Indiana Code
Chapter 10. Leasing and Lease-Purchasing Structures
36-1-10-16. Conveyance of Structure to Lessor and Lease Back; Purchase Price; Option to Purchase

Sec. 16. (a) A political subdivision or agency owning a structure with respect to which its revenue bonds are outstanding may, to refinance those bonds, convey the structure to the lessor in fee simple and lease it from the lessor in accordance with this chapter.
(b) The price of a purchase under this section must be at least the sum of:
(1) the principal amount of the outstanding revenue bonds;
(2) interest on those bonds to the maturity date of bonds not subject to redemption before maturity and to the first redemption date of bonds subject to redemption before maturity; and
(3) the redemption premiums on all bonds subject to redemption before maturity.
An amount not less than this sum shall be deposited in trust for the payment of the outstanding revenue bonds in a manner consistent with the ordinance or trust agreement under which the bonds were issued. The money deposited in the trust, and investment income from it, not required for the payment of the bonds, shall be applied to the payment of the obligations issued by the lessor for the acquisition of the structure, and to a corresponding reduction of rentals for the leasing agent.
(c) Each lease entered into under this section must include an option permitting the political subdivision or agency to purchase the structure at a price not exceeding the amount required to retire all outstanding obligations issued by the lessor to acquire the property covered by the lease. The lease and sale of a parking facility under this section does not preclude the lease of air rights.
[Pre-Local Government Recodification Citation: 18-5-3.3-8.5.]
As added by Acts 1981, P.L.57, SEC.36. Amended by P.L.90-2002, SEC.465; P.L.174-2022, SEC.69.

Structure Indiana Code

Indiana Code

Title 36. Local Government

Article 1. General Provisions

Chapter 10. Leasing and Lease-Purchasing Structures

36-1-10-1. Application of Chapter

36-1-10-2. Definitions

36-1-10-3. Persons Entitled to Lease Property to Political Subdivision or Agency

36-1-10-4. Repealed

36-1-10-4.1. Leasing Agents; Compliance With Chapter; Procedure in Lease Without Option to Purchase

36-1-10-5. Leases Without Option to Purchase; Procedure

36-1-10-6. Limitation on Term of Lease

36-1-10-7. Lease of a Structure, Transportation System, or System by a Political Subdivision Other Than a School Corporation

36-1-10-7.5. Lease of a Structure, Transportation System, or System by a School Corporation

36-1-10-8. Joint Leasing

36-1-10-9. Leases; Terms and Conditions; Options to Renew or Purchase; Exercise of Option to Purchase

36-1-10-10. Plans, Specifications, and Estimates for Structures, Systems, and Transportation Projects

36-1-10-11. Property Held in Fee Simple; Sale Procedure

36-1-10-12. Lease in Anticipation of Acquisition or Construction of Structure, System, or Transportation Project

36-1-10-13. Hearing; Procedure; Execution of Lease

36-1-10-14. Disagreement With Execution of Lease; Petition; Hearing; Decision

36-1-10-15. Actions to Contest Validity of Lease or to Enjoin Performance Under Lease

36-1-10-16. Conveyance of Structure to Lessor and Lease Back; Purchase Price; Option to Purchase

36-1-10-17. Annual Appropriation and Tax Levy

36-1-10-18. Tax Exemption of Leased Structures, Systems, and Transportation Projects; Taxation of Rental Paid Lessor

36-1-10-19. Assignment or Conveyance of Lease; Conveyance of Structure, System, or Transportation Project

36-1-10-20. Repealed

36-1-10-20.1. Repealed

36-1-10-21. Not-for-Profit Corporations; Issuance and Sale of Bonds and Other Securities

36-1-10-22. Certain Leases Legalized and Validated