|School City of East Chicago|
|Bylaws & Policies|
6145 - SHORT-TERM INDEBTEDNESS
When the School Board determines that an emergency condition exists within a particular fund(s) and that the revenue being generated will not meet the current projected needs, the Treasurer may initiate procedures to acquire the necessary revenue from emergency loans, advance draws, or tax anticipation warrants.
The appropriate bid procedure is to be followed for all short-term loans authorized by the Board. Funds are to be borrowed from the institutions or organizations offering the terms most favorable to the School Corporation following approval by the Board.
The School Corporation may borrow the money necessary to finance a "public work" project that will cost not more than two million dollars ($2,000,000.00). A "public work" means a project for the construction of a public building, highway, street, bridge, sewer, drain, or any other public facility that is paid for out of public funds.
The School Corporation may borrow the money for this purpose from a financial institution in Indiana by executing and delivering to the financial institution a negotiable note of the School Corporation for the sum borrowed. The note must bear interest, with both principal and interest payable in equal installments on January 1st and July 1st each year over a period not exceeding six (6) years.
I.C. 21-2-6 thru 8
© Neola 2006