§ 36-1-10-16 — Conveyance of structure to lessor and lease back; purchase price; option to purchase

(a) A political subdivision or agency owning
a structure with respect to which its revenue bonds are outstanding
may, to refinance those bonds, convey the structure to the lessor in fee
simple and lease it from the lessor in accordance with this chapter.
(b) The price of a purchase under this section must be at least the
sum of:
(1) the principal amount of the outstanding revenue bonds;
(2) interest on those bonds to the maturity date of bonds not
subject to redemption before maturity and to the first redemption
date of bonds subject to redemption before maturity; and
(3) the redemption premiums on all bonds subject to redemption
before maturity.
An amount not less than this sum shall be deposited in trust for the
payment of the outstanding revenue bonds in a manner consistent with
the ordinance or trust agreement under which the bonds were issued.
The money deposited in the trust, and investment income from it, not
required for the payment of the bonds, shall be applied to the payment
of the obligations issued by the lessor for the acquisition of the
structure, and to a corresponding reduction of rentals for the leasing
agent.
(c) Each lease entered into under this section must include an option
permitting the political subdivision or agency to purchase the structure
at a price not exceeding the amount required to retire all outstanding
obligations issued by the lessor to acquire the property covered by the
lease. The lease and sale of a parking facility under this section does
not preclude the lease of air rights.
[Pre-Local Government Recodification Citation:
18-5-3.3-8.5.]
As added by Acts 1981, P.L.57, SEC.36. Amended by
P.L.90-2002, SEC.465; P.L.174-2022, SEC.69.