§ 16-22-7-26 — Terms of lease

(a) A lease may provide the lessee with an
option to renew the lease, with approval of the board of directors of the
city hospital, for a like or lesser term. The lease must contain an option
for the city hospital to purchase at any time after ten (10) years from
the execution of the lease and before the expiration of the lease on
dates in each year fixed in the lease, at a price equal to the amount
required to enable the authority to do the following:
(1) Redeem all outstanding securities payable out of the rentals
provided in the lease and all premiums payable on the redemption
and accrued and unpaid interest.
(2) Pay all other indebtedness and obligations of the authority
attributable to the construction and leasing of the buildings,
including the cost of liquidation of the authority.
(b) A lease may not create an obligation for the lessee or city
hospital to purchase the leased buildings or create any obligation to
creditors or bondholders of the authority.
[Pre-1993 Recodification Citation: 16-12-20.5-15(a),
(b).]

Legislative History

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