[§206M-44]  Special facility lease. (a)  In addition to the conditions and terms set forth in this part, anyspecial facility lease entered into by the development corporation shall atleast contain provisions obligating the other party to the special facilitylease:

(1)  To pay to the development corporation during theinitial term of the special facility lease, whether the special facility iscapable of being used or occupied or is being used or occupied by the otherparty, a rental or rentals at the time or times and in the amount or amountsthat will be sufficient to:

(A)  Pay the principal and interest on allspecial facility revenue bonds issued for the special facility;

(B)  Establish or maintain any reserves forthese payments; and

(C)  Pay all fees and expenses of the trustees,paying agents, transfer agents, and other fiscal agents for the specialfacility revenue bonds issued for the special facility;

(2)  To pay to the development corporation:

(A)  A ground rental, equal to the fair marketrental of the land, if the land on which the special facility is located wasnot acquired from the proceeds of the special facility revenue bonds; or

(B)  A properly allocable share of theadministrative costs of the development corporation in carrying out the specialfacility lease and administering the special facility revenue bonds issued forthe special facility if the land was acquired from the proceeds of the specialfacility revenue bonds;

(3)  To either operate, maintain, and repair thespecial facility and pay the costs thereof or to pay to the developmentcorporation all costs of operation, maintenance, and repair of the specialfacility;

(4)  To:

(A)  Insure, or cause to be insured, thespecial facility under builder's risk insurance (or similar insurance) in theamount of the cost of construction of the special facility to be financed fromthe proceeds of the special facility revenue bonds;

(B)  Procure and maintain, or cause to beprocured or maintained, to the extent commercially available, a comprehensiveinsurance policy providing protection and insuring the development corporationand its officers, agents, servants, and employees (and so long as specialfacility revenue bonds are outstanding, the trustee) against all direct orcontingent loss or liability for damages for personal injury or death or damageto property, including loss of use thereof, occurring on or in any way relatedto the special facility or occasioned by reason of occupancy by and theoperations of the other person upon, in and around the special facility;

(C)  Provide all risk casualty insurance,including insurance against loss or damage by fire, lightning, flood,earthquake, typhoon, or hurricane, with standard extended coverage and standardvandalism and other malicious mischief endorsements; and

(D)  Provide insurance for workers'compensation and employers' liability for personal injury or death or damage toproperty (the other party may self-insure for workers' compensation ifpermitted by law); provided that all policies with respect to loss or damage ofproperty including fire or other casualty and extended coverage and builder'srisk shall provide for payments of the losses to the development corporation,the other party or the trustee for the special facility revenue bonds as theirrespective interests may appear; and provided further that the insurance may beprocured and maintained as part of or in conjunction with other policiescarried by the other party; and provided further that the insurance shall namethe development corporation, and so long as any special facility revenue bondsare outstanding, the trustee, as additional insured; and

(5)  Indemnify, save, and hold the developmentcorporation, the trustee, and their respective agents, officers, members, and employeesharmless from and against all claims and actions and all costs and expensesincidental to the investigation and defense thereof, by or on behalf of anyperson, firm, or corporation, based upon or arising out of the special facilityor the other party's use and occupancy thereof, including, without limitation,from and against all claims and actions based upon and arising from any:

(A)  Condition of the special facility;

(B)  Breach or default on the part of the otherparty in the performance of any of the party's obligations under the specialfacility lease;

(C)  Fault or act of negligence of the otherparty or the party's agents, contractors, servants, employees, or licensees; or

(D)  Accident to or injury or death of anyperson or loss of or damage to any property occurring in or about the specialfacility, including any claims or actions based upon or arising by reason ofthe negligence or any act of the other party.

Any moneys received by the developmentcorporation pursuant to paragraphs (2) and (3) shall be paid into the hightechnology special fund and shall not be nor be deemed to be revenues of thespecial facility.

(b)  The term and all renewals and extensionsof the term of any special facility lease (including any amendments or supplementsthereto) shall not extend beyond the lesser of the reasonable life of thespecial facility that is the subject of the special facility lease, asestimated by the development corporation at the time of the entering intothereof, or thirty years.

(c)  Any special facility lease entered into bythe development corporation shall be subject to chapter 171 and shall containother terms and conditions that the development corporation deems advisable toeffectuate the purposes of this part. [L 2000, c 72, pt of §1]