Sec. 27. (a) A municipality may lease waterworks facilities from a not-for-profit corporation, a public utility, a county, or a municipality. The term of the lease may not exceed fifty (50) years. The lease must provide that the municipality has an option to:
(1) renew the lease for a further term on like conditions; and
(2) purchase the waterworks facilities covered by the lease contract with the terms and conditions of the purchase specified in the lease.
(b) If the option to purchase the waterworks facilities covered by the lease is exercised, the municipality, for the purpose of procuring money to pay the purchase price, may issue and sell revenue bonds under other laws governing the issuance and sale of waterworks revenue bonds for additions and extensions to municipal waterworks.
(c) If the municipality has not exercised an option to purchase the property covered by the lease at the expiration of the lease, and upon the full discharge and performance by the municipality of its obligations under the lease contract, the property covered by the lease thereupon becomes the absolute property of the municipality, and the lessor shall execute proper instruments conveying to the municipality good and merchantable title thereto.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.35-1990, SEC.26; P.L.252-2015, SEC.20.
Structure Indiana Code
Title 8. Utilities and Transportation
Article 1.5. Municipal Utilities
Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities
8-1.5-2-1. Application of Chapter; Exception
8-1.5-2-2. Application of Chapter; Additional Exceptions
8-1.5-2-7. Public Convenience and Necessity; Declaratory Resolution
8-1.5-2-8. Preliminary Expenses; Appropriation
8-1.5-2-9. Appropriation for Preliminary Expenses; Repayment
8-1.5-2-10. Ordinance Declaring Public Convenience and Necessity; Notice and Hearing
8-1.5-2-12. Sale of Heat, Light, Water, or Power to Municipality
8-1.5-2-14. Costs of Construction or Acquisition; Security for Payment
8-1.5-2-15. Condemnation; Authorization
8-1.5-2-15.5. Condemnation of Public Utility
8-1.5-2-18. Bonds; Payable Out of Special Account; Issuance
8-1.5-2-19. Bonds, Notes, or Other Obligations; Issuance; Approval by Commission for Long Term Bonds
8-1.5-2-20. Bonds; Payment From Revenues Not Derived From Particular Utility; Restriction
8-1.5-2-21. Bonds Payable Out of Special Account; Purchase by Municipality
8-1.5-2-22. General Obligation Bonds; Authorization; Limitation
8-1.5-2-23. General Obligation Bonds; Terms; Sale
8-1.5-2-24. Revenue Bonds; Money Set Aside for Payment of Interest and Principal
8-1.5-2-25. Special Utility Account; Establishment by Municipality; Use
8-1.5-2-26. Tax Levy for Payment of Bonds
8-1.5-2-29. Lease of Waterworks Facilities; Notice and Hearing
8-1.5-2-30. Lease of Waterworks Facilities; Execution; Limitation of Actions
8-1.5-2-31. Leased Waterworks Facilities; Tax Exemptions
8-1.5-2-32. Leased Waterworks Facilities; Applicable Statutes
8-1.5-2-33. Action to Determine Public Convenience and Necessity