511 IAC 1-6-5 Payment of transfer tuition; interest; due date; determination of penalty, interest

Sec. 5. (a) Transfer tuition for each school year shall be paid according to IC 20-26-11-14, unless the parties to a transfer agree to a schedule of payments other than that provided by IC 20-26-11-14. (b) Interest shall accrue at the rate as provided for judgments against the state under IC 34-2-22-1 [IC 34-2 was repealed by P.L.1-1998, SECTION 221, effective July 1, 1998.] commencing with the eleventh day following the due date of the installment and continuing until the installment is paid. Interest shall not accrue if: (1) the amount of transfer tuition is in dispute and that dispute is brought to the state board prior to the due date of the installment that is in dispute; (2) the right to transfer is in dispute and that dispute is brought to the state board in a timely manner; or (3) the obligation to pay transfer tuition is in dispute and that dispute is brought to the state board in a timely manner. (c) Transfer tuition found by the state board to be due shall be paid within thirty (30) days of the mailing of the state board's notice of determination unless court action is brought to contest the validity of the state board's determination. In that event, the amount due shall be paid within thirty (30) days of the final court decision. Interest shall accrue at the rate provided in subsection (b) of this section commencing on the thirty- first day following the mailing of the notice and continuing until the amount due is paid. (d) If any amount of transfer tuition remains unpaid for thirty (30) days beyond the due date as provided by 511 IAC 1-6, there shall be added, in addition to any interest, a late-payment penalty equal to ten percent (10%) of the unpaid principal amount of transfer tuition. (e) Upon application of the transferred student or the student's parent, the transferor, or the transferee alleging that there is unpaid transfer tuition, the state board shall determine the amount of transfer tuition together with any penalty, interest and reasonable attorney's fees. The state board shall withhold state support from the transferor for the benefit of the transferee in an amount equal to any unpaid transfer tuition plus any penalty and interest which has accrued to the date of the state board's determination and reasonable attorney's fees. This withholding may be made in a lump sum or on application of the transferor showing that withholding in a lump sum would cause a serious financial hardship on the transferor, the lump sum amount may be withheld in installments of no less than ten percent (10%) of the lump sum amount.