(a) (1) The corporation and the lessee involved are respectively authorized to enter into with each other one (1) or more lease agreements whereunder a project shall be leased by the corporation to the lessee.
(2) Any lease agreement shall provide for subleasing of portions of the project under and pursuant to the provisions of law governing the leasing of public property to private persons.
(3) In the case of municipalities, counties, or other public bodies, the term of the lease shall not be longer than the then-current fiscal year of the municipality, county, or other public body. However, any such lease agreement may contain a grant to the municipality, county, or other public body of successive options of renewing the lease agreement on the terms specified therein for any subsequent fiscal year or years of the municipality, county, or other public body.
(4) The lease agreement may contain appropriate provisions as to the method by which the municipality, county, or other public body may, at its election, exercise such of the options of renewal as its governing body may elect, on the terms provided in this section such other covenants and provisions as shall not be inconsistent with this chapter, and as the corporation and the municipality, county, or other public body may agree.
(b) (1) The rental for each fiscal year during which the lease agreement shall be in effect shall be due in advance on the first day of the fiscal year. The rental for the fiscal year shall be payable and any such covenant on the part of the municipality, county, or other public body shall be performed solely out of the current revenues of the municipality, county, or other public body for the fiscal year.
(2) The state shall not in any manner be liable for the performance of any obligation or agreement contained in the lease agreement.
(3) The rental payable and the covenants to be performed by the lessees under the provisions of the lease agreement shall never create an indebtedness of the lessees within the meaning of any applicable limitation in the Constitution of the state, including particularly Arkansas Constitution, Amendment 10.
(4) It is declared that it is an essential governmental function of the lessee to secure and supply reasonable and adequate project facilities for the performance of its public functions and duties, and the rentals payable by the lessee for such purpose are and shall constitute a necessary governmental operating expense of the lessee.
(5) If there is any default in the payment of any rental required to be paid or in the performance of any covenant required to be performed by the lessee under the provisions of any such lease agreement while such lease agreement shall be in effect, the corporation and any pledgee of the lease agreement or rentals thereunder may, by any appropriate proceedings at law or in equity, enforce and compel payment of such rental and performance of such covenant.
(c) Should any usable space in any project leased to a lessee become vacant after acquisition or construction thereof by the corporation, then neither the lessee, nor any officer or agency thereof, shall thereafter enter into any lease or rental agreement for additional space or renew any existing lease or rental agreement for such space, nor construct any facilities duplicating such vacant space in the project until after all vacant space in the project shall have been filled.
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