17D-2-403. Provisions that a lease agreement may contain.

219 words·~1 min read·/ut/title-17d/chapter-2/17d-2-403

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

(1)A lease agreement between a local building authority and its creating local entity may:

(a)provide that the creating local entity, as part of the lease payments for the leased property:

(i)pay all taxes and assessments levied against or on account of the leased property or rentals from it;

(ii)maintain insurance on the leased property for the benefit of the local building authority and the holders of the local building authority's bonds; and

(iii)assume all responsibility for any repair, replacement, alteration, or improvement to the leased property during the term of the lease agreement; and

(b)authorize the local entity to sublease all or specified portions of a project to:

(i)the state;

(ii)another local entity; or

(iii)a private party, including a nonprofit corporation, if the local building authority or local entity:

(A)intends to own the project throughout the useful life of the project; and

(B)determines that the local building authority or local entity's ownership of the project furthers a legitimate public purpose.

(2)A local entity that subleases some or all of a project under Subsection (1)(b) continues to be responsible for lease payments due under the lease agreement with the local building authority.

Enacted by Chapter 360 , 2008 General Session