Answer

In order to not require State Bond Commission approval, the agreement must also not contain any anti-substitution or penalty clauses. R.S. 39:1410.60(C) provides that debt for the purpose of requiring political subdivisions to obtain bond commission approval does not include the lease of a movable or an installment purchase agreement financing the purchasing of a movable, such as heavy equipment, if 1. The agreement contains a non-appropriation clause, and 2. Does not contain an anti-substitution or penalty clause. However, if the means of financing involves the issuance of bonds, notes, certificates, or other obligations that otherwise require Bond Commission approval, the agreement will require Bond Commission approval. Louisiana Legislative Auditor website: 05/30/2025 08:02:48 PM