Only items that meet the criteria for capital equipment, as defined by the University of Kentucky capitalization policy, are eligible for lease purchase. Lease purchases of capital equipment must be done under an approved University of Kentucky master lease agreement. Lease purchase arrangements proposed with financing sources other than an approved University of Kentucky master lease agreement must be approved by the Office of Controller and Treasurer and the Purchasing Division. The maximum lease period is 60 months. The Purchasing Division has responsibility for coordinating lease purchases and is the University's authorized signatory of leases.
All debt financings require legislative approval.
Accordingly, the lease purchase must be approved in advance by the General Assembly in a regular or special session. The amount of funds authorized for the project by the General Assembly represents the project's maximum expenditures.