Sec. 6. (a) A school corporation or corporations may enter into a lease under this chapter only with a corporation organized under Indiana law solely for the purpose of acquiring a site, erecting a suitable school building or buildings on that site, leasing the building or buildings to the school corporation or corporations, collecting the rentals under the lease, and applying the proceeds of the lease in the manner provided in this chapter.

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Terms Used In Indiana Code 20-47-2-6

  • capital actually invested: includes the following amounts expended by a lessor corporation:

    Indiana Code 20-47-2-2

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • lessor corporation: means a corporation described in section 6 of this chapter. See Indiana Code 20-47-2-3
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • school building: means a building used as a part of or in connection with the operation of a school and includes the:

    Indiana Code 20-47-2-4

     (b) A lessor corporation described in subsection (a):

(1) must, except as provided in subdivision (2), act entirely without profit to the lessor corporation or its officers, directors, and stockholders;

(2) is entitled to the return of capital actually invested, plus interest or dividends on outstanding securities or loans, not to exceed five percent (5%) per annum and the cost of maintaining the lessor corporation’s corporate existence and keeping its property free of encumbrance; and

(3) upon receipt of any amount of lease rentals exceeding the amount described in subdivision (2), apply the excess funds to the redemption and cancellation of the lessor corporation’s outstanding securities or loans as soon as may be done.

[Pre-2006 Recodification Citation: 21-5-11-2.]

As added by P.L.2-2006, SEC.170.

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