[Code of Federal Regulations]
[Title 49, Volume 7]
[Revised as of October 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR639.11]

[Page 56]
 
                        TITLE 49--TRANSPORTATION
 
CHAPTER VI--FEDERAL TRANSIT ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 639_CAPITAL LEASES--Table of Contents
 
                         Subpart B_Requirements
 
Sec.  639.11  Lease qualification requirements.


    (a) A lease may qualify for capital assistance if it meets the 
following criteria:
    (1) The capital asset to be acquired by lease is otherwise eligible 
for capital assistance;
    (2) There is or will be no existing Federal interest in the capital 
asset as of the date the lease will take effect unless as determined 
pursuant to Sec.  639.13(b); and
    (3) Lease of the capital asset is more cost-effective than purchase 
or construction of the asset, as determined under subpart C of this 
part.
    (b) Once a lease has been qualified for capital assistance, it need 
not be re-qualified absent an affirmative act or omission by the 
recipient that vitiates the cost-effectiveness determination.