|CMP 405-01 Lease Purchase of Capital Equipment|
Procedure for lease of capital equipment under tri-university master lease
The Comptroller’s Office and the University office of Purchasing Services will administer the Master Lease-Purchase Program. The Vice President for Finance and Administration approves all Lease-Purchase Requests. Arrangements for the execution of the Master Agreement and all-individual Equipment Schedules and filing of all reports (i.e., IRS, UCC) will be coordinated by the Lessor. The Master Agreement will be used to finance acquisitions of personal property between $25,000 and $2,000,000. The aggregate principal amount of all Equipment Schedules entered into under the Master Lease Purchase Agreement in a 30-day period shall not exceed $2,000,000 unless mutually agreed upon by the Lessor and the University Financing for any acquisition of personal property exceeding $2,000,000 may be competitively bid separately by the University or may be included under the Master Lease-Purchase Agreement, if it’s determined to be in the best interests of the University and is agreeable by the Lessor. The Universities also specifically reserves the right to obtain financing for each personal property acquisition from the original manufacturer. As funding is required for acquisitions financed under the Master Agreement, Financial Services Office and Contracting and Purchasing Services will collaborate with the Lessor and Lessor will administer the resulting Equipment Schedule to finance the acquisition. The Equipment Schedule will establish the interest rates in accordance with the formulation defined in the Master Lease Purchase Agreement and arrange the repayment terms. In order to reduce the paperwork and maintain economies of scale, the financing for individual items of personal property totaling less than $25,000 may, at the option of the University, be combined so that the total amount to be financed reaches is at lease $25,000. The Equipment Schedule will establish the interest rates in accordance with the formulation defined in the Master Lease Purchase Agreement, will be executed for the total amount and will identify repayment terms, pursuant to the Master Lease Purchase Agreement.
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