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.
(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.
History: En. Sec. 8, Ch. 703, L. 1983; amd. Sec. 9, Ch. 477, L. 1997; amd. Sec. 12, Ch. 137, L. 2001.