Sec. 25. (a) A lease under section 23 of this chapter may give one (1) or more of the lessees acting jointly or severally an option to purchase before the expiration of the term of the lease:

(1) on the date or dates in each year that are fixed by the lease; and

Terms Used In Indiana Code 36-9-13-25

  • government building: includes :

    Indiana Code 36-9-13-3

  • 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
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • system: means any of the following:

    Indiana Code 36-9-13-3.5

  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) at a price to be computed by a method set forth in the lease.

However, such a lease may not provide, or be construed to provide, that an eligible entity is under an obligation to purchase the leased government building or system or is under an obligation respecting any creditors or bondholders of the authority.

     (b) An eligible entity that exercises an option to purchase may issue general obligation bonds for the purpose of obtaining enough money to pay the purchase price or its proportionate share of the purchase price. The bonds shall be authorized, issued, and sold in the manner prescribed by law for the authorization, issuance, and sale of bonds of the eligible entity for other purposes.

[Pre-Local Government Recodification Citation: 19-8-4-13 part.]

As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988, SEC.34.

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