(1) A local building authority and its creating local entity may enter into a lease agreement with respect to a project that the local building authority: (a) has constructed, acquired, improved, or extended on behalf of the creating local entity; or (b) will construct, acquire, improve, or extend on behalf of the creating local entity.

(a) has constructed, acquired, improved, or extended on behalf of the creating local entity; or

(b) will construct, acquire, improve, or extend on behalf of the creating local entity.

(2) (a) A local building authority and its creating local entity may enter into a lease agreement before the local building authority's acquisition of a site or construction of the project. (b) Each lease agreement described in Subsection (2)(a) shall: (i) provide that the creating local entity is not required to make a lease payment until acquisition or construction of the project is completed; and (ii) require the local building authority to furnish or cause the construction contractor to furnish a bond satisfactory to the creating local entity, conditioned upon: (A) final completion of the project as expeditiously as reasonably possible from the date of the execution of the lease agreement; and (B) delivery of possession of the project to the creating local entity free and clear of all liens and encumbrances, except: (I) taxes, liens, and encumbrances on the local building authority's interest in the leased property; and (II) easements and restrictions that the creating local entity accepts.

(a) A local building authority and its creating local entity may enter into a lease agreement before the local building authority's acquisition of a site or construction of the project.

(b) Each lease agreement described in Subsection (2)(a) shall: (i) provide that the creating local entity is not required to make a lease payment until acquisition or construction of the project is completed; and (ii) require the local building authority to furnish or cause the construction contractor to furnish a bond satisfactory to the creating local entity, conditioned upon: (A) final completion of the project as expeditiously as reasonably possible from the date of the execution of the lease agreement; and (B) delivery of possession of the project to the creating local entity free and clear of all liens and encumbrances, except: (I) taxes, liens, and encumbrances on the local building authority's interest in the leased property; and (II) easements and restrictions that the creating local entity accepts.

(i) provide that the creating local entity is not required to make a lease payment until acquisition or construction of the project is completed; and

(ii) require the local building authority to furnish or cause the construction contractor to furnish a bond satisfactory to the creating local entity, conditioned upon: (A) final completion of the project as expeditiously as reasonably possible from the date of the execution of the lease agreement; and (B) delivery of possession of the project to the creating local entity free and clear of all liens and encumbrances, except: (I) taxes, liens, and encumbrances on the local building authority's interest in the leased property; and (II) easements and restrictions that the creating local entity accepts.

(A) final completion of the project as expeditiously as reasonably possible from the date of the execution of the lease agreement; and

(B) delivery of possession of the project to the creating local entity free and clear of all liens and encumbrances, except: (I) taxes, liens, and encumbrances on the local building authority's interest in the leased property; and (II) easements and restrictions that the creating local entity accepts.

(I) taxes, liens, and encumbrances on the local building authority's interest in the leased property; and

(II) easements and restrictions that the creating local entity accepts.