The golf course, which is owned by the city, is a department just like the police, fire or water, and is in financial trouble.
City Attorney Traci Lawson explained further to the council and those in attendance what the temporary loan entailed.
"This is the money we talked about the last time (we met) for the golf course," Lawson said. "Because they need a little bit of money to pay their bills through the end of the year and keep them afloat, until they get some changes in place and get some revenue coming in for next year."
According to Lawson, the transaction will take place through an interfund transfund.
"I've done it as an interfund transfer for $20,000 from (the) Rainy Day (Fund)," she said. "... and that has to be repaid back by the end of the fiscal year for the time they're taking it out."
Lawson also said the golf board conducted a meeting Monday and is taking steps to make some changes to fix their cash flow in the coming years and they're hopeful they won't have to use all of the $20,000.
The golf board has also assured the council the problem will be fixed.
McQueen then elaborated on the $10,000 that's already been given to the course.
"The golf course had absolutely no money for payroll, checks would have bounced, and I could have not paid their bills, but then there would have been finance charges and late fees," McQueen said.
Lawson said there are provisions that allow payback schedules to be modified in certain situations.
"Indiana law states that interfund transfers must be paid by Dec. 31, but if a problem arises, payback can be extended for up to six months," Lawson said.
The council decided to see where the golf course stood at the end of December and voted on Resolution No. 15-2011.
The vote passed by a 3-0-2 vote. Council members Steve Lamb and Pat Heffner abstained.
Meanwhile, the council voted on and passed Ordinance No. 18-2011, which will place a handicap sign at 27 E. Church Street.
The council also voted on and passed Ordinance No. 19-2011, which was a request from a citizen for a handicap parking spot to be placed at 512 E. Blaine Street.
The Brazil City Council meets regularly on the second Wednesday of each month at 7 p.m., at Brazil City Hall.
Its next meeting is scheduled for 7 p.m., Wednesday, Dec. 14.