Section 6-691 - [Second of two versions] When district distressed(a) Except for a school district of the first class A, second class, third class or fourth class, a school district shall be deemed to be distressed when any one of the following circumstances shall arise and the Secretary of Education, after proper investigation of the district's financial condition, the administrative practices of the board and such other matters deemed appropriate by the Secretary of Education, has issued a certificate declaring such district in financial distress:(1) The salaries of any teachers or other employes have remained unpaid for a period of ninety (90) days.(2) The tuition due another school district remains unpaid on and after January first of the year following the school year it was due and there is no dispute regarding the validity or amount of the claim.(3) Any amount due any joint board of school directors under a joint board agreement remains unpaid for a period of ninety (90) calendar days beyond the due date specified in the joint board's articles of agreement.(4) The school district has defaulted in payment of its bonds or interest on such bonds or in payment of rentals due any authority for a period of ninety (90) calendar days and no action has been initiated within that period of time to make payment.(5) The school district has contracted any loan not authorized by law.(6) The school district has accumulated and has operated with a deficit equal to two per centum (2%) or more of the assessed valuation of the taxable real estate within the district for two successive years.(7) A new, merged or union school district has been formed and one or more of the former school districts which compose the merged or union school district was a distressed school district at the time of the formation of the merged or union school district.Amended by P.L. 1142 2012 No. 141, § 2, eff. 1/8/2013.1949, March 10, P.L. 30, art. VI, § 691, added 1959, Dec. 15, P.L. 1842, No. 675, § 2. Amended 1963, July 31, P.L. 407, § 1; 1998, April 27, P.L. 270, No. 46, § 2, imd. effective.