Sec. 7. (a) A lease entered into under this chapter must include the following provisions:

(1) An option for the school corporation or corporations to renew the lease for a further term on similar conditions.

lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Indiana Code 20-47-2-7

  • capital actually invested: includes the following amounts expended by a lessor corporation:

    Indiana Code 20-47-2-2

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • 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
  • lessor corporation: means a corporation described in section 6 of this chapter. See Indiana Code 20-47-2-3
  • 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.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • school building: means a building used as a part of or in connection with the operation of a school and includes the:

    Indiana Code 20-47-2-4

  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) An option for the school corporation or corporations to purchase the property covered by the lease after six (6) years from the execution of the lease and before the expiration of the term of the lease, on the date or dates in each year as may be fixed in the lease. The purchase price:

(A) must be equal to the amount required to enable the lessor corporation owning the property to liquidate by paying all indebtedness, with accrued and unpaid interest, redeeming and retiring any stock at par, and paying the expenses and charges of liquidation; and

(B) may not exceed the capital actually invested in the property by the lessor corporation represented by outstanding securities or existing indebtedness, plus the cost of transferring the property and liquidating the lessor corporation.

     (b) A lease entered into under this chapter may not provide or be construed to provide that a school corporation is under any obligation to purchase a leased school building or buildings, or under any obligation in respect to any creditors, shareholders, or other security holders of the lessor corporation.

[Pre-2006 Recodification Citation: 21-5-11-3 part.]

As added by P.L.2-2006, SEC.170.

  Previous section
Next section  
 Chapter 2 Contents