§ 5-1.2-7-15 — Payment of lease rental

Indiana § 5-1.2-7-15

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.2: INDIANA FINANCE AUTHORITY
• Ch. 7: Health Facility Financing

Text

(a) Any lease executed under section 13 or
14 of this chapter may provide for the payment of the lease rental in
any one (1) of the following ways as established in the lease:
(1) Entirely from the levy of taxes.
(2) Entirely from the net revenues of the hospital of which the
leased building is a part.
(3) In part from the levy of taxes and in part from the net revenues
described in subdivision (2).
(b) If any lease provides for the payment of lease rental in whole or
in part from net revenues of the hospital, the lease may also provide
that the county and the board of trustees or board of managers of the
hospital set aside and hold as a reserve for this purpose excess net
revenues over and above the amount required to pay lease rental
payable from net revenues. The reserve fund may not exceed an
amount equal to the amount of lease rental payable from net revenues
for two (2) years. The reserve fund shall be held and used only for the
purpose of paying lease rental payable from net revenues, if the net
revenues at any time are insufficient to pay lease rentals. The amount
in the reserve fund may be invested in the manner and to the extent
provided in the lease. All interest or other income from the investment
shall become part of the reserve fund unless the reserve fund contains
the maximum amount required to be in the reserve fund. The following
apply if the reserve fund contains the maximum amount required to be
in the reserve fund:
(1) If any of the lease rental is payable from taxes, the interest or
other income shall be transferred to the fund to be used for the
payment of the lease rental provided to be paid from taxes.
(2) If none of the lease rental is payable from taxes, the interest or
other income shall become a part of the reserve fund.

Legislative History

As added by P.L.189-2018, SEC.25.