§ 16-22-6-16 — Payment of lease rentals from hospital net revenues; reserve fund

Indiana § 16-22-6-16

• Jurisdiction: Indiana
• Title 16: HEALTH
• Art. 22: COUNTY HOSPITALS
• Ch. 6: County Hospital Building Authorities

Text

(a) If a lease provides for the payment of
lease rental in whole or in part from net revenues of the hospital, the
lease may provide that the county and the governing board of the
hospital establish a reserve fund for net revenues in excess of the
amount required to pay lease rental payable from net revenues. The
reserve fund:
(1) may not exceed an amount equal to the amount of lease rental
payable from net revenues for two (2) years;
(2) shall be held and used only for the purpose of paying lease
rental payable from net revenues if the net revenues at any time
are insufficient for that purpose; and
(3) may be invested as provided in the lease and all interest or
other income from investment becomes part of the reserve fund.
(b) If the fund contains the maximum amount and a part of the lease
rental is payable from taxes, the interest or other income shall be
transferred to the fund described in section 32 of this chapter to be used
for the payment of the lease rental provided to be paid from taxes. If
none of the rental is payable from taxes, the interest or other income
becomes a part of the reserve fund.
[Pre-1993 Recodification Citation: 16-12-20-12(b).]

Legislative History

As added by P.L.2-1993, SEC.5.