Mississippi Administrative Code
Title 12 - Finance and Administration
Part 6 - Office of Purchasing, Travel and Fleet Management
Chapter 3 - Source Selection and Contract Formation
Sec2 12-6-3.117 - Lease Contracts
Section 12-6-3.117.06 - Lease Termination
Current through September 24, 2024
Multi-year agreements frequently offer lower monthly rental charges as they carry a certain assurance that the equipment will be in service for the specified time, thereby providing a greater return to the owner on the original investment. Early cancellation of leases may result in termination removal charges. Therefore, only two reasons are considered justifications for requesting cancellation:
(1) Equipment is inoperative or inefficient and the lessor either cannot or will not correct the situation.
(2) Funding for the succeeding fiscal year is not available and the provisions of the funding-out clause must be exercised.
In the case of inoperative or inefficient equipment, no termination or removal charges will be paid by state agencies.
When exercising provisions of the funding-out clause, the removal charges as presented in the original contract shall be due and payable; however, no payment of termination charges will be allowed.
