1. (a) If the interest of the developer in a project is a leasehold interest, the lease, unless otherwise determined by the division, must provide that:

   1. (1) the lessee must give the association notice of termination of the lease for any default by the lessor; and
   2. (2) the lessor, upon the bankruptcy of the lessee, shall enter into a new lease with the association upon the same terms and conditions as were contained in the lease with the developer.

2. (b) The division may require the developer to execute a bond or other type of security for the payment of the lease obligation.

   [Pre-2002 Recodification Citation: 24-5-9-31.]

As added by P.L.2-2002, SEC.17.