<html> <head> <title>Rule 74:05:10:31 Lease agreement.</title> <META NAME="Keywords" Content="Administrative Rules 74:05:10:31"> <META NAME="Description" Content="Administrative Rules 74:05:10:31 Lease agreement."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p><font size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>74:05:10:31.&nbsp;&nbsp;Lease agreements.</b> If the right of use or control of real property not owned by the sponsoring entity is essential to the operation of the project 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 provide for restricted use of the project or contain forfeiture or cancellation clauses except upon mutual agreement of all the parties to the lease and written approval of the board or its designated agent. Lease agreements must be written for a term at least equal to the normal anticipated life of the project or facility and must be approved by the board or its designated agent.</font></p> <p><font size=3 face="Times New Roman">&nbsp;</font></p> <p><font size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 23 SDR 12, effective July 30, 1996.&nbsp; </font></p> <p><font size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=46A-1-84">46A-1-84.</A></font></p> <p><font size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</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-1-82">46A-1-82</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=46A-1-83">46A-1-83.</A></font></p> <p><font size=3 face="Times New Roman">&nbsp;</font></p> </div> </body> </html>