South Dakota Codified Laws
Chapter 12 - South Dakota Building Authority
Section 5-12-42 - .Sale and lease-back arrangements--Sales and land leases authorized--Use of proceeds.

5-12-42. Sale and lease-back arrangements--Sales and land leases authorized--Use of proceeds.
Improved or unimproved land held by or transferred to the Building Authority pursuant to §5-12-10, may be leased and the improvements thereon sold to a person, partnership, association, limited liability company, or corporation. The improvements may be sold only at their fair market value as determined by the authority, but consideration for a land lease may be nominal. The authority shall obtain and consider when determining the fair market value of improvements to be sold, at least one independent appraisal. The proceeds of sale shall be paid to the Building Authority trust account and shall be applied to such purpose, if any, as may be required by the State Constitution or any contract of the state. If no specific disposition of the proceeds, including any investment income thereon, or any portion thereof is required by the Constitution or any state contract, the proceeds, including any investment income thereon, shall be used in or expended for the acquisition of land, buildings, water development, or other improvements of a capital nature as the Legislature or the special committee created in §4-8A-2 and Governor may specifically direct. Contracts of the state shall include any contract now in existence and any contract entered into in connection with any sale hereunder and the lease-back of the improvements sold pursuant to §5-12-43. Except as provided in chapters 5-6 to 5-8, inclusive, all leases and sales of land and improvements may be made without reservation of timber, mineral, or other similar rights.

Source: SL 1983, ch 32, §1; SL 1989, ch 212, §2; SL 1994, ch 351, §4.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 5 - Public Property, Purchases and Contracts

Chapter 12 - South Dakota Building Authority

Section 5-12-1 - .Authority created--Composition--Initial terms--Political affiliation--Chairman.

Section 5-12-1.1 - .Authority continued within Bureau of Finance and Management--Records and reports.

Section 5-12-1.2 - .Meaning of United States Department of Agriculture Conservation Reserve Program.

Section 5-12-2 - .Terms of members--Vacancies--Quorum.

Section 5-12-3 - .Oath and bond of members.

Section 5-12-4 - .Members receive no compensation--Reimbursement of expenses.

Section 5-12-5 - .Employment of personnel.

Section 5-12-6 - .Common seal of authority.

Section 5-12-7 - .Purposes of authority.

Section 5-12-8 - .Studies and investigations of land needs.

Section 5-12-8.1 - .Additional powers with respect to projects under §5-12-8.

Section 5-12-10 - .Transfer of state property to authority.

Section 5-12-11 - .Power of authority to acquire property--Methods of acquisition.

Section 5-12-11.1 - .Standards and specifications to accommodate persons with disabilities.

Section 5-12-12 - .Plans and specifications for projects to be undertaken.

Section 5-12-13 - .Lease of facilities and sites to state agencies authorized--Commencement of payments under lease.

Section 5-12-14 - .Terms, conditions, and rental under leases--Annual extension provision.

Section 5-12-15 - .Lessee's option to purchase--Conveyance on exercise of option.

Section 5-12-16 - .Taxes and insurance added to rental properties--Authorization to self-insure.

Section 5-12-17 - .Authority's power to use facilities for other purposes on nonpayment of rent--Appropriations and funds from which rent payable.

Section 5-12-18 - .Costs and reserves to be covered by rent and charges.

Section 5-12-19 - .Tax exemption of property owned or leased by authority--Exception.

Section 5-12-20 - .Resolutions for revenue bonds authorized--Purpose--Legislative approval required.

Section 5-12-21 - .Purposes for which bonds issued--Refunding and refinancing--Pledge of income.

Section 5-12-22 - .Terms and interest rate of bonds.

Section 5-12-23 - .Revenues and income from which bonds payable--Use of educational facilities fund--Disposition of revenues.

Section 5-12-24 - .Execution and registration of bonds--Validity of signature by officers.

Section 5-12-25 - .Restrictions on obligation stated on face of bonds.

Section 5-12-26 - .Creation of state obligation not authorized.

Section 5-12-27 - .Contract with bondholders--Bondholders' remedies.

Section 5-12-27.1 - .Refunding bonds authorized--Purposes.

Section 5-12-27.2 - .Amount of refunding bonds.

Section 5-12-27.3 - .Exchange or sale of refunding bonds--Proceeds of sale--Cancellation of bonds and coupons--Evidence of discharge of interest obligation.

Section 5-12-27.4 - .Exchange or sale of bonds--Disposition of proceeds of sale.

Section 5-12-27.5 - .Assistance in conserving and improving soil and water resources of highly erodible cropland by means of loans--Revenue bonds and interim notes authorized.

Section 5-12-27.6 - .No indebtedness to be charged against state.

Section 5-12-27.7 - .Acceptance and expenditure of gifts, contributions, etc., authorized.

Section 5-12-27.8 - .Lease and sublease agreements with South Dakota Building Authority authorized to support purpose and payment of revenue bonds or interim notes.

Section 5-12-28 - .Interim notes authorized--Purposes of borrowing.

Section 5-12-29 - .Resolution for issuance of interim notes--Interest rate--Maturity date.

Section 5-12-30 - .Terms and registration of interim notes--Redemption prior to maturity--Execution of notes--Pledge of income and revenue.

Section 5-12-31 - .Additional provisions to secure payment of interim notes.

Section 5-12-32 - .Debt limitations not applicable to interim notes--Personal liability not created by execution of notes.

Section 5-12-33 - .Payment of interim notes or purchase of government obligations with proceeds from sale of revenue bonds.

Section 5-12-34 - .Disposition of income under chapter--Public building fund.

Section 5-12-35 - .Accounts maintained by authority--Purpose of disbursements from public building fund.

Section 5-12-36 - .Authority to convey property to state when debt paid or payment provided for--Reversion to authority.

Section 5-12-37 - .Record of rental payments under lease--Conveyance to lessee after amortization of debt.

Section 5-12-38 - .Annual audit.

Section 5-12-38.1 - .Informational budget required.

Section 5-12-39 - .Contractual power of authority.

Section 5-12-40 - .Bylaws, rules, and regulations of authority.

Section 5-12-41 - .Severability of provisions.

Section 5-12-42 - .Sale and lease-back arrangements--Sales and land leases authorized--Use of proceeds.

Section 5-12-43 - .Sale and lease-back arrangements--Contracts to acquire use or ownership authorized--Terms.

Section 5-12-44 - .Provisions applicable to contracts to acquire use or ownership.

Section 5-12-45 - .Revenue bonds to finance sale and lease-back arrangements--Lending proceeds--Refund or refinance of obligations.

Section 5-12-46 - .Legislative approval required for sale and lease-back arrangements.

Section 5-12-47 - .Revenue obligations--Issuance--Purpose--Funds for payment.

Section 5-12-47.1 - .Payment of lease rental obligations to South Dakota Building Authority by Bureau of Finance and Management.

Section 5-12-47.2 - .Irrevocable escrow agreement for defeasance and payment of lease revenue trust certificates and bonds--Arrangements to pay governmental expenses.

Section 5-12-48 - .Definition of terms.

Section 5-12-48.1 - .Authority may invest funds in certain permitted investments.

Section 5-12-49 - .Transfer and sale of state's right to tobacco settlement revenues--Disposition of funds--Written agreement--Filing of agreement.

Section 5-12-50 - .Establishment of special purpose corporation--Limitations--Board membership--Powers of corporation.

Section 5-12-50.1 - .Bond transactions to be public records subject to disclosure.

Section 5-12-51 - .Purposes of special purpose corporation.

Section 5-12-52 - .Bonds of corporation not a lien, charge or liability against the state--Pledge of education enhancement trust funds prohibited.

Section 5-12-53 - .Pledge of non-interference by state to impair terms of bonds--Liability of state on bonds.

Section 5-12-54 - .Liability of authority and special purpose corporation.

Section 5-12-55 - .Special purpose corporation treated as public instrumentality of state--Income of authority and corporation not taxed--Obligations of corporation deemed public securities.

Section 5-12-56 - .Employees of special purpose corporation.

Section 5-12-59 - .State pledge to honor agreements of authority or corporation with regard to certain federal income tax exclusions.

Section 5-12-61 - .Authority may contract to manage payment or interest rate risk for bonds.