Loan terms; repayment schedule
Sec. 4. (a) The board shall determine the terms of a loan made
under this chapter. However, the interest charged on the loan may not
exceed the percent of increase in the United States Department of
Labor Consumer Price Index for Urban Wage Earners and Clerical
Workers during the most recent twelve (12) month period for which
data is available as of the date that the unit applies for a loan under
this chapter. In the case of a qualified taxing unit that is not a school
corporation or a public library (as defined in IC 36-12-1-5), a loan
must be repaid not later than ten (10) years after the date on which
the loan was made. In the case of a qualified taxing unit that is a
school corporation or a public library (as defined in IC 36-12-1-5),
a loan must be repaid not later than eleven (11) years after the date
on which the loan was made. A school corporation or a public library
(as defined in IC 36-12-1-5) is not required to begin making
payments to repay a loan until after June 30, 2004. The total amount
of all the loans made under this chapter may not exceed twenty-eight
million dollars ($28,000,000). The board may disburse the proceeds
of a loan in installments. However, not more than one-third (1/3) of
the total amount to be loaned under this chapter may be disbursed at
any particular time without the review of the budget committee and
the approval of the budget agency.
(b) A loan made under this chapter shall be repaid only from:
(1) 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;
(2) in the case of a school corporation, the school corporation's
debt service fund; or
(3) any other source of revenues (other than property taxes) that
is legally available to the qualified taxing unit.
The payment of any installment of principal constitutes a first charge
against the property tax revenues described in subdivision (1) that are
collected by the qualified taxing unit during the calendar year the
installment is due and payable.
(c) The obligation to repay a loan made under this chapter 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 does not prohibit a 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.
(f) Interest accrues on a loan made under this chapter until the
date the board receives notice from the county auditor that the county
has adopted at least one (1) of the following:
(1) The county adjusted gross income tax under IC 6-3.5-1.1.
(2) The county option income tax under IC 6-3.5-6.
(3) The county economic development income tax under
IC 6-3.5-7.
Notwithstanding subsection (a), interest may not be charged on a
loan made under this chapter if a tax described in this subsection is
adopted before a qualified taxing unit applies for the loan.
As added by P.L.157-2002, SEC.1. Amended by P.L.267-2003,
SEC.2; P.L.1-2005, SEC.93; P.L.228-2005, SEC.23 and
P.L.246-2005, SEC.66.
Last modified: May 28, 2006