Mandatory transfer of funds

Sec. 1.1. (a) A written agreement between the authority and a city, town, or county under section 1 of this chapter, or a similar government cooperative statute, may provide for a mandatory transfer of funds by the state comptroller under this section if one (1) of the parties becomes more than sixty (60) days late in making a payment required by the agreement.

(b) To obtain a mandatory transfer of funds, the party to whom the funds were to be paid under the terms of the written agreement must certify in writing to the state comptroller:

(1) that a written agreement between the parties authorizes the mandatory transfer of funds as provided in subsection (a);

(2) that the owing party was notified in writing of the amount owed;

(3) that the payment is more than sixty (60) days past due;

(4) the names of the parties; and

(5) the amount of the payment due.

(c) Upon receipt of a certificate as specified in subsection (b), the state comptroller shall:

(1) immediately notify the delinquent party of the claim; and

(2) if proof of payment is not furnished to the state comptroller within thirty (30) days after the delinquent party has been notified, transfer the unpaid amount from the delinquent party's allocations from the motor vehicle highway account to the other party.

(d) Transfers shall be made under subsection (c) until the unpaid amount has been paid in full under the terms of the agreement. However, the agreement may be amended if both the department and the unit agree to amortize the transfer over a period of time not to exceed five (5) years.

As added by P.L.116-1989, SEC.2. Amended by P.L.9-2024, SEC.295.