Policies & Procedures Manual - Elizabeth City State University

400.1.33Adopted: 06/14/05ELIZABETH CITY STATE UNIVERSITYRental and Lease EquipmentntGeneralIn industry, renting and leasing, rather than purchasing, expensive equipment is a common practice.The State does not generally lease or rent equipment, although there is no specific rule prohibitingthis practice. If equipment is to be required on a continuing basis, it is generally more economicalto purchase it.Rental/Lease AgreementsIt may be desirable to rent equipment for a short duration for a specific requirement. Rentalagreements are similar to lease agreements, except that rental agreements are normally for anindefinite period and can be terminated by the renter after giving notice, usually thirty days, inadvance. The initial cost of some equipment, such as computers, is so great that when this type ofequipment is required, it may be more economical to rent on a continuing but indefinite basis. Also,new, updated versions of this type of equipment are constantly placed on the market, making itunwise to invest large sums in equipment which may soon be obsolete. Rental and lease contractsdo not include any intent for ownership.Rental Lease Agreements for CommoditiesContracts for the rental or lease of commodities shall be handled under the same Rules applying tothe outright purchase of commodities.Lease/Purchase AgreementsLease/Purchase agreements (installment buying agreements) are entered into with the intent ofownership by the State/Agency. Lease/Purchase agreements are for a definite period of time,usually one to three years, and cannot be cancelled without significant financial penalties.The same Rules applying to outright purchases shall be applied for lease-purchases.RequisitionsDepartmental Rental/Lease or Lease/Purchase requests should be submitted to the PurchasingDepartment on a Purchasing Requisition with a memorandum justifying the need forrenting/leasing or installment buying rather than an outright purchase, a copy of the agreement, andany other available communication concerning the request.