IC 20-47-5
    Chapter 5. Payment of Rent by Annexed School Corporation

IC 20-47-5-1
Existing lease; obligation of annexing school corporation
    Sec. 1. (a) If a school corporation has leased a building orbuildings under IC 20-47-2 or IC 20-47-3 and a part of the territoryof the school corporation is later annexed to or otherwise acquired byanother school corporation, the school corporation acquiring theterritory shall pay to the school corporation whose territory isacquired the part of each lease rental payment as specified in thischapter.
    (b) Each payment of an acquiring school corporation described insubsection (a) must be in an amount that bears the same ratio to thelease rental payment coming due from the school corporation whoseterritory is acquired as the ratio of the net assessed valuation for taxpurposes in the territory acquired bears to the net assessed valuationfor tax purposes of all property in the school corporation whoseterritory is acquired, including the property acquired.
    (c) In the case of an annexation occurring after an annexationdescribed in subsections (a) and (b), the part of the lease rentalpayments to be paid by the acquiring school corporation must beincreased by the same ratio as the ratio described in subsection (b).The payments must be made to the school corporation whoseterritory is acquired before the date when the lease rental paymentsbecome due and owing.
As added by P.L.2-2006, SEC.170.

IC 20-47-5-2
Property interest in lease; annexing school corporation;termination of obligations of annexed school corporation
    Sec. 2. If a building or buildings that have been leased underIC 20-47-2 are located in the territory annexed or acquired, asdescribed in section 1 of this chapter:
        (1) the school corporation acquiring the territory:
            (A) shall pay the full amount of the lease rental paymentsdue after the territory is annexed or acquired in accordancewith the terms of the lease; and
            (B) succeeds to and possesses all the rights and is subject tothe obligations of the lessee under the lease, including theright of occupancy and use of the building; and
        (2) all rights and obligations of the lessee school corporationnamed in the lease terminate.
As added by P.L.2-2006, SEC.170.