2021 Indiana Code
Title 20. Education
Article 49. State Management of Common School Funds; State Advances and Loans
Chapter 10. Advancement From Common School Fund; Improvements in School Security
20-49-10-14. Sale, Transfer, or Liquidation of Agreements
Sec. 14. (a) Upon request of the treasurer of state, the state board of finance may periodically sell, transfer, or liquidate agreements, in whole or in part, including without limitation the sale, transfer, or liquidation of all or any part of the principal or interest to be received at any time under one (1) or more agreements that evidence the right of the state to make deductions from state tuition support to pay advances under this chapter under the terms and conditions that the state board of finance considers necessary and appropriate.
(b) Each sale, transfer, or liquidation under this section is subject to the following conditions:
(1) Each sale, transfer, or liquidation may be made only to a department, an agency, a commission, an instrumentality, or a public body of the state, including the Indiana bond bank.
(2) Each sale, transfer, or liquidation of agreements may be made only for cash.
(3) Payments under the sale, transfer, or liquidation must be made to the treasurer of state for the fund and reported to the state board of finance.
(4) The total amount of cash received by the fund from the sale may not be less than the outstanding principal amount of all or a part of the agreements sold plus accrued interest owed.
(5) If necessary to facilitate a sale, transfer, or liquidation, the state board or the state board of finance may agree to act on behalf of an entity described in subdivision (1) by collecting payment on advances that are:
(A) received directly from a school corporation, if any direct payments are received; or
(B) deducted from amounts appropriated and made available for state tuition support.
An agreement by the state board or the state board of finance under this subdivision is a valid and an enforceable contractual obligation but is not a debt of the state within the meaning of the limitation against indebtedness under the Constitution of the State of Indiana.
(6) Each proposed sale, transfer, or liquidation must be reviewed by the budget committee and approved by the budget agency.
(c) The state board of finance shall notify the state board and the department of any action that the state board of finance takes under this section.
As added by P.L.259-2019, SEC.14.
