Sec. 38. (a) A city hospital that enters into a lease under this chapter under which the lease rental is payable solely from the net revenues of the hospital that contains the leased building shall covenant in the lease to establish and maintain rates, fees, and charges sufficient in each year to do the following:
(1) Pay the proper and reasonable expense of operation, repair, replacements, and maintenance of the hospital.
(2) Pay the lease rental.
(3) Establish the reserve fund provided for in the lease in the full amount within not less than five (5) years.
(b) Revenues collected are revenues of the hospital. Rates, fees, and charges shall be increased as necessary to comply with this section.
(c) The authority may protect and enforce the rights granted under this chapter or under the lease and may enforce and compel performance of all duties required under this chapter or under the lease, including setting and collecting reasonable and sufficient rates, fees, and charges. If there is a failure to pay lease rental on the payment date named in the lease, any court having jurisdiction of the action may appoint a receiver to administer the hospital on behalf of the city and the authority. The receiver may charge and collect rates sufficient to do the following:
(1) Pay the proper and reasonable expense of operation, repair, replacements, and maintenance of the hospital.
(2) Pay the lease rental payable solely from the net revenues of the hospital.
(3) Establish the full amount of reserve fund provided for in the lease within not less than five (5) years as may be provided in the lease.
(d) A lease by the authority may not provide for rentals payable from net revenues of the city hospital unless the lease is approved by a majority of the board of directors of the city hospital.
[Pre-1993 Recodification Citation: 16-12-20.5-23.]
As added by P.L.2-1993, SEC.5.
Structure Indiana Code
Chapter 7. Hospital Building Authorities in County With Hospital Operated Under Ic 16-23-1
16-22-7-2. Governing Body Defined
16-22-7-3. Net Operating Revenue Defined
16-22-7-4. Recording Officer Defined
16-22-7-5. Creation of Authority; Resolution
16-22-7-6. Governing Board; Appointment; Terms
16-22-7-7. Disqualification or Removal of Appointee; Successor
16-22-7-8. Oath of Office of Director
16-22-7-9. Removal of Member From Office
16-22-7-10. Meetings of the Governing Board
16-22-7-11. Bylaws, Rules, and Regulations
16-22-7-12. Quorum; Reimbursement of Expenses
16-22-7-13. Conflicts of Interest
16-22-7-14. Preliminary Expenses
16-22-7-15. Authority to Finance and Construct Hospital Building
16-22-7-16. Powers of Governing Board
16-22-7-17. Leasing Land and Buildings for Hospital
16-22-7-18. Time for Making Leases
16-22-7-19. Source of Lease Rental Payments
16-22-7-20. Cumulative Building Fund as Lease Rental Payment Source
16-22-7-21. Notice and Hearing on Proposed Lease
16-22-7-22. Authorization and Execution of Lease
16-22-7-24. Notice and Hearing on Objections
16-22-7-25. Time to Contest or Enjoin Lease
16-22-7-28. Approval of Plans and Specifications
16-22-7-30. Sale of Land to Authority by Hospital, Municipality, or County
16-22-7-31. Issuance of Revenue Bonds by Authority
16-22-7-32. Nature of Revenue Bonds
16-22-7-33. Execution of Bonds
16-22-7-34. Terms of Bond Sale
16-22-7-35. Disposition of Bond Proceeds
16-22-7-36. Security for Bonds; Trust Indenture
16-22-7-37. Tax Levy for Lease Rental Payments
16-22-7-38. Lease Rentals Payable Solely From Hospital Revenues
16-22-7-39. Exemptions From State Taxation
16-22-7-40. Audit of Funds; Bond of Officers and Employees
16-22-7-41. Liquidation of Authority
16-22-7-42. Remodeling and Additions to Hospital
16-22-7-43. Party Wall or Other Agreements for Attaching Additions