New Mexico Statutes 22-26A-2. Purpose
The purpose of the Public School Lease Purchase Act is to implement the provision of Article 9, § 11 of the constitution of New Mexico, as approved by the voters of the state of New Mexico at the general election held in November 2006, which declares that a financing agreement entered into by a school district or a charter school for leasing of a building or other real property with an option to purchase for a price that is reduced according to the payments made by the school district or charter school pursuant to the financing agreement is not a debt if:
Terms Used In New Mexico Statutes 22-26A-2
- 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.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
A. there is no legal obligation for the school district or charter school to continue the lease from year to year or to purchase the real property; and
B. the agreement provides that the lease shall be terminated if sufficient money is not available to meet the current lease payments.