Sec. 9. (a) This section applies if: (1) an authorizer: (A) revokes a charter before the end of the term for which the charter is granted; or (B) does not renew a charter; or (2) a charter school otherwise terminates its charter before the end of the term for which the charter is granted. (b) Any funds that remain to be distributed to the charter school in the state fiscal year in which an event described in subsection (a) occurs shall continue to be distributed to the charter school for as long as the charter school continues to operate in accordance with state law and its charter. (c) Upon the cessation of the operation of a charter school, the following apply: (1) Any funds that remain to be distributed to the charter school may not be distributed to the charter school. (2) The remaining assets of the charter school must be distributed first to satisfy outstanding payroll obligations for employees of the charter school, then to creditors of the charter school, then to any outstanding debt to the common school fund. (3) The remaining funds received from the department must be returned to the department not more than thirty (30) days after the charter school ceases operation due to: (A) closure of the charter school; (B) nonrenewal of the charter school's charter; or (C) revocation of the charter school's charter. (d) If the assets of the charter school are insufficient to pay all parties to whom the charter school owes compensation under subsection (c)(2), the priority of the distribution of assets may be determined by a court. (e) A charter school's articles or bylaws may not contain language that is inconsistent with the requirements of this section. [Pre-2005 Elementary and Secondary Education Recodification Citation: 20-5.5-7-9.]
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