Sec. 24. (a) A lease:

(1) may provide that the lessee has an option to renew the lease for a like or lesser term; and

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Terms Used In Indiana Code 16-22-6-24

  • authority: means the hospital association created by section 2 of this chapter. See Indiana Code 16-22-6-1
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(2) 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 a date fixed in the lease at a price equal to the amount required to enable the authority to do the following:

(A) Redeem all outstanding securities payable out of the rentals provided for in the lease and all premiums and accrued and unpaid interest payable on that redemption.

(B) Pay all other indebtedness and obligations of the authority attributable to the acquisition, construction, renovation, and leasing of the buildings, including any cost of liquidation of the authority.

     (b) The lease does not create an obligation for the county to purchase a leased building or an obligation to a creditor or bondholder of the authority.

     (c) A county exercising an option to purchase may issue general obligation bonds to procure funds to purchase the building. The bonds shall be authorized, issued, and sold in accordance with the laws authorizing the issuance and sale of bonds for other county purposes.

[Pre-1993 Recodification Citation: 16-12-20-14.]

As added by P.L.2-1993, SEC.5.