§ 6-19-15 — Requirements respecting lease

Prior to the leasing of any project, the board of trustees shall determine and find the following: A. the amount necessary in each year to pay the principal of and the interest on the revenue bonds proposed to be issued to finance the project; and B. the amount necessary to be paid each year into any reserve funds which the board of trustees may deem it advisable to establish in connection with the retirement of the proposed revenue bonds and the maintenance of the project and, unless the terms under which the project is to be leased provide that the lessee shall maintain the project and carry all proper insurance with respect thereto, the estimated cost of maintaining the project in good repair and keeping it properly insured. The determinations and findings of the board of trustees required by this section shall be set forth in the proceedings under which the proposed revenue bonds are to be issued, and prior to the issuance of the bonds, the district shall lease or sell the project to a lessee or purchaser under an agreement conditioned upon completion of the project and providing for payment to the district of such rentals or payments as, upon the basis of the determinations and findings, will be sufficient to: (1) pay the principal of and interest on the revenue bonds issued to finance the project; (2) build up and maintain any reserve deemed by the board of trustees to be advisable in connection with the project; and (3) pay the costs of maintaining the project in good repair and keeping it properly insured, unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the project.

Legislative History

Laws 1987, ch. 115, § 15.