<html> <head> <title>Rule 74:05:07:19 Lease agreements.</title> <META NAME="Keywords" Content="Administrative Rules 74:05:07:19"> <META NAME="Description" Content="Administrative Rules 74:05:07:19 Lease agreements."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 14 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; text-align:justify; font-size:12.0pt; font-family:"Times New Roman","serif";} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US> <div class=WordSection1> <p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size: 12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><span style='font-weight:bold'>74:05:07:19.&nbsp;&nbsp;Lease agreements.</span></b> If the right of use or control of real property not owned by the sponsoring entity is essential to the operation of the facility during the life of the funding agreement, this right must be evidenced by written agreements between the owner or owners of the property and the sponsoring entity or by a final judgment entered by the circuit court in a condemnation action. Lease agreements may not contain provision for restricted use of the facility or forfeiture or cancellation clauses except upon mutual agreement of all the parties to the lease and written approval of the board or its designated representative. Lease agreements must be written for a term at least equal to the normal anticipated life of the project or facility. The board shall approve or disapprove such lease agreements.</span></font></p> <p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size: 12.0pt'>&nbsp;</span></font></p> <p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size: 12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><span style='font-weight:bold'>Source:</span></b> 13 SDR 23, effective September 3, 1986; 13 SDR 129, 13 SDR 141, effective July&nbsp;1, 1987; 19 SDR 202, effective July 4, 1993; 40 SDR 14, effective July 29, 2013.</span></font></p> <p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size: 12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><span style='font-weight:bold'>General Authority:</span></b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=46A-1-65">46A-1-65.</A></span></font></p> <p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size: 12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><span style='font-weight:bold'>Law Implemented:</span></b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=46A-1-61">46A-1-61</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=46A-1-63.1">46A-1-63.1</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=46A-1-64">46A-1-64.</A></span></font></p> <p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size: 12.0pt'>&nbsp;</span></font></p> </div> </body> </html>