Indiana § 20-24-7-9 - Charter revocation or termination; funds distribution; assets
Full text of Indiana Indiana Code § 20-24-7-9 — Charter revocation or termination; funds distribution; assets, with citation guidance and answers to common questions.
§ 20-24-7-9. Charter revocation or termination; funds distribution; assets
Sec. 9. (a) This section applies if:
(1) an authorizer:
(A) revokes a charter before the end of the term for which the charter is granted; or
(B) does not renew a charter; or
(2) a charter school otherwise terminates its charter before the end of the term for which the charter is granted.
(b) Any funds that remain to be distributed to the charter school in the state fiscal year in which an event described in subsection (a) occurs shall continue to be distributed to the charter school for as long as the charter school continues to operate in accordance with state law and its charter.
(c) Upon the cessation of the operation of a charter school, the following apply:
(1) Any funds that remain to be distributed to the charter school may not be distributed to the charter school.
(2) The remaining assets of the charter school must be distributed first to satisfy outstanding payroll obligations for employees of the charter school, then to creditors of the charter school, then to any outstanding debt to the common school fund.
(3) The remaining funds received from the department must be returned to the department not more than thirty (30) days after the charter school ceases operation due to:
(A) closure of the charter school;
(B) nonrenewal of the charter school's charter; or
(C) revocation of the charter school's charter.
(d) If the assets of the charter school are insufficient to pay all parties to whom the charter school owes compensation under subsection (c)(2), the priority of the distribution of assets may be determined by a court.
(e) A charter school's articles or bylaws may not contain language that is inconsistent with the requirements of this section.
[Pre-2005 Elementary and Secondary Education Recodification Citation: 20-5.5-7-9.]
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.109; P.L.146-2008, SEC.463; P.L.205-2013, SEC.233; P.L.250-2017, SEC.20; P.L.214-2025, SEC.59.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 20-24-7-9
What does Indiana Code § 20-24-7-9 cover?
Section 20-24-7-9 ("Charter revocation or termination; funds distribution; assets") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 20-24-7-9?
A common citation format is "Indiana Code § 20-24-7-9" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 20-24-7-9 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.