§ 22-26A-2. Purpose

The purpose of the Public School Lease Purchase Act is to implement the provision of Article 9, Section 11 of the constitution of New Mexico , as approved by the voters of the state of New Mexico at the general election held in November 2006, which declares that a financing agreement entered into by a school district or a charter school for leasing of a building or other real property with an option to purchase for a price that is reduced according to the payments made by the school district or charter school pursuant to the financing agreement is not a debt if: A. there is no legal obligation for the school district or charter school to continue the lease from year to year or to purchase the real property; and B. the agreement provides that the lease shall be terminated if sufficient money is not available to meet the current lease payments.