§ 17D-2-405. Default under a lease agreement.

If a local entity fails to pay a lease payment due to a local building authority under a lease agreement: (1) the local entity shall immediately quit and vacate the project; (2) the local entity's lease payment obligation under the lease agreement terminates; and (3) the local building authority may immediately lease the project according to the provisions of: (a) the proceeding under which bonds to fund the project were authorized; and (b) any mortgage given to secure the bonds.