(a) A municipality may, by ordinance of its legislative body, borrow money from a utility owned by the municipality for any of the following purposes:

1. (1) Current purposes in anticipation of taxes levied and to be collected during the current or following year.
2. (2) Carrying out an eligible efficiency project (as defined in IC 36-9-41-1.5 ) within the municipality.

(b) The board may by resolution lend money to the municipality if the utility has on hand:

1. (1) a surplus of cash exceeding by at least the amount loaned the sum of all amounts required to pay the indebtedness of the utility falling due during the current calendar year and the following year;
2. (2) the amount necessary to meet current expenses during the year; and
3. (3) the amount necessary to pay for improvements contemplated to be made during the current calendar year minus the estimated receipts during the calendar year.

(d) A loan under this section:

1. (1) must be evidenced by an obligation of the municipality;
2. (2) must be signed by the executive;

3. (3) is due:

   1. (A) on or before thirty (30) days after the last day for the payment of anticipated taxes, in the case of a loan made under subsection (a)(1); and
   2. (B) on a date determined by the board (but not more than six (6) years after the date of the loan), in the case of a loan made under subsection (a)(2); and

4. (4) may bear interest at any rate as determined by the board, payable at maturity.

   As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.88-2009, SEC.2.