KANSAS STATUTES AND CODES

66-533. Lease; requirements and conditions.

66-533

Chapter 66.--PUBLIC UTILITIES Article 5.--POWERS OF RAILROAD COMPANIES

66-533. Lease; requirements and conditions.(a) A lease shall contain terms and conditions which arereasonable and just, and shall provide for a fair lease rental.

(b) Unless otherwise agreed by the parties to a lease, a lease shall be foraterm of not less than one year.

(c) A lease may not be terminated prior to the end of its term, except: (1)By agreement of the parties; (2) by reason of a party's breach or default inthe performance of the terms and conditions of the lease, where the defaultingparty has been given written notice of default and a reasonable opportunity tocure the default, but has failed to do so; or (3) where the railroad land whichis subject to the lease is reasonably needed by the railroad forrailroad operations.

(d) A lease may not require that one party to the lease indemnify, defend orhold the other party to the lease harmless for liabilities caused by the otherparty's negligence.

(e) A lease may require the tenant to remove the tenant's improvements upontermination of the lease, in which event the tenant shall have not less thansix months following termination of the lease to remove such improvements, anduntil such improvements have been removed, the tenant shall pay monthly rentbased on the annual rent specified in the lease.

(f) A lease may provide for the imposition of a penalty and a reasonablerateof interest, and interest may accrue if the tenant fails to pay the leaserental when due under the terms of the lease. If a dispute arises as to thelease rental provided in a lease renewal, no penalty shall be imposed and nointerest shall accrue during the time when the dispute is being resolvedpursuant to K.S.A. 66-534 and amendments thereto, if the tenantremains current onthe rental requiredby the preceding lease.

History: L. 1998, ch. 158, § 3; July 1.