§ 20-47-2-7 — Required terms of lease agreement

(a) A lease entered into under this chapter must
include the following provisions:
(1) An option for the school corporation or corporations to renew
the lease for a further term on similar conditions.
(2) An option for the school corporation or corporations to
purchase the property covered by the lease after six (6) years from
the execution of the lease and before the expiration of the term of
the lease, on the date or dates in each year as may be fixed in the
lease. The purchase price:
(A) must be equal to the amount required to enable the lessor
corporation owning the property to liquidate by paying all
indebtedness, with accrued and unpaid interest, redeeming and
retiring any stock at par, and paying the expenses and charges
of liquidation; and
(B) may not exceed the capital actually invested in the property
by the lessor corporation represented by outstanding securities
or existing indebtedness, plus the cost of transferring the
property and liquidating the lessor corporation.
(b) A lease entered into under this chapter may not provide or be
construed to provide that a school corporation is under any obligation
to purchase a leased school building or buildings, or under any
obligation in respect to any creditors, shareholders, or other security
holders of the lessor corporation.
[Pre-2006 Recodification Citation: 21-5-11-3 part.]

Legislative History

As added by P.L.2-2006, SEC.170.