Original Issue/Approval Date: May 4, 1976
Last Revision: Original

1. This policy shall apply to all lease-purchase transactions pertaining to real property, except those which involve endowment properties or properties carried as an investment by The Regents.
2. It is University policy that lease-purchase transactions pertaining to real property may be consummated only when recommended by the President of the University and approved by The Regents.
3. There must be an established fund source before any financial obligation may be assumed.

This policy was set forth in President Saxon's letter to the Chancellors et al., of May 4, 1976.

1. For the purpose of this policy, the following definitions are established. They are intended to apply regardless of whether the University is a lessor or a lessee.
2. The term real property shall be understood to include, but not be limited to, land and/or improvements, including affixed structures and any other building space or variant thereof such as prefabricated structures (mobile or portable) or lightweight tension structures. This definition includes either temporary or permanent structures or improvements.
3. A lease-purchase transaction pertaining to real property is any of the following:

1. Lease of real property which contains an option to purchase.
2. Lease of real property in which all or a portion of the payments are or may be applied to the purchase of the property.
3. Agreement which provides for construction of a facility on University land in which the ownership of the facility vests in others for a period of time beyond completion of construction of the facility, pending a future payment or payments by the University.
4. Agreement which provides for purchase of real property and/or improvements by the University by land contract financing, wherein payments are to be made periodically following University possession, and title transfers only upon or after final payment of purchase price.
   IMPLEMENTATION

   The Vice President Business and Finance [Senior Vice President Business and Finance] shall be responsible for establishing procedures for compliance with this policy.

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