Consolidated Equipment Financing Program
Equipment Financing
The Consolidated Equipment
Financing Program (CEFP) is available to
state agencies and universities for the
purchase of equipment at low, tax-exempt
interest rates which are normally much
lower than vendor or third-party
financing. The Program is administered
through the Department of Financial
Services. The Program began in 1986 with
the issuance of Certificates of
Participation and has evolved to the
current Program that utilizes a line of
credit to provide low interest on
equipment purchases. Computers, copiers,
communication systems, laboratory
equipment, medical equipment, and
printers are examples of equipment the
Program has financed.
On May 1,
2006, the Program entered into the
seventh Master Lease Purchase Agreement,
which is with SunTrust Leasing
Corporation. This agreement created a
$30 million line of credit over a twelve
month period for the purchase of
equipment for state agencies and
universities with an option to extend
the time period for an additional two
years at the end of the original term.
One, two, three, four and five year
financing terms are available.
Program
interest rates
under
this agreement are set after 2:30 PM
each Monday and are effective during
that week. The interest rates for
11/17/2008
through 11/21/2008
are:
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1
YR.
1.42%
|
2
YR.
1.58% |
3
YR.
1.93% |
4
YR.
2.24% |
5
YR.
2.47% |
To finance an equipment purchase
under the Program, an agency fills out a
checklist
and submits it to the Department of
Financial Services for review and
approval. Once the deferred-payment
request is approved (this normally takes
about three days), the agency can issue
a purchase order to the equipment
vendor. When the equipment is received
and accepted by the agency, notice is
sent to SunTrust Leasing Corporation who
then pays the equipment vendor and sends
some final documents, including an
amortization schedule, to the agency.
Under the current CEFP, agencies are
responsible for making payments to
SunTrust Leasing Corporation in
accordance with the approved
amortization schedule.
The
Department of Financial Services shall
execute agreements and contracts in
accordance with provisions in Chapter
287.064,
Florida Statutes.
Eligible equipment for the Consolidated
Equipment Financing Program are all
items of tangible personal property such
as computer equipment-main frames;
computer equipment-peripherals; office
automation and personal computers;
photocopy/duplication and office
equipment; telecommunications or
telephone systems; printing and
typesetting equipment; tractors,
non-road use vehicles, material handling
equipment; laboratory equipment, medical
equipment, energy conservation
equipment, airframes and portable
structures; and such other tangible
personal property and software as the
Lessor and the Lessee agree to make
subject to this Agreement.
Contact:
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