A.  No equipment may be leased under a lease-purchase contract under the terms of this Chapter unless such equipment, the estimated price, the estimated economic useful life, and the selected vendor thereof is identified by the applicable purchasing agency pursuant to state law regarding the procurement of equipment.  After such equipment and the selected vendor thereof have been identified, the applicable purchasing agency electing to participate in a lease-purchase contract with a nonprofit lessor under the term of this Chapter shall notify such nonprofit lessor of the selected equipment, price, and selected vendor, whereupon such nonprofit lessor shall be responsible for the purchase of such equipment, but only with such funds as are currently available to such nonprofit lessor for such purpose, from such vendor and shall include such selected equipment under the schedule of leased equipment under the lease-purchase contract with the state, subject to the provisions of Section 1766 of this Chapter.  In the event that the nonprofit lessor is itself subject to the state law regarding procurement of equipment, the purchase of selected equipment from selected vendors for the purposes of this Chapter need not be separately bid and the selection process completed by the applicable purchasing agency shall be imputed to the nonprofit lessor.

B.  The purchase of the selected equipment by the nonprofit lessor shall be subject to only those state and local sales and use taxes which the lessee would have been subject to if the selected equipment had been purchased directly by the lessee.  If the lessee is subject to sales and use taxes upon a direct purchase of the selected equipment by the lessee, the nonprofit lessor shall be so subject; however, in such cases the lessee shall not be subject to a sales and use tax on the lease payments to the nonprofit lessee.

C.  Notwithstanding any provision of law to the contrary, the selected equipment shall not be subject to any lien or other encumbrance asserted by, and shall be exempt from seizure, under any writ, mandate, or process whatsoever by the creditors of the nonprofit lessor or by creditors of or those claiming against or through the lessee.  The exemption from seizure provided in this Subsection shall not be construed to prohibit the nonprofit lessor from entering into contracts, indentures of trust, mortgages, or other security devices pursuant to which the nonprofit lessor expressly grants a security interest in and to the selected equipment nor is the exemption from seizure to be construed to invalidate or in any way restrict such contracts, indentures, mortgages, or other security agreements pursuant to which the nonprofit lessor has heretofore granted or may hereafter expressly grant a security interest in and to the selected equipment which may include the right to seize the selected equipment.

Acts 1985, No. 758, §2, eff. July 17, 1985; Acts 1986, No. 528, §2, eff. July 2, 1986.

{{NOTE:  SEE ACTS 1985, NO. 758, §§3, 5 AND 6.}}

{{NOTE:  SEE ACTS 1986, NO. 528, §3.}}