Indiana § 20-47-2-6 Qualifications of lessor corporation; permissible interest; return of
capital; recovery of expenses

Indiana Statutes

§ 20-47-2-6 — Qualifications of lessor corporation; permissible interest; return of capital; recovery of expenses

Indiana·Title 20 EDUCATION·Art. 47 RELATED ENTITIES; HOLDING COMPANIES;·Ch. 2 Public Holding Companies

(a)A school corporation or corporations may enter into a lease under this chapter only with a corporation organized under Indiana law solely for the purpose of acquiring a site, erecting a suitable school building or buildings on that site, leasing the building or buildings to the school corporation or corporations, collecting the rentals under the lease, and applying the proceeds of the lease in the manner provided in this chapter.

(b)A lessor corporation described in subsection (a):

(1)must, except as provided in subdivision (2), act entirely without profit to the lessor corporation or its officers, directors, and stockholders;

(2)is entitled to the return of capital actually invested, plus interest or dividends on outstanding securities or loans, not to exceed five percent (5%) per

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(a) A school corporation or corporations may
enter into a lease under this chapter only with a corporation organized
under Indiana law solely for the purpose of acquiring a site, erecting a
suitable school building or buildings on that site, leasing the building
or buildings to the school corporation or corporations, collecting the
rentals under the lease, and applying the proceeds of the lease in the
manner provided in this chapter.
(b) A lessor corporation described in subsection (a):
(1) must, except as provided in subdivision (2), act entirely
without profit to the lessor corporation or its officers, directors,
and stockholders;
(2) is entitled to the return of capital actually invested, plus
interest or dividends on outstanding securities or loans, not to
exceed five percent (5%) per annum and the cost of maintaining
the lessor corporation's corporate existence and keeping its
property free of encumbrance; and
(3) upon receipt of any amount of lease rentals exceeding the
amount described in subdivision (2), apply the excess funds to the
redemption and cancellation of the lessor corporation's
outstanding securities or loans as soon as may be done.
[Pre-2006 Recodification Citation: 21-5-11-2.]

Indiana § 20-47-2-6 (Qualifications of lessor corporation; permissible interest; return of capital; recovery of expenses) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.