The city shall sell or lease the project or projects to a New Mexico corporation, as and when it or they are acquired, the basic terms of which lease shall be in full accord with the industrial revenue bond act 1 :
   A.   Term of lease to be as mutually agreed upon, but not less than a minimum of the period required to pay and retire the bonds issued to finance the project.
   B.   Rentals in an amount sufficient:
      1.   To pay the principal of and interest on the bonds issued to finance said project or projects; and
      2.   To build up and maintain any reserve deemed by the bond purchasers to be advisable in connection therewith; and
      3.   To pay all city administrative costs and trustee fees.
      4.   Bonds to be for terms up to thirty (30) years. Based on the average earnings for the past five (5) years, it should be possible to retire the bonds issued for the project in fifteen (15) years, or if a branch operation, it should be possible to retire the bonds issued in fifteen (15) years from earning estimates of the branch operation based on sound evidence to support these estimates.
   C.   Lessee to keep said demised premises and subject matter of the lease in good repair and insured.
   D.   And such other additional conditions as may be required to protect bond purchasers, and the city.
Immediately subsequent to the effective date of the ordinance establishing each project, the city shall enter into a firm agreement with the leasing-operating company of the project committing the city to sell or lease to each said company each project acquired hereunder and reciting the terms, covenants and conditions under which such a sale or lease shall be finally consummated, between the city and the company. Such a commitment is deemed necessary and expedient to expedite the acquisition of projects, the issuance of bonds, all as herein provided. (Ord. 310, 5-2-1960)



1. NMSA § 3-32-1 et seq.