| |
Straight Rental
No interest
No set term
No purchase |
Term Rentals and Leases
Contract includes begin & end dates
Usually financed - vendor's amortization schedule required
Consult Plant Accounting if => $100,000 |
Lease-Purchase
(aka Installment Purchase) |
| |
|
Lease without Purchase Option
<$100,000 |
Lease with Purchase Option
<$100,000 |
Capital Lease with or without Purchase Option
>$100,000 |
Supplier Financed |
Third-Party Financed |
| Record in Campus Inventory?* |
No |
No |
No |
Yes |
Yes |
Yes |
|
Who holds title at inception of contract?* |
Lessor |
Lessor |
Lessor |
Lessor |
UC-Conditional |
UC-Conditional |
|
Can equipment acquired under this contract be traded in?** |
No |
No |
When buyout option is exercised & title transfers |
When buyout option is exercised & title transfers |
At end of contract |
At end of contract |
Account Code |
6120-other
6140-computer |
6170 |
6135-other
6155-computer |
6130-other
6150-computer |
7090 |
7090 |
| Subject to sales tax? |
Yes |
Yes |
Yes |
Yes |
Paid up front in lump sum |
Included in payments |
| Property tax exempt? |
n/a |
n/a |
Yes |
Yes |
Yes |
Yes |
| Is lease cancelable? |
Yes |
Yes/No |
Yes/No |
No |
No |
No |
| Are PO line items for fiscal roll needed? |
No |
Create a separate line item for each fiscal year term with a value of $10/line item. |
| Is an amortization schedule required? |
No |
No |
Required if supplier is charging interest |
Requires Amortization Schedule for separate principal and interest component. |
Requires Amortization Schedule for separate principal and interest component. |
Requires Amortization Schedule for separate principal and interest component. |
Attachment/
Reference: |
Appendix F |
Appendix F |
Appendix F |
Appendix F |
Strategically Sourced Agreement, if applicable |
Lease-Purchase Agreement, Schedules A-C, UCC Form 1 |
| NOTES: |
No principal and interest components. |
No principal and interest components. |
|
Contact Plant Accounting to confirm classification.
Receives inventory tag. |
Receives inventory tag.
|
Third party pays for the machine and finances to UC.
Receives inventory tag.
|
| Required Banner FIS Clauses |
n/a |
Lease w/o Option |
Equiplse
Invequip |
Equiplse
Invequip |
Leasepur
Invequip |
Leasepur
Invequip |
