Cal. Code Regs. Tit. 5, div. 2, ch. 3, art. 2, app 6
An applicant that is placing a proposed project on a site secured by a lease or a lease-purchase agreement shall conform to the following requirements:
1. Public Agency Owner
If the lessor is a public agency:
a. The agreement shall provide that the applicant, as lessee, shall have full and undisturbed access to the site at all times to build and operate a public library during the length of the lease.
b. The term of the agreement shall be a minimum of 40 years following Substantial Completion of the project unless ownership shall otherwise transfer to the lessee before this time period has expired.
c. The title report shall indicate that there are no superior liens (deeds of trust or other rights) in the leased property.
d. The agreement shall provide that any subsequent encumbrance on the property (e.g. deed of trust) or sale of the property must be subject to the lease or lease-purchase agreement.
e. Either full rental shall be paid in a lump sum up front or the lessee shall covenant to budget for rent each year.
f. The lessor's remedies for any default by the lessee, including failure to pay rent, cannot include cancellation of the lease, retaking of the property, or eviction of the lessee. The only remedy is suit for rent or specific performance to remedy any specific breach.
g. The lessor shall demonstrate that the agreement is legally authorized and has been properly approved and executed by the lessor and is enforceable against the lessor. Lessor shall provide a legal opinion to this effect, and the applicant shall submit the legal opinion with the application.
h. The applicant, as lessee, shall demonstrate that the agreement is legally authorized and has been properly approved and executed and is enforceable against the lessee. The applicant shall submit a legal opinion to this effect with the application.
2. Private Owner
If the lessor is a private entity, in addition to the items in 1 above, the applicant shall submit a legal opinion with the application that either:
a. The lessor is an entity which cannot enter bankruptcy proceedings under the Federal Bankruptcy Code, or
b. The lease or lease purchase agreement cannot be rejected by the lessor in the event of bankruptcy.
Cal. Code Regs. Tit. 5, div. 2, ch. 3, art. 2, app 6