The private corporation leasing arrangement, as a source of school construction funds, is increasingly being used in Indiana; however, the principles are applicable in any state. The private corporation charges a project fee, which represents its maximum anticipated profit. The private corporation obtains the funds for the project; makes the arrangements for the project funds to be used to pay project expenses; helps the school board and administrators obtain the appropriate state agency approval and prepare for hearings with the public and with state agencies; and is responsible for all administrative tasks and for defending the project against legal claims. The school board selects the architect who draws plans according to their specifications. The school board adopts the appropriate resolutions necessary to comply with state law, with bond counsel requirements, and with the requirements of the financial institution. The private corporation oversees project completion according to the plans and specifications and to the satisfaction of the school board and administrators. The school corporation pays the annual lease rental for the duration of the lease period. (Author/MLF)