Private School Act Enforcement Rules Article 38

A school's corporate body shall submit a estimated price report and contract when requesting pursuant to Article 49, Paragraph 1 of the Act so that the school's competent authority's can grant its approval and forward the case to the corporate body's competent authority for approval of sale or lease of real estate.When the corporate body's competent authority authorizes a school corporate body to dispose of real estate, establish an encumbrance, or purchase or lease real estate pursuant to Article 49, Paragraph 1 of the Act, it shall review the following items in accordance with the circumstances:1. Whether the school's corporate body has satisfactorily performed a corporate body change of registration pursuant to Article 13, Paragraph 3 of the Act, and whether real estate ownership and the school's financial matters were properly handled.2. Whether there has been any obstruction to school development or implementation of school affairs.3. Whether the school's income has been used for the active development of school affairs.4. Whether the school has the ability to pay its debts and possesses confirmed sources of funds.In Article 49 Paragraph 2 Subparagraph 2 of the Act, real estate not directly connected with instruction means land and buildings not contained in a school's preparatory plan or expansion plans.