(a)
(1) Any school district in this state, at the option of the school district board of directors, may enter into contracts for the hiring of teachers to teach in the next coming school year, whereby the annual salaries of such teachers may be paid on the basis of twelve (12) equal monthly installments.
(2) In no case shall the monthly installments under such contracts commence earlier than the first day of the commencement of the school fiscal year covered by the contract.
(b)
(1) Any contract entered into pursuant to this section whereby payments are to be made before the commencement of the teaching duties under such contract in the school year covered thereby shall contain a clause clearly setting forth the liability of any teacher who receives payments before the commencement of teaching duties and who refuses to perform under the terms of the contract.
(2) Such clause shall be to the effect that any schoolteacher breaching such a contract shall be indebted to the school district for the amount of moneys received by him or her under the contract before the commencement of his or her teaching duties.
(3) If any teacher fails to repay any money owed to a school district upon a contract breached by him or her, the secretary of the school district shall certify the failure to the Division of Elementary and Secondary Education, and the State Board of Education shall suspend the teacher's license until all of the money is repaid.
(c) Any school district, or any officer thereof, charged with the responsibility of negotiating and entering into contracts for the employment of teachers for such school district shall be relieved of any liability arising from the breach of any contract made in good faith pursuant to the provisions of this section.