The University is responsible for all operating costs such as repairs, utilities and insurance for this lease. The University s noncancellable operating leases having remaining terms of more than one year expire in various fiscal years from 2001 through 2002. Certain operating leases provide for renewal options for periods from one to three years at their fair rental value at the time of renewal. All agreements are cancelable if the State of South Carolina does not provide adequate funding but that is considered a remote possibility. In the normal course of business, operating leases are generally renewed or replaced by other leases.
Operating leases are generally payable on a monthly basis.
Examples of property under operating leases are copiers and other small business equipment. The agreement does not contain a renewal option. The University reports these costs in the unrestricted and restricted current funds functional expenditure categories. Besides the real property operating leases with the Clemson University Research Foundation mentioned above, the University had no other operating leases with related parties in the current fiscal year.