12 Miss. Code. R. 6-3.117.04.1
Lease-purchase contracts are authorized under Sections 31-7-10 and 31-7-13(m), Mississippi Code of 1972, Annotated. These are extended term contracts requiring payment over a specified period of time up to the useful life of the equipment as determined by the Asset Depreciation Range (ADR) established by the Federal Internal Revenue Service. Such contracts almost certainly will transcend a fiscal year. Therefore, it is required that any such contract shall include a non-appropriation clause. This clause provides that should the contract be canceled for nonavailability of funds the equipment shall be returned to the lessor with no further obligations on the part of the lessee except that all payments due up to the end of the fiscal year in which funding was available shall be paid. No agency shall enter into any lease-purchase contract without approval of the Department of Finance and Administration. Any lease-purchase contract is considered to be a purchase transaction; therefore, payments made pursuant to such contracts shall be made from the funding category of capital outlay equipment. The universities should preview the Institutions of Higher Learning's policies concerning lease-purchase contracts.
12 Miss. Code. R. 6-3.117.04.1