Indiana § 20-47-2-6 - Qualifications of lessor corporation; permissible interest; return of capital; recovery of expenses
Full text of Indiana Indiana Code § 20-47-2-6 — Qualifications of lessor corporation; permissible interest; return of capital; recovery of expenses, with citation guidance and answers to common questions.
§ 20-47-2-6. Qualifications of lessor corporation; permissible interest; return of capital; recovery of expenses
Sec. 6. (a) A school corporation, school corporations, or the public education corporation may enter into a lease under this chapter only with a corporation organized under Indiana law solely for the purpose of acquiring a site, erecting a suitable school building or buildings on that site, leasing the building or buildings to the school corporation, school corporations, or public education corporation collecting the rentals under the lease, and applying the proceeds of the lease in the manner provided in this chapter.
(b) A lessor corporation described in subsection (a):
(1) must, except as provided in subdivision (2), act entirely without profit to the lessor corporation or its officers, directors, and stockholders;
(2) is entitled to the return of capital actually invested, plus interest or dividends on outstanding securities or loans, not to exceed five percent (5%) per annum and the cost of maintaining the lessor corporation's corporate existence and keeping its property free of encumbrance; and
(3) upon receipt of any amount of lease rentals exceeding the amount described in subdivision (2), apply the excess funds to the redemption and cancellation of the lessor corporation's outstanding securities or loans as soon as may be done.
[Pre-2006 Recodification Citation: 21-5-11-2.]
As added by P.L.2-2006, SEC.170. Amended by P.L.101-2026, SEC.26.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 20-47-2-6
What does Indiana Code § 20-47-2-6 cover?
Section 20-47-2-6 ("Qualifications of lessor corporation; permissible interest; return of capital; recovery of expenses") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 20-47-2-6?
A common citation format is "Indiana Code § 20-47-2-6" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 20-47-2-6 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.