72-8203b. School district funds; temporary cash deficits; limited authority for issuance of temporary notes and tax levies.
72-8203b
72-8203b. School district funds; temporary cashdeficits; limitedauthority for issuance of temporary notes and tax levies.Whenever the board of education of any school district shall make afinding that such school district has a temporary cash deficit in anyschool district fund, such school district may issue temporary notes of theschool district for the purpose of borrowing money to meet such temporarycash deficit. The proceeds of any notes issued pursuant to this sectionshall be credited to the fund found to have such deficit. Such notes may beissued only with the approval of the state court of taxappeals. Temporary notes issued pursuant to this act shall mature, be retiredand paid duringthe fiscal year during which they are issued. Such notes shall be retiredfrom the proceeds of distributions to the fund in which the temporary cashdeficit occurred. Such notes shall be in a form prescribed by the stateboard of education and may bear interest at a rate not to exceed 5% perannum. No such notes may be issued in an amountin excess of anticipated receipts during the fiscal year of the fund in whichthe temporary cash deficit occurred. If any such anticipated receipts are notreceived during the fiscal year in which such notes are issued, such notesshall be retired in the next succeeding fiscal year from the proceeds oflater received distributions to such fund or shall be retired from a taxlevy upon the taxable tangible property in the school district in an amountsufficient to retire such notes, which levy shall be made at the next taxlevying period.
History: L. 1973, ch. 298, § 1;L. 2008, ch. 109, § 64; July 1.