The Lessee (Borrower) is insisting that the Lessor pay the Lessee, who will in turn pay the vendor. Should this be allowed?
Government Accounting Principals so not allow for the deposit of cash received from a Lessor (Lender) directly in the Lessee’s general fund or building fund. Government operations are funded from State, and Federal Government and tax collections. Payment should be made directly to the vendor. The vendor may request the Lessee (Borrower) sign a transfer called a “Right To Purchase Agreement”.
Related Questions
- The Lessee (Borrower) is insisting that the Lessor pay the Lessee, who will in turn pay the vendor. Should this be allowed?
- Can the Lessee (Borrower) increase the principal amount of the lease after Lessor has been selected as the low bidder?
- How much should I expect the Lessee (Borrower) to pay upfront?
