1. Contain a non-appropriation clause (generally a provision that the public entity will be released from liability by returning the item if funds are not appropriated for the agreement in future fiscal years); and

2. Do not contain any ant-substitution clauses (penalty clauses which generally provide that if an entity exercises the non-appropriation clause they may not then obtain the same or similar equipment through another vendor).

If the lease or installment purchase agreement is to be funded through the issuance of bonds, notes, or other obligations otherwise requiring Bond Commission approval, the public entity must still obtain approval for those items.