Montana Code 90-7-214. Restriction on operating facility — leases
90-7-214. Restriction on operating facility — leases. (1) The authority may not operate an eligible facility as a business other than as a lessee or lessor. The lease must provide for rentals adequate to pay the principal and interest due on bonds and to create and maintain reserves and accounts for depreciation as the authority determines necessary.
Terms Used In Montana Code 90-7-214
- Authority: means the Montana facility finance authority created in 2-15-1815. See Montana Code 90-7-102
- Eligible facility: means any eligible facility as defined in 90-7-104. See Montana Code 90-7-102
- Institution: means any public or private:
(i)nonprofit hospital, corporation, or other organization authorized to provide or operate an eligible facility in this state;
(ii)nonprofit prerelease center, corporation, or other organization authorized to operate a prerelease center in this state; or
(iii)for-profit or nonprofit corporation or other organization authorized to provide for or to operate a project or a facility with qualified small issue bond financing pursuant to section 144(a) of the Internal Revenue Code, 26 U. See Montana Code 90-7-102
- 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)The lease may contain terms and conditions that the authority considers proper. The lease may be terminated upon failure of the participating institution to comply with any obligation under the lease. The lease may include a renewal or an option to purchase provision upon terms or conditions that the authority considers desirable.
(3)Upon payment of all indebtedness incurred by the authority for financing an eligible facility, the authority may convey any of the eligible facility to the lessee, with or without consideration.