§ 15-13-10-11 — "Lessor"; leases

Indiana § 15-13-10-11

• Jurisdiction: Indiana
• Art. 13: STATE FAIR
• Ch. 10: Revenue Bonds

Text

(a) As used in this section, "lessor" has the
meaning set forth for "leasing body" in IC 5-1-1-1. The term includes
the Indiana bond bank.
(b) The commission may enter into a lease of any property that
could be financed with the proceeds of bonds issued under this chapter
with a lessor for a term not to exceed thirty (30) years. The lease may
provide for payments from revenues under this chapter, taxes in the
fund, any other funds that may be legally pledged by the commission,
or any combination of these sources. Money in the fund may be used
to make lease payments.
(c) A lease may provide that payments by the commission to the
lessor are required only to the extent and only for the period that the
lessor is able to provide the leased project in accordance with the lease.
The terms of each lease must be based upon the value of the project
leased and may not create a debt of the commission for purposes of the
Constitution of the State of Indiana. Property tax revenues may not be
used to make lease payments unless those revenues have been
appropriated by the general assembly. A lease under this section that
is wholly or partly payable from property tax revenues must include the
following:
(1) A statement that the term of the lease is for:
(A) a period coextensive with the biennium used for state
budgetary and appropriation purposes; and
(B) a fractional period when the lease begins, if necessary.
(2) A statement that the term of the lease is extended from
biennium to biennium, with the extensions not to exceed a lease
term of thirty (30) years, unless either the commission or the
lessor gives notice of nonextension at least six (6) months before
the end of a biennium, in which case the lease expires at the end
of the biennium in which the notice is given.
(d) The commission may approve the execution of a lease if the
commission finds that the service to be provided throughout the term
of the lease will serve the public purpose of the commission and is in
the best interests of the citizens of Indiana. Upon execution of the
lease, the commission may publish notice of the adoption one (1) time
each week for two (2) weeks in two (2) newspapers published and of
general circulation in Marion County. If notice is published, any action
or proceeding in any court to set aside the lease or to obtain relief upon
the ground that the action of the commission in entering into the lease
is invalid must be filed not more than thirty (30) days after the first
publication of notice of the execution of the lease. After the expiration
of the thirty (30) day period, a right of action may not be asserted and
the validity of the lease or any of the provisions of the lease may not be
questioned in any court or agency upon any grounds.
(e) If the commission exercises an option to buy a leased project
from a lessor, the commission may subsequently sell the leased project,
without regard to any other statute, to the lessor at the end of the lease
term at:
(1) a price set forth in the lease; or
(2) the fair market value established at the time of the sale by the
commission through auction, appraisal, or arms length
negotiation.
[Pre-2008 Recodification Citation: 15-1.5-9-10.]

Legislative History

As added by P.L.2-2008, SEC.4.