37-295. Disposition of long-term commercial lease prepayments; prepayment fund

A. If the department receives prepayments of rent paid from long-term commercial leases under any provision of this chapter, the monies received shall be transmitted to the state treasurer for investment in a prepayment fund for the appropriate beneficiary. Any interest earned from the investments of monies in the prepayment fund shall be credited to the prepayment fund. For each lease that is prepaid, the department shall give notice to the treasurer of the amount of rent annually due to the beneficiary according to a schedule maintained by the department. The treasurer shall remit to the department an amount from the prepayment fund that is equal to the amount stated in the notice. The department shall transfer the remittance to the credit of the fund of the appropriate beneficiary.

B. For leases entered into through December 31, 2000, the discount rate for prepayments made pursuant to subsection A shall be no greater than the current prevailing long-term interest rate established by the state treasurer on the date the lease is approved by the board of appeals.

C. For leases entered into from and after December 31, 2000, the discount rate for prepayments made pursuant to subsection A shall be no greater than the twenty-four month average yield for a fixed income security with a ten year maturity or average life which is eligible for purchase by the permanent fund managed by the state treasurer. The twenty-four month average calculation ends on the last day of the month before the month in which the board of appeals approves the lease.