TREASURY BOARD EQUIPMENT FINANCING PROGRAM

• 1.0 Purpose
• 2.0 Policy
• 3.0 Definitions
• 4.0 References
• 5.0 Approvals and Revisions

1.0 Purpose

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. Prepayment Penalties: 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.