenues of the
qualified taxing unit that are subject to the levy limitations imposed
by IC 6-1.1-18.5 or IC 6-1.1-19. The payment of any installment of
principal constitutes a first charge against such property tax revenues
as collected by the qualified taxing unit during the calendar year the
installment is due and payable.
(c) The obligation to repay the loan is not a basis for the qualified
taxing unit to obtain an excessive tax levy under IC 6-1.1-18.5 or
IC 6-1.1-19.
(d) Whenever the board receives a payment on a loan made under
this chapter, the board shall deposit the amount paid in the
counter-cyclical revenue and economic stabilization fund.
(e) This section may not be construed to prevent the qualified
taxing unit from repaying a loan made under this chapter before the
date specified in subsection (a) if a taxpayer described in section 3
of this chapter resumes paying property taxes to the qualified taxing
unit.
As added by P.L.380-1987(ss), SEC.5. Amended by P.L.291-2001,
SEC.209.
Last modified: May 28, 2006