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See Q.3 of the LLA's Public Lease Law, which can be found on the in the Legal Assistance & FAQs Overview page of the LLA Website, that states that the State Bond Commission does not consider the lease of a movable to be “debt” if the following conditions listed in R.S. 39:1410.60 are met:
A. The lease agreement contains a non-appropriation clause; and
B. The lease agreement does not contain an anti-substitution clause or penalty clause.
As long as the lease agreement for the golf carts contains a non-appropriation clause and does not contain an anti-substitution clause, the City will not need to get State Bond Commission approval before entering the agreement.
Louisiana Legislative Auditor website: 06/06/2025 05:07:12 AM
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