Indiana § 16-22-7-38 - Lease rentals payable solely from hospital revenues

§ 16-22-7-38. Lease rentals payable solely from hospital revenues

Sec. 38. (a) A city hospital that enters into a lease under this chapter under which the lease rental is payable solely from the net revenues of the hospital that contains the leased building shall covenant in the lease to establish and maintain rates, fees, and charges sufficient in each year to do the following:

(1) Pay the proper and reasonable expense of operation, repair, replacements, and maintenance of the hospital.

(2) Pay the lease rental.

(3) Establish the reserve fund provided for in the lease in the full amount within not less than five (5) years.

(b) Revenues collected are revenues of the hospital. Rates, fees, and charges shall be increased as necessary to comply with this section.

(c) The authority may protect and enforce the rights granted under this chapter or under the lease and may enforce and compel performance of all duties required under this chapter or under the lease, including setting and collecting reasonable and sufficient rates, fees, and charges. If there is a failure to pay lease rental on the payment date named in the lease, any court having jurisdiction of the action may appoint a receiver to administer the hospital on behalf of the city and the authority. The receiver may charge and collect rates sufficient to do the following:

(1) Pay the proper and reasonable expense of operation, repair, replacements, and maintenance of the hospital.

(2) Pay the lease rental payable solely from the net revenues of the hospital.

(3) Establish the full amount of reserve fund provided for in the lease within not less than five (5) years as may be provided in the lease.

(d) A lease by the authority may not provide for rentals payable from net revenues of the city hospital unless the lease is approved by a majority of the board of directors of the city hospital.

[Pre-1993 Recodification Citation: 16-12-20.5-23.]

As added by P.L.2-1993, SEC.5.