Indiana § 36-12-10-3 Authorized purposes of leases; limitations on profit; disposition of
excess funds

Indiana Statutes

§ 36-12-10-3 — Authorized purposes of leases; limitations on profit; disposition of excess funds

Indiana·Title 36 LOCAL GOVERNMENT·Art. 12 LIBRARIES·Ch. 10 Leasing of Library Property

(a)A municipal corporation may enter into a lease under this chapter only with a nonprofit corporation organized under Indiana law for the sole purpose of:

(1)acquiring real property;

(2)building, improving, constructing, or renovating a suitable library building or buildings, including the necessary equipment and appurtenances;

(3)leasing the library facilities to the municipal corporation or corporations; and

(4)collecting the rentals and applying the proceeds from the rentals in the manner provided in this chapter.

(b)The lessor corporation shall act entirely without profit to the corporation and the corporation's officers, directors, and members but is entitled to the return of capital actually invested, which includes:

(1)incorporation and organization expenses;

(2)financing c

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(a) A municipal corporation may enter into a
lease under this chapter only with a nonprofit corporation organized
under Indiana law for the sole purpose of:
(1) acquiring real property;
(2) building, improving, constructing, or renovating a suitable
library building or buildings, including the necessary equipment
and appurtenances;
(3) leasing the library facilities to the municipal corporation or
corporations; and
(4) collecting the rentals and applying the proceeds from the
rentals in the manner provided in this chapter.
(b) The lessor corporation shall act entirely without profit to the
corporation and the corporation's officers, directors, and members but
is entitled to the return of capital actually invested, which includes:
(1) incorporation and organization expenses;
(2) financing costs;
(3) carrying charges;
(4) legal, contractors', and architects' fees; and
(5) any other capital cost.
The lessor corporation is also entitled to sums sufficient to pay interest
on outstanding securities or loans, and the cost of maintaining the
corporation's existence and keeping the corporation's property free of
encumbrance.
(c) Upon receipt of any amount of lease rental by the lessor
corporation above the amount necessary to meet incidental corporate
expenses and to pay interest on corporate securities or loans, the excess
funds shall be applied to the redemption and cancellation of the
corporation's outstanding securities or loans as soon as this may be
done.
[Pre-2005 Elementary and Secondary Education
Recodification Citation: 20-14-10-3.]

Indiana § 36-12-10-3 (Authorized purposes of leases; limitations on profit; disposition of excess funds) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.