A Lease is a secured financial agreement or contract between the University and a Lessor. Leases are legally binding, non-cancelable contracts that financially obligate the University. The Lessor (the financing body, e.g. bank) owns the equipment throughout the contracted lease period and maintains a security interest or lien on the equipment. Each lease requires the University to pay the Lessor a specific amount at regular intervals for the contracted period for the use of the equipment, this includes both the cost of the item and the interest associated with financing the purchase. A Lease may not be canceled for any reason prior to the end of the term without incurring severe financial repercussions. To review the university’s capital lease policy, please visit http://policylibrary.columbia.edu/capital-equipment-leasing-policy
Leased goods are subject to the same policies and procedures that would apply to the acquisition of any piece of capital equipment such as computers, medical or scientific equipment, business related equipment, etc. For the university’s Procurement Mechanism Policy, please visit http://policylibrary.columbia.edu/procurement-mechanisms-policy and for the Competitive Procurement Policy, please visit http://policylibrary.columbia.edu/competitive-procurement.
Motor Vehicle Leases, Department / School must also adhere to the University’s policy for Vehicle Acquisition, Operation and Disposal Policy found at http://policylibrary.columbia.edu/vehicle-acquisition-operation-and-disposal-policy
Leased equipment cannot be relocated, replaced, exchanged, swapped-out, upgraded, returned or sold while there is an active lease. Central purchasing must communicate any such request to the Lessor and Lessor’s permission must be granted prior to any of the above action being taken.
Central Purchasing is responsible for managing the capital leasing process at the University.
- Category Code Category Code Description Natural Account#
- 4200000001 Medical Equipment Leasing 63110
- 44102101 Postage Machines 63050
- 78111809 Vehicle Leasing* 63120
- 80161800 Office Equipment Leasing 63110
- 80161801 Photocopier Leasing** 63110
- 81112400 Computer Hardware Leasing 63110
*Requires prior approval from Risk Management
**Managed by Print Services