1. (a) This section applies if a governing body finds by written resolution that an emergency exists that requires the expenditure of money for a lawful corporate purpose that was not included in the school corporation's existing budget and tax levy.
2. (b) If a governing body makes a finding specified in subsection (a), the governing body may authorize making an emergency loan that may be evidenced by the issuance of the school corporation's note in the same manner and subject to the same procedure and restrictions as provided for the issuance of the school corporation's bonds, except as to purpose.

3. (c) If a governing body authorizes an emergency loan as specified in subsection (b), the governing body shall, at the time for making the next annual budget and tax levy for the school corporation, make a levy to the credit of the fund for which the expenditure is made sufficient to pay the loan and the interest on the loan. However, the interest on the loan may be paid from the debt service fund. A governing body may not increase the debt service fund levy to pay for the interest on the loan unless:

   1. (1) the loan has been issued; and
   2. (2) the school corporation has received the loan proceeds.

4. (d) A governing body may not authorize an emergency loan for the purpose of increasing the school corporation's property tax rate for the ensuing budget year.

   [Pre-2006 Recodification Citation: 21-2-21-6.]

As added by P.L.2-2006, SEC.171. Amended by P.L.38-2021, SEC.70.