South Dakota Codified Laws 28-18-17.1. Lease-purchase agreements authorized–Pledge of facility and net earnings topayment of bonds and interest
The governing body of each municipality shall have the power to enter into lease–purchase agreements for a term not to exceed the maturity of the bonds issued under § 28-18-7 by ordinance with any person, firm, or corporation for such facilities. Such lease–purchase agreements shall provide for contractual payments sufficient to amortize the cost of the facilities to be constructed and equipment, plus the fair market value on the date of the agreement, of the site. Such agreements shall also provide for a reasonable rate of interest on the outstanding principal and reimburse the municipality for the cost of any other obligation assumed by it under the contract. In the event the governing body enters into a lease–purchase agreement, the governing body notwithstanding any other provision of this chapter, may pledge the facility constructed and the net earnings therefrom to the payment of said bonds and interest thereon, and provide that the net earnings thereof be set apart as a debt service fund for that purpose.
Terms Used In South Dakota Codified Laws 28-18-17.1
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- 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.
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
Source: SL 1963, ch 286, § 3 as added by SL 1968, ch 187.