CHAPTER 4. PURCHASE OF SCHOOL BUSES
IC 20-27-4
Chapter 4. Purchase of School Buses
IC 20-27-4-1
Authority to purchase school buses
Sec. 1. A school corporation may purchase a school bus or special
purpose bus to furnish transportation for students. The school
corporation may purchase:
(1) both the body and the chassis of a school bus; or
(2) either the body or the chassis.
A purchase may be made for cash or under the terms of a security
agreement.
As added by P.L.1-2005, SEC.11.
IC 20-27-4-2
Security agreements; generally
Sec. 2. A security agreement under this chapter may not run for
more than six (6) years. The agreement must be amortized in equal
or approximately equal installments, payable on the first day of
January and July each year. The first installment of principal and
interest must be due and payable on the first day of July next
following the collection of a tax that was levied after execution of
the security agreement.
As added by P.L.1-2005, SEC.11.
IC 20-27-4-3
Security agreements; appropriation
Sec. 3. Before a security agreement is executed, an appropriation
for the amount of the purchase price must be made. The
appropriation is made in the same manner as any other appropriation,
except that the amount of the appropriation is not limited by the
amount of funds available at the time of the execution or the amount
of funds to be raised by a tax levy effective at the time of the
execution. A petition to borrow, a notice to taxpayers, or other
formality is not necessary, except:
(1) as specifically provided in this chapter; and
(2) as may be required by law for the issuance of general
obligation bonds.
As added by P.L.1-2005, SEC.11.
IC 20-27-4-4
General obligation bonds
Sec. 4. If a school corporation requires funds to purchase a school
bus for cash, the school corporation may borrow the necessary funds
by issuing general obligation bonds. The bonds shall be issued in the
same manner as other general obligation bonds. However, the bonds
may not extend for more than six (6) years.
As added by P.L.1-2005, SEC.11.
IC 20-27-4-5
Loans
Sec. 5. (a) If a school corporation requires funds to purchase a
school bus for cash, the school corporation may, instead of issuing
general obligation bonds, negotiate for and borrow funds or purchase
the school bus on an installment conditional sales contract or a
promissory note secured by the school bus.
(b) To effect a loan, the school corporation shall execute a
negotiable note or notes to the lender. The notes may not extend for
more than six (6) years and are payable at the same times and in the
same manner as provided for security agreements in section 2 of this
chapter.
(c) Before a note described in this section is executed, an
appropriation for the amount of the purchase price of the school bus
and any incidental expenses connected with the purchase or the loan,
must be made in the same manner as other appropriations are made,
except that the amount of the appropriation is not limited by the
amount of funds available at the time of the loan or purchase or by
the amount of funds to be raised by a tax levy effective at the time of
the loan.
(d) A petition to borrow, a notice to taxpayers, or other formality
is not necessary to borrow funds under this section except as
specifically provided in this chapter.
As added by P.L.1-2005, SEC.11.
IC 20-27-4-6
Manner of purchase
Sec. 6. (a) The purchase of a school bus shall be made in the same
manner as provided by law for the purchase of school supplies by a
school corporation.
(b) If a school bus is purchased under a security agreement, the
required notice to bidders or solicitation of bids must set:
(1) the length of time the security agreement shall run; and
(2) the terms of the security agreement, including the security
agreement price and interest rate.
(c) The low bid for a security agreement shall be determined by
adding to each bidding price the net interest cost and then comparing
the totals of the price and interest on each bid. Any difference
between the cash and the security agreement prices may not be
considered a charge under section 2 of this chapter. Instead, a
separate statement of each price shall be made to enable the
governing body to determine the advisability of purchasing a school
bus under a security agreement.
As added by P.L.1-2005, SEC.11.
IC 20-27-4-7
Indiana bond bank; loans, security agreements, or leases
Sec. 7. Notwithstanding any other provision of this chapter, a
school corporation may negotiate and enter into loans, security
agreements, or leases with the Indiana bond bank for the acquisition
and financing of a school bus.
As added by P.L.1-2005, SEC.11.
IC 20-27-4-8
Effect of chapter
Sec. 8. This chapter does not affect the validity or legality of a
negotiable instrument, conditional sales contract, purchase money
mortgage contract, or promissory note executed and delivered before
July 1, 1965, by a school corporation and given for the purchase of
a school bus in accordance with Indiana law that was specifically
repealed or repealed by implication by Acts 1965, c.259.
As added by P.L.1-2005, SEC.11.