The organizer's constitution, charter, articles, or bylaws must contain a clause providing that upon the cessation of operation of the charter school:

1. (1) the remaining assets of the charter school shall be distributed first to satisfy outstanding payroll obligations for employees of the charter school, then to creditors of the charter school, then to any outstanding debt to the common school fund; and

2. (2) the remaining funds received from the department shall be returned to the department not more than thirty (30) days after the charter school ceases operation due to:

   1. (A) closure of the charter school;
   2. (B) nonrenewal of the charter school's charter; or

   3. (C) revocation of the charter school's charter.

      If the assets of the charter school are insufficient to pay all parties to whom the charter school owes compensation under subdivision (1), the priority of the distribution of assets may be determined by a court.

      [Pre-2005 Elementary and Secondary Education Recodification Citation: 20-5.5-3-3.1.]

As added by P.L.1-2005, SEC.8. Amended by P.L.280-2013, SEC.23; P.L.127-2016, SEC.11.