Section 162-G:5 Leases.
I. Every lease or sublease entered into by a municipality as lessor or sublessor shall:
(a) Provide for the payment of rent by the tenant at such times and in such amounts as are necessary in order to pay the principal and interest of all bonds issued to finance the project as they become due; and
(b) Obligate the tenant to pay all the costs and expenses of operation, maintenance, and upkeep of the business and industrial facility.
II. Any lease or sublease entered into by a municipality as lessor or sublessor may:
(a) Provide for payments of rent which include amounts in addition to the amounts required to pay bonds;
(b) Obligate a tenant to pay rent before the business and industrial facility exists or becomes functional and to pay rent after the business and industrial facility has ceased to exist or be functional to any extent and from any cause whatsoever;
(c) Obligate a tenant to pay rent regardless of whether the tenant is in possession or is entitled to be in possession of the business and industrial facility;
(d) Allocate responsibility between the municipality and the tenant for making purchases and contracts required for the project, provided that in the case of leases in which the municipality acts through its business and industrial development authority, any allocation of responsibility to the authority shall not exceed the total of the amounts appropriated by the legislative body for purposes of meeting such responsibility, and the rent derived from the lease in excess of costs of servicing bonds, unless the legislative body ratifies the lease;
(e) Contain a tenant's option to purchase the business and industrial facility from the governmental unit for nominal consideration upon payment of the bonds or upon the tenant's making adequate and secure provision for their payment and provide for the automatic conveyance of the facility upon the effective exercise of such option;
(f) Provide that some or all of the tenant's obligations thereunder shall be unconditional and shall be binding and enforceable in all circumstances whatsoever notwithstanding any other provision of law; and
(g) Contain such other provisions and covenants relating to the use, maintenance, and replacement of the business and industrial facility which the governmental unit and the tenant deem necessary for the protection of themselves or others.
III. No lease may be for a term of more than 40 years.
Source. 1972, 57:1. 1992, 262:29-31. 2000, 161:1, eff. July 22, 2000.