2021 Indiana Code
Title 20. Education
Article 49. State Management of Common School Funds; State Advances and Loans
Chapter 9. Charter and Innovation School Advance Program
20-49-9-14. Authority to Renegotiate the Terms of an Advance; Application Process
Sec. 14. (a) The organizer of a charter school is the fiscal agent for the charter school and has exclusive control of the funds received by the charter school and all financial matters pertaining to the charter school. For purposes of this chapter, all references to a school or a charter school, including, but not limited to, the obligation to repay an advance, incorporate the organizer of the charter school.
(b) With formal approval from the charter school's governing body, a charter school that has received an advance under this chapter may submit an application to the treasurer of state to renegotiate the terms of an advance. The application process established by the treasurer of state shall include information that permits the treasurer of state to determine whether amending the original terms of the advance will increase the likelihood that the outstanding advance balance, including accrued interest, will be paid in full.
(c) In making its determination, the treasurer of state may consider the following factors:
(1) whether the outstanding advance balance is free from obligation to or encumberment from any other lawful instrument, program, proceeding, or financial instrument;
(2) whether the annual per-student cost of the outstanding advance balance exceeds the average annual per-student cost of all outstanding advance balances;
(3) whether the annual per-student cost of the outstanding advance balance as a percentage of the basic tuition support received for the student exceeds five percent (5%);
(4) whether the annual per-student cost of the outstanding advance balance has increased over the last two (2) years; and
(5) any other factors determined relevant by the treasurer of state.
(d) If, after review of the information required under subsection (b) and consideration of the factors listed in subsection (c), the treasurer of state determines that renegotiating the original terms of the advance will increase the likelihood that the outstanding advance balance, including accrued interest, will be paid in full, the treasurer of state shall approve the school's request.
(e) If the treasurer of state approves a charter school's request, the charter school's governing body shall enter into a new agreement with the treasurer of state for repayment of the outstanding advance balance. The following apply:
(1) The new agreement must:
(A) include a provision providing that the treasurer of state may withhold from funds due to the charter school to which the advance is made until the advance is paid; and
(B) include any other provisions determined necessary by the treasurer of state to facilitate repayment.
(2) The new agreement may:
(A) set a new term for the advance that does not exceed twenty-five (25) years from the date the original advance was made; and
(B) set a new interest rate for the remaining term of the advance which may be no lower than one percent (1%) and no higher than two percent (2%) per annum.
(f) An application to amend the terms of an advance or amendment of the terms of an advance do not constitute a finding regarding the school's financial condition other than with respect to the repayment of an advance made under this chapter.
As added by P.L.165-2021, SEC.170.