Sec. 3. (a) A temporary loan made under section 2 of this chapter must be authorized by a resolution of the board of school trustees or other proper authority:

(1) designating the:

(A) nature of the consideration;

(B) date, time, and place payable;

(C) rate of interest, not to exceed six percent (6%) per annum; and

(D) revenues in anticipation of which the temporary loan is made and out of which the temporary loan is payable; and

(2) appropriating and pledging a sufficient amount of current revenues of the school town or school city:

(A) in anticipation of which the temporary loan is made; and

(B) out of which the temporary loan is payable;

to the payment of the temporary loan.

A temporary loan must be evidenced by the time warrants of the school town or school city in terms designating the nature of the consideration, the date, time, and place payable, and the revenues in anticipation of which the temporary loan is issued and out of which the temporary loan is payable. Interest accruing on the warrants to date of maturity must be added to and included in the face value of the warrants.

(b) A school town or school city may issue the time warrants of the school corporation, in anticipation of current revenues of the school town or school city, directly to persons, firms, limited liability companies, and corporations in payment of approved services, materials, and supplies contracted for, purchased, performed, and delivered.

[Pre-2006 Recodification Citation: 21-4-20-2.]

As added by P.L.2-2006, SEC.171.