§ 36-10-10-16 — Lease; options to renew or purchase; issuance of general obligation bonds by city to pay purchase price

Indiana § 36-10-10-16

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 10: RECREATION, CULTURE, AND COMMUNITY
• Ch. 10: Civic Center Building Authority in South Bend or

Text

(a) A lease may provide that the lessee has
an option to renew the lease for a similar or shorter term, on conditions
that are provided in the lease. The lease must contain an option to
purchase at any time after ten (10) 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 that are fixed, at a price equal to the amount required to
enable the authority to redeem all outstanding securities payable out of
the rentals provided in the lease, all premiums payable on redemption,
and accrued and unpaid interest, and to pay all other indebtedness and
obligations of the authority attributable to the construction and leasing
of the convention center, including the cost of liquidation of the
authority if it is to be liquidated. A lease may not provide, nor may it
be construed to provide, that the city is under any obligation to
purchase the convention center or under any obligation with respect to
any creditors or bondholders of the authority.
(b) A city exercising an option to purchase may issue general
obligation bonds for the purpose of procuring funds with which to pay
the purchase price of the convention center. The bonds shall be
authorized, issued, and sold in the manner provided by statute.
As added by Acts 1982, P.L.218, SEC.4.