Memorandum Of Understanding
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1
2Memorandum
of Understanding
_____________________________________________
(Name of Department/School/Unit)
Internal Loan
Purchase Description
The ___________
_______________________________________ (hereafter referred to as
(Name of Department/School/Unit)
“Borrower”) desires an internal loan for the purchase of the following copy/print/MFD equipment:
Enter brief description of unit(s) being purchased requiring loan funding: [quote(s) attached]
1) ________________________________, Quantity________, Price Each $___________ = $_____________
2) ________________________________, Quantity________, Price Each $___________ = $_____________
3) ________________________________, Quantity________, Price Each $___________ = $_____________
TOTAL: $____________
Contracted Supplier Name: ________________________________
Contract #______________
Procurement Services Signature: ___________________________
(Procurement Services signature showing review and approval of the quote)
The purchase will be recorded as follows. Approval of loan will transfer the net borrowed to same fund/cost
center.
___
_____________
__________________
___________________________________
BA
FUND
COST CENTER
REAL/STATISTICAL INTERNAL ORDER
Internal Loan
A down payment of not less than 20% will be made at the execution of the purchase order. The University
agrees to fund the net amount of purchase described above with an internal loan in the amount of
$___________ based on the terms and conditions outlined in this agreement.
The internal loan under the program will be subject to the following terms:
Loan Period – The repayment period of the internal loan will be for a period of ______years [not to exceed four
(4) years].
Variable Interest Rate – During the term of the internal loan, interest expense will be assessed at a variable
interest rate, established and reviewed semi-annually by the Senior Vice President for Business Services and
Assistant Treasurer. The interest rate will be based on the actual distribution rate of the Cash Management
Investment Pool (CMIP). This rate is established in arrears as of November 30 and May 30 of each fiscal year.
Interest is accrued semi-annually per the current CMIP process.
Outstanding Principal – The internal loan principal balance may fluctuate over time based on established
annual payments, unpaid interest, and any voluntary payments directed to the balance by the Borrower. At
the end of the term of this loan, the entire balance of the loan must be paid in full.
Internal Loan Payments – The repayment obligation set forth under this internal loan program will commence
on December 1st and will be paid in annual installments. The Borrower may prepay any portion of the loan at
any time with notification to both the Office of Treasury Operations and Accounting Services. Prepayment of
principal will reduce total interest expense but will not reduce scheduled amortization until final payment.
Revenue Pledges – Borrower hereby makes an irrevocable commitment to apply allowable Supplies and
Expense funds to the project account, cover all interest expense charged to the loan accounts and commit to
annual loan payments until the loan is paid in full. Payments for interest and principal will be made on an
annual basis from allowable funds. In the event the pledged resources subsequently are unavailable, other
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August 19, 2015
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