Sec. 7. The following apply to an advance under this chapter:
(1) A school corporation or charter school (or coalition of public schools filing jointly) must pay interest on the advance. The state board of finance shall periodically establish the rate or rates of interest payable on advances made under this chapter as long as the established interest rate or rates are not less than one percent (1%) and do not exceed four percent (4%).
(2) The state board may provide that the advances made under this chapter are prepayable at any time.
(3) The term of the advance may not exceed ten (10) years after the date of the advance.
(4) A school corporation or charter school (or a coalition of public schools applying jointly) must enter into an advance agreement with the state board before receiving an advance from the fund. The terms of the agreement must include a provision allowing the state board to withhold funds due to a school corporation or charter school to which an advance is made until the advance is paid.