UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  TREASURY BOARD EQUIPMENT                   POLICY:  VII.R.7x
        FINANCING PROGRAM

                                                                   
The State Treasury Board has negotiated an equipment financing
arrangement with a financial institution for all state agencies.
The University will be using this program to pay for equipment
needing financing over several years.  Specifics of the Treasury
Board program follow.


Lessee:            University of Virginia

Lessor:            A Contracted Financial Institution

Term of Each
Individual
Lease:             Three, four, or five years

Interest Rate:     A fixed rate to be established on the date of
                   acceptance based on a discount of a three- or
                   five-year Treasury Note Index published by the
                   Federal Reserve, depending on the length of
                   financing desired.

Eligible           Personal property with a fair market value of
Equipment:         $10,000 or more and a useful life greater than
                   two years.  Like pieces of equipment,
                   individually priced less than $10,000, can be
                   aggregated to exceed the dollar limit provided
                   they are purchased from the same vendor.
                   Equipment partially funded under the Equipment
                   Trust Fund (ETF) is not eligible.

Title:             Title to equipment will pass to the Lessee on
                   acceptance.

Prepayment:        Partial or full prepayment may be made any time
                   after the first six months of an individual
                   agreement.

Contact:           Budget Office, 924-3349.

See also Procedure 7-90, "Requesting Treasury Board Financing."


ISSUED BY:                                                 02/28/92

Budget Office                  7.18.7