279.48 - EQUIPMENT PURCHASE.
279.48 EQUIPMENT PURCHASE.
1. The board of directors of a school corporation may purchase
equipment, and may negotiate and enter into a loan agreement and
issue a note to pay for the equipment subject to the following terms
and procedures:
a. The note must mature within five years, or the useful life
of the equipment, whichever is less.
b. The note may bear interest at a rate to be determined by
the board of directors in the manner provided in section 74A.3,
subsection 1, paragraph "a". Chapter 75 is not applicable.
c. The board of directors shall provide for the form of the
agreement and note.
d. Principal and interest on the note must be payable from
budgeted receipts in the debt service fund for each year of a period
of up to five years.
2. The total of scheduled annual payments of principal or
interest due and payable from current budgeted receipts or future
budgeted receipts with respect to all loan agreements authorized
under this section or section 285.10, subsection 7, paragraph
"b", must not exceed ten percent of the last authorized budget of
the school corporation.
3. Before entering into a loan agreement for an equipment
purchase, the school corporation must publish a notice, including a
statement of the amount and purpose of the agreement, at least once
in a newspaper of general circulation within the school corporation
at least ten days before the meeting at which the loan agreement is
to be approved. Section History: Recent Form
94 Acts, ch 1175, §7; 2008 Acts, ch 1032, §198
Referred to in § 273.3, 279.53