1. (a) Temporary loans may be authorized and made by the board of trustees in anticipation of the collection of taxes of the corporation actually levied and in course of collection for the fiscal year in which the loans are made. The loans shall be authorized by ordinance and evidenced by warrants in the form provided by the ordinance. The warrants must state the following:

   1. (1) The total amount of the issue.
   2. (2) The denomination of the warrant.
   3. (3) The time and place the warrant is payable.
   4. (4) The rate of interest not exceeding five percent (5%).
   5. (5) The funds in anticipation of which the warrants are issued and out of which the warrants are payable.
   6. (6) A reference to the ordinance authorizing the warrant and the date of the warrant's passage.

2. (b) The ordinance authorizing the temporary loans shall appropriate and pledge sufficient current revenue in anticipation of which the warrants are issued and out of which the warrants are payable. The warrants evidencing the temporary loans shall be executed, sold, and delivered as the bonds of the corporation.

   [Pre-1993 Recodification Citation: 16-12-21-40.]

As added by P.L.2-1993, SEC.5.