This text of Indiana § 8-14.5-5-2 (Mandatory lease provisions) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)A lease entered into under this section
must include the following:
(1)A statement that the term of the lease is for a period
coextensive with the biennium used for state budgetary and
appropriation purposes with a fractional period when the lease
begins, if necessary.
(2)A statement that the term of the lease is extended from
biennium to biennium, with the extensions not to exceed a lease
term of twenty-five (25) years, unless either the authority or the
department gives notice of nonextension at least six (6) months
before the end of a biennium, in which event the lease expires at
the end of the biennium in which the notice is given.
(3)A provision plainly stating that the lease does not constitute an
indebtedness of the state within the meaning or application of any
constitutiona
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(a) A lease entered into under this section
must include the following:
(1) A statement that the term of the lease is for a period
coextensive with the biennium used for state budgetary and
appropriation purposes with a fractional period when the lease
begins, if necessary.
(2) A statement that the term of the lease is extended from
biennium to biennium, with the extensions not to exceed a lease
term of twenty-five (25) years, unless either the authority or the
department gives notice of nonextension at least six (6) months
before the end of a biennium, in which event the lease expires at
the end of the biennium in which the notice is given.
(3) A provision plainly stating that the lease does not constitute an
indebtedness of the state within the meaning or application of any
constitutional provision or limitation, and that lease rentals are
payable by the department solely from biennial appropriations, for
the actual use or availability for use of projects provided by the
authority, with payment commencing no earlier than the time the
use or availability commences.
(4) Provisions requiring the department to pay rent at times and
in amounts sufficient to pay in full:
(A) the debt service payable under the terms of any bonds or
notes issued by the authority and outstanding with respect to
any project, including any required additions to reserves for the
bonds or notes maintained by the authority; and
(B) additional rent as provided by the lease;
subject to appropriation of money to pay lease rentals.
(5) Provisions requiring the department to operate and maintain
the project or projects during the term of the lease.
(6) A provision in each master lease for two (2) or more projects
requiring that each project added to the master lease shall be
covered by a supplemental lease describing the particular project,
stating the additional rental payable and providing that all lease
covenants, including the obligation to pay the original and
additional rent under any supplement, shall be unitary and include
all projects covered, whether by the master lease or a
supplemental lease.
(b) A lease entered into under this section may contain other terms
and conditions that the authority and the department consider
appropriate.
(c) The department shall request an appropriation for payment of
lease rentals on any lease entered into under this section in writing at
a time sufficiently in advance of the date for payment of the lease
rentals so that an appropriation may be made in the normal state
budgetary process.
(d) If the department fails at any time to pay to the authority when
due any lease rentals on any lease under this section, the chairman of
the authority shall immediately report the unpaid amount in writing to
the governor and in an electronic format under IC 5-14-6 to the general
assembly.