Sec. 59.030. TERM OF LEASES. (a) A purchaser may not lease land purchased with financial assistance under this chapter for a term longer than 10 years, except:
(1) a lease for oil, gas, or other minerals may be for a term of not longer than 10 years, and as long thereafter as oil, gas, or other minerals are produced from the land in commercial quantities; and
(2) a lease for coal and lignite may be for a term of not longer than 40 years, and as long thereafter as coal and lignite are produced from the land in commercial quantities.
(b) A lease or a separate instrument to take effect in the future may not contain a provision for option or renewal of the lease or re-lease of the property for any term that would result in a fixed term of the lease that exceeds the maximum fixed term authorized under Subsection (a) of this section. A lease or instrument that contains an option renewal or re-lease agreement in violation of this section is void.
Added by Acts 1993, 73rd Leg., ch. 542, Sec. 1, eff. Sept. 1, 1993.
Structure Texas Statutes
Title 4 - Agricultural Organizations
Chapter 59 - Farm and Ranch Finance Program
Section 59.023. Powers of Board
Section 59.024. Application; Eligibility
Section 59.025. Maximum Amount of Loan or Guarantee
Section 59.026. Transfer of Borrower's Interest
Section 59.027. Changes in Use
Section 59.029. Payments to Board Under Certain Leases
Section 59.030. Term of Leases