Ind. Code ch. 20-40-9

in effect

Ind. Code § 20-40-9-1 "Debt service"

Sec. 1. As used in this chapter, "debt service" includes bonds and coupons, civil bond obligations, lease rental contracts, and interest cost on emergency and temporary loans. [Pre-2006 Recodification Citations: 21-2-4-2 part; 21-2-4-4 part.] As added by P.L.2-2006, SEC.163.

Ind. Code § 20-40-9-2 "Fund"

Sec. 2. As used in this chapter, "fund" refers to a debt service fund established under section 4 of this chapter. [2006 Recodification Citation: New.] As added by P.L.2-2006, SEC.163.

Ind. Code § 20-40-9-3 "Levy"

Sec. 3. As used in this chapter, "levy" refers to a debt service levy under IC 20-46-7 for the fund. [2006 Recodification Citation: New.] As added by P.L.2-2006, SEC.163.

Ind. Code § 20-40-9-4 Establishment of fund

Sec. 4. The governing body of each school corporation shall establish a debt service fund. [Pre-2006 Recodification Citation: 21-2-4-2 part.] As added by P.L.2-2006, SEC.163.

Ind. Code § 20-40-9-5 Uses; required use of fund

Sec. 5. Except as otherwise provided by law, all expenditures for debt service must be paid from the fund. [Pre-2006 Recodification Citation: 21-2-4-4 part.] As added by P.L.2-2006, SEC.163.

Ind. Code § 20-40-9-6 Uses; payment of debt and lease expenses

Sec. 6. Money in the debt service fund may be used for payment of the following: (1) All debt and other obligations arising out of funds borrowed or advanced for school buildings when purchased from the proceeds of a bond issue for capital construction. (2) A lease to provide capital construction. (3) Interest on emergency and temporary loans. (4) All debt and other obligations arising out of funds borrowed or advanced for the purchase or lease of school buses when purchased or leased from the proceeds of a bond issue, or from money obtained from a loan made under IC 20-27-4-5, for that purpose. (5) All debt and other obligations arising out of funds borrowed to pay judgments against the school corporation. (6) All debt and other obligations arising out of funds borrowed to purchase equipment. [Pre-2006 Recodification Citation: 21-2-4-2 part.] As added by P.L.2-2006, SEC.163. Amended by P.L.257-2013, SEC.38; P.L.85-2017, SEC.82; P.L.244-2017, SEC.80.

Ind. Code § 20-40-9-7 Use of money

Sec. 7. Money in the fund may not be used for payment of debt service, lease payments, or similar obligations for a controlled project that is approved by the voters in a referendum under IC 6-1.1-20. [Pre-2006 Recodification Citations: subsection (a) formerly 21-2-4-2(7); subsection (b) formerly 21-2-4-2 part.] As added by P.L.2-2006, SEC.163. Amended by P.L.286-2013, SEC.118; P.L.244-2017, SEC.81; P.L.140-2018, SEC.14; P.L.201-2023, SEC.184.

Ind. Code § 20-40-9-8 Uses; lease rentals; prohibition on lease payments from the education fund

Sec. 8. (a) Lease rental obligations on account of leases entered into under IC 21-5-11 (before its repeal), IC 20-47-2, IC 21-5-12 (before its repeal), or IC 20-47-3 may be paid by a school corporation from the debt service fund. (b) Payments described in subsection (a) must be provided for in the annual budget for the fund from which the payment is made. (c) The payment of lease rental obligations from the education fund is prohibited. [Pre-2006 Recodification Citation: 21-5-8-1.] As added by P.L.2-2006, SEC.163. Amended by P.L.244-2017, SEC.82.

Ind. Code § 20-40-9-9 Uses; community school corporations

Sec. 9. Money in the fund may be used to pay lease rental obligations, school bonds and coupons, and civil bond obligations assumed by school corporations reorganized under IC 20-23-4. [Pre-2006 Recodification Citation: 21-2-4-2 part.] As added by P.L.2-2006, SEC.163.

Ind. Code § 20-40-9-10 Limitation on payment of principal; emergency and temporary loans

Sec. 10. (a) Except as otherwise provided by law, a school corporation may not pay from the fund the principal of emergency and temporary loans obtained for the benefit of any other fund. (b) Except as provided in IC 20-48-1-7 and IC 20-48-1-9, payment of interest on emergency and temporary loans must be received in and disbursed from the fund. [Pre-2006 Recodification Citation: 21-2-4-2 part.] As added by P.L.2-2006, SEC.163.

Ind. Code § 20-40-9-11 Uses; principal and interest; state advance

Sec. 11. An amount equal to deductions made or to be made in the current year for the payment of principal and interest on an advancement from any state fund (including the common school fund and the veterans memorial school construction fund) may be included in debt service and appropriated and paid to the education fund. [Pre-2006 Recodification Citation: 21-2-4-5.] As added by P.L.2-2006, SEC.163. Amended by P.L.244-2017, SEC.83.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026