17D-2-403. Provisions that a lease agreement may contain.
(1) A lease agreement between a local building authority and its creating local entity may: provide that the creating local entity, as part of the lease payments for the leased property: pay all taxes and assessments levied against or on account of the leased property or rentals from it; maintain insurance on the leased property for the benefit of the local building authority and the holders of the local building authority's bonds; and assume all responsibility for any repair, replacement, alteration, or improvement to the leased property during the term of the lease agreement; and authorize the local entity to sublease all or specified portions of a project to: the state; another local entity; or a private party, including a nonprofit corporation, if the local building authority or local entity: intends to own the project throughout the useful life of the project; and determines that the local building authority or local entity's ownership of the project furthers a legitimate public purpose.
(2) A local entity that subleases some or all of a project under Subsectioncontinues to be responsible for lease payments due under the lease agreement with the local building authority. (1)(b)