Installment purchase agreements entered into under section 17 246

1724717-247.  Terms of agreements

Installment purchase agreements entered into under section 17 246:

1.  Shall include an interest component in the payments to be made pursuant to the agreement.

2.  May provide for annual, monthly or other payment periods.

3.  May provide that payments be made in advance, at the start of each payment period.

4.  May provide for the inception of payments before the construction, renovation or improvement of the game and fish facility being acquired.

5.  May permit the sale of certificates of participation or other representations of interest in some or all of the seller's rights under the installment purchase agreement and the assignment of some or all of the seller's rights under the installment purchase agreement to a trustee on behalf of the seller and the holders of the certificates or other representations of interests.  The agreements and the certificates or other representations of interest, their transfer and the income from them are free from taxation in this state and are exempt from title 44, chapter 12.

6.  Shall provide that all right, title and interest in and to the game and fish facility purchased vest in this state or the department when full payment has been made and all other conditions in the agreement have been complied with.

7.  Shall provide that the commission shall operate and maintain the game and fish facility during the life of the installment purchase agreement.

8.  May provide either that the seller shall construct, renovate or improve the game and fish facility and turn over the completed facility to the commission or that the commission enter into and administer the construction, renovation or improvement of the facility as the seller's agent.  If the commission acts as the seller's agent, the seller shall deliver to a fiscal agent agreed on by the seller and the commission monies in an amount reasonably expected to be sufficient to pay for the construction, renovation or improvement of the facility to be acquired. The monies advanced shall be held in trust until they are expended for construction, renovation or improvement of the facility.  On completion of the facility, any excess monies shall be returned to the seller.  If the commission acts as the agent for construction, renovation or improvement, all contracts regarding construction shall be awarded and administered pursuant to title 34, chapters 2 and 3.

9.  May provide that on an event of default, which is not cured as provided in the installment purchase agreement, the commission shall vacate the game and fish facility which is the subject of the installment purchase agreement.  The superior court has jurisdiction to enforce this provision by an appropriate injunction and other relief.

10.  May contain such other terms, covenants and conditions as the commission prescribes.

11.  May be for any term not to exceed thirty years.  The installment purchase agreement is not an obligation of this state, the commission or the department in any fiscal year, except to the extent that monies for payment on the installment purchase agreement have been appropriated by the legislature and allocated for payment on the installment purchase agreement by the department for that fiscal year and the commission has executed an annual renewal of the installment purchase agreement for that fiscal year.  On appropriation, allocation and annual renewal, the installment purchase agreement is a binding contract of the department in full force and effect for that fiscal year. 17247