28-18-17.1. Lease-purchase agreements authorized--Pledge of facility and net earnings to payment of bonds and interest. The governing body of each municipality shall have the power to enter into lease-purchase agreements for a term not to exceed the maturity of the bonds issued under § 28-18-7 by ordinance with any person, firm, or corporation for such facilities. Such lease-purchase agreements shall provide for contractual payments sufficient to amortize the cost of the facilities to be constructed and equipment, plus the fair market value on the date of the agreement, of the site. Such agreements shall also provide for a reasonable rate of interest on the outstanding principal and reimburse the municipality for the cost of any other obligation assumed by it under the contract. In the event the governing body enters into a lease-purchase agreement, the governing body notwithstanding any other provision of this chapter, may pledge the facility constructed and the net earnings therefrom to the payment of said bonds and interest thereon, and provide that the net earnings thereof be set apart as a debt service fund for that purpose.
Source: SL 1963, ch 286, § 3 as added by SL 1968, ch 187.
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