(A) In accordance with I.C. 36-1-3, the town hereby authorizes its municipal sewage works utility to make loans to other funds or departments of the town so long as the terms and provisions set out in this section are met.
(B) A loan or loans may be authorized by the adoption of an ordinance or resolution of the Town Council which prescribes the principal amount of the loan or loans, the rate of interest thereon, if any, which interest may be fixed or variable, the terms of repayment for the loan, including the source of repayment pledged to the loan or loans, the maturity and any other provisions deemed relevant by the Town Council. The Town Council shall not pledge to the repayment of any loan or loans any security which would classify such loan or loans as debt of the town subject to the 2% debt limitation contained in the Indiana constitution.
(C) Prior to making such loan or loans, the Town Council shall have received evidence, written or oral, that the source of funds for making such loan or loans is taken from moneys in excess of the requirements imposed by the Bond Ordinance and the Indiana statutes in effect at the time of the loan or loans, and any other ordinances or indentures which may be in effect at the time of the loan or loans and which govern the use of the revenues of the municipal sewage works utility.
(D) This section shall not be in force and effect if such loans should be specifically prohibited by future provisions of the Indiana Code or the specific manner for making such loans shall be prescribed by future provisions of the Indiana Code.
(Ord. 431, passed 12-16-2002)