CHAPTER 4. LEASE OF EXISTING SCHOOL BUILDING

IC 20-47-4
    Chapter 4. Lease of Existing School Building

IC 20-47-4-1
Application
    Sec. 1. This chapter applies to the lease by a school corporationof an existing school building or improved school building underIC 20-47-2 or IC 20-47-3.
As added by P.L.2-2006, SEC.170.

IC 20-47-4-2
"Existing school building"
    Sec. 2. As used in this chapter, "existing school building":
        (1) includes a:
            (A) school building; or
            (B) building that after acquisition will be used as a schoolbuilding; and
        (2) may include more than one (1) building.
The term does not include a portable or relocatable building orclassroom.
As added by P.L.2-2006, SEC.170.

IC 20-47-4-3
"Improved school building"
    Sec. 3. As used in this chapter, "improved school building" meansan existing school building as improved, renovated, remodeled, orexpanded by a lessor corporation.
As added by P.L.2-2006, SEC.170.

IC 20-47-4-4
"School building"
    Sec. 4. As used in this chapter, "school building" has the meaningset forth in IC 20-47-2-4 or IC 20-47-3-2.
As added by P.L.2-2006, SEC.170.

IC 20-47-4-5
Powers; lessor corporation; acquisition and financing of existingor improved school building
    Sec. 5. A lessor corporation qualified or formed to acquire a site,erect a school building on the site, and lease the school building toa school corporation under IC 20-47-2 or IC 20-47-3 may:
        (1) be qualified or formed to acquire, improve, or expand anexisting school building;
        (2) acquire, improve, or expand an existing school building;
        (3) finance an existing school building or improved schoolbuilding; and
        (4) lease an existing school building or improved schoolbuilding to a school corporation under applicable law.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-6
Powers; acquisition and financing of existing school building;compliance with other laws
    Sec. 6. (a) A lessor corporation may acquire and finance anexisting school building, other than as provided in section 5 of thischapter, and lease the existing school building to a schoolcorporation. A school corporation shall comply with:
        (1) IC 20-47-2 or IC 20-47-3;
        (2) the petition and remonstrance provisions under IC 6-1.1-20(if required); and
        (3) the local public question provisions under IC 6-1.1-20 (ifrequired).
    (b) A lease made under this section may provide for the paymentof lease rentals by the school corporation for the use of the existingschool building.
    (c) Lease rental payments made under the lease do not constitutea debt of the school corporation for purposes of the Constitution ofthe State of Indiana.
    (d) A new school building may be substituted for the existingschool building under the lease if the substitution was included in thenotices given under IC 20-47-2, IC 20-47-3, and IC 6-1.1-20. A newschool building must be substituted for the existing school buildingupon completion of the new school building.
As added by P.L.2-2006, SEC.170. Amended by P.L.146-2008,SEC.521.

IC 20-47-4-7
Limitation on payment of legal or other professional fee
    Sec. 7. A school corporation may not pay a legal or otherprofessional fee as the result of an exchange or a substitution undersection 5 or 6 of this chapter.
As added by P.L.2-2006, SEC.170.

IC 20-47-4-8
Compliance with other laws
    Sec. 8. (a) Except as provided in subsection (b), the lease orcontract of lease of an existing school building or improved schoolbuilding to a school corporation as authorized by this chapter mustcomply with all applicable terms of IC 20-47-2 or IC 20-47-3,including:
        (1) the notice of hearing on the lease;
        (2) public hearing;
        (3) notice of execution of lease; and
        (4) the submission of plans and specifications for theimprovement or expansion of the existing school building forapproval by the state agencies designated in IC 20-47-2 orIC 20-47-3 or otherwise required by law or rule.
    (b) If a school corporation is occupying and using an existingschool building during the renovation, remodeling, or expansion ofthe building, the lease or contract of lease may provide for the

payment of lease rental by the school corporation for the use of thebuilding during renovation, remodeling, or expansion.
As added by P.L.2-2006, SEC.170.

IC 20-47-4-9
Sales price; compliance with other laws
    Sec. 9. The sale price of an existing school building must bedetermined under the provisions of IC 20-47-2 or IC 20-47-3 relatingto the sale of land to a lessor corporation. Except as provided in thissection, IC 20-26-7 and any other law relating to the sale of theproperty of school corporations or other public property do not applyto the sale of an existing school building to a lessor corporationunder this chapter.
As added by P.L.2-2006, SEC.170.

IC 20-47-4-10
Deposit of proceeds from sale
    Sec. 10. A school corporation that sells an existing schoolbuilding under section 6 of this chapter shall deposit the proceeds ofthe sale in the school corporation's capital projects fund and use theproceeds only for:
        (1) new construction of school buildings;
        (2) related site acquisition; and
        (3) related site development.
However, any amount of the proceeds of the sale that are not used fora purpose described in subdivisions (1) through (3) within one (1)year after the school corporation receives the proceeds must betransferred to the school corporation's debt service fund.
As added by P.L.2-2006, SEC.170.