Indiana § 36-9-27-97.5 - Construction loans; terms; deposit of proceeds; interest on loan

§ 36-9-27-97.5. Construction loans; terms; deposit of proceeds; interest on loan

Sec. 97.5. (a) Whenever the board determines by resolution spread upon its minutes that the cost of constructing or reconstructing a particular drain is an amount that the owners of land to be assessed may conveniently pay in installments over a ten (10) year period, it may ask the county fiscal body to:

(1) obtain a loan from a bank, trust company, savings association, or savings bank authorized to engage in business in the county; or

(2) obtain funds in the manner prescribed by IC 36-2-6-18, IC 36-2-6-19, and IC 36-2-6-20;

to finance that construction or reconstruction.

(b) A loan obtained under this section:

(1) must have a fixed or variable interest rate;

(2) must mature within eleven (11) years after the day it is obtained;

(3) shall be repaid from installments collected from assessments of landowners over a ten (10) year period;

(4) is not subject to the provisions of section 94 of this chapter that concern interest; and

(5) is not subject to the penalty provisions under IC 6-1.1-37-10 if the installments are timely paid.

(c) A construction loan fund is established for each construction or reconstruction project loan that the board and the county fiscal body authorize under this section. A construction loan fund consists of all payments received from the owners assessed for the construction or reconstruction project and may be used only to repay the associated loan. If money remains in a construction loan fund after the associated loan is paid in full, the remaining money in the fund may be transferred to the general drain improvement fund.

(d) A county auditor shall maintain a separate ledger sheet for each construction loan fund established under subsection (c) and record on the separate ledger sheet all payments of principal and interest received from the owners assessed for the associated construction or reconstruction project.

(e) A county auditor shall deposit all payments of principal and interest received from the owners assessed for a construction or reconstruction project in the associated construction loan fund.

(f) The board shall determine whether interest on the loan is to be a part of the final assessment under section 84(a) of this chapter.

(g) Notwithstanding section 85(c) of this chapter, interest on the loan may be charged back to the benefited landowner at a rate that is set in accordance with subsection (b).

As added by P.L.371-1983, SEC.2. Amended by P.L.76-1989, SEC.8; P.L.79-1998, SEC.110; P.L.255-2017, SEC.55; P.L.157-2026, SEC.280.