State Codes and Statutes
Statutes > Indiana > Title20 > Ar47 > Ch5IC 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 or
buildings under IC 20-47-2 or IC 20-47-3 and a part of the territory
of the school corporation is later annexed to or otherwise acquired by
another school corporation, the school corporation acquiring the
territory shall pay to the school corporation whose territory is
acquired the part of each lease rental payment as specified in this
chapter.
(b) Each payment of an acquiring school corporation described in
subsection (a) must be in an amount that bears the same ratio to the
lease rental payment coming due from the school corporation whose
territory is acquired as the ratio of the net assessed valuation for tax
purposes in the territory acquired bears to the net assessed valuation
for tax purposes of all property in the school corporation whose
territory is acquired, including the property acquired.
(c) In the case of an annexation occurring after an annexation
described in subsections (a) and (b), the part of the lease rental
payments to be paid by the acquiring school corporation must be
increased by the same ratio as the ratio described in subsection (b).
The payments must be made to the school corporation whose
territory is acquired before the date when the lease rental payments
become 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 under
IC 20-47-2 are located in the territory annexed or acquired, as
described in section 1 of this chapter:
(1) the school corporation acquiring the territory:
(A) shall pay the full amount of the lease rental payments
due after the territory is annexed or acquired in accordance
with the terms of the lease; and
(B) succeeds to and possesses all the rights and is subject to
the obligations of the lessee under the lease, including the
right of occupancy and use of the building; and
(2) all rights and obligations of the lessee school corporation
named in the lease terminate.
As added by P.L.2-2006, SEC.170.
