Definition of a Lease Purchase of Capital Equipment . The lease contains a bargain purchase option. In those instances where it is not clear whether certain capital equipment acquisitions constitute lease purchase agreements, the final decision will be made by the Office of Controller and Treasurer. Capital equipment acquired under lease purchase agreements shall be recorded and capitalized at the time the agreement is finalized and delivery is made to the University. All lease purchase transactions are subject to the University's general guidelines for lease purchase of capital equipment, as explained below.
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. Responsibility for management of sector budgets is assigned to each Chancellor and Vice President. Accordingly, requisitions requesting use of lease purchase agreements require the approval of the appropriate Chancellor or Vice President. As part of this approval process, the Chancellor or Vice President must indicate the full source of funding for the term of the lease purchase. Only items that meet the criteria for capital equipment, as defined by the University of Kentucky capitalization policy, are eligible for lease purchase.