390.4 - UNDIVIDED JOINT INTEREST.

        390.4  UNDIVIDED JOINT INTEREST.         In substance, a joint agreement shall:         1.  Provide that each participant shall own an undivided interest      in the joint facility, the interest being equal to the percentage of      the money furnished, value of property furnished, or services      rendered by each participant toward the total cost of the joint      facility, and that each participant shall own and control a like      percentage of the output of the joint facility.         2.  Provide that each participant shall undertake to finance its      portion of the cost of planning, acquisition, operation, and      maintenance of the joint facility.         3.  Provide that each participant in the ownership of the joint      facility shall bear all taxes, if any, chargeable to its ownership of      the joint facility under statutes now or hereafter in effect.         4.  Provide for the planning, financing, acquisition, operation      and maintenance of the joint facility, or for any one or more of said      purposes, including the cost to be contributed by each participant.         5.  Provide for a uniform method of determining and allocating      operation and maintenance expenses of the joint facility.         6.  Provide that a participant may be liable only for its own acts      with regard to the joint facility, or as principal for the acts of      the manager in proportion to its percentage of ownership, and shall      not be jointly or severally liable for the acts, omissions or      obligations of other participants.         7.  Provide that the undivided interest of a participant in the      joint facility may not be charged directly or indirectly with a debt      or obligation of another participant or be subject to any lien as a      result thereof.         8.  Provide for the management and operation of the affairs of the      joint facility, and the indemnification of the manager, which may      include a provision that the joint facility shall be managed and      operated by one or more of the participants.         9.  Provide that no participant may withdraw from the joint      agreement during its duration so long as obligations payable in whole      or in part from revenues derived from the operation of the joint      facility, and issued by a city, are outstanding, unless prior consent      is first granted by each of the other participants either in the      joint agreement or otherwise.         10.  Provide for the method to be employed in accomplishing the      partial or complete termination of the agreement and for disposing of      property and assets upon partial or complete termination.  The      provisions of the joint agreement for disposition of the joint      facilities shall not be subject to the statutes limiting or      prescribing procedure for the sale of city-owned properties.         11.  Provide for the duration of the agreement.  An agreement      authorized by this chapter shall not be limited as to period of      existence, except as may be limited by the terms of the agreement      itself.         12.  Include other provisions as the parties may deem necessary or      appropriate with respect to the conduct of the participants, the      operation or ownership of the joint facility, or the settlement of      disputes.  
         Section History: Early Form
         [C75, 77, 79, 81, § 390.4]