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 <title>Furniture Rental Agreements-Option-to-Buy Clauses</title>
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<abstract>An agency questions the practice of reimbursing employees stationed in
foreign areas for furniture rental agreements that include 
option-to-buy clauses because, in many cases, the employees end up 
owning the furniture at the end of the contract term.  The agency may 
reimburse employees for the expenses of such agreements if the 
employee has no other choice but to enter into such an agreement.  
However, if the employee does exercise the purchase option, the 
employee must return to the agency the amount of the reimbursement 
that is being credited toward the purchase.</abstract>
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