Issued: February 28, 1992
Owner: Investment & Tax Services
Latest Revision: November 15, 2005
TREASURY BOARD EQUIPMENT FINANCING PROGRAM
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.