[Code of Federal Regulations]
[Title 49, Volume 6]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR639.21]

[Page 55-56]
 
                        TITLE 49--TRANSPORTATION
 
                             TRANSPORTATION
 
PART 639--CAPITAL LEASES--Table of Contents
 
                      Subpart C--Cost-Effectiveness
 
Sec. 639.21  Determination of cost-effectiveness.


    (a) To qualify a lease for capital assistance, a recipient must--
    (1) Make a written comparison of the cost of leasing the asset with 
the cost of purchasing or constructing it; and
    (2) Certify to FTA before entering into the lease or before 
receiving a capital grant for the asset, whichever is later, that 
obtaining the asset by lease is more cost-effective than purchase or 
construction of such asset.

[[Page 56]]

    (b) For purposes of this part, obtaining the asset by lease is more 
cost-effective than purchase or construction when the lease cost 
calculated under Sec. 639.25 of this part is less than the purchase cost 
calculated under Sec. 639.23 of this part.
    (c) If a recipient is unable to perform the prescribed cost-
effectiveness comparison as described in this subpart, it may ask FTA to 
approve an alternate form of cost-effectiveness evaluation.