Section 500.1030  Lease Requirements

a)         Length of Leases

1)         Maximum term.  Except where a longer term is authorized by law, leases shall be for a term not to exceed 10 years and shall include a termination option in favor of the OAG after 5 years.

2)         Renewal Option.  Leases may include a renewal option.  An option to renew may be exercised only when the Procurement Officer determines in writing that renewal is in the best interest of the OAG and notice of the exercise of the option is published in the Auditor General Bulletin at least 60 days prior to the exercise of the option.

b)         Subject to Appropriation

All leases shall recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease.