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162.330 Lease of building -- Option to purchase.

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162.330 Lease of building -- Option to purchase. Immediately upon the execution of the contract provided for by KRS 162.320, the person <br>to whom the site is conveyed shall execute, acknowledge, and deliver to the governing <br>body of the state educational institution, a lease of the site and the building to be erected <br>thereon, for a term of one (1) year from the time the building is completed and ready for <br>occupancy, with an option in the lessee to extend the term of the lease for a term of one <br>(1) year from the expiration of the original term of the lease and for one (1) year from the <br>expiration of each extended term of the lease, until the original term of the lease has been <br>extended for a total number of years to be agreed upon by the parties at a rental which, if <br>paid for the original term and for each of the full number of years for which the term of <br>the lease may be extended, will amortize the total cost of the erection of the building and <br>appurtenances. The rent shall be paid at such times as the parties to the lease agree upon. <br>The lease shall provide that the lessee may, at the expiration of the original or any <br>extended term, purchase the leased premises at a stated price, which shall be the balance <br>of the total cost of the erection of the building and appurtenances not amortized by the <br>payments of rent previously made by the lessee. The lease shall provide that in the event <br>of the exercise of the option to purchase the leased premises or in the event the lease has <br>been extended for the full number of years which it is agreed the same may be extended, <br>and all rents and payments provided for in the lease have been made, the lessor shall <br>convey the premises to the lessee in fee simple with covenant of general warranty of title. <br>The lease may provide that the lessee shall, as additional rent for the leased premises, pay <br>all taxes assessed against the leased premises, and the cost of insuring the building <br>erected thereon against loss or damage by fire and windstorm in such sum as may be <br>agreed by the parties thereto. Effective: July 13, 1990 <br>History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 574, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, <br>from Ky. Stat. sec. 4535cc-3.