Ariz. Admin. Code § R12-5-106 - Assignments; Subleases

A. The Department shall not recognize or approve an assignment or sublease of any right, entitlement, or interest, in whole or in part, in State Trust Land, or possession, occupancy, or right to remove anything therefrom, in whole or in part, from State Trust Land unless:

1. The person has filed a complete application for the assignment or sublease no later than 90 days immediately preceding the expiration of the term; and

2. The person is not in default; and

3. The person is expressly allowed to assign or sublease by the instrument governing the rights and interests it seeks to assign or sublease; and

4. The person has paid rent for the upcoming year if the application has been filed less than 30 days prior to the rent due date; and

2.5. In the case of an assignment, the Department has approved the assignment in writing; or

6. In the case of a sublease, the Department has approved the sublease in writing, unless a lease expressly permits otherwise.

B. In the event an assignment application is for a partial assignment, the applicant must submit:

1. A description of both the land being transferred and the remaining land by legal subdivision or by metes and bounds based on actual survey upon which acreage can be determined;

2. A map or such survey, if required by the Department

C. No assignment shall be made without the consent of all parties of record in the Department in writing who may have a lien or encumbrance upon the applicable interest in the land. The assignee shall assume all rights and obligations of the assignor.

D. After the Department approves an application for assignment, the assignor and assignee shall execute the assignment pursuant to A.R.S. § 37-281(B).

B.E. In addition to the conditions and provisions of the lease sought to be subleased, any approved sublease is subject to further conditions and provisions as the Department may determine as necessary to further the best interest of the Trust, including but not limited to provisions relating to ownership of improvements on the lease and disposition of proceeds relating to the improvements.

C.F. The Department may cancel a lease if a sublessee violates a provision of a lease.

D.G. The Department shall hold the lessee and sublessee jointly and severally liable for damages arising out of a violation of a provision of a lease by a sublessee.

E.H. The Department shall not approve a sublease of a sublease ("sub-sublease") for State Trust Land.

Notes

Ariz. Admin. Code § R12-5-106

New Section made by final rulemaking at 11 A.A.R. 92, effective February 5, 2005 (Supp. 04-4). Amended by final rulemaking at 26 A.A.R. 3036, effective 1/5/2021. Amended by final rulemaking at 30 A.A.R. 2360, effective 8/19/2024.