Leasing of Refrigerated/Freezer Equipment to Retail Customers

The Colorado Milk Marketing order is enforced by the Colorado Milk Marketing Board.

The Colorado Milk Marketing Order, Section lll, Paragraph 19, titled “LEASING”, states
a handler, handler-distributor, or distributor may lease portable refrigerated units to a purchaser or prospective purchaser of milk and milk products provided the following conditions are met:

1. The lease is at a fair market value.
2. The lease requires equal monthly payments over the period of the lease.
3. If any payment is delinquent in excess of ninety (90) days past due, the equipment is removed from the customer’s premises….by the lessor.
4. A written lease shall be executed in each instance specifically stating in clear and unequivocal language that the lessee may use the leased equipment for any purpose at the lessee’s sole discretion including the storage and sale of milk and milk product from companies other than the lessor.
5. Completed records are maintained which reflect all items in (1), (2), (3) and (4) above and such records are made available to the Commissioner upon request.”

The above regulation covers all businesses in Colorado, including schools and governments. There is no such exception for schools and government agencies or any other type of business or commercial establishment.

Attached is an example of an acceptable lease agreement.

If there are any further questions concerning leasing please contact the offices of the CMMB at 303 757-7418 or e-mail cmmb@comilkboard.com.

Peter Hunkar
Director
Colorado Milk Marketing Board

Cc: Commissioner of Agriculture Office, State of Colorado