Lease Requirements

Section 1300.4025  Lease Requirements a)         Length of Leases 1)         Maximum Term.  Except when a longer term is authorized by law, leases shall be for a term not to exceed 10 years inclusive of proposed contract renewals and shall include a termination option in favor of the OAG after 5 years .  [30 ILCS 500/40-25(a)] 2)         Renewal Option. Leases may include a renewal option.  An option to renew may be exercised only when the CPO determines in writing that renewal is in the best interest of the State and notice of the exercise of the option is published in the next available issue of the Illinois Procurement Bulletin.  [30 ILCS 500/40-25(b)] 3)         Holdover. No lease may continue on a month-to-month or other holdover basis for a total of more than 6 months . [30 ILCS 500/40-25(d)] b) Subject to Appropriation All leases shall recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease. [30 ILCS 500/40-25(c)] c)         Lessor's Failure to Make Improvements Each lease must provide for actual or liquidated damages upon the lessor's failure to make improvements agreed upon in the lease.  The actual or liquidated damages shall consist of a reduction in lease payments equal to the corresponding percentage of the improvement value to the lease value.  The actual or liquidated damages shall continue until the lessor complies with the lease and the improvements are accepted by the OAG.  [30 ILCS 500/40-55]