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Compare Features of Rentals, Leases, and Lease-Purchase Plans

Compare features of rentals, leases, and lease-purchase plans.

  • Straight Rentals: No interest, set term or equipment purchase
  • Term Rentals and Leases: Includes Leases < $100,000 (set term), Leases > $100,000 (set term), and Capital Lease  > $100,000 (non-cancellable) with or without purchase option.
    • Contract includes begin and end dates and is usually financed (vendor's amortization schedule required)
    • Consult Equipment Administration if lease is > $100,000 at eq.administration@ucsc.edu.
  • Lease-Purchase (Installment Purchase): Supplier Financed or Third-Party Financed
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Topic
  
Straight Rental
Records in Campus Inventory?
No
Who holds title at inception of contract?
Lessor
Can equipment acquired under this contract be traded in?
No
Account Code
006120
Subject to tax withholding?
Yes
Property tax exempt?
N/A
Is lease cancelable?
Yes
Create separate PO line item each fiscal year term?
No
Is an amortization schedule required?
No
Attachment Reference
Appendix F
Notes
No principal and interest components
Required FIS Banner DocText - Lease Terms and Conditions?
N/A
Topic
  
Capital Lease (Inc. Purchase Option)
Term Lease < $100,000
Term Lease > $100,000
Records in Campus Inventory?
Yes
No
No
Who holds title at inception of contract?
Lessor
Lessor
Lessor
Can equipment acquired under this contract be traded in?
When buyout option is exercised & title transfers
No
When buyout option is exercised & title transfers
Account Code
006130
006135
006135
Subject to tax withholding?
Yes
Yes
Yes
Property tax exempt?
Yes
N/A
Yes
Is lease cancelable?
No
Yes/No
Yes/No
Create separate PO line item each fiscal year term?
Yes, $10/ line item
Yes, $10/ line item
Yes, $10/ line item
Is an amortization schedule required?
Requires Amortization Schedule for separate principal and interest component
No
Required if supplier is charging interest
Attachment Reference
Appendix F
Appendix F
Appendix F
Notes
Contact Equipment Administration to confirm classification (Receives inventory tag)
No principal and interest components
 
 
 

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Required FIS Banner DocText - Lease Terms and Conditions?
Using Equipment Lease Information Form via Cruzbuy
Using Equipment Lease Information Form via Cruzbuy
​
Using Equipment Lease Information Form via Cruzbuy
Topic
  
Supplier Financed
Third-Party Financed
Records in Campus Inventory?
Yes
Yes
Who holds title at inception of contract?
UC-Conditional
UC-Conditional
Can equipment acquired under this contract be traded in?
At end of contract
At end of contract
Account Code
007090
007090
Subject to tax withholding?
Paid up front in lump sum
Included in payments
Property tax exempt?
Yes
Yes
Is lease cancelable?
No
No
Create separate PO line item each fiscal year term?
Yes, $10/ line item
Yes, $10/ line item
Is an amortization schedule required?
Requires Amortization Schedule for separate principal and interest component
Requires Amortization Schedule for separate principal and interest component
Attachment Reference
Strategically Sourced Agreement (if applicable)
Lease Purchase Agreement, Schedules A-C, UCC Form 1
Notes
Receives inventory tag
Third party pays for the machine (Receives inventory tag)
Required FIS Banner DocText - Lease Terms and Conditions?
Using Equipment Lease Information Form via Cruzbuy
Using Equipment Lease Information Form via Cruzbuy
​​

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