If there are substantive deviations or if the rental agreement or lease requires Regental approval, the document must be reviewed by General Counsel. As supported by legal opinion from the Office of the General Counsel, the authority to execute leases covers all leasing within the UC system, whether instigated from the campus, laboratory, or any affiliated program, such as public service programs, including UC Foundations. Real Estate Services Group, as the department of record for such contracts, is responsible for keeping a fully executed original of all lease documents, regardless of the execution authority. The campus has the responsibility to provide RESG with particular information on all lease agreements, regardless of execution authority. All or a portion of the lease payments may apply toward the purchase of the property as provided in the contract.
Title remains with the lessor until the purchase option is exercised.
Funds from the University's operating budget may not be used for leases with options to purchase without the express, prior approval of The Regents and, in the case of State appropriations, of the Legislature as well. In no instance shall a financial obligation be undertaken for which there is no approved fund source. Campuses entering into this type of lease transaction must pledge opportunity funds whenever external financing is sought. A pledge of opportunity funds is not needed for capital leases internally financed. See Delegation of Authority, DA 1083 for more information on this subject.