Indiana § 20-47-2-7 - Required terms of lease agreement
Full text of Indiana Indiana Code § 20-47-2-7 — Required terms of lease agreement, with citation guidance and answers to common questions.
§ 20-47-2-7. Required terms of lease agreement
Sec. 7. (a) A lease entered into under this chapter must include the following provisions:
(1) An option for the school corporation, school corporations, or the public education corporation to renew the lease for a further term on similar conditions.
(2) An option for the school corporation, school corporations, or public education corporation to purchase the property covered by the lease after six (6) years from the execution of the lease and before the expiration of the term of the lease, on the date or dates in each year as may be fixed in the lease. The purchase price:
(A) must be equal to the amount required to enable the lessor corporation owning the property to liquidate by paying all indebtedness, with accrued and unpaid interest, redeeming and retiring any stock at par, and paying the expenses and charges of liquidation; and
(B) may not exceed the capital actually invested in the property by the lessor corporation represented by outstanding securities or existing indebtedness, plus the cost of transferring the property and liquidating the lessor corporation.
(b) A lease entered into under this chapter may not provide or be construed to provide that a school corporation or the public education corporation is under any obligation to purchase a leased school building or buildings, or under any obligation in respect to any creditors, shareholders, or other security holders of the lessor corporation.
[Pre-2006 Recodification Citation: 21-5-11-3 part.]
As added by P.L.2-2006, SEC.170. Amended by P.L.101-2026, SEC.27.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 20-47-2-7
What does Indiana Code § 20-47-2-7 cover?
Section 20-47-2-7 ("Required terms of lease agreement") 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 § 20-47-2-7?
A common citation format is "Indiana Code § 20-47-2-7" (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 § 20-47-2-7 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.