A. The Commissioners of the Land Office are authorized to grant commercial leases and agricultural leases in trust property.
Commercial leases shall not exceed fifty-five (55) years. The granting of any commercial lease in excess of three (3) years shall be by public bidding at not less than fair market value. All commercial leases shall provide for fair market value throughout the term of the lease.
Agricultural leases of trust property shall be limited to a maximum of five (5) years and shall be by public bidding at not less than fair market value.
The granting of any interest in trust property at less than fair market value or not in compliance with this section is void.
Any permanent improvement made on commercial trust property from and after the passage of this act shall revert to the trust at the end of the lease.
B. In connection with any commercial and agricultural leases, the Commissioners of the Land Office shall, unless otherwise exempted by the Constitution or laws of Oklahoma:
1. Require payment of ad valorem property taxes on any improvements and structures on state school land, which would otherwise be subject to ad valorem property taxation if constructed on privately owned land; and
2. Indemnify and hold harmless the Commissioners of the Land Office from any financial obligation related to land, financing or operation.
C. The Commissioners of the Land Office may refuse to accept any bid or lease on a commercial, agricultural or mineral lease where the party is in default of any installment due or in violation of any provisions contained in a prior or current lease contract.
D. The Commissioners of the Land Office may refuse to accept any bid or lease contract where the interested party cannot show adequate creditworthiness as determined by the Land Office.
Added by Laws 1989, c. 173, § 4, operative July 1, 1989. Amended by Laws 2010, c. 41, § 18, emerg. eff. April 2, 2010. Renumbered from § 101 of this title by Laws 2010, c. 41, § 75, emerg. eff. April 2, 2010.