41-791.04. Lease purchase financing; eligible municipal convention center projects; eligible projects lease purchase fund

479 words·~2 min read·/az/title-41/41-791-04

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. On the filing of a notice by an eligible city with the director pursuant to section 9-624 requesting this state to lease purchase part of an eligible municipal convention center project, the director may complete lease purchase financing of the part of the eligible project designated by the eligible city. The director may employ outside consultants to review the lease purchase program request and report on the financial details of the program negotiated with the eligible city.

The eligible city is responsible for the costs of the consultant and the report. The lease purchase agreement shall include the provisions required by section 41-791.02, subsection B and the provisions authorized by section 41-791.02, subsection C. The agreement is subject to the review provisions of section 41-791.02, subsections D and E. At the director’s request, the attorney general may give other opinions relating to the agreement.

B. The lease purchase financing agreement shall provide for:

1. The use, maintenance and operation of the eligible project by the eligible city and for the ownership of the eligible project by the eligible city on completion of performance of the lease purchase agreement.

2. The eligible city’s option to purchase the eligible project and on exercising the option, the vesting of ownership of the eligible project in the eligible city on discharging the lease purchase agreement.

C. Except as provided in subsection E of this section, the annual lease payment under the lease purchase agreement shall not exceed the amount that would otherwise have been distributable to the eligible city pursuant to section 9-602 if the notice pursuant to section 9-624 had not been filed.

D. An eligible projects lease purchase fund is established consisting of monies appropriated by the legislature for lease purchase agreement payments pursuant to this section. The director shall administer the fund and distribute monies in the fund to make payments pursuant to lease purchase agreements entered into by the director pursuant to this section and to pay costs considered to be necessary by the director and the eligible city in connection with lease purchase transactions entered into pursuant to this section.

Payments pursuant to a lease purchase agreement shall be made only from the eligible projects lease purchase fund. The state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

E. At the request of an eligible city, the director may complete lease purchase financing for all or any part of the eligible project, except that if the annual lease payment of this state exceeds the amounts that would otherwise have been distributable to the eligible city for the eligible project, all such excess amounts shall be paid from monies provided by the eligible city.