48-1911 - Arizona Statutes

48-1911. Leases of hospital or urgent care center and equipment; provisions; cancellation for failure to pay rent; re-lease; auction; notice A. A lease of the hospital or urgent care center and its equipment, as required under section 48-1910 for districts with bonded indebtedness, executed by the board of directors of the district, shall: 1. Contain terms and provisions necessary to assure compliance by the district with the provisions of the federal act and any amendments thereto. 2. Extend for a term to be determined by the board, but not less than five nor more than ten years. 3. Be executed to a corporation not for pecuniary profit, duly organized under the laws of this state for the purpose of conducting a hospital, urgent care center, combined hospital and ambulance service or combined urgent care center and ambulance service. 4. Provide for a rental upon terms and in an amount which will provide a fair return to the district on its investment, be sufficient to meet the payments of principal and interest of bonds issued under this article, and provide amounts necessary to meet the expenses of the district. B. If a lessee of the hospital or urgent care center and its equipment fails to make the payment of rental required by the lease, the board of directors of the district, at its option, may cancel the lease for such failure. If the lease is cancelled and if the board is then unable to re-lease the hospital or urgent care center and its equipment to a lessee qualified under the provisions of this article at a rental sufficient to meet the payments of principal and interest on any bonds issued by the district and to provide the amounts necessary to meet expenses of the district, the board shall, at public auction, offer to lease the hospital or urgent care center and its equipment to the highest responsible and qualified bidder for such term as the board prescribes, and shall lease the hospital and its equipment to the bidder who bids the highest rental for the prescribed period. C. Notice of the auction shall be given in a newspaper as provided by section 48-1902 at least once each week for four weeks immediately preceding the auction.