1. (a) A district coming under this chapter may borrow money for a term not to exceed two (2) years, which may be renewed for a term of two (2) years, from a bank organized under state or federal statutes or from a state or federal agency in anticipation of the receipt of money from any source, including the following:

   1. (1) Grants and loans from state or federal agencies.
   2. (2) Money from the sale of bonds, notes, or other evidences of indebtedness proposed to be issued under this chapter.
2. (b) The district may pledge the money to be received to the repayment of the principal and interest of the borrowing.

3. (c) The interim financing may also be repaid from the sale of bonds, notes, or other evidences of indebtedness without designating the bonds, notes, or other evidences of indebtedness as refunding obligations. The proceeds of interim financing may be used in whole or part for the following:

   1. (1) The acquisition of real, personal, or mixed property, or options on real, personal, or mixed property.
   2. (2) Services reasonably necessary to provide water supply for domestic, industrial, and public use.

4. (d) Interim financing may be negotiated and consummated directly between the district and the state or federal bank or state or federal agency without public offering. The district may make covenants to the lender and the lender has the rights and remedies that are authorized by this article.

   [Pre-1995 Recodification Citation: 13-3-4-9.]

As added by P.L.1-1995, SEC.26.