Sec. 5. (a) If a school
corporation requires funds to purchase a school bus for cash, the school corporation may, instead of issuing general
obligation bonds, negotiate for and borrow funds or purchase the school bus on an installment conditional sales
contract or a promissory note secured by the school bus.
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Terms Used In Indiana Code 20-27-4-5
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(c) Before a note described in this section is executed, an appropriation for the amount of the purchase price of the school bus and any incidental expenses connected with the purchase or the loan, must be made in the same manner as other appropriations are made, except that the amount of the appropriation is not limited by the amount of funds available at the time of the loan or purchase or by the amount of funds to be raised by a tax levy effective at the time of the loan.
(d) A petition to borrow, a notice to taxpayers, or other formality is not necessary to borrow funds under this section except as specifically provided in this chapter.
[Pre-2005 Elementary and Secondary Education Recodification Citation: 20-9.1-6-5.]
As added by P.L.1-2005, SEC.11. Amended by P.L.233-2015, SEC.181.
