Header:
PENNSYLVANIA STATUTES
TITLE 24. EDUCATION
CHAPTER 1. PUBLIC SCHOOL CODE OF 1949
ARTICLE VI. SCHOOL FINANCES
(C) INDEBTEDNESS
Date:
08/31/2009
Document:
§ 6-636. Emergency loans for current expenses and debt service
(a) In case of an emergency, any school district in any fiscal year, after borrowing money in anticipation of current revenues to the full extent permitted by the provisions of section six hundred forty (640) of this act, and finding the receipts from said loans, together with all other receipts, to be inadequate to meet the expenditures of the official fiscal year's budget, may appeal to the State Superintendent of Public Instruction for permission to incur a temporary debt for the purpose of providing funds for current expenses and debt service and shall present to the State Superintendent of Public Instruction, or his agent, such financial statements or reports as he may require to give him adequate facts relative to the necessity of such increase in indebtedness. The State Superintendent of Public Instruction is hereby authorized, after due examination of the need of such school district, either to refuse or grant permission to such school district to borrow additional funds for current expenses and debt service beyond the amount permitted by the provisions of section six hundred forty (640) of this act. In case of approval, he shall designate the maximum length of the term and shall set a maximum limit of the total amount of such temporary indebtedness that such school district may incur during the fiscal year in addition to all temporary indebtedness for other purposes outstanding at the time of such approval.
(b) All temporary indebtedness, for the purpose of current expenses and debt service in school districts of the first class, shall not exceed four tenths of one per centum ( 4/10 %), and in school districts of the second class, shall not exceed three fourths of one per centum ( 3/4 %), and in school districts of the third and fourth class, shall not exceed one (1) per centum of the total amount of property taxable for school purposes in such district, and the total indebtedness for such purposes, together with all other indebtedness incurred without authorization by vote of the electors of the district, shall, at no time, exceed five (5) per centum of the last total assessed valuation of the property taxable for school purposes therein.
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