1. (a) An eligible school corporation may apply to the board for a loan from the counter-cyclical revenue and economic stabilization fund.

2. (b) Subject to subsections (c) and (d) and section 3.5 of this chapter, an eligible school corporation described in section 2(2) of this chapter may apply to the board for a loan. The maximum amount of a loan that the board may approve for the eligible school corporation is the lesser of the following:

   1. (1) Five million dollars ($5,000,000).

   2. (2) The product of:

      1. (A) one thousand dollars ($1,000); multiplied by
      2. (B) the school corporation's 2012 ADM.

3. (c) At the time the distressed unit appeal board designates a school corporation as a distressed political subdivision under IC 6-1.1-20.3 or recommends under IC 6-1.1-20.3-8.3 that a loan from the fund be approved for a school corporation, the distressed unit appeal board may also recommend to the state board of finance that a loan from the fund to the school corporation be contingent upon any of the following:

   1. (1) The sale of specified unused property by the school board.
   2. (2) The school corporation modifying one (1) or more specified contracts entered into by the school corporation.
4. (d) In making a loan from the fund to a school corporation, the state board of finance may make the loan contingent upon any condition recommended by the distressed unit appeal board under subsection (c).

5. (e) This subsection applies only to an eligible school corporation described in section 2(3) of this chapter. The board shall make the loan to the eligible school corporation. The following apply to a loan made under this subsection:

   1. (1) The maximum amount of a loan set forth in subsection (b).

   2. (2) Sections 3.5 through 7 of this chapter.

      In addition, an eligible school corporation receiving a loan under this subsection shall sell any unimproved land owned by the eligible school corporation that on April 1, 2014, is not contiguous to the grounds of any school.

As added by P.L.131-2008, SEC.5. Amended by P.L.145-2012, SEC.17; P.L.166-2014, SEC.6.