Issued: February 28, 1992
Owner: University Comptroller
Latest Revision: November 15, 2005
TREASURY BOARD EQUIPMENT FINANCING PROGRAM
**ACTIVE BUT UNDER REVISION**
This policy is currently under revision at the University. Although the statements herein reflect enforced policy guidance, please contact the "Owner" listed above if you have questions about how this policy applies to your office. The statements herein are to be used as general guidance until the policy has been revised and added to the University Policy Directory. Thank you.
This policy describes the specifics of the State Treasury Board program for financing certain equipment purchases.
2.0 Policy [Top]
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, five, seven, or ten years; not exceeding useful life of equipment. Interest Rate: A fixed rate to be established on the date of acceptance based on a discount of a Treasury Note Index published by the Federal Reserve, depending on the length of financing desired. Eligible Equipment: Personal property with a fair market value of $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.
- 6 months: -3%
- 7-12 months: 2%
- 13-18 months: 1%
- +18 months: 0%
Contact: Investment & Tax Services, 924-1456.
3.0 Definitions [Top]
4.0 References [Top]
See also Procedure 7-90, "Requesting Treasury Board Financing."
5.0 Approvals and Revisions [Top]
Previous version in effect from 2/28/92 to 2/1/00 available in policy archive.
Previous version in effect from 2/1/00 to 12/15/05 available in policy archive.